An IMO — independent marketing organization — sits between you and the carrier. You don't contract with the insurance company directly. You contract with the IMO, the IMO holds the carrier appointment, and your commission comes down through them.
That middle position is the whole story. It's why an IMO can offer you leads, training and a downline, and it's also why two agents selling the identical policy for the identical premium can be paid twenty points apart.
How comp levels actually work
Carriers publish a commission schedule. The top of that schedule is roughly what the IMO is contracted at, and what you get is a slice of it. The industry calls your slice your contract level, quoted as a percentage of first-year annualized premium.
| Contract level | Typical first-year | Who's usually here | | --- | --- | --- | | Street | 70–80% | New agent, leads provided | | Street + 10 | 85–90% | Producing agent, buying own leads | | Contract level | 100–115% | Agency owner with a downline | | Override position | 120%+ | IMO principal |
The spread between your level and the level above you is the override, and it's how everyone upstream of you gets paid. That isn't a scandal — it pays for the leads, the training and the back office. It becomes a problem when nobody tells you the spread exists, or when your level never moves no matter how much you write.
Releases, and why they matter more than comp
When you contract with an IMO, most carriers enforce a hierarchy rule: you can't move that carrier's business to a different IMO without a written release, and if you leave without one you typically wait six months to two years before you can write that carrier again.
A ten-point raise means nothing if you can't leave. Ask about the release policy before you ask about comp.
Some IMOs release on request, no questions asked. Some release only if you have no debt outstanding. Some never release. All three are legal, and only one of them is good for you.
Four questions to ask before you sign
- What's my contract level, in writing, per carrier? "Competitive" is not a number.
- What's your release policy? Get the answer in writing too.
- Do I own my book if I leave? Renewals and the client list are separate questions — ask both.
- What do the leads cost, and am I required to buy them? Lead debt is the most common way an agent ends up unable to leave.
What this means for a new agent
Starting at street level with free or subsidized leads is a reasonable trade when you have no production history. It stops being reasonable when you've written consistently for a year and nothing has moved. At that point the conversation is either a raise or a release — and knowing which one you can get is why you asked question two on day one.
Next: how advances and chargebacks work, and getting licensed in your state.
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