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UNDERSTANDING WHAT IS AN IMO

Now that you are licensed, you will start to understand the world of financial services. You are going to be contacted and you will receive emails, texts and DMs in your social media.

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You will be able to educate yourself with this power point and here is a quick video with agents helping you understand their real life stories

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https://vimeo.com/616404589/7c031fc126

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IMO

What is an IMO?

IMO stands for independent marketing organization. It is not an actual company and they do not have products nor pay any compensation. They are a brokerage firm that connects independent agents with insurance carriers.

�The way IMOs make money is by selling the independent agents leads and keeping part of the commission. They state that the agent receives 100% of the commission, but that isn’t completely correct. The insurance carrier pays the agent and also the IMO separately which allows the IMO to state they don’t receive any of the agent’s commissions.

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  • Bigger contract
    • Typically 100%-115%
  • 75% advance
  • Little to no bonus
  • Pay for leads
    • Typically $500-$1500 weekly
  • No benefits
  • Little training and mentorship
  • Multiple carriers
    • This can be good and bad. More products to offer, more products to learn
  • 100% charge backs
  • No back end to protect you
  • They state 100% vesting from day 1 but very little products have renewals attached to them
  • Roll up debt
    • This means that if an agent quits and their policy cancels or is replaced, the debt rolls up to the manager
  • Replacements – policies are often replaced with another carrier from other IMO agents with ”a better policy”

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IMO

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  • 60% contract
    • With a chance to increase based on production
  • Up to 39% bonus
  • No expenses
  • Benefits
    • Health insurance reimbursement
    • Life insurance
    • Stock options
    • Convention
    • 10 year lifetime renewal vesting
  • Excellent training
  • AIL is a company, not an IMO meaning they are underwriting their policies
    • 1 product line to learn – simple
  • Chargebacks in backend
    • Front end chargebacks are mostly due to banking issues where no money came out of their bank account
  • Bonus is never charged back
  • No roll up debt
    • Manager not responsible to pay back all debt from agent if policy cancels
  • Rules in place for replacements

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AO

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IMO

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  • Pay
    • 10,000 AP
    • 100% contract = $10,000
    • 75% advance - $7,500
    • No bonus
    • Lead costs $2,000 (estimated)
    • Net profit $5,500
    • *100% front end chargebacks
    • No renewals except for a few products which all have caps on how many years they pay

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AO

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  • Pay
    • 10,000 ALP
    • 60% contract = $6,000
    • 65% advance = $3,900
    • Bonus on 10,000 ALP = $1,400
    • No lead cost
    • Net profit = $5,300
    • Chargebacks occur in back end
    • Renewals = 3% for lifetime (can go up based on higher contracts)
      • For example purposes 10,000 ALP pays in for 10 years = $3,000
    • Total profit = $8,300

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COMPENSATION

After understanding all the similarities and all of the differences, which one would you choose?