The Problem

Agents are the Assets Being Bought & Sold

IMOs “Lock” Agents

Why Your IMO May Not Release You as Promised

Independent Marketing Organizations (IMOs) often trap agents in restrictive agreements that limit their freedom to move between organizations. These contracts, which are frequently overlooked or misunderstood by agents, are designed to benefit the IMO owners by increasing the perceived value of their organization when selling to large, Wall Street-backed conglomerates. Unfortunately, agents find themselves locked into these agreements, unable to leave because carriers won’t allow them to write business with another IMO without their current IMO releasing them. This tactic ensures that IMOs can sell their agent base as a lucrative asset, without considering the individual agent’s business aspirations or autonomy.

Financial Injustice

What do you make when you’re IMO is sold?

When an IMO sells to a larger conglomerate, the sale price is often based on the number of agents under contract. Despite this, the agents who generate the revenue and build the IMO’s value see none of the financial rewards. Instead, the millions of dollars earned from the sale go directly to the IMO owners, while the agents—the very foundation of the business—are left with nothing. This financial injustice highlights a fundamental flaw in the industry, where agents are treated as assets to be traded rather than as business partners deserving of a share in the profits.

The Retention Trap

Why it’s Harder to Leave Even After “the Sale”

Because the only assets of any value are the agents selling for an IMO, Wall Street-backed conglomerates often include retention clauses in their sales agreements with IMOs. These clauses delay a significant portion of the sale’s payout until the IMO meets specific retention targets, usually by keeping a high percentage of agents under contract for three to four years. To achieve these targets, IMOs may refuse to sign release agreements for agents who wish to leave, trapping them in a business relationship that no longer serves their interests. This retention trap not only restricts the agent’s freedom but also prioritizes the financial gain of IMO owners over the well-being of the agents who make their business possible.

Agents as Commodities

In the current system, agents are often treated as commodities—valuable only in terms of the revenue they can generate and the number of contracts they represent. Just like cattle at an auction, agents are bought, sold, and traded without their consent, their futures determined by the highest bidder. This dehumanizing approach reduces agents to mere numbers on a balance sheet, ignoring the personal relationships, expertise, and hard work that truly drive the industry. By treating agents as commodities, IMOs and their corporate buyers undermine the very essence of what it means to be a professional in the annuity and insurance space.

The Real Estate Parallel

The annuity and insurance industries are not the first to face the challenges of large conglomerates buying up independent businesses. The real estate industry experienced a similar trend, with many brokerages selling out to large corporations. However, two companies—Keller Williams and EXP Realty—chose a different path. By focusing on empowering agents and giving them a stake in the business, these companies grew to become the largest and third largest real estate brokerages in the world, respectively. Their success demonstrates that there is a way out of the current situation for agents in the annuity and insurance industries. Annuity.com is one IMO that is embracing a model that prioritizes agent ownership and independence. IMOs who adopt this model can help the industry build a more sustainable and equitable future for agents by putting their interest first and turning them into business owners.

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