Negotiating with an IMO/FMO

Sep 19, 2018

  1. moneycage 2018
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    moneycage 2018 Expert

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    This title might me the wrong wording, but my question is more what is realistically the highest contract a newby can get from an IMO. I have heard as some of the highest are 80% and some of the lowest is 25%, and that negotiating can be tough because your upline or MGA has to be on a higher contract then you.
     
  2. Todd King
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    Todd King IMO/FMO Owner

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    You actually have to be more specific about the product, but my guess is that 80% is no where near what you can get...but once again, depends on the product.
     
  3. moneycage 2018
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    moneycage 2018 Expert

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    Final Expense and Medicare
     
  4. VolAgent
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    VolAgent Guru

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    Well, you're not getting 80% on Medicare, but you can get more on FE unless you are on a free or heavily subsidized lead program.
     
    VolAgent, Sep 19, 2018
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  5. Newby
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    Newby Guru

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    Starter (or Newby) commission levels should be posted on the website of any agency you are considering. If not they should email the PDF grids easily as soon as you request it.

    If it takes more effort than that then you can scratch that IMO off your list. You should never have to put up with BS to get the most basic thing you have to know before you waste time going any further with them.

    If you are considering an agency that stalls you from getting the commission levels in writing quickly then it doesn't take a genius to know why they don't want you to have that information.

    Should be as simple as this. Final Expense Commission Levels
     
    Newby, Sep 19, 2018
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  6. moneycage 2018
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    moneycage 2018 Expert

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    Thank you for Grid. So let me ask you, or anybody this, so is contract level different depending on the carriers. Example on the grid you posted. I see every carrier has a different number next to "Year 1," Is that the contract level that they have you contracted for per carrier.

    Basically asking this to learn how to read commission structures as well. So that I know what I am reading when they send it to me.
     
  7. moneycage 2018
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    moneycage 2018 Expert

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    heres a question that doesn't really correspond with the topic. So if contract level is done by production. Then is it possible for someone to be an MGA with one carrier and a regular agent with another.
     
  8. myinsurebiz
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    myinsurebiz Guru

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    Just find an IMO that will give you above street on contracts. Then spread your contracts out over 2 or 3 of them . . . Don't put all your wives in the same Ho house . . .
     
  9. jasperjohns
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    jasperjohns Super Genius

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    moneycage 2018. Typically you want to start at what is referred to as a "street" level contract or a GA (General Agent). this would be the highest level you can get without proof of production. Now the difficult part is that "street" is different for each carrier and all carriers have different names for different levels. If you are looking for street levels for annuities I could reply with that for a couple of carriers if you would like. That said I am not a FMO or recruiter. Once upon a time you could call annuity carriers and ask them what street was but many of the larger carriers now defer all commission level discussion to the FMOs. For FE (Final Expense) Newby posts very fair comp levels on his website which he posted a link to.
     
  10. jasperjohns
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    jasperjohns Super Genius

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    oh and to answer another question: You can have different levels with different carriers. SO you may be at street with one carrier but higher with others. One should never take less than street because contracts have a spread built in for the FMOs.(unless you are with a agency providing something of value like office space, leads, training..etc) But the spread is usually fixed amount so if a upline is getting 20% more then street and they give you half of that (ie above street) now they are making less because all they get is the difference. Typically, and rightly so the FMOs only give higher level contracts (above street) to producers that are producing a certain levels. But ….truth be told....there are ways around that. I have several annuity contracts that are 1.25% above street so if the annuity commission is 7% I make 8.25% and I have others where the carrier says I cannot have a above street level contract unless I commit 10 million in annuity premium to that a single carrier SOOO what the larger and willing FMOs do is cut a bonus check monthly based on monthly production to still get me the extra compensation that he carrier would not give me directly. This is for the annuity side I cannot speak of the FE side.