Becoming a State Farm Agent

[xrac]

I have to report to a manager, submit reports, dance the company dance. I am starting to realize the grass is not always greener though. I'd rather put a smile on and have all of my expenses paid for than be "independent" and have to pay all of the bills and payroll. I am still meeting with Nationwide tomorrow though.

If I were going to do anything and I were in your shoes I would probably look at going INDY otherwise I would stay pat. If you go captive you will only trade one set of reports for someone elses.

Personally with that income in this econmony I would be content.

 

[SalemInsuranceGuy]

I can think of a lot of reasons someone would want to give up 125k a year.

More money.

More time.

More freedom.

Call your own shots.

I guess it all depends on how high someone sets their goals. 125k a year is ok income, but if you're in a higher cost city after you pay taxes on that it's really not that much money.

 

[VolAgent]

I can think of a lot of reasons someone would want to give up 125k a year.

More money.

More time.

More freedom.

Call your own shots.

I guess it all depends on how high someone sets their goals. 125k a year is ok income, but if you're in a higher cost city after you pay taxes on that it's really not that much money.

All excellent points. And just like on the other thread, the person in question should do his own research. But, based on what I've personally seen and what people have posted here, that is 10 years out with SF, if ever. I've been told by a new SF agent that they designed the contract so you can't just sit back and collect checks after 10 years anymore.

 

[CaptiveGuy]

If I were going to do anything and I were in your shows I would probably look at going INDY otherwise I would stay pat. If you go captive you will only trade one set of reports for someone elses.

Personally with that income in this econmony I would be content.

Thanks! A few agents with my company are considering it. I didn't want to come off as ungreatful for my situation but I don't make too much off renewals and in the long run I won't make much more than what I'm making now. I may save for another year then invest in going Indy. I must say reading up on State Farm scares me! It can't be a coincidence that all of those agents are in debt...

 

[wfs]

I've talked to a few State Farm agents around where I live, most of them new (1-3 years). So far, all of them are doing well and making money. All of them say that the 1st year is tough, but they get a lot of support from the company. The contract is lower than other companies, but they do have a good bonus program from what I understand.

I have a friend who took over a book from a retired agent. He works very hard and got his "contract" after 1 year of being a TICA. He is now entering his 3rd year and doing pretty well.

I think it all boils down to your expectations, work ethic and location. I was considering Farmers, but now I am considering State Farm as well - especially after speaking and visiting several SF offices. More than likely, I will choose SF at this point, but realistically, I would expect to become independent after getting some solid P&C experience.

 

[CaptiveGuy]

The only thing I didn't like about the SF opportunity was the variable commission and even maxing out at 11% p&c is low compared to being independent. I have made over $100k two years straight for a captive so I think it's time to move on.

I calculated my renewal comp today and it would have been over $1,000 more for this biweekly period. My decision has been made.

I would learn from SF then start your own indy agency. I just can't see working that hard for $75k-$100k take home pay and not owning your book of business. The bonuses are nice though.

 

[wfs]

The only thing I didn't like about the SF opportunity was the variable commission and even maxing out at 11% p&c is low compared to being independent. I have made over $100k two years straight for a captive so I think it's time to move on.

I calculated my renewal comp today and it would have been over $1,000 more for this biweekly period. My decision has been made.

I would learn from SF then start your own indy agency. I just can't see working that hard for $75k-$100k take home pay and not owning your book of business. The bonuses are nice though.

Yeah, the part about not owning your bob really is a turn off. The people from SF I have spoke to have worked an unreal amount of hours for less than 100K.

The fact that they can choose not to give you your contract after you sign a 5 year lease is not good either. The only reason I would get a 5yr retail space lease is if I worked for SF.

Otherwise, I could just save a ton on money and get professional office space which is much cheaper.

I'm still not 100% ruling it out though. If I find the right opportunity in my market, I may pull the trigger - even if it's just to get their 9 month training and then part ways and go indy.

 

[max181]

I was a New Market (scratch)TICA in New Jersey and resigned. The contract is terrible and having one carrier is difficult if rates or underwriting becomes less competitive. Be Careful! Don't just speak with those who are recommended buy the recruiter, DAFO or AFE. If you would like to chat please let me know. I am also looking for some advice about starting independent in NJ. MGAs, splits , etc. Any help from anyone is appreciated.

 

[wfs]

I was a New Market (scratch)TICA in New Jersey and resigned. The contract is terrible and having one carrier is difficult if rates or underwriting becomes less competitive. Be Careful! Don't just speak with those who are recommended buy the recruiter, DAFO or AFE. If you would like to chat please let me know. I am also looking for some advice about starting independent in NJ. MGAs, splits , etc. Any help from anyone is appreciated.

In my market, the rates are competitive. If you consider the annual bonus, the contract is quite good imo. I am in the process of speaking with SF agents that were not recommended by the recruiter.

In NJ, there is an MGA you can use for Life. FPA Inc. I used them a long time ago.
F.P.A., Inc.

Farmers is no longer a consideration for me.

Send me a PM if you'd like to share some of the details of your SF experience.

 

[CaptiveGuy]

I ended up not going to the Career Understanding seminar. In my area the agents were saying they did not like the new contract or the rates but rates always change.

I spoke to Nationwide which pays 17% new 12% renewal vs. 8% with SF (you have to sell credit cards, auto loans, etc. to get the full 11% they tell you about). The SF bonus is huge but putting up my own money to start an agency is looking better for me.

Let me know what you decide!