Becoming a State Farm Agent

[xrac]

Being a SF agent sounds easy glamorous and lucrative but as Greenboy will tell you it is not for everyone.

You may all rant about how dumb we are to believe etc. etc.

Many are chosen but the chosen are few.

Sounds like you drank the Kool-Aid! I know that at one time SF was a great gig and very hard to get into (kind of an exclusive club) but it seems to have changed. The dilemma for people like youself is will SF get management who will right the ship or will they maintain the status quo, or continue on a downward path.

SF is mutual is it not? Is there any chance that the changes in agent compensation were made to make this thing more profitable with a longer term goal of going public thus enriching management? Understand that I only speculate but it is hard to understand why they made such drastic changes.

 

[fastrack1]

182285 A State Farm agent is an independent contractor agent who markets and services State Farm insurance policies and financial products. Your responsibilities would include, but not be limited to:

Marketing State Farm insurance products and financial services.
Developing and manage a quality book of business.
Providing products and services based on customers' needs.
Providing professional customer service.

What is the point????

 

[1manshow]

greenman

ex. schoolbus boy -

Not sure what you meant with the "boy" part, but I'm sure it was meant in the kindest possible way. I was actually being sincere about taking business from a girl who actually took the bait from SF, got the new office suite, etc. and now she probably won't be able to afford it.

There's always P/C slaves who can be picked off from independents who will be happy to make more than the $7.50/hour they get to handle SR-22's

Where's this happening ? KY ? Our girls start @ 28K and go up from there. I would imagine you get what you pay for when you steal a 7.50/hr employee.

Best of luck attaining your goals

 

[Guest]

Does State Farm have a position that utilizes financial specialist for non-P & C, that would network existing book for stocks, bonds, mutual funds, life insurance, income continuation, long-term care estate planning, etc. with financial planning as the foundation?

 

[Numbers Man]

I've been an agent for 10 years. Have grown by an average of about 160 cars per year. My overhead is about 200 grand with three staff in a rural area. Of course, $24,000 of that is rent to my wife and I.

When I read these stories about how TICA's are treated, it just blows my mind. I've seen some heavy handed treatment here and there, but overall, it just doesn't look like the State Farm I know and love. However, when I tried to go out of Region/Zone to be an agent way back when, I was a bit taken aback. There are all kinds of management people out there, some very moral and some not. Some competent to advise and mentor and many, not.

If you run the numbers and see where your income is going to be worth the sweat and investment within a reasonable amount of time, stick with it, guys!

 

[Independent]

It sickens me to think I almost went forward with the SF hiring process. I am at the phase where I have to create a Business Plan. I have owned an independent brokerage for just over two years now. I cannot imagine investing any money in a book of business I don't own, my recruiter never mentioned anything that was mentioned above particularly the investment from my pocket. I was looking into the SF alternative because I felt my agency wasn't growing fast enough for what I have invested and wasn't a good return for what I am currently receiving in pay.

I have invested nearly $100k into my business, I am at the point now where my book of business is $600k in premiums per year. This grosses me about $2,500. per month in my pocket each month clear after expenses, although I must add my expenses are pretty low. I have two full time licensed staff in which I pay one $11. hr and another $15. hr. I also have 3 agents who work on commission. I was looking into SF thinking the potential may be greater or there was a better future (ie they provided a retirement program or benefits). I guess I should tell the recruiter to take a hike and be happy and content that we are growing at the rate we are even with the economy the way it is.

I can't believe anyone would want to put so much money into a program like this. To me it appears like you have bought a job. If any of you want to come to work for me, I can pay you 2k a month if you give me 50k up front, chalk it up to a loss and sell tons of insurance for my book. Im not trying to sound rude but this appears to be the stance that SF has taken. I know your not giving the money directly to them but its definitely in their best interest. As an independent, I don't have anyone looking over my shoulder, if a company makes me angry I can roll the business to another company I am appointed with. If a company lowers commissions or demands production levels I drop em and move on. I am a member of a cluster and have over 40 different companies I can write business with, most of whom seem to have better commissions on their renewals than SF gives. I don't know what SF is thinking but I guess I know where to start recruiting for my next agent.

 

[fastrack1]

It sickens me to think I almost went forward with the SF hiring process. I am at the phase where I have to create a Business Plan. I have owned an independent brokerage for just over two years now. I cannot imagine investing any money in a book of business I don't own, my recruiter never mentioned anything that was mentioned above particularly the investment from my pocket. I was looking into the SF alternative because I felt my agency wasn't growing fast enough for what I have invested and wasn't a good return for what I am currently receiving in pay.

I have invested nearly $100k into my business, I am at the point now where my book of business is $600k in premiums per year. This grosses me about $2,500. per month in my pocket each month clear after expenses, although I must add my expenses are pretty low. I have two full time licensed staff in which I pay one $11. hr and another $15. hr. I also have 3 agents who work on commission. I was looking into SF thinking the potential may be greater or there was a better future (ie they provided a retirement program or benefits). I guess I should tell the recruiter to take a hike and be happy and content that we are growing at the rate we are even with the economy the way it is.

I can't believe anyone would want to put so much money into a program like this. To me it appears like you have bought a job. If any of you want to come to work for me, I can pay you 2k a month if you give me 50k up front, chalk it up to a loss and sell tons of insurance for my book. Im not trying to sound rude but this appears to be the stance that SF has taken. I know your not giving the money directly to them but its definitely in their best interest. As an independent, I don't have anyone looking over my shoulder, if a company makes me angry I can roll the business to another company I am appointed with. If a company lowers commissions or demands production levels I drop em and move on. I am a member of a cluster and have over 40 different companies I can write business with, most of whom seem to have better commissions on their renewals than SF gives. I don't know what SF is thinking but I guess I know where to start recruiting for my next agent.

Nobody that is a good potential SF agent is going to come work for you. I also doubt you'd make it as a State Farm agent as well. Despite some of the negative posts here (not necessarily a representation of the entire company) State Farm tends to hire top notch people. Sorry dude.......

 

[Independent]

The statement about recruiting State Farm agents was a joke, but even if it wasn't why not? I pay my staff more than most of these agents are making and my staff doesn't even have to invest $50k into my business. I wasn't trying to put anyone down or seem negative to State Farm agents, I have several friends who are SF Agents. It just seems like you all should have had a little more due diligence while proceeding through the process.

Fasttrack you can go ruffle your feathers all day long and insist you are so much better than everyone else around you because you are a "State Farm Agent". You are the chosen one! But I hate to tell you, there are independents out there snagging your clients left and right all day long right out from under your nose because your to busy sticking it straight up in the air. Lose the ego and get to work, you have a quota to make!

 

[Independent]

Let's back up a little here. I apologize if that came off as a "Flame" on my end. I know that my book isnt much to be proud of just yet, which is why I sought out a State Farm recruiter to begin with, I THOUGHT I might have it better by going with State Farm than continuing on as an Independent. Then I saw all of you guys ranting and saying how bad it sucked to be a State Farm agent and by the time I was done reading your posts I was ready to hit Ignore the next time the SF recruiter called me.

The way you all are making it sound is like I am essentially buying myself into a regular average job. State Farm wants you to put yourself $50k to $100k in debt for what? So you can work for them, be harassed about your sales and when you leave the company they tell ya not too let the door hit your butt on the way out? Pack your desk up in a box and see ya later? What about my investment? Couldnt I achieve the same fate by working for another employer and I wouldnt have had to go into debt?

Maybe I am missing something, misunderstanding the reasn behind why you guys are so angry with the company, but you talked me right out of the respect I have for the company. My wife worked for a State Farm agent for 4 years and she loves the company and how it works, but the agents she worked for were older... seems State Farm isnt treating the younger agents well at all. What do we have to gain in the end?

So, I am still willing to talk to the Sf recruiter, you guys have given me some VERY good questions to ask so that I can consider whether or not I want to give up the independent agency I've built over the last 2 years. I am at a point where I earn enough to cover my overhead, its profit from here and Im not in debt at all. I am glad I came to this forum to learn more, that it might not be all that I was being told it is.

If State Farm is the way you all portray it for new agents, I am wondering what is so top notch about becoming a SF agent- it sounds like you all regret your decision.

I haven't heard one person who was happy with what they got into. I would LOVE to hear the positives so I can make an informed decision. My wife and I have ALOT to offer State Farm, but we arent willing to go $100k into debt just so we can build them an office. We are under the impression that State Farm agents own their own businesses but according to ya'all, they dont.

 

[fastrack1]

Let's back up a little here. I apologize if that came off as a "Flame" on my end. I know that my book isnt much to be proud of just yet, which is why I sought out a State Farm recruiter to begin with, I THOUGHT I might have it better by going with State Farm than continuing on as an Independent. Then I saw all of you guys ranting and saying how bad it sucked to be a State Farm agent and by the time I was done reading your posts I was ready to hit Ignore the next time the SF recruiter called me.

The way you all are making it sound is like I am essentially buying myself into a regular average job. State Farm wants you to put yourself $50k to $100k in debt for what? So you can work for them, be harassed about your sales and when you leave the company they tell ya not too let the door hit your butt on the way out? Pack your desk up in a box and see ya later? What about my investment? Couldnt I achieve the same fate by working for another employer and I wouldnt have had to go into debt?

Maybe I am missing something, misunderstanding the reasn behind why you guys are so angry with the company, but you talked me right out of the respect I have for the company. My wife worked for a State Farm agent for 4 years and she loves the company and how it works, but the agents she worked for were older... seems State Farm isnt treating the younger agents well at all. What do we have to gain in the end?

So, I am still willing to talk to the Sf recruiter, you guys have given me some VERY good questions to ask so that I can consider whether or not I want to give up the independent agency I've built over the last 2 years. I am at a point where I earn enough to cover my overhead, its profit from here and Im not in debt at all. I am glad I came to this forum to learn more, that it might not be all that I was being told it is.

If State Farm is the way you all portray it for new agents, I am wondering what is so top notch about becoming a SF agent- it sounds like you all regret your decision.

I haven't heard one person who was happy with what they got into. I would LOVE to hear the positives so I can make an informed decision. My wife and I have ALOT to offer State Farm, but we arent willing to go $100k into debt just so we can build them an office. We are under the impression that State Farm agents own their own businesses but according to ya'all, they dont.

You make great points here and I would like to address a few of them. The problem with the agents on this site is that you are only hearing from the ones that are dissatified. You will always have a certain percentage of people dissatified, no matter what organization you are talking about. I'm also not saying that some of their complaints aren't valid. However, I know plenty of TICA's (I'm not a TICA) who are happy with their situations. I also know plenty of really smart people who have done their due diligence and really want to join the SF team, despite the neysayers on this site.

State Farm is unique in that you don't "own" your book of business, but you also didn't "buy" it to start with. You earn income and retirement from it over your lifetime. You are an independent contractor who can come and go as you please, while having excellent health insurance benefits, free marketing, incredible resources, free help on about anything you can image and the ability to make a decent amount of money compared to the amount of work that you have to do.

Everybody's situation is different. Some new SF guys have gotten screwed while some have hit the jackpot. I've been an agent for 6 years and I know TICA's that just started that are making more than me. Just a matter of circumstances.

My only concern with SF is that I think you can make really good money with them, but not great money. But I have the freedom to pursue other financial interests and I have done that.

Go ahead and talk to the recruiter and every TICA that you can find. Don't just listen ONLY to the people on this site. Just do your own research and make your own decision and then be prepared to live with it. It's easy to bad mouth an opportunity when it didn't work out for someone. Noone ever thinks they might be to blame for any of it (and maybe sometimes they are not).

State Farm is looking for good people and we need good people. If that is you, I wish you the best of luck....