How Do FMO's Get Paid if I'm Independent?

[Roy2015]

Hi guys...I have been considering getting my contracts thru a FMO named Kellog Insurance Marketing. I have heard good things about them and they are local and say they offer top contracts, with competitive carriers, and that they only work with independent agents. That my business is my own. The reason I am considering them as my FMO is because they have 47 years in the senior market and they have hands on training on a local level and I think that this will help my get a handle on things a lot quicker than if I was on my own.

I am just a little confused about how this works tho. They say that I am independent and I get paid directly by the carrier. Do they still get overrides on my production even tho i get paid by the carrier? One carrier offers 18% comm for yrs 1-6...How will the FMO get overrides if I am getting the top comm contract offered by the carrier? How do they make any money off of agents who are independent and get paid directly by the carriers? It is still jus a little confusing to me.

I'm new to this so I'm just trying to understand how this works. Any help is greatly appreciated. Thanks in advance!

 

[GoPokes]

Hi guys...I have been considering getting my contracts thru a FMO named Kellog Insurance Marketing. I have heard good things about them and they are local and say they offer top contracts, with competitive carriers, and that they only work with independent agents. That my business is my own.

The reason I am considering them as my FMO is because they have 47 years in the senior market and they have hands on training on a local level and I think that this will help my get a handle on things a lot quicker than if I was on my own. I am just a little confused about how this works tho. They say that I am independent and I get paid directly by the carrier. Do they still get overrides on my production even tho i get paid by the carrier? One carrier offers 18% comm for yrs 1-6...How will the FMO get overrides if I am getting the top comm contract offered by the carrier? How do they make any money off of agents who are independent and get paid directly by the carriers? It is still jus a little confusing to me.

I'm new to this so I'm just trying to understand how this works. Any help is greatly appreciated. Thanks in advance!

Yes. They get an override. The carrier pays you directly, and pays them directly. Top agent contracts are not the same as top FMO/IMO contracts. So, for example, if you sell a plan that costs $100, the carrier would pay you $18, and pay them $2 (assuming they get 2%, I'm making this number up to keep things simple). Both parties are independent. Make sense? If not, lemme know.

I'm not familiar w Kellogg, I'm just making some assumptions based on how you said they operate.

 

[Roy2015]

Top agent contracts are not the same as top FMO/IMO contracts.

Any chance you could explain this in a little more detail. What would be an example of a top FMO contract? I looked at the Equitable contract and all it said was that the producer got 18% for yrs 1-6 and then like 2.5% for years 6-10....or something like that. If the top producer contract is at 18%....then what would a typical top FMO contract be in terms of %?

 

[Norwayguy]

Any chance you could explain this in a little more detail. What would be an example of a top FMO contract? I looked at the Equitable contract and all it said was that the producer got 18% for yrs 1-6 and then like 2.5% for years 6-10....or something like that. If the top producer contract is at 18%....then what would a typical top FMO contract be in terms of %?

Don't over think this your not an FMO.

 

[goillini52]

Hi guys...I have been considering getting my contracts thru a FMO named Kellog Insurance Marketing. I have heard good things about them and they are local and say they offer top contracts, with competitive carriers, and that they only work with independent agents. That my business is my own. The reason I am considering them as my FMO is because they have 47 years in the senior market and they have hands on training on a local level and I think that this will help my get a handle on things a lot quicker than if I was on my own.

I am just a little confused about how this works tho. They say that I am independent and I get paid directly by the carrier. Do they still get overrides on my production even tho i get paid by the carrier? One carrier offers 18% comm for yrs 1-6...How will the FMO get overrides if I am getting the top comm contract offered by the carrier? How do they make any money off of agents who are independent and get paid directly by the carriers? It is still jus a little confusing to me.

I'm new to this so I'm just trying to understand how this works. Any help is greatly appreciated. Thanks in advance!

Their override shouldn't affect your commission as long as they give you a good contract. 18% on a Med Supp isn't good unless it's New Era. For an FMO, they don't offer very many companies. If you're in Neveada and they're in Utah, how are they going to give you hands on training on a local level? If you go with an FMO out of UTAH, you should look at JimmyUT, he's on the Forum and has a good reputation...I've never heard of Kellogg.

Kellogg Insurance Marketing

 

[sshafran]

Any chance you could explain this in a little more detail. What would be an example of a top FMO contract? I looked at the Equitable contract and all it said was that the producer got 18% for yrs 1-6 and then like 2.5% for years 6-10....or something like that. If the top producer contract is at 18%....then what would a typical top FMO contract be in terms of %?

Are you going to do an analysis of how the carrier gets paid based on premiums and claims so that you have a better understanding of how their business model works too?

Not trying to be a jerk...but seriously... just go sell something.

The FMO is in business to make money... a small percentage of a large group of agents. You knew that. Why do you need details?

 

[Newby]

Hi guys...I have been considering getting my contracts thru a FMO named Kellog Insurance Marketing. I have heard good things about them and they are local and say they offer top contracts, with competitive carriers, and that they only work with independent agents. That my business is my own. The reason I am considering them as my FMO is because they have 47 years in the senior market and they have hands on training on a local level and I think that this will help my get a handle on things a lot quicker than if I was on my own. I am just a little confused about how this works tho. They say that I am independent and I get paid directly by the carrier. Do they still get overrides on my production even tho i get paid by the carrier? One carrier offers 18% comm for yrs 1-6...How will the FMO get overrides if I am getting the top comm contract offered by the carrier? How do they make any money off of agents who are independent and get paid directly by the carriers? It is still jus a little confusing to me. I'm new to this so I'm just trying to understand how this works. Any help is greatly appreciated. Thanks in advance!

What you want to do is compare how much they are paying you compared to how much other Med a Sup IMOs are willing to pay you. It doesn't matter how much the IMO makes because you aren't an IMO. You just want to make sure you are getting a fair agent commission.

Equitable does pay less commission than other companies like Aetna, Mutual of Omaha, Etc. 18% might be fair on them but on some companies agents will get 21-22% as a new agent for the first six years. Which state you are in can make a difference too.

Before you sign up compare what fair commission levels are with Ritter Insurance, Todd King, Jimmy (Utah) Hobson, Chris Westfall, etc. this forum is a powerful tool to make sure you are getting a fair deal but only if you use it BEFORE you sign anything.

Local field training is nice and worth something but not necessary if the deal is not as good as elsewhere. Open release agreements are something to discuss too with anyone you sign up with.

 

[GreenSky]

Hi guys...I have been considering getting my contracts thru a FMO named Kellog Insurance Marketing. I have heard good things about them and they are local and say they offer top contracts, with competitive carriers, and that they only work with independent agents.

You say you've heard good things about them. Where did you hear this? My guess is from them,.

Will they guarantee an unconditional release upon request?

Rick

 

[sman]

You say you've heard good things about them. Where did you hear this? My guess is from them,.

Will they guarantee an unconditional release upon request?

Rick

Please don't confuse the guy with more questions. Now you're going to have to explain what an unconditional release is. Then, after you explain it, he's going to want more details. You might have to define "request" as well.

 

[WCMason]

Hi guys...I have been considering getting my contracts thru a FMO named Kellog Insurance Marketing. I have heard good things about them and they are local and say they offer top contracts, with competitive carriers, and that they only work with independent agents. That my business is my own. The reason I am considering them as my FMO is because they have 47 years in the senior market and they have hands on training on a local level and I think that this will help my get a handle on things a lot quicker than if I was on my own.

I am just a little confused about how this works tho. They say that I am independent and I get paid directly by the carrier. Do they still get overrides on my production even tho i get paid by the carrier? One carrier offers 18% comm for yrs 1-6...How will the FMO get overrides if I am getting the top comm contract offered by the carrier? How do they make any money off of agents who are independent and get paid directly by the carriers? It is still jus a little confusing to me.

I'm new to this so I'm just trying to understand how this works. Any help is greatly appreciated. Thanks in advance!

Override goes to directly to them. Agent comp goes directly to you. 18% may or may not be good depending the carrier and state. Others here will speak better to that.