Med Supps? Why Write Through an Agency?

YouGotMyMoney

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I have been interviewing multiple IMO/FMO's for Med Supp contracts for myself and my colleagues.

What I can not understand so far is, what is the benefit to the writing agent in submitting business through an FMO, even if you are paid direct from the carrier?

For example, Mutual of Omaha:

Street level for writing agent is 15%?

Then a GA contract is 17%?

I assume an MGA contract is 19-21%?

For the agent who pays for their own leads/marketing tools, I just don't see the benefit for the agent or the agency unless this is truly a high volume business?

It seems to me the margins are too low...


Any thoughts anyone?
 
Re: Med Supps---Why Write Through an Agency?

Volume gets you a better deal. Have you tried Senior Market Sales? Usually you can get a better contract by signing up with a large volume FMO. This especially comes into play as your volume increases. An FMO can bump your commission levels up more easily than you can direct with the carrier. I'd try integrated benefits too. For some reason I thought MOO was at least 19% at the street level with most FMO's. Maybe you're also talking to an operation too small to offer you a real contract?
 
Re: Med Supps---Why Write Through an Agency?

Thanks MPS for responding.

I have seen 15% street level from 3 IMO's, though you could be right.

I will take a look at those agencies you mentioned.
 
Re: Med Supps---Why Write Through an Agency?

They're true FMO's/IMO's. It cracks me up the type of agents/agencies that call themselves an IMO or an FMO when they really have glorified agent contracts (if that). I'm not saying any of the ones you spoke to are like that, but it's extremely common. In fact there's a guy that came on here not even a year ago asking how to get contracts, how to pay telemarketers, what scripts to use, etc and he's already calling himself an IMO.
 
Re: Med Supps---Why Write Through an Agency?

I'm contracted with United of Omaha / Mutual of Omaha through Independent Agent Advantage. My commission is 18% and I get paid direct. I'm in SC. 15% seems awfully low...
 
Re: Med Supps---Why Write Through an Agency?

Proposterous :-) I can't believe it. lol

I know, right?

Let me start with the punchline:

3/3/2010 His website says he's an IMO so I ask how he became one so fast and this is the response:
I came to this board as IMO. I have been selling insurance and investment for years, just not active on this board.

Ok, so he's been an IMO for years, here's what he's been posting, I'll leave my commentary at that.

8/28/2009
An Agency would like to find a good IMO who offer MGA contract for Americo, Occidental and United Home Life. Let me know if you know good one. Prefer one IMO with all three contracts. Send me private email or PM. Thanks.

9/7/2009
How do you recruit your new agents and where do you put your effort? Hope you experts here can share some ideas to it.

9/7/2009
In addition to the giving good contract to the agent who producing, what other ways you do to motivate agents to do more. I find many agents lost their interests very fast, not doing enough volume to be productive.

9/8/2009
Just want to you vet. opinion which company offers the cheapest rate and easy to sell. My limited companies indicate that Colorado Bankers Life is cheaper than most of my carriers. and only 3 pages of the application including the banking authorization and Presicription history authorization.

9/9/2009
RNA seems beat the Colorado Bankers Life for the example I asked for the quote. I don't have RNA, can anyone suggests an IMO for the RNA besides the EFES?


On the subject of lead generation:

8/16/2009
I would trust only the mail drop service.
Appointment setter is an easy scam.

9/7/2009
I am looking for scripts for the FE appointment setter to achieve high appointment rate for the given leads. Any suggestions would be greatly appreciated.

11/5/2009
Have you thought about using the telemarketer for your appointment setter or lead generator? Yes, you probably have. But it maybe a little expensive for you to operate in house for a telemarketer. Here is a solution to you - for less than 900 dollars per month (less than 5.50 per hour), you get a full time agent and a unlimited US phone line to make telemarket calls for you. You provide a marketing list, the agent makes appointment for you. Let's say the agent make 3 appointments for you per day, how much it costs per appointment? That is less than 44 dollars for 3 appointments. Generally speaking, appointments costs over 30 dollars each if you buy from someone else. This agent can be used for what ever way you desire - secretary, telemarketer, scheduler, customer service agent etc. The agent is from Philippines and speak perfect English with BS degree. You can interview the candidates before determine which one is best for you. The company offers such services are in USA and has big operation in Philippines with American supervisors there. I am a representative to this American company. Let me know if you need more information. I hope I can be any help to you all. Send me private email or message please. Thanks.
 
it all depends on which state you are looking at and which company (MoO or UoO). for example, one level might be both 21% in one state (with UoO) and 18% in another state (like Florida - MoO). In Florida (assuming that's where you are based on your flag), commish is lower with MoO than most states are with UoO.

that said, you should be able to find better than 15% in Florida
 
The highest I've been able to find for florida (MoO) so far is 16%. I have one more place to check out once I get a release from Great American next week.
 
The highest I've been able to find for florida (MoO) so far is 16%. I have one more place to check out once I get a release from Great American next week.

That's what I'm getting in Florida w/MoO...16% on med-supps.
 
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