This post originally appeared on LinkedIn on February 21 2023 and is written by Scott Nichols: 

The recent decision by vast Medicare insurance conglomerates (via their FMO “partners”) to impose sales quotas on their independent Medicare selling agents has caused quite a stir in the industry. There are a lot of different opinions on this topic, but we wanted to take a closer look at how this could potentially affect independent agents selling Medicare plans.

Sales quotas can be a controversial topic, particularly when it comes to independent sales agents. Understandably, there is some concern that these kinds of quotas could have a negative effect on agent productivity and morale. In this article, we’ll take a closer look at the potential implications of sales quotas for independent Medicare agents. We’ll also explore some possible strategies for dealing with them effectively. So if you’re an independent agent who is affected by this change, read on for some helpful information!

What do the “partnerships” and “buy outs” from FMO to the huge conglomerates have to do with this?

The partnerships and buy outs from huge Medicare conglomerates give FMO’s huge incentives in terms of bonuses and value. The FMO is able to calculate the amount of value for their brokerage that the conglomerates will pay for their buy outs and make sure the conglomerates are paying top dollar at the end of the term. To reach these financial goals, FMO’s need to double or triple the size of their brokerage by the end of the buy out period to max out the bonuses offered. Ultimately, these partnerships and buy outs can be extremely beneficial for both FMO and the conglomerates involved. The question is, where does the production come from to double or triple the size of a brokerage? You

Conglomerate owned call centers and lead companies have quotas. Are 42,000 + independent agents next?

The independent agents who work in the Medicare space have been increasingly facing a difficult reality. Conglomerate owned call centers and lead companies have had quotas. The conglomerates are now speaking of implementing sales quotas on the agents they have purchased through “partnership” with their FMO. This puts independent owners in a precarious position, as they could be subject to quotas while having only a contractual relationship with conglomerates via an FMO. While it is expected that independent agents manage certain performance metrics on their own, subjecting them to conglomerate quota expectations is unjust and could potentially hinder independent’s viability within the space.

What can the independent agent do to fight back and get relief from these quotas?

The independent agent, who is feeling the pressure of quotas imposed on them by their current brokerage, can take steps to fight back and get relief. They should look for brokerages that don’t have quotas, and consider joining a larger national agency since they tend to have more flexibility when it comes to handling both individuals and groups. The agent can also use the Search & Save Medicare system as well as a Customer Relationship Management (CRM) software to better organize their clients’ information and stay apprised of changes in the industry. By pursuing these strategies, the independent agent can work hard to protect themselves from having quotas imposed on them in their current role.

Though the new sales quotas for independent insurance agents are unfair and unrealistic, there is a way to fight back against them. Many believe that by using the Search & Save Medicare system and CRM, agents can maintain their independence while still providing quality service to customers. For more information on how to keep your business running smoothly in spite of quota changes, visit https://mmqsearchandsave.com today.