Should a Newbie Always Start with an IMo

lacy_amy · 03-21-2009, 10:01 AM

If a newbie wants to go independent is it best to go with an IMO or get your own contracts?

Jim · 03-21-2009, 11:05 AM

With few exceptions it is best to go with IMO.

Jim Sowder
Family 1st Insurance Brokerage
304-640-8914
[COLOR=#0000ff]jimsowder@family1stinsurancebrokerage.com[/COLOR]

Originally Posted by lacy_amy

If a newbie wants to go independent is it best to go with an IMO or get your own contracts?

insuranceexec · 03-21-2009, 03:07 PM

You will find many companies on the life and annuity side will not contract you directly.......there are many on here who can assist you with this. I hope this helps.....

Paradigm · 03-21-2009, 03:18 PM

Usually not always a new agent can get a better level of advanced commission by going through an MGA, the MGA may be able to help them with any questions and concerns they have and may also be able to tell them which product and company are the best in a particular case.

If you dont have experience you can borrow it by using an MGA essentially.

lacy_amy · 03-21-2009, 06:57 PM

Sorry....what does "MGA" stand for?

Paradigm · 03-21-2009, 06:58 PM

Originally Posted by lacy_amy

sorry....what does "MGA" stand for?

Managing General Agent

lacy_amy · 03-21-2009, 07:38 PM

Can someone please explain what the difference is between a MGA and an IMO?

Markingriffin · 03-21-2009, 08:05 PM

Originally Posted by lacy_amy

Can someone please explain what the difference is between a MGA and an IMO?

MGA is lower on the food chain.

MGA might have 2 to 50 agents.

IMO might have over 1,000 and recruits the MGA.

There is also different sizes of IMO's and MGA's

IMO might have 50 MGA's.

Example to better explain.

Street level Normal Agent for abc company is 100%.
MGA that has 1 to 4 agents might get 105%
MGA1 that has 5 to 20 agents might get a 110%
MGA2 that has 25 to 100 agents might have a 115%
IMO that has over 100 agents might have a 120%
IMO2 might have 300 to 500 agents and have a 125%
IMO3 Might have 1,000 plus agents have do large numbers have a 130% to 140%.

I am making up these % numbers to show you something.

insuranceexec · 03-21-2009, 11:04 PM

Originally Posted by Markingriffin

MGA is lower on the food chain.

MGA might have 2 to 50 agents.

IMO might have over 1,000 and recruits the MGA.

There is also different sizes of IMO's and MGA's

IMO might have 50 MGA's.

Example to better explain.

Street level Normal Agent for abc company is 100%.
MGA that has 1 to 4 agents might get 105%
MGA1 that has 5 to 20 agents might get a 110%
MGA2 that has 25 to 100 agents might have a 115%
IMO that has over 100 agents might have a 120%
IMO2 might have 300 to 500 agents and have a 125%
IMO3 Might have 1,000 plus agents have do large numbers have a 130% to 140%.

I am making up these % numbers to show you something.

Absolutely correct. One thing I would add is that many times a MGA will be local; therefore providing 1 on 1 mentoring.

An IMO provides training but usually over the phone or web-casts. I have numerous MGA's across the country, and depending on where you are located, I may have someone close to you. Have a good evening.....

nka245 · 03-21-2009, 11:34 PM

Originally Posted by lacy_amy

If a newbie wants to go independent is it best to go with an IMO or get your own contracts?

Going direct with a carrier that allows you to do so is probably not the best idea for a few reasons. One, they won't offer you the training that you need to be successful and two, you don't have the production to back up a decent sized contract and three, often you are locked into the contract you have with them even if your production significantly increases.

You should interview with a few different people before making a decision.

You will find that there are differences in commissions with each IMO but there are also differences in training and resources.

I've been through my fair share of IMOs and they all blow smoke up your butt and promise you the moon and the stars but you're lucky if you get cracker jacks.

Sometimes a higher contract is not always the best option either. Regardless of how high your contract is; if you don't have resources to be successful; you'll sink.

Be leery of some of the bigger MLM type IMOs that require you to sign your life away and offer crappy commissions and try to lure you deeper and deerper in the abyss by making you listen to mp3s, podcasts, and seminars from people who are supposedly successful with them but later you come to find out that although; they may have grossed 200k; they have tax liens on their homes and either have filed or are on the verge of filing for bankruptcy...

There is a lot to watch out for. I suppose my best advice is to interview with at least 3 different IMOs and try to find one that best fits your needs, goals, and sales style.

Good luck to you!

lacy_amy · 03-22-2009, 11:30 AM

Thanks for all this great advice. So would it be fair to say that a newbie should get hooked up with a good IMO so that they can get good training and good contracts. Then eventually get to be a MGA and get overrides? Just trying to become as informed as possible. I live outside of Milwaukee so does anyone know of any good IMO's? I know Todd King and Mark Rosenthal are good, I plan on calling them.

Jocely · 03-22-2009, 11:41 AM

This is a very interesting thread. With some IMO's they will offer you a lower commission (55%) and you purchase leads from there source which I have found can cost anywhere from $15.00-$25.00 dollars a piece. If you ask around their are people on this board that will offer you training and good lead sources, some even free lead sources and your commission will be between 70% and 125% depending on who you go with, what products you want to offer, and how much training you need.

PotentialFarmer · 08-23-2009, 04:25 AM

At the risk of being silly, IMO stands for what? All these terms are new to me. Independent Management Organization lol.

atlantainsguy · 08-23-2009, 10:30 AM

Mark's numbers are right on, but a few of the terms are "rubber words" meaning different things to different people.

NMO is national marketing organization. They have the top-level contract directly with the insurance company. They also get the production bonuses. Production requirements are steep, usually starting at $1 million +.

IMO is independent marketing organization. These are numerous FMOs (and some large MGAs) who band together to form a corporation in which they all pay to be shareholders. The IMO itself, or a shareholder, is the NMO as well. The IMO will take a few points off the top to cover expenses. The shareholders each get the net comp and split the bonus. Their combined production meets the quota. This is a more "traditional" definition of IMO. Lately the term has also come to include what has traditionally been an FMO. Shenandoah was great at doing that -- calling everyone and "IMO", when in the traditional sense they were mostly MGA operations.

FMO is field marketing office/officer. These organizations are typically the IMO shareholders. They are the industry's top wholesalers. They generally work on volume with a 10-15 max point spread.

MGA is managing general agency/agent. Mark accurately points out the comp spreads and support levels, or lack thereof.

Anyway, that's my take on this pecking-order alphabet soup.

Atlantainsguy

squeed · 08-25-2009, 09:35 PM

So then is a company like this hxxp://www.erieinsurance.com an IMO ?

-S