New to insurance, need quick advice about job offer!

[Caleb94]

Hi, so first off I am 26 years old and just recently got interested in insurance over the summer/fall time. I am in Michigan and have gotten my independent adjusters license as well as my P&C.

I’ve been applying for positions over the last few weeks, and I had a phone interview with a local State Farm Office a few days ago that turned into an in person interview yesterday.

The interview went amazing and he offered me the job on the spot, it was a small $20,000 Salary, with apparently uncapped commission but he (the agent) gets to keep the renewals.

However, he then put down the contract in front of me and it had a Non-Compete clause, which I understand is common. But it states I cannot work for any other company for 3 years within 30 miles, and I declined to sign the contract due to it. I told him I needed a day to think it over.

Im supposed to give him my answer today ASAP. I also want to note that the contract does have a small paragraph saying a 15 day notice can void the agreement. However I don’t want that extensive of a non compete clause in the back of my mind.

What would you do? And I appreciate any advice! Thanks in advance! I just really don’t think this is good for my first ever insurance position.

 

[DHurd]

That's a bad setup imo, if you do some research you can find a way better way of going about it

 

[Caleb94]

That's a bad setup imo, if you do some research you can find a way better way of going about it

Do you mean the contract is a bad setup? Would you consider 3 years and a 30 mile radius extreme for a non compete?

 

[DHurd]

Do you mean the contract is a bad setup? Would you consider 3 years and a 30 mile radius extreme for a non compete?

What I know of p and c is you're looking for 1. Vested commissions (you get all your commissions) 2. Binding authority (you secure the deal right there and then, and 3. Dont be a captive/non compete. That's the basics. So this "offer" you're being given literally breaks every basic requirment of what you should be looking for. It's just something a sleazy "salesman" does to take advantage of unsuspecting newcomers imo. Stay away from these mlm insurance mills like statefarm. You're getting literally peanuts on your work being a bottom toad in their organization. Theres probably at least 5 levels of agents getting an override on whatever production you'd do. Stay away

 

[AZDave]

3 year non compete is extreme. I would counter with a one or two year Do Not Solicit. You can't be prevented from making a living, and if you wanted to continue selling insurance in town, that contract certainly would.

State Farm is a great place to learn the business, but eventually you will want more - renewals are the key to this business, and you won't get any at this SF gig.

Good Luck!