Which Kind of Perks Do FMOs Give to Agents?

[SeniorMarketDesign]

We're baffled by the number of agents that continually go back to other FMO's that let them down repeatedly, contract after contract. With as much competition as there is out there between different FMO's, the agents ultimately hold the power to choose FMO's that DO reward them and provide the service that they deserve. There are too many FMO's that are satisfied with just getting rich off of agents and treat agents as if they should feel privileged to work with them as FMO's.

End all, say all, FMO's should be EARNING the business of agents and providing the service that each agent individual wants. There is no 'one size fits all' FMO for all agents, and it is in the each agents' best interest to do their due diligence and find who is the best fit for them.

 

[moonlightandmargaritas]

There are too many FMO's that are satisfied with just getting rich off of agents and treat agents as if they should feel privileged to work with them as FMO's.

Isn't this how they all work?

 

[DS4]

You're shitting me?!! Do you produce for them?

Almost every single contract I have is direct.
It wasn't until AARP/UHC decided to allow agents that I needed to go through a FMO.
I only needed the contract. I don't need any training. After 37 years, I'm now untrainable.

 

[briko3]

After 37 years, I'm now untrainable.

Didn't take me near that long

 

[wehotex]

We're baffled by the number of agents that continually go back to other FMO's that let them down repeatedly, contract after contract. With as much competition as there is out there between different FMO's, the agents ultimately hold the power to choose FMO's that DO reward them and provide the service that they deserve. There are too many FMO's that are satisfied with just getting rich off of agents and treat agents as if they should feel privileged to work with them as FMO's.

End all, say all, FMO's should be EARNING the business of agents and providing the service that each agent individual wants. There is no 'one size fits all' FMO for all agents, and it is in the each agents' best interest to do their due diligence and find who is the best fit for them.

If agents could somehow transfer their past ENTIRE book of business to the new FMO, I think that the current FMOs would pay more attention to the agents and make an effort to retain them. Unfortunately, the FMO is just one big unnecessary layer of mediocre, salaried cronies looking out for themselves.

 

[goillini52]

We're baffled by the number of agents that continually go back to other FMO's that let them down repeatedly, contract after contract. With as much competition as there is out there between different FMO's, the agents ultimately hold the power to choose FMO's that DO reward them and provide the service that they deserve. There are too many FMO's that are satisfied with just getting rich off of agents and treat agents as if they should feel privileged to work with them as FMO's.

End all, say all, FMO's should be EARNING the business of agents and providing the service that each agent individual wants. There is no 'one size fits all' FMO for all agents, and it is in the each agents' best interest to do their due diligence and find who is the best fit for them.

But do you give free coffee mugs Jared?

 

[SeniorMarketDesign]

If agents could somehow transfer their past ENTIRE book of business to the new FMO, I think that the current FMOs would pay more attention to the agents and make an effort to retain them. Unfortunately, the FMO is just one big unnecessary layer of mediocre, salaried cronies looking out for themselves.

FMO's that pay attention and/or provide solid agent support DO notice when producing agents move their production elsewhere. Honestly, if more agents pursued moving their contracts to FMO's that did provide them quality service and support, the ones that choose not to, would see their bottom line effected very quickly.

FMO's do serve a place in the market. This is more beneficial as a whole to the insurance companies, than agents. However, agents working with FMO's that respect and work to earn agents' business, definitely benefit from the arrangement. The FMO's that HAVE become a 'layer of mediocre, salaried cronies' need to be weeded out by agents and no longer given contracts. If an agent's FMO isn't doing anything to benefit them, that agent need to find FMO's that will!

 

[sman]

FMO's that pay attention and/or provide solid agent support DO notice when producing agents move their production elsewhere. Honestly, if more agents pursued moving their contracts to FMO's that did provide them quality service and support, the ones that choose not to, would see their bottom line effected very quickly.

FMO's do serve a place in the market. This is more beneficial as a whole to the insurance companies, than agents. However, agents working with FMO's that respect and work to earn agents' business, definitely benefit from the arrangement. The FMO's that HAVE become a 'layer of mediocre, salaried cronies' need to be weeded out by agents and no longer given contracts. If an agent's FMO isn't doing anything to benefit them, that agent need to find FMO's that will!

I think what wehotex was referring to when he mentioned transferring the ENTIRE book was just that, transferring the ENTIRE book (meaning existing business, including the renewals). Let's say an agent has 400-500 Med Supps on the books and 150-200 MAPD's for which the FMO is receiving a monthly override commission. If that agent were allowed to move the entire book (and the renewals that go with it) to another FMO, then FMO's would likely do a better job. I mean if the FMO stands to lose $40k-$50k (I have no idea what the override for an FMO is on Med Supps, so I used a 5% figure in these calculations) in renewals from an agent plus any new business that agent brings, they'd probably change their tune real quick.

I know there's one FMO out in the midwest who won't be getting anymore of my business with the exception of one carrier who I've written in the last 6 months and still continue to use occasionally (I may still try and get a release, but that means I have to communicate with them and I don't really feel like talking with anyone there). And as the Med Supp and MAPD market changes, those existing clients for whom the FMO is currently getting a renewal will be moved to other carriers at a different FMO. It's a real shame too because I've put a good bit of my Med Supp, MAPD and annuity business with them for a decade. Not all of it, but certainly a good portion of it. I guess they really showed me.

 

[goillini52]

I think what wehotex was referring to when he mentioned transferring the ENTIRE book was just that, transferring the ENTIRE book (meaning existing business, including the renewals). Let's say an agent has 400-500 Med Supps on the books and 150-200 MAPD's for which the FMO is receiving a monthly override commission. If that agent were allowed to move the entire book (and the renewals that go with it) to another FMO, then FMO's would likely do a better job. I mean if the FMO stands to lose $40k-$50k (I have no idea what the override for an FMO is on Med Supps, so I used a 5% figure in these calculations) in renewals from an agent plus any new business that agent brings, they'd probably change their tune real quick.

I know there's one FMO out in the midwest who won't be getting anymore of my business with the exception of one carrier who I've written in the last 6 months and still continue to use occasionally (I may still try and get a release, but that means I have to communicate with them and I don't really feel like talking with anyone there). And as the Med Supp and MAPD market changes, those existing clients for whom the FMO is currently getting a renewal will be moved to other carriers at a different FMO. It's a real shame too because I've put a good bit of my Med Supp, MAPD and annuity business with them for a decade. Not all of it, but certainly a good portion of it. I guess they really showed me.

If you're shopping, you should at least talk to Senior Market Design. They want to earn your business. I've started contracting with them for any new carriers I add. Very easy to deal with and they'll send you a coffee mug. I give them 3 thumbs up!

 

[SeniorMarketDesign]

I think what wehotex was referring to when he mentioned transferring the ENTIRE book was just that, transferring the ENTIRE book (meaning existing business, including the renewals). Let's say an agent has 400-500 Med Supps on the books and 150-200 MAPD's for which the FMO is receiving a monthly override commission. If that agent were allowed to move the entire book (and the renewals that go with it) to another FMO, then FMO's would likely do a better job. I mean if the FMO stands to lose $40k-$50k (I have no idea what the override for an FMO is on Med Supps, so I used a 5% figure in these calculations) in renewals from an agent plus any new business that agent brings, they'd probably change their tune real quick.

Completely agree, and understand where wehotex was coming from with this thought process. It would sting FMO's much harder if they lost their renewals when an agent was released. All I was trying to point out was that even though this isn't currently what happens with most contracts, moving production to a different FMO does end up making a dent. Agents shouldn't just roll books of business, but over time healthy clients do end up being moved and when agents have moved their contracts, this does end up hurting slacking FMO's renewals.