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Whether you are brand new to the insurance industry or you’ve been selling for years, you’ve probably heard the terms: Field Marketing Organization (FMO), National Marketing Organization (NMO), or even Independent Marketing Organization (IMO). 


What exactly does all this mean, and why does this matter for the individual insurance agent?


As you read this guide, you’ll learn why every broker should have an FMO. Feel free to jump around with the links below:


  • Field Marketing Organization: The Basics
  • Why Not Work Directly With the Insurance Carriers?
  • The Key Benefits of Working With An FMO
  • Conclusion

Field Marketing Organization: The Basics

At its core, a Field Marketing Organization (FMO, NMO, IMO) markets, sells, and distributes insurance products such as life, health, and annuities.  


They are usually aligned with the highest-level contracts to develop into the EDC (External Distribution Channel) broker’s back-office support.


This service generally includes credentialing, certification, contracting, carrier orientation, Errors and Omissions price assistance, and private support.


FMOs also provide training programs that help brokers become proficient at the selling process and representation of their carriers.


Many even offer access to technologies like quote motors, registration tools, as well as private shopping websites.

Why Not Work Directly With the Insurance Carriers?

Fantastic question.


While it’s true that some carriers are ready to utilize direct brokers, the majority of the best carriers ask that you work through an FMO to get a contract.


This makes sense, doesn’t it?


Why would a federal insurance company wish to deal with all the back office and coaching support to tens of thousands of representatives when they could instead delegate this function to a couple of national FMOs?


An additional factor to consider is production demands. Even when you’re in a position to acquire an immediate carrier contract, then you’ll be held to a higher standard. If you cannot produce accordingly, you may be in danger of termination.


Working with an insurance FMO guarantees you top commision, PLUS additional support. Some FMO’s will offer full, vested commission on your sales. You would not get paid any more if you were contacted with the carrier, even if it were available. In addition to vested commission, you may find additional benefits with an FMO versus going direct.

The Key Benefits of Working With An FMO

There’s so much opportunity to become successful in the insurance business, but as we all know, running a business is no easy task. The support of an excellent FMO will allow you to grow to your greatest potential and prospect, expand and reach your marketplace, and execute your best strategies for residual income!


Whether you operate in a populated town, or you are a rural jump representative, a Field Marketing Organization (FMO) has the wisdom, expertise, and resources that will help you become successful.


Most of all, an excellent FMO educates its representatives on the best way to provide their clients with the best products for their special needs.


Do insurance brokers need an FMO? The answer is yes, they do!


Now that you know the importance of partnering with a Field Marketing Organization, it’s time to determine which one is right for your business. Contact us today at (904) 701-7464 or hello@agentcaffeineboost.com to book your FREE strategy session and talk to an expert! Click here to fill out our contact form online and someone from our team will be back in touch with you soon.



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