Wealth Management – Search and Save

The risk agents take when using a third party marketing organization enrollment systems

Amber Lutes — Mon, 20 Nov 2023 20:05:05 +0000

This post first appeared on LinkedIn on March 15, 2023 and is written by Scott Nichols

It seems like these Medicare enrollment systems are everywhere. Many come from the vast conglomerates that have bought up our industry, but others come from upline FMO’s. They are usually free and convenient, and you have heard mw talk about why and the risk to your BOB’s they can pose, but there are other risk to using them agents don’t know until it affects a sale.

At this point you may be saying “What!” “No way!”

Yep, and my friends at CMS IT department agree with me on this one.

When you use a TPMO enrollment system you are completely depending on the TPMO and carrier systems being able to communicate with each other and that the data they have on your “ready to sell” status match.

They MUST match. This is done with what they call n the industry “TOOGLES.” Matching TOOGLES in both systems stating you are “ready to sell” means your client application will be processed and you will get paid. If these do not match and one system says your “ready to sell” and the other system says your not either the enrollment does not get processed, or you don’t get paid, or both. YIKES!

In a recent conversation I had with CMS IT they shared with me that these enrollment systems are headaches for them because of compliance issues and beneficiary complaints.

They asked me how our Search & Save system handles enrollment and when I told them we have a simple “agent portal” button next to the plan information for agents to click on and go directly to that carriers log in they were thrilled.

They even said they wished every Medicare (TPMO) system did this!

Here is what I think. I was raised with “too many cooks spoil the soup.”

Search & Save removed the middleman. No middleman. No Toggles. No complaints, and best of all, you get PAID!

Is the conglomerate who just “partnered” with your FMO about to impose sales quotas?

Amber Lutes — Mon, 20 Nov 2023 19:03:00 +0000

Is your FMO about to demand sales quotas from you because of their conglomerate partner?

Is the conglomerate who just “partnered” with your FMO about to impose sales quotas on you? Yep!

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.

Is the Pump and Dump coming?

Amber Lutes — Fri, 17 Nov 2023 18:15:30 +0000

This post original appeared on Linkedin on May 26, 2023, and is written By Scott Nichols.

What is the end game for the vast conglomerates who have bought up our Medicare and wealth management industry?

This was a question put to me at a recent NABIP event.

I didn’t have a good answer, so I decided to talk with people I know involved in these relationships to get their thoughts.

One particular theory caught my attention. A pump & dump.

A pump & dump was featured in the movie “Wolf of Wall Street.”

It is where a company follows a strategy to inflate its IPO (initial public offering) stock price. Once this is achieved, the top corporate executives (who own the lion share of the stock) sell off their stock at the height of its price. This sparks a selloff and the stock price collapse.

Above is a video version of this article for your enjoyment

The top corporate executives resign soon after they sold off their shares and leave the remaining employees without jobs, leadership, and worthless stock in the company. If this scenario were to play out it with these conglomerates it would leave agents scrambling for any FMO outlet to park their carrier contracts.

Most of the old guard FMO’s have sold out their operations to these conglomerates. Since the carriers have decided to no longer appoint FMO or NMA brokerages, this will leave a huge vacuum in the industry.

Carriers went “all in” on these National Distribution Partnerships. They were overcome with greed at call center operations and bonuses paid out by hitting their quotas. My opinion is when the IPO’s launch and the dump occurs their may be no distribution channels left.

This will leave carriers and agents in the Medicare space scrambling and looking very bad to their partner in this field…….CMS.

Those who I spoke to that are in these conglomerate relationships say they are seeing signs of things that are about to happen. They told me the conglomerates are tightening their belts ahead of an IPO announcement forthcoming.

The marketing money has dried up and is not coming down the pipeline to lower level brokerage operations. Staffs are being cut and operations are being relocated to a centralized office.

The buyouts are slowing down to a crawl and the huge events with gigantic sized checks going to employees have stopped happening. Many of the three year buyouts are coming to there end and so will the bonus money based on keeping the status quo or growing a bit.

The old FMO leaders can stay on as employees if they wish, but the big pay day opportunity has come and gone. Most likely, the old guard will take what they can get and ride into the sunset.

The employees and agents they sold out will be left to deal with a massive centralized conglomerate that owns their business and shares all their client data.

A tightening of the belt is always a sign that a corporation is about to go public.

They must show a health and robust balance sheet to max out the IPO stock value.

Could a pump and dump be just over the horizon for these conglomerates who bought up our industry?

Agents need to find a brokerage partner away from these conglomerates and get their contracts transferred quickly. They could face serious consequences to their ability to conduct business if they delay.

–Scott Nichols