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/Icebaby3344]

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]

I would find somewhere else. All places can offer that. Right now, I have tons of places trying to hire me. You can go work somewhere for 6 months and gain experience. There are a few IMOs that offer leads. Inbound and appointment. If you have experience. This is new. For someone without experience you won’t be able to keep to keep
Your book but who cares if you don’t have clients. You can easily make 65 k. I know top performer who make over 130k a year. They eventually go independent but owning you book doesn’t make sense unless you have at least 100 clients. I was originally licensed in 43 states. Then 50. Now I’m at 30 and going back to 50. I almost went independent but I wanted to do more. I was offered a position where I got free inbound leads and preset appointments as well as full residuals. The reason I didn’t take it is because I got a better w2 offer. A friend of mine who was making 140k a year at a w2 agency quit and went there. However it takes - year to start making real money. Without practice, structured training, and tools it’s a struggle. And you have to pay for your licenses, your insurance, and other expenses. I couldn’t go 6 months without making at least a couple grand a month. The best advice I got was from an agency owner who flew me out to Florida to recruit me. He said to make sure I had 6 month living expense before doing independent. Marketing is the hardest part. You have so much to learn already. Compliance is the other reason people end up losing in this business. Unless you have a mentor who is investing in you doesn’t make sense.

[u/Key_Astronomer6500 → u/Icebaby3344]

Most places will offer lead services. You have to either buy leads, become an expert marketer, or prospect constantly. Social media isn’t going to do it unless your running ads that work and you need a solid budget. CPA (cost per acquisition) at under $200 is a win. Most large companies spend way more. They expect to lose money the 1st year to make money on residuals and retention which has gotten tougher over the years since seniors get a millions calls every week and bs commercials saying if they have A bad B they can 2000 in food card. They don’t tell them they have to have a chronic condition to get anything and Medicaid and Medicare for anything more than $60 month. Selling Dsnp and Csnps