Negotiating with an IMO/FMO

[WinoBlues]

Sort of ... maybe hoping for the title "Little Chicago"?

Ex-Allentown mayor Ed Pawlowski, convicted of 47 felonies, asks for help with legal bills

Sad thing is the headline makes this sound worse than it really was, imo. Imo, poor Pawlowski was found guilty of less than goes on in most small cities in America. He wasn't even lining his own pockets ... he was trying to raise money to fund his election bid. That's why we're small time ... those Chicago pols are on the take to line their own pockets. Heck, where else but Chicago can a community "organizer" become presidnet in just a few years. Heck, Trump had to put in like 15 seasons on his horrid show "The Apprentice" before he got his chance.



Ironically, those are the days I come home feeling the scroungiest - it's like every odor and every stench comes home clinging to me.

I have a new name for rainy days: In-service days, as in I stay in and get any service work done that needs doing. No service work? No work. Period. I do not door knock in the rain. I'll door knock in the snow, the sleet, ... heck, I have even door knocked in center city in the gloom of night (not may willing to that around here, I'm telling you). But I would not could not in the rain.

Be careful. You are starting to sound like an independent (thinker).

 

[DayTimer]

Be careful. You are starting to sound an independent (thinker).

Made me think of this ...

 

[moneycage 2018]

An important question, but not the most important. Probably top 5, certainly top 10, but not the top consideration for a newby, imo/





Good stuff from @WinoBlues ...

@moneycage 2018 I assume you are as green as can be in that it appears you have yet to contract with one carrier. I am just finishing my 8th month full time (stared full time in the field with leads in February 2018).

Here is my suggestion: First, answer for yourself if you plan on starting by specializing in Final Expense. If so, then answer for yourself how you plan to prospect, e.g. you can cold door knock, develop or buy Facebook or Telemarketed leads, or drop mail to generate direct mail response leads. Each has its own advantages and disadvantages.

If you decide that DM is the way to go, then you have a decision to make. You can either join an IMO that will give you access to a fixed price lead program, or you can find a mail house, such as my personal favorite - Main Street PowerMail - and do your own mail drops. If I were starting over, I'd control my own mail by dropping 2000 pieces two weeks in a row in my area, and then drop 1000 to 2000 pieces per week each and every week thereafter. If you do decide to control your mail, you must make a committment to drop mail each and every week, 52 weeks per year. You're going on vacation? So what? Drop that mail ... each and every week. If you canot discipline yourself to do this, then go with a fixed price lead program to force the discipline upon you.

I have been on two fixed price mail programs, and they are certainly a worthwhile alternative. I myself vacillate between doing it on my own and fixed price. I have recently decided that the best way for me is to go on about 20 fixed price leads per week and drop 1000 pieces per week on my own. Many will tell you that 20 per week is sufficient. Others will tell you that 25 to 30 or more is where the "sweet spot" resides. The truth is that if you go to work to work, you can never have too many people to speak with about life insurance, but you can easily have too few.

Once you figure out your prospecting route, then you can turn to the IMO decision. If you are indeed brand new and green as can be, then get yourself with an IMO that offers training, at least one or two days of ride-alongs, and a fixed price lead program (even if you decided against this, you should preserve the opportunity to change your mind easily).

Second, do not contract with every carrier your IMO offers. Personally, I would limit myself to MOO/UOO, Trans, Liberty Bankers Life, and Royal Neighbors.

As far as IMO's I could recommend two for a newbie:

Matt Mungia's The Insurance Squad with 360 Financial. I have multiple contracts with him, including my main carriers as posted above, and in any given week, 90% or more of my business goes there (I have a few contracts direct to carriers who provide me a few leads each month, and those leads get written with the referring carrier if the client qualifies). Good training, fixed price leads, strong contract levels, and a good number of agents, many less than a year in the biz, who are writing $10K+/week, and doing it consistently. You can reach out to Matt through the forum and he goes by @SPUR CITY

I also would suggest that you speak with EFES, and in particular reach out to Chris Smith who goes by @Baseball7 here on the forum. Good training (the best door knocker in the biz, in my humble opinion), and as sharp a field underwriter as I have seen. If Matt is the best upline I've ever had, then Chris is the best upline I've never had. I have great respect for both, and either would be a good choice.

Contract levels are important, but are not everything - not even most important. Most important, imo, is this: Will your upline be available when you need help in the field? And will your upline treat you with respect as a valued partner or call you on your cell and scold you like an unwanted child because they don't like something you said on the forum or on Facebook?

The two IMO's I suggested are the two with whom I have personal experience. That does not mean they are the only two worth speaking to, but between those two guys, you should be able to pick an upline who will set you up for success.

Now, if you do decide to put your own lead program into place, you should be able to place contracts with two or more IMO's simultaneously. In that case, however, I suspect that Matt's organization would be more amenable to sch an arrangement than EFES, which is far more captive in character, imho.

Thank you for that feedback, so Is fixed price leads basically an "in-House" lead program.

For example I have heard that people like Lincoln Heritage put you on a weekly lead program where you give you leads then dock your commissions. Is that what you mean by Fixed Price.

 

[goillini52]

Thank you for that feedback, so Is fixed price leads basically an "in-House" lead program.

For example I have heard that people like Lincoln Heritage put you on a weekly lead program where you give you leads then dock your commissions. Is that what you mean by Fixed Price.

Fixed price means that you pay, say $30 per DM lead as opposed to taking your chances on dropping a 1,000 pieces for $450. If you get 10 leads back, you paid $45 a lead and it cost more than the fixed price lead. If you get 20 leads back, you paid $22.50 a lead it it cost less than a fixed cost lead.

The area you're mailing to can make a difference. Try it both ways.

If you buy fixed price leads from an FMO, they're going to want most of your contracts.

 

[moneycage 2018]

Fixed price means that you pay, say $30 per DM lead as opposed to taking your chances on dropping a 1,000 pieces for $450. If you get 10 leads back, you paid $45 a lead and it cost more than the fixed price lead. If you get 20 leads back, you paid $22.50 a lead it it cost less than a fixed cost lead.

I see so fixed lead is the client has already sent the info back, and you are buying the lead from the IMO. Doing your own mail drop you are in complete control.

If you buy fixed price leads from an FMO, they're going to want most of your contracts.

Makes sense since they are doing your marketing for you.


So if you do all your own maildrops or lead generation in general, are you pretty much eliminated the role of an IMO, and at that point the only role the IMO has is getting the contract for you.

 

[goillini52]

I see so fixed lead is the client has already sent the info back, and you are buying the lead from the IMO. Doing your own mail drop you are in complete control.



Makes sense since they are doing your marketing for you.


So if you do all your own maildrops or lead generation in general, are you pretty much eliminated the role of an IMO, and at that point the only role the IMO has is getting the contract for you.

A fixed price lead means that if they're fixed price at $30 each and you buy15, you spend $450. If you do a 1,000 piece mail drop you might get 15 back...you might get 30 back. The advantage of the fixed price lead is you KNOW how many leads you're getting, with a 1,000 piece drop, you don't...you're gambling.

The main role of a FMO is to get a contract. Many FMO's have added value benefits like lead programs, free quote engine, lead co-ops, etc. Some have training. If you do your own lead drops, you don't need to put all your eggs in one basket. You have more freedom and are more Independent.

Depends on what you need or want from an FMO.

 

[moneycage 2018]

A fixed price lead means that if they're fixed price at $30 each and you buy15, you spend $450. If you do a 1,000 piece mail drop you might get 15 back...you might get 30 back. The advantage of the fixed price lead is you KNOW how many leads you're getting, with a 1,000 piece drop, you don't...you're gambling.

The main role of a FMO is to get a contract. Many FMO's have added value benefits like lead programs, free quote engine, lead co-ops, etc. Some have training. If you do your own lead drops, you don't need to put all your eggs in one basket. You have more freedom and are more Independent.

Depends on what you need or want from an FMO.

I understand, so an IMO/ FMO is the insurance equivalent to a Broker in Real Estate. You have to work under under one because it’s law. But, some may offer different splits and different incentives as a way to entice people to sign up with them.

 

[Todd King]

I understand, so an IMO/ FMO is the insurance equivalent to a Broker in Real Estate. You have to work under under one because it’s law. But, some may offer different splits and different incentives as a way to entice people to sign up with them.

You don't HAVE to go under someone in insurance because it's a law or anything, it's mostly because insurance companies want it that way. Some companies could care less and will contract you direct. There's no real advantage to doing that though.

 

[rousemark]

Damn!!! Nice "Neighborhood". Are they trying to compete with Chicago?

It is not just the bigger towns... Athens TN only has about 13,500 people but lately we have had a shooting or knifing at least once per week..

 

[moneycage 2018]

You don't HAVE to go under someone in insurance because it's a law or anything, it's mostly because insurance companies want it that way. Some companies could care less and will contract you direct. There's no real advantage to doing that though.

right because it makes you captive correct, then you don't have as many carriers and products to help a client with.