FMO's, Do you really need one?

hhoyes · 09-10-2008, 02:48 PM

I'm wondering why everyone needs an FMO? Can't I start my own corporation and get it licensed by the state? If I do that, then I should be able to contract with MA providers.
Maybe it's not that easy, but I sure would like someone to explain how it all works. It just seems crazy to keep going into contracts with FMO's that don't give the greatest support.
Thank you

robliano · 09-10-2008, 02:55 PM

Quote:

Originally Posted by hhoyes

I'm wondering why everyone needs an FMO? Can't I start my own corporation and get it licensed by the state? If I do that, then I should be able to contract with MA providers.
Maybe it's not that easy, but I sure would like someone to explain how it all works. It just seems crazy to keep going into contracts with FMO's that don't give the greatest support.
Thank you

I asked the same question and have heard that some FMO's offer training, leads, trips, advances, a whole slew of stuff, but you really need to find out the fine print before deciding.

hhoyes · 09-10-2008, 03:17 PM

So, technically you don't need one? I have created my own leads. Trips, who needs them when I can buy my own if I get paid more over the course of the year. Training, I have yet to have really good training from anyone besides dealing with the Providers directly and getting the right person on the phone.. As for the advances, I don't care if they don't pay me for a year, as long as it's more than what I get paid from the FMO.
Does that sound right?
I guess my real question is will providers sign up my company?

Frank Stastny · 09-10-2008, 03:19 PM

Quote:

Originally Posted by hhoyes

I'm wondering why everyone needs an FMO?

We don't!

They blow smoke up our collective asses, make promises they know damn well they don't plan to keep and flat out lie to us.

They make money every time we sell a policy and crap on us when we need help. When we discover that we are getting screwed they refuse to give us a release.

Obviously there are a few good ones that actually treat agents like real people. The problem is that they are few and very far between.

I am licensed direct with some of the companies I sell Med Supps for and we live in harmony. When I have a problem they are there and stay with me until it is solved. They pay me the highest level of commission without there being production requirements.

I am only with one marketing company for only one product. I will be dumping them at the end of this year.

If I ever go with one again I will have in writing that if I want to leave them and go with someone else I will be granted an immediate, unconditional release. If they won't do that then they can go to hell.

I'm sick and tired of marketing companies treating agents like a pile of dog crap. Without us they wouldn't exist. If they are not going to treat me like a valued client, the way I treat my clients, then I will refuse to give them my business.

I don't care how great a deal it appears that they are offering. I have learned that, with most of them, if their lips are moving they are screwing me.

GreenSky · 09-10-2008, 03:32 PM

The fact is FMOs need us; we don't need them. However, the insurance carriers think its the better way of marketing and generating sales.

There are a number of good people with which you may contract. I can get you UHC, Ramiz Hakim (he posts here way too often) can help you and www.ritterim.com is a great FMO.

Frank is correct. Get a pre-nup before you sign anything.

Rick

theinuranceguy · 09-10-2008, 03:41 PM

People really dont need FMOs. It was a system used by insurance companies to help with recruiting.

Most FMOs are not worth contracting with, but by the time you figure that out its too late.

As for me posting too much. Look at my post count and compare it to Bob Barr... I mean Rick Bronstein

Frank Stastny · 09-10-2008, 04:31 PM

Quote:

Originally Posted by hhoyes

I guess my real question is will providers sign up my company?

I now only work in the senior market and sell Med Supps, not any of the MA plans, so keep in mind that my comments may not apply to the products you are selling.

Fewer and fewer insurance companies are allowing agents to sign up direct with them. They are only interested in the "bottom line" and having to recruit agents is viewed as an expense they are no longer willing to assume even though "their agents" are getting screwed.

In other words, making more money is more important to them then taking care of the agents who are keeping their company in business.

As an example, when I started in this business the company I was representing paid the first year commission for as long as the policy was in force. (I still get a very sizable commission check from them every month even though I have not sold a policy for them since 1999.)

Today most companies only pay first year commission for six years. After that the drop the commission substantially.

Agents work their ass off keeping clients happy so they don't leave the company and the insurance company rewards them for their hard work and the excellent service they give their clients by dramatically reducing their commission.

That ain't right!

GreenSky · 09-10-2008, 04:38 PM

Quote:

Originally Posted by theinuranceguy

As for me posting too much. Look at my post count and compare it to Bob Barr... I mean Rick Bronstein

The difference is posting here is my main job!

Rick

Frank Stastny · 09-10-2008, 04:58 PM

Quote:

Originally Posted by robliano

I asked the same question and have heard that some FMO's offer training, leads, trips, advances, a whole slew of stuff, but you really need to find out the fine print before deciding.

You have obviously not had to work under a marketing organization or delved very deeply into what it is that they really "offer".

Not a criticism, just an observation. You may want to read some of the comments agents have made about various marketing organizations in other threads to get a better feel for who and what they really are. I'm sure this information would be very valuable to the agents you are training.

With the vast majority of marketing organizations training is nonexistent. "Leads" in general are crap and most of them charge way too much for what they are offering. If they are "free" then they have probably already been given to several hundred other agents.

Trips. I agree with what Hhoyes said. If I want to go on a trip I can pay for it and go where I want and when it is convenient.

Trips are of no interest to me. Put that money in my commissions and spare me from having to listen to marketing organization reps holding meetings where they require me to sit there and listen to them mentally masturbate about how big, powerful and wonderful they are.

The "slew of other stuff" is all smoke and mirrors. The majority of marketing organizations do nothing to earn the money they make from agents.

robliano · 09-10-2008, 07:35 PM

Quote:

Originally Posted by Frank Stastny

You have obviously not had to work under a marketing organization or delved very deeply into what it is that they really "offer".

Not a criticism, just an observation. You may want to read some of the comments agents have made about various marketing organizations in other threads to get a better feel for who and what they really are. I'm sure this information would be very valuable to the agents you are training.

With the vast majority of marketing organizations training is nonexistent. "Leads" in general are crap and most of them charge way too much for what they are offering. If they are "free" then they have probably already been given to several hundred other agents.

Trips. I agree with what Hhoyes said. If I want to go on a trip I can pay for it and go where I want and when it is convenient.

Trips are of no interest to me. Put that money in my commissions and spare me from having to listen to marketing organization reps holding meetings where they require me to sit there and listen to them mentally masturbate about how big, powerful and wonderful they are.

The "slew of other stuff" is all smoke and mirrors. The majority of marketing organizations do nothing to earn the money they make from agents.

I agree, even though I'm sure at least one good FMO has to be out there, maybe . . .

The Rabbi · 09-10-2008, 10:39 PM

I found one that is assisting me in recruiting agents and I'm paid direct on an MGA level. I've had plenty of negative experiences with agencies of all sizes.

wingatesp · 09-11-2008, 11:50 PM

I'm looking for a good FMO for Humana Gold Choice. Can you recommend me one?

Thanks for listening.

Steve Wingate

GreenSky · 09-12-2008, 12:20 AM

Quote:

Originally Posted by wingatesp

I'm looking for a good FMO for Humana Gold Choice. Can you recommend me one?

Thanks for listening.

Steve Wingate

Talk to Craig Ritter at www.ritterim.com.

Rick

myinsurebiz · 09-12-2008, 01:26 AM

I use an FMO for all deals.

Why?

Because they have an interest in what we are doing and can offer training, support and most of all - bargaining power!

They get us high contracts. Yes they make 5% - 10%+ - so what? We still get 115% / 125% / 140% too!

But the bargaining power assists us in getting most applicants approved quickly and they're making sales in a week or two.

I love my FMO's . . .

It's "plug & play" baby . . .

Tom