Negotiating with an IMO/FMO

[Newby]

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 a lot of Street Smarts is need for this industry.

The first thing you want to do is quit using the phrase (Street Level). A few carriers do have a structured level they call street. But most do not. So the phrase "Street Level" gets used to abuse new agents more than anything else. At one agency "street" can be 50% and at another agency street for that same product is 120%.

Don't ever accept the phrase "Street Level" as an answer to any discussion about commissions. That's the same as asking a car salesman how much a car you are buying costs and his answer is "it's affordable." Numbers printed on a page is the ONLY acceptable answer. You need to be able to gather the numbers easily and compare them. That is what keeps all IMOs toeing the line and competing with each other.

 

[Newby]

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.

I think I understand your question.

The agency (IMO) decides what commission level he gives to new agents. The less amount the agency can get you to sign up for, the more they get to keep for them self. That's why many won't post them. They want to feel you out to see how much you know or don't know and will offer you less if you haven't done your home work.

Each company is different. So for instance at my agency you can see on the grid that if you sell a policy with Standard Life you get 105% 1st year. But sell that same case with Americo or Cincinnati Equitable and you get 125% 1st year. Each agency decides how much they will give to new agents with each company.

You have the greatest tool to make sure you do not get screwed. It's your feet. Require clear commission grids in writing for any companies you are considering from each IMO you are considering. Anyone that yanks you around at providing the grids OR tries to keep too much for themselves compared to their competitors should never be considered. Walk away. IMOs make plenty of money giving out fair commissions. It's obscene how greedy many of them get when agents fall for the "street level" talk.

 

[MIBizInsurance]

Anyone that yanks you around at providing the grids OR tries to keep too much for themselves compared to their competitors should never be considered. Walk away. IMOs make plenty of money giving out fair commissions. It's obscene how greedy many of them get when agents fall for the "street level" talk.

This is so true.
Found it silly to ask for a grid only to be sent an email listing a few companies. Then when you press them they send grid and as you could guess the remaining companies are extremely low commissions compared to others.

 

[WinoBlues]

This is so true.
Found it silly to ask for a grid only to be sent an email listing a few companies. Then when you press them they send grid and as you could guess the remaining companies are extremely low commissions compared to others.

Then you simply contact one of the other thousand IMOs for those companies.

 

[MIBizInsurance]

Then you simply contact one of the other thousand IMOs for those companies.

Yep, far to many good IMO's out there to screw around with. If they can't mange to send a complete grid on first request then why bother!

 

[WinoBlues]

Yep, far to many good IMO's out there to screw around with. If they can't mange to send a complete grid on first request then why bother!

I agree with transparency. However I do not remember ever contacting with anyone for more than one or two companies at a time. Example, my MoO / UoO business mostly goes to one guy. When I reached out to him I just wanted them. Since then I picked up TA with him. I really don't care what he pays with company Y. If I ever want Y I will shop out the contract. Same as our clients do for Life Insurance. Now, I like this guy so I would check with him first. If he is close I would probably write it with him.

Personally I don't bounce around for a few points one way or another.

 

[moneycage 2018]

I agree with transparency. However I do not remember ever contacting with anyone for more than one or two companies at a time. Example, my MoO / UoO business mostly goes to one guy. When I reached out to him I just wanted them. Since then I picked up TA with him. I really don't care what he pays with company Y. If I ever want Y I will shop out the contract. Same as our clients do for Life Insurance. Now, I like this guy so I would check with him first. If he is close I would probably write it with him.

Personally I don't bounce around for a few points one way or another.

So correct me if I am wrong, because I may have misread what you wrote. But, are you saying that you are contracted under a couple of IMO's.??? So you could have more then 1 IMO.

 

[WinoBlues]

So correct me if I am wrong, because I may have misread what you wrote. But, are you saying that you are contracted under a couple of IMO's.??? So you could have more then 1 IMO.

More than a couple. Plus several contracts direct to the companies.

I should clarify also that I am a Life insurance agent. Not an FE, Term, Whole Life, IUL, UL only agent.

It is very common for Independent Life Insurance agents to have multiple contracts with multiple "uplines". Same as all independent uplines tend to have multiple contracts with multiple companies and uplines.

I also have several contract numbers with some companies. Example: I have multiple Protective numbers through multiple uplines.

Sounds complicated. But it is not. Again, pretty common in the independent Life Insurance world.

Edit: some of my contracts are very old. Other than specific products or a IMO specialty. There is no reason to spread your business to thin. If you are newer. Stick with just a couple. IMohsoHO

 

[myinsurebiz]

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 . . .

So correct me if I am wrong, because I may have misread what you wrote. But, are you saying that you are contracted under a couple of IMO's.??? So you could have more then 1 IMO.

Told ya this like 102 beers ago . . .

 

[moneycage 2018]

Told ya this like 102 beers ago . . .

I thought you meant 2 or 3 carriers not IMOs