What is the advantage of being paid directly from the carrier vs. through the FMO?

[multipledigits]

I've been in an argument with my upline (managing agent or whatever between me and the FMO) and I don't know if maybe I'm missing something here.

We contracted through Ritter. They've had a lot of issues paying out commissions on time for us and have offered little to no explanation or when we even should be paid even though the carriers are all able to tell us or have an actual schedule of payouts (like Devoted) at least for when *they* pay.

So to me, it seems obvious that it would be advantageous to be paid directly through the carrier to avoid this hassle/cut out the middleman as much as possible, and I've seen that some FMOs have it set up this way.

My upline however keeps telling me that it doesn't matter who is writing the check as long as I get paid (or something to that regard) and that getting paid directly from the carrier is both not normal and something they only say to lure agents in as a marketing gimmick basically, but otherwise has no real value.

Am I being taken for a ride here from my upline? Am I missing something or what? Is it that it would be impossible or harder for them to be paid an override if it's set up that way? Or does it really not matter?

And with Ritter being paid the commission (and then them paying it out to me) is it not making them the "agent of record"?

 

[Tscholar]

I've been in an argument with my upline (managing agent or whatever between me and the FMO) and I don't know if maybe I'm missing something here.

We contracted through Ritter. They've had a lot of issues paying out commissions on time for us and have offered little to no explanation or when we even should be paid even though the carriers are all able to tell us or have an actual schedule of payouts (like Devoted) at least for when *they* pay.

So to me, it seems obvious that it would be advantageous to be paid directly through the carrier to avoid this hassle/cut out the middleman as much as possible, and I've seen that some FMOs have it set up this way.

My upline however keeps telling me that it doesn't matter who is writing the check as long as I get paid (or something to that regard) and that getting paid directly from the carrier is both not normal and something they only say to lure agents in as a marketing gimmick basically, but otherwise has no real value.

Am I being taken for a ride here from my upline? Am I missing something or what? Is it that it would be impossible or harder for them to be paid an override if it's set up that way? Or does it really not matter?

And with Ritter being paid the commission (and then them paying it out to me) is it not making them the "agent of record"?

I am paid by ALL of the carriers directly except one, but that's the carrier's choice. They all send me a 1099 at the end of the year and I rarely have issues getting paid on time. If I do, I go directly to the carrier to resolve it. My FMO still gets the overrides. So, yes, being paid directly does have real value. You are the AOR regardless of how the commission is paid, directly or through them. You may need to consider switching FMOs.

 

[Newby]

I've been in an argument with my upline (managing agent or whatever between me and the FMO) and I don't know if maybe I'm missing something here.

We contracted through Ritter. They've had a lot of issues paying out commissions on time for us and have offered little to no explanation or when we even should be paid even though the carriers are all able to tell us or have an actual schedule of payouts (like Devoted) at least for when *they* pay.

So to me, it seems obvious that it would be advantageous to be paid directly through the carrier to avoid this hassle/cut out the middleman as much as possible, and I've seen that some FMOs have it set up this way.

My upline however keeps telling me that it doesn't matter who is writing the check as long as I get paid (or something to that regard) and that getting paid directly from the carrier is both not normal and something they only say to lure agents in as a marketing gimmick basically, but otherwise has no real value.

Am I being taken for a ride here from my upline? Am I missing something or what? Is it that it would be impossible or harder for them to be paid an override if it's set up that way? Or does it really not matter?

And with Ritter being paid the commission (and then them paying it out to me) is it not making them the "agent of record"?

The only advantage of being paid by the FMO is that it gives the FMO complete control over your commissions. Meaning if you have a falling out with them, they can screw you over royally and very commonly that’s exactly how it ends.
You do not want to ever assign commissions to your up line and especially on something like Medicare, where it’s renewal based. You will live to regret that if you do that.

 

[WinoBlues]

Am I being taken for a ride here from my upline? Am I missing something or what?

You may be about to learn a painful lesson about giving others control over your business and money. I hope not.

Time to read your contract again.

I learned the same way many years ago. Still stings.

 

[somarco]

I am contracted direct with every carrier except one, which is through a GA/IMO/FMO . . . other than GA I have no idea how to differentiate the other acronyms. Only GA existed when I started.

And every carrier pays me directly (assigned to my agency). Not a single deposit goes through an upline.

I will never let the money I earn go through the upline fingers.

 

[ValeRosso]

As others, I have one or two that are upline first, meaning the carrier only pays commissions to the upline, then the upline issues you payment. How many carriers do you have that are paying your upline instead of you?

 

[UKTX]

Ritter is generally/normally an OK FMO......there are ones that are way worse than those.

I would only every have a carrier with pay from an FMO where it was NOT possible to contract direct (i.e. they do not offer it)

Even then, it wouldn't be my go to carrier. I have been screwed a number of times by FMO's. Never again.

 

[wolf5150]

I prefer to be directly appointed with the carrier, for exactly the reason you brought up. Some carriers only allow appointment via an FMO, which is not ideal. I am very hands on, I do not like "middle men".

 

[DonP]

Yrs ago a very well known fmo that all would know tried to screw me on override commissions . I threatened to smear him on the net . He paid me fast . That said I’d never in a million yrs ever let any fmo pay me direct . I’d simply find another carrier . I’m getting commissions 1 time a yr from a carrier I wrote business with 33 yrs ago . Let that sink through your head the importance of getting paid direct from carrier .

 

[Baseball7]

Some regionals don’t / can’t pay direct.

ie health partners, ibc, etc