Pros and Cons of FMO's?

[LostDollar]

I still have my contracts scattered and some direct. I'm making Senior Market Design my main FMO. They have street contracts and they have a nice program where with every 12 issued policies through them(any combination of Med Supp/FE), you get a 1,000 piece DM drop. I've been home sick for the past week, but I just ordered my 1st batch and have had 38 comeback so far(25 with spouses).

I'd have to go reading to get DM response rates in my head, but that sounds pretty good.

To me, the IF would be, if over time -- over a limited area of what -- 5 to 8 counties? -- the number of people aging into medsupp and fe needs will be enough to give you a steady response of quality prospects.

I hope that the mail response continues to work well for you beacause it sounds really nice,

 

[goillini52]

I'd have to go reading to get DM response rates in my head, but that sounds pretty good.

To me, the IF would be, if over time -- over a limited area of what -- 5 to 8 counties? -- the number of people aging into medsupp and fe needs will be enough to give you a steady response of quality prospects.

I hope that the mail response continues to work well for you beacause it sounds really nice,

That's 3.8% which is excellent(and I might have a few more come in). That was a very small county that I live in. There were only 800 names in my county that met my filters,so they had to drop 200 in a neighboring county(10 miles a way). The population within 45 minutes from me is over 500,000 so I can't see it getting saturated.

 

[LostDollar]

re 3.8%

When folks talk about their DM responses, are those mostly "single" name cards or does the spouse thing happen often?

The way you worded your post made me think, that for your purposes, you were seeing that you got the effect of a 6% response; which I was pretty sure would be very good.

 

[goillini52]

re 3.8%

When folks talk about their DM responses, are those mostly "single" name cards or does the spouse thing happen often?

The way you worded your post made me think, that for your purposes, you were seeing that you got the effect of a 6% response; which I was pretty sure would be very good.

When response rate is mentioned they're talking cards received back. I received 38 back for a 3.8% response. 25 have spouse listed for a total of 63 prospects. I guess you could look at it like it was 6.3% if you want, but it's a 3.8 % response rate.

 

[LostDollar]

thank you.

I just wanted to know how it worked. I have no desire to be posing as an authority on computation of direct mail returns.

I dont think I'd have even dared to have the conversation I just did with anyone but you.

 

[goillini52]

thank you.

I just wanted to know how it worked. I have no desire to be posing as an authority on computation of direct mail returns.

I dont think I'd have even dared to have the conversation I just did with anyone but you.

You're welcome LD...now I feel special.

 

[Dmr023]

I would suggest starting by determining the competitive carriers in your market and making a list of the qualities/resources/characteristics you are specifically looking for and interview a few FMO's. This will help you in determining a good fit, and finding out if there is a fit with the carriers they offer vs. the carriers you wish to appoint with.

Some carriers require you to go through an FMO, some allow direct contracts. However, keep in mind if you are looking for specific things you might not receive that support through a direct contract with a carrier.

Are you looking for local support, leads, training, etc? It's good to get an idea of what an FMO will offer you vs. the carrier, and of course inquire about a release policy.

 

[midwestbroker]

Howdy...I don't remember the thread either but I know, since I work for them, that we will usually grant releases provided there is no debt balance.

Thanks for the kind words earlier about Senior Marketing Specialists!

As for DM response rates, I tell agents to figure a 1.5% return. Anything else is a bonus. 3.8% is an awesome rate!

 

[jlallgier]

I got a release from the Columbia SMS just a couple months ago with a med supp carrier to move to another FMO that promised me a free mail drop if I wrote some many apps. Had no issues with it. They did check to see if I had a debit balance which is pretty standard.

 

[DS4]

....I was wondering what the pros, and cons of working with large FMO's are......

The only pro I can think of is the birthday card they send me.