Starting An Independent Insurance Agency: What You Need To Know About the FMO Model

Agency Height
3 min readOct 14, 2020


Starting an independent insurance agency is an excellent choice in the insurance industry. But you don’t know what it needs or what it is like to own one. You need to understand first that it is not an easy task. Thankfully, there is FMO (Field Marketing Organization) model to make the job easier. Here are some of the ways that the FMO model makes the job easier for you. You need to know these factors that will help you understand how to make the best use.

  1. Flexibility and support

One of the most significant advantages of using FMO to start an independent insurance agency is its flexibility and support. It can be expensive to start an independent insurance agency, but FMO makes it easier by giving consent. Believe it or not, there are supports available using the FMO model if you want to start your independent insurance agency.

New Horizons Insurance Marketing is proof that there are also training available as support. The insurance carriers do not provide these training and support. The FMO model charges less than the franchise-based model. It also allows you to run your independent insurance agency with varying levels of supports. It promotes and facilitates the independent agents to set up the brand.

2. Commission split for insurance agents.

Another important thing you need to know while starting an independent insurance agency is that it provides independent agents with a split in their commission. Agent pipeline, an insurance marketing organization, says that the commissions are competitive if you use the FMO model. It is essential to choose an FMO that gives a full commission.

There might be variation in the commission split as per the FMO, but the average division is 70/30. There is a rapid growth of FMO these days with new types of the commission split. Sage covers one of the new independent insurance agencies. Their commission split is 80/20 for the first year and 50/50 for renewals.

3. No restrictions on running businesses

There are few restrictions on the franchise-based models while starting an independent insurance agency. The limits might differ from place to place. It is more helpful to know that the FMO model does not have any restrictions. There is absolute freedom in the FMO model to start an independent insurance agency from scratch.

Before you are doing anything to start an independent insurance agency, you need to know about the secure methods first. Of course, there are different restrictions and added advantages that you get from other models. But if you choose a Field Marketing Organization, then it will make your job easy.

FMO does not support independent insurance agents to do their job, but it helps build a better brand. Whereas, the franchise model is for those who are willing to work for an independent insurance agency. So, understand the benefits and choose as per your situation of the independent insurance agency.



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Agency Height is an insurance blog that offers insurance agents content about the insights and queries of the industry to make their work more efficient.