Strap on the Parachute and Prepare to Jump!

Training for Solo Jumps

Strap on the parachute and prepare yourself and your team for the jump. Here are the minimum expectations for making yourself and your agency known. 

• Be prepared to talk about your business to anyone, anywhere. 
  • Always have your printed and digital business cards available. Also, have your agency’s promotional materials and a few of your top carriers’ marketing materials.
• Network! 
  • Join chambers of commerce and networking organizations, but be judicious with your time. Some networking organizations require a quota for referrals. It’s easy to get wrapped up in giving more referrals than you get.
• Know your potential clients.
  • In marketing a product or service, it’s essential to know the demographics of your potential clients. This creates a “marketing persona.” Example: If you’re marketing Medicare Advantage products, the typical age is 65+. We have a complete marketing persona to help you know your target audience, their demographics, tastes, challenges, and more. To get your copy, click here

When choosing an FMO/IMO/NMO, ask these questions to benefit you and your agents.

• What kind of training is offered for agents?
• Do you assist with Continuing Education (CE) credits?
• What webinars and training will be offered to agents?
• What lines does the organization offer? You will want to know all of them in case you want to add income between seasons.
  • Medicare Advantage (MA)
  • ACA (Affordable Care Act) (under 65)
  • Medicare Supplement
  • Group Insurance Plans
    • Group Plans for Employers
    • Products for Employee Assistance Programs such as pet insurance or identity theft protection
  • Life Insurance
  • Annuities
  • Final Expense
  • Property & Casualty (P&C)
  • Errors & Omissions (E&O)

When choosing an FMO/IMO/NMO, consider your future relationship with the company. It’s important to know if there are additional perks, tiers, or levels you can achieve to grow your business.

Just like growing any business, you’re making plans for the future. Does the organization provide a plan regarding your book of business – to maintain or to sell it? Does the book belong to you? What plans do they have to secure your business and retirement?

Just as you will help and take care of your downline, you want your upline, the FMO/IMO/NMO, to have a contingency plan for its agents. Does your organization have a plan for the agents under you as well?

In all likelihood, you are responsible for finding, recruiting, and assisting the agents you bring on under you. However, if you choose a reputable organization, they should be able to fill many gaps. Ask what they can offer your agents.

Should You Follow Their Lead?

Once your team has its “boots on the ground,” agents will be out in your community, building relationships and looking for leads. The best leads develop naturally. They may come from a referral or even the Little League team you sponsored.

These are grassroots leads and usually bear the most fruit. You may be doing Top-of-Mind Marketing through sponsorship or hosting an event, but if you get a call from one of these leads, it’s most likely organic because they heard about your agency.

Occasionally, you’ll need to source leads. A good FMO/IMO/NMO will have good relationships with quality lead resources. You may get a hot or live lead from those resources where the call referred to you is ready to buy. 

Ask any organization you’re talking to about their lead resources, pricing, and how and when those leads may be used. Ask about grassroots leads and if they can assist you in finding and acquiring those. 

Are You Being Held Against Your Will?

Do you feel like you checked into the Hotel California? You know. It’s the place where “You can check out anytime you like, but you can never leave!” If you feel trapped in an agreement, go over your contract and read the fine print. You may be a captive agent.

If you’re not fully versed in the whole captive agent and non-captive agent lingo, let’s break it down. Simply put a captive agent is like being married to one insurance company. Yup, you “put a ring on it” because you’re under contract to only sell for them.

In this situation, you are a captive agent because the insurance company is setting your commissions and owns your book of business. In your contract, look for phrases that show exclusivity – no other carriers. Then, look for your release clause.

Here is a sample: 

Upon this Agreement’s termination, Agent shall not solicit or attempt to solicit the Company’s policyholders for a period of X months. The Agent may not contract with another insurance carrier to sell similar products within a X miles radius. The Company retains of all customer data, policies, and renewals generated by Agent. The Agent may make a formal written request to exit or contract with other carriers. The request may be granted, ad the sole discretion of the Company.

The non-captive agent may be contracted with one or many insurance carriers, and may continue to contract with as may carriers as they want. The average non-captive agent contracts with 17 insurance carriers. 

Field Marketing Organizations exist to help agents become independent, and achieve non-captive status. They support agents by offering the ability to contract with carriers, marketing assistance, compliance, technology, and industry resources.

So, if you enjoy sporting one logo, maybe matching polo shirts, and branded pens for days, you may be a good fit for being captive. If you prefer to be your own boss, shop around for rates, and grow your own business, non-captivity could be your calling.

Leave a Legacy!

Although you may be building a business now, planning for what happens to that business down the road is a must. Just like being a captive agent, sometimes it’s easy to move forward without thinking about other outcomes. Then, you find yourself stuck.

Consider you build a business and five years from now your agency boasts many valuable clients and you have several downlines. What if something happens to you? Sure, you may have life insurance, but what happens to your book of business?

Ask your FMO about legacy planning in the early stages of your business. Who would assume your book of business, how would pending and upcoming commissions be paid. Would you family be protected and assume any of the business? Could they?

These are all questions to as a potential FMO. If they have a plan, ask to see it in writing and understand what is covered. How business is handled after your death, and who will receive the commissions. 

Be Choosey!

Although there is no timeframe for choosing an FMO/IMO/NMO, there are deadlines in the industry for getting contracted and participating in selling seasons. You might already know those dates, but if not, do ask the representatives you’re talking to.

It is okay to ask to speak to a few agents who are working with the FMO/IMO/NMO. Don’t hesitate to ask questions. If you’re starting a business, you have a lot on the line. You want to hear from these organizations and what they can do for you.

Lastly, ask them what their guidelines are for contracting through them. Ask about breaking with them should you not be satisfied with their service. Create your plan, pack your parachute with the right instructor for you – and JUMP! 

Congratulations, in advance, for taking the leap of faith in yourself. We wish you the very best on our journey.