Go Direct or Go Through FMO??

[BuckNasty]

I have a few contracts through Ritter and they seem fine. I use their quote engine but not much else in the way of their training. I'm wanting to get appointed in a non-resident state for Oxford Life's Med Supp and the offer from Ritter is the same as going direct: street level commission.

Is there any advantage or disadvantage of going direct vs through an FMO like Ritter?

 

[Mr.Coool]

I have a few contracts through Ritter and they seem fine. I use their quote engine but not much else in the way of their training. I'm wanting to get appointed in a non-resident state for Oxford Life's Med Supp and the offer from Ritter is the same as going direct: street level commission.

Is there any advantage or disadvantage of going direct vs through an FMO like Ritter?

If there's no advantage for going through an FMO and you don't need them to get the contract, why use them? I'd go direct.

 

[BuckNasty]

If there's no advantage for going through an FMO and you don't need them to get the contract, why use them? I'd go direct.

The only think I could think of would be that the premium dollars submitted via a direct appointment would obviously not count towards any FMO Bonus giveaways. For example, Ritter does some contest where the top 50 med supp reps get a few extra thousand bucks.

Maybe there is something else I'm missing though, so I'd appreciate others weighing in.

 

[sman]

I have a few contracts through Ritter and they seem fine. I use their quote engine but not much else in the way of their training. I'm wanting to get appointed in a non-resident state for Oxford Life's Med Supp and the offer from Ritter is the same as going direct: street level commission.

Is there any advantage or disadvantage of going direct vs through an FMO like Ritter?

In many cases, you should just go direct. However, Ritter does often have incentives that could earn you some additional money. And if your production is high enough, you could possibly get higher than street level commission through an FMO.

I don't depend on an FMO for anything other than contracts. So I just want the best contract possible. If the best they'll offer is street and no other incentives, might as well go direct.

 

[SeniorMarketDesign]

The only think I could think of would be that the premium dollars submitted via a direct appointment would obviously not count towards any FMO Bonus giveaways. For example, Ritter does some contest where the top 50 med supp reps get a few extra thousand bucks.

Maybe there is something else I'm missing though, so I'd appreciate others weighing in.

Obviously I'm a little biased, but it always confuses me as to why agents would go direct to a carrier as opposed to going through an FMO if they're getting the same comp either way? FMO's should be offering additional support to an agent that they will not get by going direct to a carrier. That could/should include providing assistance in dealing with home offices, tracking apps, handling problems with home offices, providing accurate product answers with limited wait time, rate quotes, etc. That and, like you mentioned, your FMO should be offering incentives on top of contracts, such as additional trips, leads, and/or cash bonuses.

If an FMO is NOT offering these things, and is NOT offering an agent the same levels as they could/would obtain by going direct to the carrier, an agent needs to find a new FMO! There are too many quality FMO's available to choose from... don't reward an FMO that isn't offering what they should be by continuing to contract with them!

 

[GoPokes]

I've got mine through an FMO because they have incentives to help with marketing/lead costs. I guess it's just a personal preference.

 

[gbykonen]

Well, if you go direct would you have production requirements? OR would your FMO deal with that? Make sure you will own your business if you leave an FMO as some will retain your business.

 

[sman]

Well, if you go direct would you have production requirements? OR would your FMO deal with that? Make sure you will own your business if you leave an FMO as some will retain your business.

The only way an FMO could "retain" the business is if commissions were assigned to the FMO. No one should ever do that.

 

[bill3173]

FMO's should be offering additional support to an agent that they will not get by going direct to a carrier. That could/should include providing assistance in dealing with home offices, tracking apps, handling problems with home offices, providing accurate product answers with limited wait time, rate quotes, etc.

Not dissing you, but for the Sr. Mkt, the fmo you describe sounds like it may only be found in the world of Disney.

On the other hand, for fully underwritten life, a good fmo can be valuable, but there is so much more $$ involved, it makes sense.

 

[SeniorMarketDesign]

Not dissing you, but for the Sr. Mkt, the fmo you describe sounds like it may only be found in the world of Disney.

On the other hand, for fully underwritten life, a good fmo can be valuable, but there is so much more $$ involved, it makes sense.

I appreciate that you are not personally dissing our office, but want to offer a response none the less.

I can only speak for a handful of FMO's outside of our office, because we are only affiliated and/or work with a few others but all in all our office and the ones that we work with provide the type of service I mentioned.

We personally offer a quoting tool, quoting over the phone to handle tough to issue cases, personal handling of difficulties with carriers, leads or cash reimbursement, trips, and many other services to our agents. If we're giving you the same (if not better) levels than an agent can get direct from carriers, I have a hard time understanding why an agent wouldn't work with an FMO?

Hell, give us a shot if you'd like, or don't...Either way we're going to be helping the agents that appreciate what we do. We offer releases if you ever felt like you weren't getting a value from being contracted with our office...Nothing to lose!