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I have had more grief than benefit by having an FMO. It seems that this system primarily is designed to keep an agent from earning as much money as they can.
Case in point. I had a contract for Secure Horizons Direct through an FMO is Anaheim, CA. I then had an offer of an MGA contract through another FMO. The current (and how proven to be dishonest) FMO would not release me. I then gave my 30 days notice and was informed that I could not move my contract for 6 months.
Six months went by and I wrote zero business. When the new FMO sent in my appointment paperwork, I was told by the carrier that I was not able to have my commission level increased - apparently forever.
Since I'm NOT an indentured servant, why is this system set up to restrict the amount of commission someone is willing to pay me?
This is not the 1st time I've been faced with having to remain in a contract that I neither knew about, nor would have signed. I'm trying to remember now to get a promise of a release for any reason up front.
I'm not saying that some FMO's actually provide additional value. Even the good ones tend to restrict your ability to earn based upon how they feel about you. A good relationship can sour very quickly.
FMO's promise you the world but one they have you, they have you by the short hairs!
I understand the marketing aspect of the FMO system. But how can an agent be held in a contract for 6-18 months after giving notice without agreeing to that contract initially?
Rick
Case in point. I had a contract for Secure Horizons Direct through an FMO is Anaheim, CA. I then had an offer of an MGA contract through another FMO. The current (and how proven to be dishonest) FMO would not release me. I then gave my 30 days notice and was informed that I could not move my contract for 6 months.
Six months went by and I wrote zero business. When the new FMO sent in my appointment paperwork, I was told by the carrier that I was not able to have my commission level increased - apparently forever.
Since I'm NOT an indentured servant, why is this system set up to restrict the amount of commission someone is willing to pay me?
This is not the 1st time I've been faced with having to remain in a contract that I neither knew about, nor would have signed. I'm trying to remember now to get a promise of a release for any reason up front.
I'm not saying that some FMO's actually provide additional value. Even the good ones tend to restrict your ability to earn based upon how they feel about you. A good relationship can sour very quickly.
FMO's promise you the world but one they have you, they have you by the short hairs!
I understand the marketing aspect of the FMO system. But how can an agent be held in a contract for 6-18 months after giving notice without agreeing to that contract initially?
Rick