Negotiating with an IMO/FMO

[moneycage 2018]

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.

Thank you for the explaination. So essentially there is no "set universal street level" contract and every carrier is different. That is why one guy will offer one % and another guy will say that "you are getting screwed" and offer you another %, neither one is right or wrong the street levels and contracts are just set differently.

This is why I always though researching the business side industries were essential before signing anything.

 

[moneycage 2018]

so a good question to ask would be "what is your street level contract" to an IMO

 

[jasperjohns]

so a good question to ask would be "what is your street level contract" to an IMO

yes and you hope they are not lying. Transparency is usually a indication of honesty.

 

[moneycage 2018]

yes and you hope they are not lying. Transparency is usually a indication of honesty.

So pretty much is the only was to know is if they are willing to give you there commission sheet in writing.

 

[jasperjohns]

So pretty much is the only was to know is if they are willing to give you there commission sheet in writing.

Unfortunately not always. The commission schedule will just show the level you are being placed at and with some carriers all levels below. From my research the levels Newby (earlier in this thread) posted are all street so you can use that as a guideline for FE contracts. You could probably haggle for a couple of extra points with some FMOs but that doesn't always work out best.

 

[moneycage 2018]

Unfortunately not always. The commission schedule will just show the level you are being placed at and with some carriers all levels below. From my research the levels Newby (earlier in this thread) posted are all street so you can use that as a guideline for FE contracts. You could probably haggle for a couple of extra points with some FMOs but that doesn't always work out best.

Im am sorry but that is histerical. You mean you will actually have Managers that will customize a commission schedule to show you. I can tell alot of Street Smarts is need for this industry.

 

[jasperjohns]

Im am sorry but that is histerical. You mean you will actually have Managers that will customize a commission schedule to show you. I can tell alot of Street Smarts is need for this industry.

LOL not typically....but I did get that once. Usually you get the level straight from the company-part of your agent contract once contracted. But you and the FMO agree on a level. For example, Standard Life and Casualty, I believe their "street level" is called Super Street and it is 105% (of first year premium) for ages 0-80 on their Secure Advantage FE product. Bottom line is do research on whoever you are going to work with and determine if you can trust them. Then trust that they are being fair.

 

[myinsurebiz]

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.

Not always . . .

 

[myinsurebiz]

so a good question to ask would be "what is your street level contract" to an IMO

Get their #'s and come back here and post them. We'll let ya know if good or bad . . .

 

[Todd King]

Final Expense and Medicare

Use this as a general rule: For FE the contract levels should fall between 110% and 120%, depending on the company. Of course, GI (like AIG or Gerber) will only pay out out 80% and 60% respectively.

For Med Supps it will usually fall between 20% and 22%. Sometimes you'll see a 19% though.