Becoming a State Farm Agent

[nfsmarketing]

I've talked with alot of captive agents over the years, and in my opinion, being independent would be the only type of agent I would want to be. I'm not sure what the benefits are, but not having your block of business vested and the REALLY low commissions doesn't seem like much of an incentive.

Julie
NFS Marketing
www.nfsmarketing.net

 

[Ron Van D]

I've talked with alot of captive agents over the years, and in my opinion, being independent would be the only type of agent I would want to be. I'm not sure what the benefits are, but not having your block of business vested and the REALLY low commissions doesn't seem like much of an incentive.

Julie
NFS Marketing
www.nfsmarketing.net

It's not.

 

[wfs]

I've talked with alot of captive agents over the years, and in my opinion, being independent would be the only type of agent I would want to be. I'm not sure what the benefits are, but not having your block of business vested and the REALLY low commissions doesn't seem like much of an incentive.

Julie
NFS Marketing
www.nfsmarketing.net

With SF, you do not own the bob, that is certainly true, however, there are other perspectives that compensate for that.

For example, the annual scorecard bonuses can be quite substantial. And while the commissions seem to be lower than most others, the bonus way makes up for it in my opinion.

The standard commission (after years 1 and 2) on auto is 8%. But with reasonable production and growth, it is 11%. Now as an independent, I believe you can get 15%, maybe higher.

SF pays the same for homeowners as well. This is certainly below par. Even Farmer's pays 20%. But again, the bonus compensate for that as well.

SF also gives the agent another 5% annual bonus (beginning in year 6 or 7) based on the previous year's commissions. The intent is to use this money to fund your retirement, but the truth is you can use it however you want since it is not placed into a qualified plan - it is just a regular check.

SF gives a new agent the ability to walk into an existing BOB and have immediate cashflow to operate the business. And if they go new market, they pay the agent for up to 5 years as long as certain production is achieved.

So when you state that you don't own the BOB, this is 100% correct, and as an independent agent, it is hard to understand why anyone would waste their time. But I think there are other factors to consider, that's all.

There is a lot of money to make in SF, much more than in other captive organizations.

I do have some problems with the organization though. I hate the fact that if you leave, you cannot pass on your business to your child. This bothers me the most, so I am not 100% convinced that SF is best for the long term builder.

Who knows... Maybe the lazy kid needs to not take a handout from Daddy and should start his or her own business anyway...

 

[leonard2009]

I benefited TREMENDOUSLY from this forum! Based on my calculations, i saved myself approximately $99,985.00. The reason I did not round to $100K was because I did spend $15.00 in gas to meet with some SF recruiter clown - but after the meeting I found this forum right away.

I "qualified" via the career assessment and was "congratulated" (how could you fail that thing anyway??). Now I will be contacting them to advise I will not be attending the next "Career Understanding" session slated for December.

Instead, I will be going back to the brokerage world where 2 years of DD and my $100K will actually be invested in a real future.

I can't thank you guys enough for all your posts on this forum. I read every single one and especially liked the guy who posted the links to the "Life at State Farm" movies - freakin hilarious and true. I would not have reached out to other agents in my area if it was not for reading all of the concerns outlined on this board - virtually ALL were validated. The contract is ridiculous and ladended with one-sided benefits exclusive to SF.
Thanks again guys and gals and all the best!

 

[wfs]

I benefited TREMENDOUSLY from this forum! Based on my calculations, i saved myself approximately $99,985.00. The reason I did not round to $100K was because I did spend $15.00 in gas to meet with some SF recruiter clown - but after the meeting I found this forum right away.

I "qualified" via the career assessment and was "congratulated" (how could you fail that thing anyway??). Now I will be contacting them to advise I will not be attending the next "Career Understanding" session slated for December.

Instead, I will be going back to the brokerage world where 2 years of DD and my $100K will actually be invested in a real future.

I can't thank you guys enough for all your posts on this forum. I read every single one and especially liked the guy who posted the links to the "Life at State Farm" movies - freakin hilarious and true. I would not have reached out to other agents in my area if it was not for reading all of the concerns outlined on this board - virtually ALL were validated. The contract is ridiculous and ladended with one-sided benefits exclusive to SF.
Thanks again guys and gals and all the best!

That is good I suppose, but if you intend on opening up a P&C agency, you will need to put your money on the line anyway. So what are you going to do??

There's no free ride in any business, especially insurance.

 

[nfsmarketing]

That's some interesting information, as I wasnt aware how the internal bonus structure worked with SF. It does make it harder to leave there and as you mentioned, hard to pass the business down.

I prefer the up-front comp you get on the independent side. That way, when you make your sale, you know what you get, right up front. It doesn't require the moon and the stars to align to get paid.

Julie
NFS Marketing
www.nfsmarketing.net

 

[wfs]

Another thing I don't like about SF is that you can be fired during the temporary period for not meeting their "competencies", which is completely subjective in my opinion.

Central Zone – Career Understanding – Next Generation Agent Competencies

There are no metrics or standards. From talking to many agents, if you don't play nice, regardless of your production, you'll be canned. Remember, this can only happen during your TICA period, but still...

It all comes down to being able to be a "team player". If you can't play the game, don't bother. Personally, I think it's best to have some good experience in Corporate America before attempting a career with SF - you will need the experience. SF is a hybrid employee position during your TICA period. You work/invest like an entrepreneur but you've got to play the game like a regular corporate employee for a while.

SF has the upper hand and you take all of the risk when starting out. Sure, they'll give you $18K to start, BUT your monthly costs are high, since you must have a lease, preferably in a retain space, staff, marketing, etc... Watch the $18K bonus vaporize...

While I still think SF can be a great opportunity, people really need to understand the ins, outs and what-have-yous associated with this choice. I truly wonder how much due diligence prospective agents do before jumping in.

 

[VolAgent]

Central Zone – Career Understanding – Next Generation Agent Competencies

None of those are objective, every last one is subjective.

 

[need2know]

tough way to go.

 

[WinoBlues]

tough way to go.

OK you made your 20 with "tough way to go" Now what?