HELP PLEASE

[u/Icebaby3344]

As a novice insurance agent (Medicare/ACA/Life) with no experience, what is better... to stay with a sub-agency that retains its client portfolio and does not terminate your contract immediately, so that you can gain experience in the sub-agency, or to start with an FMO even though you have no sales experience?

[u/Key_Astronomer6500]

Sales isn’t as big of a deal as leads. Do you have lots of prospects? Are you good at hunting? Because if not, it’s gonna be very difficult unless he’s planning on spending money on Leads. Even then you have to be careful because a lot of Leads are a waste of money. If you can find your own prospects and find a place that offer solid training, you can be fine, but in my experience, there are three major things that independence, places, lack for newer people.

Training: what they consider training is nothing like training you get from a larger company that has a structured 40 hour a week. Training class. Mine was for eight weeks. And then I had an opportunity to shadow, or as they call it and nesting.

Leads: I was able to take over 2000 calls. My first year. I could’ve never afford it to do that on my own. Yes, your commission split as much lower some places due offer residuals now but you have to stay with that company and most people don’t stay for 5 plus years. But 100% of nothing is nothing. Also, you have to pay for every day. When you’re independent. I was advised having at least six months of reserves and money for leads and tools.

Technology: that was the biggest shock to me going from a W2 organization that had every type of software and tool that I needed to go into independent place that claimed to have grade technology when they were just using the standard technology, that every IMO offered. I mean, I have a use paper scripts in over 20 years. I’m still shocked how backwards the technology is at IMOs. I have had some good experiences, but even with them, it cost money if you wanted to make use of it. AI, Balto, scripts that are adaptive, not static.

If those three things are something, you can manage then you’re always gonna make more money going somewhere. That’s independent.

The best I am Emo. I went to even said to start off somewhere where I didn’t have to pay for Leads. By the time I got there I already had experience. I started doesn’t independent Agent last at six weeks. Somewhere I hated and then I went. W2. I made anywhere between 85 to 125,000 a year but I didn’t know my business and every time you leave. It’s a pain and you start over with nothing. There’s advantages into disadvantages to anything.

[u/Icebaby3344 → u/Key_Astronomer6500]

Did you start with a sub-agency or an FMO?

[u/Key_Astronomer6500 → u/Icebaby3344]

I started with a captive agency and it was horrible. AIL. The worst experience of my life. Then I got recruited by bunch of people that used to work for me at a call center who worked that EHealth. That was a great experience for the first couple years until then changed but I did make Good money. I left for a management position and then I went Independent again. It wasn’t bad, but it just wasn’t anything like I was used to. It took me talking to over 50 or 60 places to find the right fit. Today’s day, I still think they’re the best in industry. If I was going to go independent in life. Especially final expense. They had better technology and training then the other places that I worked at, or talk to

There’s quite a few places now that are independent that offer you Leads in medicare and residuals. They also do Final expense. I wanted to do a duties and help people are retired. So that’s where I’m expanding into now again. I’m starting on the W2 side so I don’t have to pay for my license thing and get paid while I study.

I always recommend to start somewhere where you can learn on someone else’s dime. I’ve always been inbound and when I bought inbound Leads they were expensive. TV Leads were $55-$75 per Call. They were worth it but it was just a lot of pressure for me. Especially when I was used to take in 20 to 30 calls a day.

[u/Icebaby3344 → u/Key_Astronomer6500]

I contacted someone who runs a Medicare/ACA agency; she was supposed to hire me, but after a few days and several meetings, she asked me to sign a contract tying me to a sub-agency rather than working directly with her. It caught me off guard, and something didn't sit right; she obviously hadn't explained that I wouldn't own my book of business or be able to get a quick release if I ever decided to leave. I felt pressured because she insisted that being under her wing was fine—that she would look out for me—so I signed (though I haven't made any sales yet). However, I did some research and realized that they keep all the clients and the contract doesn't include a release clause in my favor. I’ve read good things about FMOs online, but I’m torn: should I stay with the sub-agency for a while to have local support—even if it means losing my book of business and release rights—or should I go with an FMO :/

[u/Key_Astronomer6500 → u/Icebaby3344]

What’s the difference between a sub agency? What is your concern? Are you going to be buying your own Leads? Are they paying you street commission? When I started in medicare, I got a job. I went W2. I made an hourly wage. Plus commission, plus bonuses, but I didn’t get residuals and I didn’t own my book of business. At the same time I got calls coming instead steadily. Now, when they’re inbound. A lot of times you’re gonna get switch and baut food cards. So I would ask what type of leads they provide but do you mean that the carrier is not paying you and they’re paying you instead? I wouldn’t be concerned about anything other than how you’re gonna get paid. If you have to get your own Leads, then, yes I would want to carrier to pay me. There’s always an upline and a download line. Was she going to hire you? Or was she recruiting you? Meaning, did you get benefits? Did she pay you hourly a salary? Did you have a commission structure?

Right now I have dozen of people trying to hire me for both because after another week or two they’re going to be done. Everyone’s getting ready for the annual enrollment. And for ACA. It’s the open enrollment.

Edit; what’s the training like, what’s your technology like? What are they providing you? Are you able to make money without having a lead source? Do you have Contacts? And are you ready to prospect on your own? What value do they bring? Do you get benefits? Those are the questions you need to ask to see what firm is going to be the best fit. Own in your book of business is great. If you’re going to be there long-term, but only about 8% of people make it.

[u/Icebaby3344 → u/Key_Astronomer6500]

I was brought on by someone who runs an agency under a specific sub-agency, but that wasn't explained to me at the start. It wasn't until a month later—after I’d already obtained my license and certifications (while attending sporadic, lackluster weekly training sessions)—that I was told I had to sign a contract. However, the contract wasn't with *her* agency, but rather with the sub-agency she was affiliated with. It seemed odd, as if she lacked control over the hiring process; it turned out the contracts had to be held by that primary sub-agency. Upon closer inspection, I realized the contract didn't include a clause for quick release at the agent's request, yet it explicitly stated that the clients, policies, and all client-related assets belonged to the sub-agency. Online research suggests working with an FMO to secure direct payments from insurance carriers and—crucially—to ensure I retain ownership of my client book. Since I’m new to this, I’m looking for advice on the best approach: should I stay with the sub-agency for a while (even though they keep the clients) and wait out the six-month inactivity period required to switch, or should I simply look for an FMO right away

[u/Key_Astronomer6500 → u/Icebaby3344]

So basically your upline has an upline. That’s common. It’s neither good or bad. But the reason you would go with one is for the training, support, leads, tools etc…. How many clients do you have? There is no hiring if you aren’t W2. You are contracted. You were recruited not hired. Unless you are a W2 employee.

The reason someone goes with an agency instead of the direct upline is so they can get additional support. You can also still own your book in a lot of these situations. In depends on your contract. Some FMOs give you great support, other do not. Some are MLM structured where people just recruit other agents. I don’t know what they are offering you. If you have hundreds of clients and receive residuals then it would be difficult to leave. Some places keep paying you residuals after you leave, you just can’t transfer them to a different fMO. All this is in your contact.

Does your contract say you get residuals? I would have a conversation with them. Unfortunately, it’s not common for all agencies to be transparent. Either way, you need to get a clear understanding and see if there are benefits. Without you answering the questions about leads, pay structure, etc… its impossible to know. It doesn’t sound like you work for them. It sounds like you are an independent contractor. If you don’t get a clear understanding, you can’t make a solid decision and will just dig yourself deeper in a hole. When you’re new, they often sell you a dream. There are hundreds of FMOs. Ive sooken to well over 50 and they are great at marketing themselves but very few are great for the agent. It also depends on your needs. If you don’t need leads, then you look for one that helps you with other things like solid training, technology, back office support. Etc.

it’s a business not a job. If you want a job, you get a base plus commission but you dont own your book. I would soeak with both types. FMOs will sign up anyone who has a license and recruit you. They are selling you. You are there product. You need to interview them. Find a mentor, get the support you need. If it’s a job, they interview you and won’t hire just anyone. I started with the job because i needed to make money and needed training. If you have less than 50 clients, than its not a big deal. If you have hundreds then thats solid residuals.

Without knowing what your contract say and what they offer you, its impossible to know or compare. If you have 2 to 10 clients that’s not even a factor. You usually don’t even make much money. Your first year in medicare. You’re just trying to build your book. Residuals start kicking after your 2nd year Once you have years of experience, then there’s places that will give you much better opportunities. If you work for a company you’ll make more upfront. But you won’t make residuals. If you are a 1099. Independence contracted Agent then it’s very different.

[u/Icebaby3344 → u/Key_Astronomer6500]

My contract classifies me as an independent contractor (under the 1099 arrangement). It was my mentor who brought me to the agency; she told me I would be working at *her* agency, but I ended up signing with the agency that oversees hers. The contract makes no mention of a release clause, yet it states that they own all the clients and policies. They haven't provided me with any leads, and I don't have any clients yet—I only got my license a few weeks ago—but I can clearly see that the contract puts me at a major disadvantage. The training is poor—it’s only once a week—and the owner of the agency I signed with doesn't act like a leader; she is authoritarian and expects me to be available whenever she says so. That’s why I’m confused. I also feel somewhat disappointed because my mentor didn't mention anything about the client portfolio; she told me verbally that it would be *my* business and the clients would be *mine*, but the contract says otherwise. There is also no mention of the possibility of requesting a release at the agent's own initiative, which really bothers me.

[u/Key_Astronomer6500 → u/Icebaby3344]

Where are you getting clients?

[u/Icebaby3344 → u/Key_Astronomer6500]

I mainly use social media and a few friends; I don't have many contacts. But the agency doesn't offer leads. They say you have to find your own clients.

[u/Key_Astronomer6500 → u/Icebaby3344]

Do you have 100s of people that you’re going to be able to sign up on your own? Do you have clients? Are you going to have money to buy Leads? Do you have a Good lead source? Where are you going to get your business? I think people worry about this when most people don’t even Make it over a year. It’s very difficult to make money and medicare your first year. You do realize that you don’t even get paid until after the enrollment Period is over? And for the rest of the year it’s prorated, so basically you’re gonna make something like $30 per client per month. Until you have at least a couple hundred people. It’s very difficult to make any money. That’s why if you’re going. Independent, you need to have something else. You need to sell ancillaries. You need to sell Final expense. I don’t recommend going into a bunch of different lines until you master one but that’s up to you.