Commissions with FMO Vs Without

[jmwidmer]

I would like to know the difference selling MA? I have read other posts that state you give up a lot of commissions with FMO's vs not being with them. What is the typical commission with and without? I have been told I will make $500 if brand new to MA or $250 if switched with FMO. What do you get paid if not with FMO? Thanks

 

[jdeasy]

I would like to know the difference selling MA? I have read other posts that state you give up a lot of commissions with FMO's vs not being with them. What is the typical commission with and without? I have been told I will make $500 if brand new to MA or $250 if switched with FMO. What do you get paid if not with FMO? Thanks

On MA plans, CMS sets the max that be paid for commissions. It's $400, {I believe they did up it to $404 this year}, for a person new to MA and $200 if they are just changing plans. There are some pockets of the country that pays more than that.

What you want to do is get with one that pays whatever the max is. FMO's can pay less than the max and many do..

 

[Josh]

I would like to know the difference selling MA? I have read other posts that state you give up a lot of commissions with FMO's vs not being with them. What is the typical commission with and without? I have been told I will make $500 if brand new to MA or $250 if switched with FMO. What do you get paid if not with FMO? Thanks

It depends on bunch of things, is there a specific carrier or program that you're talking about? $400/$200 is the street max. The reality is an "FMO" can give a "GA" or "MGA" contract and pay you some extra dollars for "office expenses" etc. So to that point you might actually get a higher contract from an FMO vs going direct. But again, what is the carrier? What are the contracts you're comparing?

 

[jmwidmer]

The FMO is AGA here in California and they stated they pay $500/$250.

 

[Josh]

The FMO is AGA here in California and they stated they pay $500/$250.

They could quite possibly do that. I'd recommend you talk to some other agents that have worked with them and see what their release policy is incase things go south. $500/$250 is above street.

 

[GreenSky]

The max commission in CA is $504/202.

Be careful which FMO you choose because some won't release you. Be sure to stay FAR away from AGA in Orange County (for example). The wouldn't release me a few years ago and screwed me out of renewal commissions.

Contact me if I can be of help finding honest FMOs.

Rick

 

[Josh]

The max commission in CA is $504/202.

Be careful which FMO you choose because some won't release you. Be sure to stay FAR away from AGA in Orange County (for example). The wouldn't release me a few years ago and screwed me out of renewal commissions.

Contact me if I can be of help finding honest FMOs.

Rick

Don't let Rick be shy either, he's got a contract with at least one carrier with good product if you're in the right area.

 

[jmwidmer]

Rick,

I understand you had a hard time with AGA as I have read other posts. Why did you leave them in the first place? I just am wondering as I would think that if they're paying $504/$252 I wouldn't want to leave. I would just like some good insight as I have not seen many others who have anything bad to say about them. I am in San Diego County so if you know of anyone better, I'm all ears but please let me know about the above questions. Thanks!

 

[GreenSky]

Rick,

I understand you had a hard time with AGA as I have read other posts. Why did you leave them in the first place? I just am wondering as I would think that if they're paying $504/$252 I wouldn't want to leave. I would just like some good insight as I have not seen many others who have anything bad to say about them. I am in San Diego County so if you know of anyone better, I'm all ears but please let me know about the above questions. Thanks!

Years ago I had all my contracts with AGA except for Humana. My FMO with Humana offered me a very good contract with Secure Horizons. I asked the owner of AGA for a release. He said "no." I then exercised my 30 day notice to get away from him. For the first time, I learned that (even though it was not in my contract) I could not sign elsewhere for 6 months and only if I did not write any business.

I had told Patrick Rodriguez (owner of AGA) that I only wanted to move this one contract but if he did not release me I would move everything. Apparently he would rather lose all my business than release me from one contract.

I found this so dishonest that I got my son licensed, he got the contract and I basically ghost wrote for the 6 months. I then moved my contract.

Most of the MA plans were paid directly by AGA to the agent. Because of this, AGA did not pay me any of my renewals. I couldn't sue for a couple of reasons. First, I couldn't prove AGA was paid by the companies and two, it would likely cost me more in court fees than the renewals would have been worth.

I later found that that AGA held up a release for 3-4 months after one their carriers offered the brokerage manager job to one of AGA's agents. Good job - piss off someone who could very well determine contracts and leads.

So, the bottom line is my advice is to say as far away from them as you can.

Just an FYI, the attorney for AGA threatened to sue the owner of the forum a few years ago because of my posts. They didn't say I was wrong, only that it shouldn't be posted publicly.

If you are looking for contracts, give me a shout. I can steer you to honest FMOs.

Rick

 

[BillBateman]

I was fired by email by Patrick Rodriguez - owner of AGA - in January 2015. Anyone wanting a personal overview based on my 18 months recruiting and supervising agents for them is welcome to call me (with the exception of all AGA personnel, relatives of AGA, any AGA affiliates and attorneys for AGA) 505-450-1574 is my number