8 FAQs about Field Marketing Organizations (FMOs)

Field Marketing Organizations (FMOs) offer countless benefits to financial advisors to streamline and grow their practice. However, many financial advisors have questions and uncertainties about FMOs and how they can better their practice. In this comprehensive blog, we will address the top frequently asked questions (FAQs) about FMOs to help financial advisors gain a better understanding of their functions, benefits, and considerations when partnering with an FMO.

1.????What is an FMO, and what do they do?

An FMO is a specialized entity that offers support services to financial advisors. FMOs provide access to a range of financial products, training programs, compliance assistance, marketing resources, and technology solutions. Their primary goal is to help financial advisors enhance their practice, streamline operations, expand product offerings, and deliver exceptional service to clients.

2.????How can an FMO benefit my financial advisory practice??

Partnering with an FMO can offer several benefits to financial advisors, including:

·?????Access to a Broad Range of Products: FMOs typically work with multiple financial institutions and product manufacturers, allowing advisors to access a diverse portfolio of financial products and solutions to meet clients' needs.

·?????Training and Professional Development: FMOs often provide comprehensive training programs, seminars, and webinars to enhance advisors' product knowledge, industry expertise, and business skills. This enables advisors to stay up-to-date with the latest trends and best practices.

·?????Compliance Support: FMOs assist financial advisors in navigating complex regulatory requirements by providing compliance resources, guidance, and assistance in maintaining compliance with industry regulations.

·?????Marketing and Business Development: Many FMOs offer marketing resources, branding support, and lead generation tools to help financial advisors expand their client base, strengthen their brand, and grow their practice.

·?????Technology Solutions: FMOs often provide technology platforms and tools that streamline administrative tasks, automate processes, and enhance client engagement, improving overall operational efficiency.

3.????How do I choose the right FMO for my practice?

Choosing the right FMO requires careful consideration of several factors, including:

·?????Product Offerings: Assess the range of products and solutions offered by the FMO and determine whether they align with your clients' needs and your practice's specialization.

·?????Support and Resources: Evaluate the level of support provided by the FMO, including training programs, compliance assistance, marketing resources, and technology solutions. Ensure that they align with your practice's requirements and growth objectives.

·?????Reputation and Stability: Consider the reputation, industry experience, and financial stability of the FMO. Look for reviews, testimonials, and recommendations from other financial advisors to gauge their track record.

·?????Compatibility and Communication: Assess the compatibility of your practice's values, working style, and communication preferences with the FMO. Clear and open communication channels are essential for a successful partnership.

·?????Compensation Structure: Review the compensation model offered by the FMO, including commission rates, fee-sharing arrangements, and payout schedules. Ensure that it aligns with your financial goals and incentivizes your performance.

4.????Is partnering with an FMO mandatory for financial advisors?

No, partnering with an FMO is not mandatory for financial advisors. It is a personal decision based on your practice's needs, goals, and the resources you require. While some financial advisors choose to work independently, many find value in partnering with an FMO to leverage their expertise, product offerings, and support services.

5.????Why shouldn’t I contract directly through a carrier?

While there are some financial advisors that prefer to work directly with insurance companies, there are many carriers that exclusively work through FMOs. Therefore, working with a credible FMO can give you the opportunity to contract multiple carriers rather than just one. Plus, advisors typically earn higher commission when working with an FMO compared to working independently. This is because FMOs already have established relationships with major carriers. Some FMOs also provide additional resources to their advisors at no extra cost, such as sales training, marketing support, and networking opportunities.

6.????Are FMOs regulated entities?

FMOs themselves are not typically regulated entities, but they operate within the framework of regulatory bodies governing the financial industry. They are often subject to compliance requirements and must adhere to industry regulations to ensure the protection of clients' interests and maintain ethical standards.

7.????How do FMOs earn revenue?

FMOs generate revenue through various channels, including commissions earned from product sales, service fees charged to financial advisors, or fees from affiliated financial institutions. The specific revenue model may vary among FMOs, and it's essential to understand the compensation structure before entering into a partnership.

8.????Why should I partner with Asset?

Asset has a proven track record in the financial industry. Founded by Rick Metcalfe, a pioneer in the sector, and taken over by his daughter Jennifer Schendel, Asset is built on expertise and innovation. We are fully equipped with support teams that help propel our advisors to surpass their business goals. When a financial advisor joins the Asset team, they have access to our:

·?????Business Consultants

·?????Marketing Team

·?????Advisor Relations Team

·?????Licensing & Commissions Experts

·?????New Business Team

·?????Educational Trainings

·?????Company Events

·?????Exclusive Vendor Discounts

Click here to learn more about how each team can support your business.

Partnering with an FMO can provide significant benefits to financial advisors, including access to a wide range of products, training and professional development opportunities, compliance support, marketing resources, and technology solutions. By carefully evaluating your practice's needs, considering the support and resources offered, assessing compatibility, and researching the reputation and stability of the FMO, you can make an informed decision about partnering with the right FMO.