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Seems releases are a big topic on this forum.
So let's get down to the nitty gritty and start a real discussion. I know I will be attacked, so bring it on and shoot your best shots. This is called a "discussion board", not a board where I think someone should be called "dishonest, a crook, or other various names" that I have seen myself being called on this board.
What I am asking for here is a civil discussion about what I view as misconceptions and greed by a lot of agents.
We have granted many, many releases for agents that have a reason to be released. Finding somebody that would give 5 points more in my estimation, is not a valid reason.
Let me tell you how I think wholesale releases from any IMO, FMO or any type of Marketing Organization are a potentially disasterous idea, even for insurance agents.
Does anyone ever remember learning in school about Standard Oil Company in the mid 1800's, which brought about the Sherman Antitrust Act of 1890. I remember my American History Teacher telling about in the 1920's-30's where Standard Oil would have gas stations on 3 corners at a major intersection, and would sell their products at well below cost to drive their competition on the 4th corner out of business. Once competition was broke, Standard either bought the 4th corner at pennies on the dollar, or simply let the 4th corner close. Once their is no competition at this intersection, Standard Oil would double their price.
I think most of us on here would agree, there has to be stability in the insurance industry. I also think most would agree that IMOs and FMOs can more economically and faster call attention to insurance products than an insurance company can. We (as an IMO, FMO or Marketing Organization) are a very important part of the distribution effort of an insurance company.
We probably save insurance companies at least 80-90% of the marketing costs they would have to pay to reach the agents if we were not in the picture. Why do you think insurance companies go to this outside method of distribution? The answer is they have no outside marketing costs until something is sold. They collect money before they have to pay out. In other words, it is more profitable than if they tried to do it themselves.
The companies can spend their time on running the home office, and developing the products without having to deal with actual selling of the products or attracting agents to their company.
We also are much closer to the agents than any home office ever could be. When an agent has a problem that they cannot get solved, we usually know where to go to get the problem addressed and hopefully solved. A lot of us have come from the sales field and understand sales problems that a home office does not have a clue about. By the way, I still work in the field after 21 years in this business so I personally can relate with most any field problem an agent may have.
In other words, in my opinion Marketing Organizations serve a vital purpose to insurance agents, and insurance companies.
I do not feel we make profits "off the back of insurance agents". If you think this way, every insurance company, company officer, company employee, state insurance commission and their employees make their living "off of the back of insurance agents". To the contrary, I feel we bring many new opportunities to the insurance sales community. Naturally, we are here to make a profit and living if we can; just as any insurance agent is in the business to make a living and profit.
IMOs, etc. do compete with each other to recruit agents under the present structures. This is one reason high commission contracts are readily available. You simply can compare what captive companies are paying to determine the difference. We spend many dollars to attract agents and contrary to popular belief by some insurance agents, our income is not all profit. It is also very hard to recruit good insurance agents. If you saw debit balances we have eaten, you would understand some of the problems of running a Marketing Company. We have been bitten by agents we were trying to help; sometimes when nobody else would help. We co-sign all our agents debit balances.
OK, you have heard me preaching about the value of Marketing Organizations, let's get back to my Standard Oil comparison. Let's say I am an IMO sitting on a bunch of cash and I find an IMO structure who will give releases for any reason. I have a great living already made, and will continue to have a great income without any new recruiting or new agents. But, I have found this easy target (a very soft hearted, good old boy IMO) that will give an agent a release for any reason.
This IMO just lost all of his agents to me. I can give this new-found block of business 100% of their normal commissions and all my overrides for a year or so (or even more than 100% of my income from this block of business), just to get the agents, and drive this IMO out of business very fast. If I could do this with every IMO for this company, I would be in complete control--of all agents of this company, and all sales of this company. At that time I could pay the agents what I wanted. A 100% contract could suddenly become a 70% contract, or whatever I wanted agents to have. I would be in control. It could be a scary thing for the company and all it's agents.
Also, what would prevent an insurance company home office to simply offer each agent 5% more, and cut out its IMO marketing structure? If the IMO had pre-agreed to release for any reason, then this would be a reason for a release.
OK, I have presented my thoughts on releases. This is coming from an IMO who works in the field and has been in direct selling of insurance products for over 21 years (mostly senior market). I have sold for 21 years, sat on National Advisory Boards for home offices, been involved with developing insurance products, and am not even close to being a rookie in this business.
Not all our contracts are direct IMO company contracts. We feel it is sometimes to our advantage to go under someone who knows the company or industry better than we do. We have even actually asked to be placed under a more experienced IMO in some instances. I do not mind someone making money off of my efforts, as long as I get paid the agreed upon amount. However, I feel we are close enough to some of our uplines, if we needed a release (for a good reason) we would get it. A nickel more commissions is not a good reason.
All I am asking is that the hot-heads on this forum, please try your best to present your best case for releases without name calling and screaming. I am not trying to blow smoke up your..., just asking for a civil discussion on what seems to be a problem with a lot of folks on this board.
Joe Moore [email protected]
National Senior Benefits
Asurco Insurance Marketing
www.asurco.com
PO Box 1954
Morristown, TN 37816
1-800-226-1004
1-423-581-1004
So let's get down to the nitty gritty and start a real discussion. I know I will be attacked, so bring it on and shoot your best shots. This is called a "discussion board", not a board where I think someone should be called "dishonest, a crook, or other various names" that I have seen myself being called on this board.
What I am asking for here is a civil discussion about what I view as misconceptions and greed by a lot of agents.
We have granted many, many releases for agents that have a reason to be released. Finding somebody that would give 5 points more in my estimation, is not a valid reason.
Let me tell you how I think wholesale releases from any IMO, FMO or any type of Marketing Organization are a potentially disasterous idea, even for insurance agents.
Does anyone ever remember learning in school about Standard Oil Company in the mid 1800's, which brought about the Sherman Antitrust Act of 1890. I remember my American History Teacher telling about in the 1920's-30's where Standard Oil would have gas stations on 3 corners at a major intersection, and would sell their products at well below cost to drive their competition on the 4th corner out of business. Once competition was broke, Standard either bought the 4th corner at pennies on the dollar, or simply let the 4th corner close. Once their is no competition at this intersection, Standard Oil would double their price.
I think most of us on here would agree, there has to be stability in the insurance industry. I also think most would agree that IMOs and FMOs can more economically and faster call attention to insurance products than an insurance company can. We (as an IMO, FMO or Marketing Organization) are a very important part of the distribution effort of an insurance company.
We probably save insurance companies at least 80-90% of the marketing costs they would have to pay to reach the agents if we were not in the picture. Why do you think insurance companies go to this outside method of distribution? The answer is they have no outside marketing costs until something is sold. They collect money before they have to pay out. In other words, it is more profitable than if they tried to do it themselves.
The companies can spend their time on running the home office, and developing the products without having to deal with actual selling of the products or attracting agents to their company.
We also are much closer to the agents than any home office ever could be. When an agent has a problem that they cannot get solved, we usually know where to go to get the problem addressed and hopefully solved. A lot of us have come from the sales field and understand sales problems that a home office does not have a clue about. By the way, I still work in the field after 21 years in this business so I personally can relate with most any field problem an agent may have.
In other words, in my opinion Marketing Organizations serve a vital purpose to insurance agents, and insurance companies.
I do not feel we make profits "off the back of insurance agents". If you think this way, every insurance company, company officer, company employee, state insurance commission and their employees make their living "off of the back of insurance agents". To the contrary, I feel we bring many new opportunities to the insurance sales community. Naturally, we are here to make a profit and living if we can; just as any insurance agent is in the business to make a living and profit.
IMOs, etc. do compete with each other to recruit agents under the present structures. This is one reason high commission contracts are readily available. You simply can compare what captive companies are paying to determine the difference. We spend many dollars to attract agents and contrary to popular belief by some insurance agents, our income is not all profit. It is also very hard to recruit good insurance agents. If you saw debit balances we have eaten, you would understand some of the problems of running a Marketing Company. We have been bitten by agents we were trying to help; sometimes when nobody else would help. We co-sign all our agents debit balances.
OK, you have heard me preaching about the value of Marketing Organizations, let's get back to my Standard Oil comparison. Let's say I am an IMO sitting on a bunch of cash and I find an IMO structure who will give releases for any reason. I have a great living already made, and will continue to have a great income without any new recruiting or new agents. But, I have found this easy target (a very soft hearted, good old boy IMO) that will give an agent a release for any reason.
This IMO just lost all of his agents to me. I can give this new-found block of business 100% of their normal commissions and all my overrides for a year or so (or even more than 100% of my income from this block of business), just to get the agents, and drive this IMO out of business very fast. If I could do this with every IMO for this company, I would be in complete control--of all agents of this company, and all sales of this company. At that time I could pay the agents what I wanted. A 100% contract could suddenly become a 70% contract, or whatever I wanted agents to have. I would be in control. It could be a scary thing for the company and all it's agents.
Also, what would prevent an insurance company home office to simply offer each agent 5% more, and cut out its IMO marketing structure? If the IMO had pre-agreed to release for any reason, then this would be a reason for a release.
OK, I have presented my thoughts on releases. This is coming from an IMO who works in the field and has been in direct selling of insurance products for over 21 years (mostly senior market). I have sold for 21 years, sat on National Advisory Boards for home offices, been involved with developing insurance products, and am not even close to being a rookie in this business.
Not all our contracts are direct IMO company contracts. We feel it is sometimes to our advantage to go under someone who knows the company or industry better than we do. We have even actually asked to be placed under a more experienced IMO in some instances. I do not mind someone making money off of my efforts, as long as I get paid the agreed upon amount. However, I feel we are close enough to some of our uplines, if we needed a release (for a good reason) we would get it. A nickel more commissions is not a good reason.
All I am asking is that the hot-heads on this forum, please try your best to present your best case for releases without name calling and screaming. I am not trying to blow smoke up your..., just asking for a civil discussion on what seems to be a problem with a lot of folks on this board.
Joe Moore [email protected]
National Senior Benefits
Asurco Insurance Marketing
www.asurco.com
PO Box 1954
Morristown, TN 37816
1-800-226-1004
1-423-581-1004
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