The benefits of working with an insurance FMO

Independent:

An Independent Insurance Agent is not an employee of another agency. They are free to contract with any company they feel is a good fit for their business. They are their own boss, they set their own hours, and choose the products they want to go to market with.

An Independent Agent has more freedom to choose how they do business and will enjoy a higher commission on his contracts.

Captive:

A Captive Agent works for a company or agency. They are required to take on the products chosen by the company they are employed with. Typically, Captive Agents earn lower commissions than Independent Agents, but receive more support.

Nevertheless, the added support and training they receive will come at the cost of lower commissions.

Regardless of whether you end up contracting as a Captive or Independent Agent, make sure to fully understand the Release Policy of the FMO you choose.

Some FMO’s offer an Open Release Policy, meaning:

If at any time you want to part ways with the FMO, you simply ask for a release, stop working with the company, and still retain your book of business.

There are some good FMO's out there that will offer a straight up release policy with no strings attached. This type of relationship will allow the most flexibility with your business.

This relationship allows agents to operate like a business and not get locked into something that may not be in their best interest.

Other FMO’s offer limited release options, which may not allow an agent to be released easily, or won’t allow an agent to retain their book of business. This means that the business the agent generates while working with a company, should they decide to leave, may belong to the FMO and NOT the agent.

Note! It is essential to be clear on this point before selecting an FMO! Some FMO's will have strings attached to a release policy that may not be in favor of the agent.

Make sure to ask about their release policy and understand it completely before contracting with any FMO.

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FMOs that want to help you compete more effectively will usually offer customer relationship management (CRM) tools to help agents streamline their business process.

This software will help you keep track of your client from first contact through the enrollment process, and offer a calendar and reminder system to ensure you know what you need to do – daily, weekly, and monthly – to help you build your business.

[ Recommended: CRM for Agents ]

FMOs offer a range of products to help you build the perfect portfolio, ensuring you remain competitive in your market space.

A strong FMO will generally offer agents and brokers with a wide range of product options, including regional and national health plan options from brand name insurance companies with highly ranked plans.

Help getting your required annual sales certification (or re-certification) from AHIP (America’s Health Insurance Plans) and Product training for your contracted carriers in he senior market.

While certification for specific products will be required no matter which FMO you work with, some will offer reduced rates for required AHIP training.

A good FMO will notify you when new certifications are available each year.

[ Recommended: What is AHIP Certification and How do I Get it? ]

Prioritize partnering with an FMO that values your contributions and rewards you accordingly. Look for one that elevates your commission rate in tandem with your growing success.

Diligently expanding your business deserves recognition, and the right FMO will offer advanced contract opportunities that match your rising achievements.

Moreover, they should assist in refining your portfolio strategy to amplify your sales potential. For those specializing in Medicare sales, the ideal FMO will guide you in diversifying into life or Annuity products, enhancing your offerings in the Medicare space.

Conversely, if your expertise lies in Annuity or life insurance, an adept FMO can pave the way for you to venture into the Medicare Insurance or Medicare Advantage plan markets, tapping into a customer base ripe for these products.

For both you and your chosen Insurance FMO, fostering business growth should be a mutual goal, underpinning every strategy and support provided.

If your potential FMO offers most, or all of the above, ask if any of your associates are already doing business with them. The best reviews come from people currently working with an FMO, who can share their experience and quickly help you determine if it’s a proper fit.

It’s also a good idea to speak with a rep from the FMO to get an idea what kind of support you will receive, and to get a feel for the attitude of the employee.

Try to get an idea of the turnover rate at the company. A good FMO will usually have a core of experienced marketers that have been there for years.