Most all of my contracts are direct. Two carriers required me to contract through a MGA and a FMO.
I had one question I needed answered last year from the MGA. Simple question. I emailed the MGA the question. His answer was, "I don't know". I called the company and got my question answered.
The FMO is completely worthless. Other than every 6 months or so they send me a thank you card for my business.
If you are getting say 23% you can only give them either what you are getting or something less. If you give an agent 21% you only get to keep 2%. You will have to have a whole bunch of producing agents under you to realize any "real" money from contracting.
Unless you give the agent 15% or 18%. However, if street is 21% or 22% you are going to have a lot of very unhappy agents.
