Value of Medicare book direct vs under FMO

[Krball]

I have been building a Medicare book and brought in some agents. Everything to this point is with direct carrier contracts. I’m being approached to go under a FMO to obtain overrides. Any thoughts on this? Is this a loss of control? Is it possible to get those overrides direct? What about when it’s time to sell? Is there a difference in value to the buyer if my policies are direct vs under a FMO?

 

[benneaf]

I've talked to a few of my carriers about this and my direct contracts are not set up to pay overrides and they do not set up direct appointments to pay out overrides. You can check with your carriers, but that is what I have been told.

Your next question might be who to go with? How do you minimize the levels between you and the carrier? Is there any advantage or disadvantage to having multiple layers between you and the carrier?

Or Why is this business so much like a freakin' MLM?