If you "insist" on modifications or contract addendums, the FMO is going to tell you to take it down the road. Do just that, and don't waste your time. You can't make a good apple out of a worm...
------------------------------------ "Conservative: A statesman who is enamored of existing evils, as distinguished from the Liberal who wishes to replace them with others." Ambrose Bierce
There is a problem with up front releases. However I do release agents. I only work with agents that want to work with me. I control IMO contracts with most of the Major carriers. The problem with giving an agent an upfront release is the IMO can get caught with a charge back. I have had to pay back advances for agents ranging from a few hundred dollars to one last year that took me for about $35,000. I bought leads for this agent and I advanced him about $35000 he then left for another company and re wrote the clients I gave him. The $35000 charged back. The agent is vectored and out of the business now but I still had to pay the cash. If an agent has a negative account balance and does not have enough business on the books to pay off the account then he does not deserve a release. If the agents account is in good order then he should be released.
Picking and FMO is like looking at a three legged stool.
The Three legs are Training/support, Marketing and Commissions. Agents can pick which two legs they are most comfortable with. If agents would like Marketing and Training they will give up higher comp. If agents would like higher comp then they will give up Marketing or training. If they would like the Highest Comp then they give up Marketing and Training.
I work with agents who do not need Marketing or Training and only want the highest comp possible.
Agents shold be told this up front.
Let the arguments begin!
Lee www.leebenhamassocaites.com
You'll deal with the chargebacks anyway. If an agent wants to blow out trust me, they're gone. They either sell other carriers, another line of insurance or ghost write.
Also, that never plays out. If an agent wants a release but doesn't receive one due to potential chargebacks what's the solution? They continue to sell under you, incurring more chargeback liability so when would they ever be able to leave?
------------------------------------ Health Insurance Agents: Training, Support, Discounts, E&O for $440 www.ihiaa.com
There is a sea of FMO's that are scum and there are a sea of agents who are scum. They are the ones who jump in, burn bridges, and jump out. Then there are those FMOs and agents who are dedicated, hardworking, and fair.
Nicely Put!!
I think you hit the nail on the head with that
If an agent wants to be a cry baby and complain about there contracting or people they deal with, they should have first read the terms of the agreement which was in black and white. Its not like the Fmo is the slave master here, the agent knows what they are getting into and by no way is sayin "yes masta"
If an agent wants to be a cry baby and complain about there contracting or people they deal with, they should have first read the terms of the agreement which was in black and white. Its not like the Fmo is the slave master here, the agent knows what they are getting into and by no way is sayin "yes masta"
I'll agree with this to the extent that what you sign is of your own volition. The issue with this is the contract that is offered to the agent is the result of many resources pooled into a fool-proof document. The agent almost never has anyone but himself to interpret and consent. Not necessarily fair, but if you signed it-- you signed it!
If an agent wants to be a cry baby and complain about there contracting or people they deal with, they should have first read the terms of the agreement which was in black and white. Its not like the Fmo is the slave master here, the agent knows what they are getting into and by no way is sayin "yes masta"
Can you show me of an example of any FMO contract where it states in writing that in order to change FMO's they need to "sit out" for 6 months?
I think I expect a lot more from an FMO than many of you. Not a criticism of anyone. I just know what is important to me in the FMO/producer relationship.
If they are willing to give me what I require, then I am willing to give them what they require.
Up front, adults dealing with adults, eyes wide open.
By the way, the last time I left an FMO (earlier this year) it wasn't the old FMO that was the problem. The major company I sold would not let me move their contracting until 6 months of inactivity went by. It just so happened that for almost a 6 month period I was not selling their product so everything worked out fine. That company was the first sale I did through the new FMO.
There are cases on the health side when needing an upfront release was important.
Months back GR made the very poor decision of putting out their Platinum series. Agents trapped onto Key Brokers who were now Platinum brokers had no choice.
Bingo. Let the agent decide. Put it in writing that releases are not given and the agent needs to sit out for six months. If that's not in writing it's dishonest and as we have stated, likely illegal.
Actually, in most cases, the 6 month waiting period is a carrier rule, not an FMO rule. Carriers do this to show some type of "good will" to FMO's. Meaning if u train this agent, provide prospecting programs, we will only let him write cases through you (the FMO) for 6 months. Usually, like someone else said...it is the newer guys who dont sumbit biz that think the grass is always greener on the other side and I will start writing tons of biz with X FMO instead of Y FMO. (not saying is the case with this poster)...but that is usually the case. We always will write a release upfront because we know if we treat and train the agent to the best of our abilities, he will never leave.
Actually, in most cases, the 6 month waiting period is a carrier rule, not an FMO rule. .
It can still be avoided by having an up-front release. It is all BS; I assure you that I am not singling you out, as this is what Principals of marketing organizations have been telling their marketers/ wholesalers for years.
The only vindication an agent truly has is to stop writing the product for the 6-12 month period, and then move their contracts;
Or, work with a marketing company that gives all of this to you on the front end. Seems the logical choice to me!
Agreed - it's all BS. When I was a regional manager I handled the suppliers. They all came with the typical sales pitch; great service, best prices, etc...
Fine, I'd contract with them. If they didn't perform out they went and we chose other suppliers. In some cases if we saved even 20 cents per item we'd switch suppliers. Guess what - that's business!!!
Any FMO is just that - a supplier of contracts. Period. If I find a better deal through someone else I'm gone. Wanna know what that is? BUSINESS!!!
Geez, could I even imagine? Cancel, for example, my coffee supplier and come to find I can't get coffee service for my 12 locations for the next 6 months? It's all insane and total garbage.
So, you might spend a lot of time training an agent who blows out? Would that be a bit like Pontiac training me then I blow out to BMW? Guess what - that's business.
Agreed - it's all BS. When I was a regional manager I handled the suppliers. They all came with the typical sales pitch; great service, best prices, etc...
Fine, I'd contract with them. If they didn't perform out they went and we chose other suppliers. In some cases if we saved even 20 cents per item we'd switch suppliers. Guess what - that's business!!!
Any FMO is just that - a supplier of contracts. Period. If I find a better deal through someone else I'm gone. Wanna know what that is? BUSINESS!!!
Geez, could I even imagine? Cancel, for example, my coffee supplier and come to find I can't get coffee service for my 12 locations for the next 6 months? It's all insane and total garbage.
So, you might spend a lot of time training an agent who blows out? Would that be a bit like Pontiac training me then I blow out to BMW? Guess what - that's business.
Lots of professions also operate under the contract of non-compete. That's how Pontiac keeps you from going to BMW, at least for a period of time. Similar to the carriers 6 month non-production caveat with FMO's. The concept is still shady-- not usually enforcable in court, provided you have the deep pockets for court.
Many states are right to work, so most non-competes are not worth the paper they are written on. Unless a company is willing to pay you for the time you cannot compete, about all they can legally do is prevent you from revealing trade secrets or going after existing clients or employees.
I'd also be willing to bet that the same holds for a carrier that refuses to appoint you solely because you used a previous FMO that would not release you. The problem is, someone would have to be willing to take it to court. Also, it might be difficult to prove that was the only reason the appointment was refused.
Many states are right to work, so most non-competes are not worth the paper they are written on.
I take a lot of crap for graduating from a good university (although Rick B. went to a better school than I did and you never pick on him!) and I know that some of you in this venue really look down upon those (few) of us who have a college degree and believe the time and effort was wasted... but if nothing else it keeps us from spreading a lot of wrong information.
Right-to-work laws prohibit agreements between trade unions and employers making membership or payment of union dues or "fees" a condition of employment, either before or after hiring.
They have nothing to do with contracts between private parties... FMOs and agents.
Re: FMO's a Sea of Scum?
and complain about there contracting or people they deal with, they should have first read the terms of the agreement which was in black and white. Its not like the Fmo is the slave master here, the agent knows what they are getting into and by no way is sayin "yes masta"
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