lacy_amy
Expert
- 71
If a newbie wants to go independent is it best to go with an IMO or get your own contracts?
Should a Newbie Always Start with an IMo
- Thread starter lacy_amy
- Start date
- 1,802
You will find many companies on the life and annuity side will not contract you directly.......there are many on here who can assist you with this. I hope this helps.....
- 868
Usually not always a new agent can get a better level of advanced commission by going through an MGA, the MGA may be able to help them with any questions and concerns they have and may also be able to tell them which product and company are the best in a particular case.
If you dont have experience you can borrow it by using an MGA essentially.
If you dont have experience you can borrow it by using an MGA essentially.
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- #4
lacy_amy
Expert
- 71
sorry....what does "MGA" stand for?
- 868
Managing General Agent
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- #6
lacy_amy
Expert
- 71
Can someone please explain what the difference is between a MGA and an IMO?
MGA is lower on the food chain.
MGA might have 2 to 50 agents.
IMO might have over 1,000 and recruits the MGA.
There is also different sizes of IMO's and MGA's
IMO might have 50 MGA's.
Example to better explain.
Street level Normal Agent for abc company is 100%.
MGA that has 1 to 4 agents might get 105%
MGA1 that has 5 to 20 agents might get a 110%
MGA2 that has 25 to 100 agents might have a 115%
IMO that has over 100 agents might have a 120%
IMO2 might have 300 to 500 agents and have a 125%
IMO3 Might have 1,000 plus agents have do large numbers have a 130% to 140%.
I am making up these % numbers to show you something.
- 1,802
Absolutely correct. One thing I would add is that many times a MGA will be local; therefore providing 1 on 1 mentoring.
An IMO provides training but usually over the phone or web-casts. I have numerous MGA's across the country, and depending on where you are located, I may have someone close to you. Have a good evening.....
- 227
Going direct with a carrier that allows you to do so is probably not the best idea for a few reasons. One, they won't offer you the training that you need to be successful and two, you don't have the production to back up a decent sized contract and three, often you are locked into the contract you have with them even if your production significantly increases.
You should interview with a few different people before making a decision.
You will find that there are differences in commissions with each IMO but there are also differences in training and resources.
I've been through my fair share of IMOs and they all blow smoke up your butt and promise you the moon and the stars but you're lucky if you get cracker jacks.
Sometimes a higher contract is not always the best option either. Regardless of how high your contract is; if you don't have resources to be successful; you'll sink.
Be leery of some of the bigger MLM type IMOs that require you to sign your life away and offer crappy commissions and try to lure you deeper and deerper in the abyss by making you listen to mp3s, podcasts, and seminars from people who are supposedly successful with them but later you come to find out that although; they may have grossed 200k; they have tax liens on their homes and either have filed or are on the verge of filing for bankruptcy...
There is a lot to watch out for. I suppose my best advice is to interview with at least 3 different IMOs and try to find one that best fits your needs, goals, and sales style.
Good luck to you!
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- #10
lacy_amy
Expert
- 71
Thanks for all this great advice. So would it be fair to say that a newbie should get hooked up with a good IMO so that they can get good training and good contracts. Then eventually get to be a MGA and get overrides? Just trying to become as informed as possible. I live outside of Milwaukee so does anyone know of any good IMO's? I know Todd King and Mark Rosenthal are good, I plan on calling them.
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