I 100% agree fmo's are needed . But not at $250-$300 an appt first year and $150 renewal override of every policy . Plus the big ones are getting soft money outside big marketing money . 80% total override is being paid on each plan . I agree a flat $100 an app should be paid to the fmo. Then there's no incentive for all these call centers to be hiring 10's of 1000's of agents to flip plans on the phone
That's fine but the question is what does an FMO do for an agent. So far the only thing you've said is nothing unless you ask for it.
I would bet 99% of agents speak to carriers 10x more often than they speak to their FMO.
1. Provide top commission rates commensurate with production and support.
2. Provide product support, product training, regulatory updates, & guidance on cases.
3. Provide marketing support. Dollars. Systems. Ideas. etc.
And no. You should not HAVE to ask for it. It should be offered.
But if you are not receiving it, you should definitely ask for it.
If they wont give it to you, then find an upline that will.
If they are not worth a damn on support. Find one that is.
If you dont need support, shop around and find the top payout.
But if you do need support, you should not expect the top payout.
FMOs are able to leverage their large production numbers to get those high payouts. Agents who need zero support, should profit from that business model. If they arent, that is the agents fault for not crossing the street.
No where near what you and others might think. For some reason agents seem to think the IMOs/FMOs are making the money they would get, which is just not true. Getting rid of FMOs would make your job harder without increasing your commissions.
I am thoroughly convinced that agents have no clue all of the things that FMOs do...until you become one! I've been on both sides. I can see it from both sides. Most can't or won't.
If you're not making the money Don mentioned, someone else is and you just don't know what you're leaving on the table. There are at least two large carriers out there paying $500 first year non commission money.
And many agents see very little value from their FMO at least when it comes to Advantage, drug plans, and supplements. The most value comes from when the FMO shares some portion of their money.
The hard truth is that FMOs are paid far more than the value they create. They are recruiters who sometimes train very new agents until the new agents don't need their hands held.
You do you. Just don't pretend the FMO is providing hundreds of dollars of value per member per year.
1. Provide top commission rates commensurate with production and support.
2. Provide product support, product training, regulatory updates, & guidance on cases.
3. Provide marketing support. Dollars. Systems. Ideas. etc.
And no. You should not HAVE to ask for it. It should be offered.
But if you are not receiving it, you should definitely ask for it.
If they wont give it to you, then find an upline that will.
If they are not worth a damn on support. Find one that is.
If you dont need support, shop around and find the top payout.
But if you do need support, you should not expect the top payout.
FMOs are able to leverage their large production numbers to get those high payouts. Agents who need zero support, should profit from that business model. If they arent, that is the agents fault for not crossing the street.
And that's the problem. The MA and PDP comp rules exist so there is a level playing field. Not to reward any particular group just because they sell more stuff.
Todd, just because you don't earn those amounts doesn't mean others aren't … and you might want to rethink whether it's fair that so much money is so unevenly distributed in our industry.
