Should a Newbie Always Start with an IMo

[Jocely]

This is a very interesting thread. With some IMO's they will offer you a lower commission (55%) and you purchase leads from there source which I have found can cost anywhere from $15.00-$25.00 dollars a piece. If you ask around their are people on this board that will offer you training and good lead sources, some even free lead sources and your commission will be between 70% and 125% depending on who you go with, what products you want to offer, and how much training you need.

 

[PotentialFarmer]

At the risk of being silly, IMO stands for what? All these terms are new to me. Independent Management Organization lol.

 

[atlantainsguy]

Mark's numbers are right on, but a few of the terms are "rubber words" meaning different things to different people.

NMO is national marketing organization. They have the top-level contract directly with the insurance company. They also get the production bonuses. Production requirements are steep, usually starting at $1 million +.

IMO is independent marketing organization. These are numerous FMOs (and some large MGAs) who band together to form a corporation in which they all pay to be shareholders. The IMO itself, or a shareholder, is the NMO as well. The IMO will take a few points off the top to cover expenses. The shareholders each get the net comp and split the bonus. Their combined production meets the quota. This is a more "traditional" definition of IMO. Lately the term has also come to include what has traditionally been an FMO. Shenandoah was great at doing that -- calling everyone and "IMO", when in the traditional sense they were mostly MGA operations.

FMO is field marketing office/officer. These organizations are typically the IMO shareholders. They are the industry's top wholesalers. They generally work on volume with a 10-15 max point spread.

MGA is managing general agency/agent. Mark accurately points out the comp spreads and support levels, or lack thereof.

Anyway, that's my take on this pecking-order alphabet soup.

atlantainsguy

 

[squeed]

So then is a company like this hxxp://www.erieinsurance.com an IMO ?

-S