Key Takeaways

• Not all FMOs are created equal. Signing with the wrong one can lock you into restrictive contracts and limited carrier access.

• You must know what to look for in commission structures, release policies, and support services before committing.

The FMO Relationship Isn’t Always What You Think

When you first get licensed to sell Medicare plans, you’re eager to get started. That eagerness often leads new agents to sign with the first Field Marketing Organization (FMO) that promises contracting help and quick onboarding. But in 2025, just like in prior years, many FMOs are still using outdated or predatory models that favor their interests over yours.

An FMO is supposed to help you grow your business. But unless you ask the right questions before signing, you could find yourself stuck in a relationship that limits your income, blocks your freedom, and offers little real support.

1. Locked Contracts Still Exist

Despite the more competitive FMO landscape in 2025, some organizations still use contracts that are nearly impossible to get out of. These contracts might include:

• No-release clauses that prevent you from switching FMOs easily

• Delayed release periods that extend 6 or even 12 months

• Upstream hierarchy issues where you’re contracted under an agency you didn’t choose

If you want control over your career, you need to ask whether the FMO offers an immediate release option and confirm it in writing. Don’t rely on verbal promises.

2. Commission Splits Aren’t Always Clear

Some FMOs keep a portion of your commission without fully disclosing it. In 2025, commission transparency should be the norm, but unfortunately, some agents still discover later that:

• Their FMO is taking a cut from certain plan enrollments

• There’s a difference between what the carrier pays and what the agent receives

• They’re locked into lower comp levels due to FMO-negotiated overrides

Always ask to see the actual commission schedule directly from the carrier. If the FMO refuses, that’s a red flag.

3. Support Services Vary Widely

Many FMOs claim to offer support, but “support” can mean anything from a training PDF once a year to full-scale onboarding, lead generation, and compliance help.

Evaluate:

• Is training live, ongoing, and relevant to current CMS changes?

• Do you get a dedicated support team or just a general inbox?

• Are you being offered tools like CRMs, quoting platforms, and enrollment software?

Don’t assume these services are included. Ask for a list and test them if possible before committing.

4. Not All FMOs Offer Full Carrier Access

One of the most common complaints new agents have in their first year is realizing they can’t access all the plans they need. This could be because:

• The FMO doesn’t have contracts with certain carriers in your region

• You’re required to go through a sub-agency to get access

• They prioritize their internal sales team for top-tier contracts

You must confirm which carriers are available in your area through that specific FMO before moving forward. Your ability to sell the right plans for your clients depends on this.

5. Release Policies Can Cost You Clients and Time

If you decide to leave an FMO after you’ve built a book, restrictive release policies can block you from moving your contracts to a new organization. This results in:

• Lost production time during AEP or other busy periods

• Inability to re-contract until the next plan year

• Delays in client servicing and renewals

A release process should be clean and agent-friendly. In 2025, many top-tier FMOs offer same-day or self-release options. If yours doesn’t, reconsider the relationship.

6. Marketing Promises Are Often Vague

An FMO might promise you leads, co-op marketing, or advertising assistance. But what exactly are they offering? You need specifics:

• Are leads exclusive or shared?

• How many leads do you receive per month?

• Are there costs involved that weren’t mentioned upfront?

Ask whether the marketing support is included or performance-based. Get any guarantees in writing, and be skeptical of anything that sounds unlimited or open-ended.

7. Some FMOs Don’t Focus on Compliance

CMS regulations in 2025 require strict compliance tracking, including:

• Call recording for marketing and enrollment calls

• Documented permission-to-contact

• Use of disclaimers in all outreach

If your FMO doesn’t actively help you stay compliant, that risk is entirely yours. A good FMO should:

• Offer updated training with CMS rule changes

• Provide compliant scripts and templates

• Supply tools that meet regulatory standards

Don’t settle for outdated compliance training. It could cost you your license.

8. Technology Tools Aren’t Always What They Seem

Technology should make your life easier. But many FMOs promise CRMs, enrollment tools, and quote engines that are either outdated or limited versions of what they advertise.

Before you sign:

• Ask for a live demo of all tools

• Find out if you retain access if you ever leave the FMO

• Verify that the tools support both remote and in-person client servicing

A modern FMO in 2025 should offer secure, integrated, and mobile-ready platforms.

9. Overrides and Upline Layers Can Dilute Your Value

Sometimes, you’re recruited by an upline who then contracts you under an FMO that takes another cut. The more layers in your hierarchy, the more commission gets skimmed off before it reaches you.

To avoid this:

• Ask about your direct contracting status

• Clarify how many entities sit between you and the carrier

• Ensure that you’re not unknowingly part of a multi-layered override structure

Your production should benefit you, not a chain of recruiters.

10. Ask These Before You Sign Anything

To protect your future, never sign an FMO agreement until you have clear answers to:

• What is the release process and how long does it take?

• Will I have full carrier access in my selling region?

• What are the exact commission levels and are they direct from the carrier?

• What training, tools, and support are included, and what’s extra?

• How does the FMO help with CMS compliance?

• What happens to my client data and CRM if I leave?

In 2025, agents have more choices than ever. But with more FMOs competing for your signature, the risk of being locked into a bad contract has also increased. Taking the time now to ask the right questions will save you frustration later.

Know What You’re Signing Before It’s Too Late

As a new agent, you deserve an FMO partnership that’s transparent, supportive, and committed to your long-term success. Unfortunately, too many agents learn the hard way what they gave up after signing too quickly.

At BedrockMD, we believe in clarity and respect for independent agents. That’s why we offer transparent contracts, full carrier access, tech-forward tools, and personalized onboarding to help you start strong.

Sign up today to learn how we help new agents avoid common pitfalls and build careers on solid ground.