Becoming a State Farm Agent

[wfs]

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!

The credit cards, auto loans, bank, etc... to me is a good thing because the customer will come to you for almost anything financial. The $18K signing bonus (+ $12K in the 13th month) is nice, but not as nice as the $11K I will get per month for the 1st year, $10K year 2, etc... Plus the annual scorecard bonus.

Nationwide is a great company. They have a great VUL plan, which unfortunately, SF does not sell at all. Do they offer a bonus program line SF? No doubt you can get higher in commissions than SF, but... SF offers a huge financial backing, has a great bonus program, and has very good training and support (from what I hear anyway).

If you are going to go independent, you may want to check out Smart Choice, especially for your P&C. SmartChoice - www.smartchoiceagents.com

If I choose to stay independent, I will take a closer look at their Agents Program. I do think that SF excels in some markets. NJ has some of the highest premiums in the nation. I would also look at Liberty Mutual in Jersey. I've never sold LM but I had LM when I lived in Jersey and it was the cheapest auto insurance I could find. In fact, I've transferred the policy to each state I've lived in and still have it.

Back to SF. Here's how I am looking at it. If I go the SF route, I will use its money and name to build up MY PRESENCE in the area. If things go sour and I decide to jump ship, I will immediately consider other options. There is only a 1 year non-compete (unless your clients call you during the 1 year.) After that, it's an open game. If you service your clients well, many will follow you.

I have a little over a month until I go to the career understanding. In the meantime, I am speaking with several SF agents in the area - both ones that were referred to me by the recruiter and others that were not...

 

[CaptiveGuy]

The credit cards, auto loans, bank, etc... to me is a good thing because the customer will come to you for almost anything financial. The $18K signing bonus (+ $12K in the 13th month) is nice, but not as nice as the $11K I will get per month for the 1st year, $10K year 2, etc... Plus the annual scorecard bonus.

Nationwide is a great company. They have a great VUL plan, which unfortunately, SF does not sell at all. Do they offer a bonus program line SF? No doubt you can get higher in commissions than SF, but... SF offers a huge financial backing, has a great bonus program, and has very good training and support (from what I hear anyway).

If you are going to go independent, you may want to check out Smart Choice, especially for your P&C. SmartChoice - www.smartchoiceagents.com

If I choose to stay independent, I will take a closer look at their Agents Program. I do think that SF excels in some markets. NJ has some of the highest premiums in the nation. I would also look at Liberty Mutual in Jersey. I've never sold LM but I had LM when I lived in Jersey and it was the cheapest auto insurance I could find. In fact, I've transferred the policy to each state I've lived in and still have it.

Back to SF. Here's how I am looking at it. If I go the SF route, I will use its money and name to build up MY PRESENCE in the area. If things go sour and I decide to jump ship, I will immediately consider other options. There is only a 1 year non-compete (unless your clients call you during the 1 year.) After that, it's an open game. If you service your clients well, many will follow you.

I have a little over a month until I go to the career understanding. In the meantime, I am speaking with several SF agents in the area - both ones that were referred to me by the recruiter and others that were not...

Ahhh if you are looking for entry into the P&C world then I guess you can use SF for the training and bonues and get out at anytime good point. I have about 3 years of sales in P&C and my clients already call my cell phone and don't really care about the company I work for.

I looked into smart choice agents I think I'll go with them over the other companies after I meet with some district sales managers for Erie, Progressive, and Travelers. Right now it's looking easy to get appointments from carriers based on production and experience but having some additional carriers for commercial products always helps.

I'm very familiar with LM and their pricing is great for some prospects but I heard they pay their agents 1.3% for renewal commission, great company though.

You look like you have a good plan I look forward to catching up with you down the road to see how everything goes. I should be up and running by Jan/Feb.

 

[Guest]

if anyone wants to become a State Farm agent in the Houston area....and old friend of mine just bought up a few books of business and is looking to hire a couple agents. I know he'll pay an hourly wage plus commission
- - - - - - - - - - - - - - - - - -
have you ever considered being independent, and getting overrides from other agents?

 

[taainsurance]

Do NOT sign up with State Farm. State Farm's new contract is terrible! Call any agent, in any state, who is working under the new contract and see what they say. Agents can not make it on 8%. I would not recommend starting any agency at this time but if you are convinced now is the right time then try and buy an independent agency.
- - - - - - - - - - - - - - - - - -
Do NOT sign up with State Farm. State Farm's new contract is terrible! Call any agent, in any state, who is working under the new contract and see what they say. Agents can not make it on 8%. I would not recommend starting any agency at this time but if you are convinced now is the right time then try and buy an independent agency.

 

[lennyshelby]

been lurking on here for a while and another frorum. Recently went to a Career Understanding with my wife. I am a current business owner now and was intrigued about this after talking with a recruiter.

After reading this forum, talking to other agents, and listenng to the speakers at career understanding, i have come to one conclusion. This is a nonstarter.

I mean, i have a degree of success and am generally positive, and im not the dumbest guy in the world. But why would anyone consider this, especially right now?

Let me get this straight.
- I wont actually own this business (like my other one).
- I wont own the customer database.
- I have no control over the pricing.
- THey are seemingly looking for ways to pay less tp agents
- There is a no onjectivity when it comes to whether someone makes it their first year or two.
- The contract/comp is the same across the country, yet price of insurance vary widely across the country.

With all due respect to them, and thank you for the invitiation, but are you kidding me? I already own a business. Why would i want to become self-employed, even worse a quasi-employee for my first year? Good luck every one. Maybe it's right for you.

 

[xrac]

been lurking on here for a while and another frorum. Recently went to a Career Understanding with my wife. I am a current business owner now and was intrigued about this after talking with a recruiter.

After reading this forum, talking to other agents, and listenng to the speakers at career understanding, i have come to one conclusion. This is a nonstarter.

I mean, i have a degree of success and am generally positive, and im not the dumbest guy in the world. But why would anyone consider this, especially right now?

Let me get this straight.
- I wont actually own this business (like my other one).
- I wont own the customer database.
- I have no control over the pricing.
- THey are seemingly looking for ways to pay less tp agents
- There is a no onjectivity when it comes to whether someone makes it their first year or two.
- The contract/comp is the same across the country, yet price of insurance vary widely across the country.

With all due respect to them, and thank you for the invitiation, but are you kidding me? I already own a business. Why would i want to become self-employed, even worse a quasi-employee for my first year? Good luck every one. Maybe it's right for you.

Exactly what I think!

 

[ryeates1]

just started with state farm on the financial services side. very conservative company but customers are very loyal. I have been in the insurance business for a while and i am amazed at how many customers come into the office, which is much different than i have been used to. makes me think that people like the one on one instead of dealing with the internet. I think some people are getting tired of trying to find stuff on the internet.

 

[wornout]

Check these out... very accurate of the State Farm reality:

[FONT=Verdana, Arial, Helvetica]Posted - 11/03/2010 : 12:44:14 PM[/FONT] [FONT=Verdana, Arial, Helvetica]Two animations created by an anonymous agent that might amuse you.[/FONT]

[FONT=Verdana, Arial, Helvetica]http://www.xtranormal.com/watch/7444717/[/FONT]

[FONT=Verdana, Arial, Helvetica]http://www.xtranormal.com/watch/7372885/[/FONT]

The site is down temporarily, but check back soon!

 

[xrac]

Check these out... very accurate of the State Farm reality:

[FONT=Verdana, Arial, Helvetica]Posted - 11/03/2010 : 12:44:14 PM[/FONT] [FONT=Verdana, Arial, Helvetica]Two animations created by an anonymous agent that might amuse you.[/FONT]

[FONT=Verdana, Arial, Helvetica]http://www.xtranormal.com/watch/7444717/[/FONT]

[FONT=Verdana, Arial, Helvetica]http://www.xtranormal.com/watch/7372885/[/FONT]

The site is down temporarily, but check back soon!

Wow! Wow! Wow!

 

[pjeege]

State Farm is a good place to start if you are taking over an established agency in a town where you are the only SF agent. Otherwise the contract is not very favorable and if you are in a larger city there are agents right on top of each other. I was an AI, but left once I started training in an offices and realized that the production did not add up. Plus I saw a ton of people that were newer agents with seemingly good numbers let go and in big time debt.