New Agent Thinking Big and Dreaming Bigger

[supersupps]

I just passed my life and health in Fla. I will be selling medsupps and MA. My question.. I found a good FMO. I spoke to a MGA who does business with this FMO. ( names being kept private.) The FMO said that this man is very big in broward.. ( my area ) When I spoke to the MGA, he said he's been in the business for about 5.5 years and has 75 agents working underneath him. When he sent me his 20 page broker agreement I was afraid to sign it. I thought, what if I learn the business in 5 to 10 years and want to do the same thing that he is doing ( have a lot of agents underneath me ) With all the things listed in the agreement, I dont know what I can and cannot do, but the feeling I get is I could never start my own agency and go direct to an FMO. How is this done and what can I do to protect my future? I know most agents burn out but just in case I get real, real lucky, I want to be able to do just what the MGA did. Please offer some advice. thanks..

 

[669comche]

I wouldn't worry about it.

Most of the contracts that are signed are bogus anyway. Its merely a paper exercise.

A friend of mine had a contract with a health insurance carrier. Contracts vested from day 1, advances, no interest etc etc. The company went under, sold his block of business and left him with nothing.

Bottom line is this: It does not matter what you sign, there is always a way to get out of it/do what you want.

 

[Frank Stastny]

Probably the number one thing you should be looking for is Assignment of Commissions.

If they want you to assign your commissions to them run like hell. If your commission is below street level, run like hell.

Do pay very close attention to what you sign.

 

[padthaiforlunch]

You know, if I were to bring a agent on and have to invest the time in training and hand-holding.... I would insist they assign all commissions to my corp so I can recoup my investment. Chances are the new agent will find it too hard and leave, so why set yourself up to lose the income stream on the few policies they sell?

Consider it part of the process for someone else paying the office overhead and giving you training. Realize that the cost of training may include leaving your book of business behind.
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OP, you can learn the business in less than 5 years. Think 6-18 months.

 

[Josh]

My two cents, you should fess up the name of the FMO/MGA and see what there reputation is on here.

 

[supersupps]

What about if the contract says something that I must stay with them for 2 years.. and after that I can go where I choose?

 

[Josh]

What about if the contract says something that I must stay with them for 2 years.. and after that I can go where I choose?

I go back to you probably want to call out who it is and then see if anyone knows them for good or bad.

Personally, I would not sign any contract that assigned commissions or put any limits on what I could do as an independent contractor. It sounds like the contract you're looking at is unconscionable and would be unenforceable. How much would it cost you to defend that position? Too much. There are SEVERAL good FMO's that will be honest and up front with you without making you sign any oppressive contracts. Integrated Benefits and Senior Market Sales would be two good places to start, I've worked with both and from experience with them can easily say either one would serve you well. I've also heard good things about Ritter, but I'm not sure how big they are in Florida. Same thing with another group called Gordon Marketing.