Understanding IMO Commissions

[nickzimmer]

Hi Everyone! After reviewing the posts on this forum, I have a good sense of the commissions that agents who work with IMOs receive upon selling various annuity products. However, I am curious as to how much the IMO makes from selling annuities. Does anyone happen to know what this commission might look like? I recognize that this will vary depending on the type of annuity sold. Thanks so much for your help!

 

[donamese]

Depends on the IMO, the product, the amount a producer sells, etc. A MYGA standard would likely take 50-100bps but a fixed annuity with an 8% street they may take 200-300bps.

 

[nickzimmer]

Just to clarify, when you say 8% street you are referring to the commission agents make on the fixed annuity? Furthermore I'm assuming that this is a fixed indexed annuity given the higher range. Thanks!

 

[donamese]

Street being the standard going rate for writing agents on the product. Yes, I was referring to an FIA.

IMOs will vary their commissions as well based on the services they offer (leads, support, training, etc)