Questions about FMO Overrides and Seeking Insights for Evaluating FMO Partnerships

[rmhaire]

There were two models . . . GA where the individual assumed the risk for building the agency, and the Agency Management system where the agency was owned and funded by the carrier and a salaried manager ran the local agency.

The GA's I knew were experienced agents who came up through the field . . . SOME agency managers had field experience but most were folks who flamed out in direct sales but the home office brought them under the wing and gave them a position. Most of the agency managers were nice guys but really had no idea how to sell. Neither system offered much in the way of leads unless you call orphans a valid lead.

Some of the GA's still produced business and had actual sales skills. Agency managers, not so much

Today's FMO's that had seed money used their own money or got it from daddy, and they are very much risk takers. Anyone who says otherwise is an arrogant fool.

I started out as a PPGA. Never worked in an agency or run a debit. But like you said, most relationships were direct with the company. All of mine were. And some still are.

Can't remember when the FMO thing took off. It kinda snuck up on me. And right now I've got 6 or 7. And Todd's one of them.

But I do know that NOT one time have I ever wondered about what they were making. Either off of me or anything else. Just ain't none of my business.

 

[DonP]

I started out as a PPGA. Never worked in an agency or run a debit. But like you said, most relationships were direct with the company. All of mine were. And some still are.

Can't remember when the FMO thing took off. It kinda snuck up on me. And right now I've got 6 or 7. And Todd's one of them.

But I do know that NOT one time have I ever wondered about what they were making. Either off of me or anything else. Just ain't none of my business.

Let me ask you this . What if they were at 150% and you were at 50% ? Would you care then?I don’t care what they make but my job is to get the highest comp possible . To get that I need to know what their general comp is so I can narrow the spread .

 

[rmhaire]

Let me ask you this . What if they were at 150% and you were at 50% ? Would you care then?I don’t care what they make but my job is to get the highest comp possible . To get that I need to know what their general comp is so I can narrow the spread .

Nope. For the simple reason I'd never be at 50. Or 75 or a 100. Been doing this way too long to fall for that.

However, I've never been about points. With me it's about trust. I'll take trust over points any day.

I could care less about the spread or squeezing out another point or two.

 

[somarco]

However, I've never been about points. With me it's about trust. I'll take trust over points any day.

I could care less about the spread or squeezing out another point or two.

Professional athletes follow similar guidelines. They want what is best for them and their family and to be treated fairly. They are paid based on their value to the team. If they don't think it is enough, they go somewhere else.

 

[DonP]

Let me ask you this . What if they were at 150% and you were at 50% ? Would you care then?I don’t care what they make but my job is to get the highest comp possible . To get that I need to know what their general comp is so I can narrow the spread .

You’re correct you’d not be at 50 or 75 because you know an agent can get 120 because the fmo is at 140-150 . You have a general understanding of what top fmo comp is . Let’s take the LH agent at 70. He joins up and he has no idea what top comp is . After lead cost and chargebacks he’s losing money and will be gone in 6 months . If he had done his research and known 120% was out there he’d possibly have made it . But by not doing his research and understanding what agents and Fmo’s make he never had a chance . Same applies to Medicare . By me understanding what the fmo makes on me it’s allowed me to not spend 1 dime on leads for near 3 yrs . By me knowing what they make on me it gives me leverage. If I’m a cash cow they’ll do whatever it takes ti keep me .Even after that he still makes a fortune on me .


It’s no different than a restaurant. There always shopping for better deals on cost of food . By them knowing the wholesale cost of food ( like me knowing about what fmo makes ) it gives them leverage to cut their costs . I take a lot less than I can make elsewhere because I trust my fmo . It’s not all about money . As long as the agents happy it’s all good

 

[rmhaire]

Let’s take the LH agent at 70. He joins up and he has no idea what top comp is

Dumb ass shouldn't have gone with them in the first place.

It’s no different than a restaurant. They’re always shopping for better deals

Not always. I own a restaurant and shopping is way down on my list.

If I’m a cash cow they’ll do whatever it takes ti keep me

I've never considered myself a cash cow. But I am a hog.

Happier than a dead hog in the sunshine.

 

[rousemark]

Let me ask you this . What if they were at 150% and you were at 50% ? Would you care then?I don’t care what they make but my job is to get the highest comp possible . To get that I need to know what their general comp is so I can narrow the spread .

I still disagree. You can shop around and see if there are better offers and you can also listen to what other agenrs are saying about comp. You don't have to know what fmo comp is.

 

[rousemark]

You’re correct you’d not be at 50 or 75 because you know an agent can get 120 because the fmo is at 140-150 . You have a general understanding of what top fmo comp is . Let’s take the LH agent at 70. He joins up and he has no idea what top comp is . After lead cost and chargebacks he’s losing money and will be gone in 6 months . If he had done his research and known 120% was out there he’d possibly have made it . But by not doing his research and understanding what agents and Fmo’s make he never had a chance . Same applies to Medicare . By me understanding what the fmo makes on me it’s allowed me to not spend 1 dime on leads for near 3 yrs . By me knowing what they make on me it gives me leverage. If I’m a cash cow they’ll do whatever it takes ti keep me .Even after that he still makes a fortune on me .


It’s no different than a restaurant. There always shopping for better deals on cost of food . By them knowing the wholesale cost of food ( like me knowing about what fmo makes ) it gives them leverage to cut their costs . I take a lot less than I can make elsewhere because I trust my fmo . It’s not all about money . As long as the agents happy it’s all good

Having run resturants, i knew the cost of food to me but i never knew the wholesalers markup or profit margin. I shopped based on what i had to pay not what they made.

 

[axeman462]

The lack of decorum and professionalism in this forum is highly concerning. Respondent Goillini52's profile features an offensive photo and discriminatory bio. Instead of providing meaningful advice, you chose to share a non-constructive Ron Burgundy Meme. It is disheartening to witness such juvenile behavior, including the use of a juvenile photo of Alec Baldwin and engaging in gaslighting. Amongst the members, only DonP made genuine efforts to provide helpful direction to my questions. It is unfortunate that individuals like Goillini52 and Tikkibarrister, who carry the "guru" badge, contribute to such a toxic environment. This raises concerns about the challenges new agents may face in this industry, surrounded by such colleagues and harmful behavior... It is truly disheartening since I was just reaching for genuine advice from more experienced agents.

please leave, and dont come back.

 

[axeman462]

I'm thinking he should be looking at a 3rd one or even a forth. I'm sure FMOs are lining up to help him....NOT!

he won't even be in the industry by the end of summer