Local Agency Vs. FMO

[Limozine]

I'm a newbie trying to decide whether to contract through a local agency vs. going primarily with someone like Ritter.

I was referred to the local agency through a close friend in the business. My friend is considering signing on with them and is encouraging me to do so as well. Basically, the agency offers experience, mentoring, and an office where I can meet clients. One problem is that I trust my friend's honesty, but he is also fairly new to the business and has been burned before. I'm not certain that he has looked at all of the angles of the arrangement.

My question is: what questions should I be asking the agency before signing? Also, what are the pitfalls/dangers of signing on with the local guy vs. going with an FMO like Ritter or Fexcontracting?

 

[Chazm]

Should be pretty simple. Do you need hand holding, training? If yes, maybe find a local shop. If no, don't go to a local shop.
We can't give any more details until you say what kind of product and what your friends office is paying.

Oh and having a place to meet clients shouldn't be a selling point if you are working with seniors.

 

[donamese]

Sounds like you are doing Medicare supplement, final expense or both. Compare commissions, releases, companies offered, leads, training, support, etc. Local can be nice if they know more about what leads work in the area, have some connections, etc. But just because they are local doesn't mean they are successful either. I would gather some of the information above, then post with it as well as your credentials then we can give you a better idea.

 

[AgentBoostMktg]

I'd also look into lead programs and technology (like quoting software). Also if you plan on always being a producer, using a local agency might be great. If you foresee that in some point down the road you'll start your own agency, going with a local smaller shop might be an issue. Good luck!