LuckyLefty
New Member
- 3
Active or past State Farm Agents on the AA05 Contract. It's 2015, and this contract is roughly ten years old now. I would like to get feedback from those with atleast a few years experience on the AA05 contract that have taken over a book. I am scheduled to take over a traditional assignment of roughly 1600 cars and 1200 fire polices (1.6million premium) in a few short months.
1)Regarding semi-monthly variable compensation, are you able to meet the auto and fire benchmarks set up on an annual basis and have you dropped below the 2 year default of 10%. If so, what has that done in subsequent years to reach the benchmark again?
2)Many agencies are being split on a 2 for 1 basis and/or starting the new person out in a position where they inherit a book of a maximum of 1.5 million in premium. The remainder of the policies get spread out in the territory. New Market agencies are starting to spring up again per leaderships desire to get more financial services. Do you have any concerns about your ability to continue to grow an agency with more competition (with 25-35% SF existing market penetration) and have 1-2% of renewal and new business commissions forever tied to your agency growth? It seems to be a bit of a hamster wheel.
3) Sales leaders compensation is now closely tied to not only recruiting but financial services sales. What are your thoughts about increasing agents in a territory without any protection from more SF agents? I'm talking about the 2 for 1 model being duplicated over and over.
4)How have file assignments (if any) helped your agency and what are the top two keys in your opinion to netting a livable income ($80,000) with this venture?
5) How is your debt load from building the agency? Did you have to raid your retirement? What is your forecast to pay it back?
6)How much money does a person need to realistically have set aside to make this contract work financially assuming they don't fall victim to lavish furniture programs and keep a sharp eye on controlling costs? Are you able to make the scorecard work and make much off of it?
7) Do the pros outweigh the cons of this and would you do it again?
8) Lastly, assuming you have debt...If a person were to give you a check to pay off your debt would you walk away from the agency today or do you foresee sustainable opportunities in the future?
1)Regarding semi-monthly variable compensation, are you able to meet the auto and fire benchmarks set up on an annual basis and have you dropped below the 2 year default of 10%. If so, what has that done in subsequent years to reach the benchmark again?
2)Many agencies are being split on a 2 for 1 basis and/or starting the new person out in a position where they inherit a book of a maximum of 1.5 million in premium. The remainder of the policies get spread out in the territory. New Market agencies are starting to spring up again per leaderships desire to get more financial services. Do you have any concerns about your ability to continue to grow an agency with more competition (with 25-35% SF existing market penetration) and have 1-2% of renewal and new business commissions forever tied to your agency growth? It seems to be a bit of a hamster wheel.
3) Sales leaders compensation is now closely tied to not only recruiting but financial services sales. What are your thoughts about increasing agents in a territory without any protection from more SF agents? I'm talking about the 2 for 1 model being duplicated over and over.
4)How have file assignments (if any) helped your agency and what are the top two keys in your opinion to netting a livable income ($80,000) with this venture?
5) How is your debt load from building the agency? Did you have to raid your retirement? What is your forecast to pay it back?
6)How much money does a person need to realistically have set aside to make this contract work financially assuming they don't fall victim to lavish furniture programs and keep a sharp eye on controlling costs? Are you able to make the scorecard work and make much off of it?
7) Do the pros outweigh the cons of this and would you do it again?
8) Lastly, assuming you have debt...If a person were to give you a check to pay off your debt would you walk away from the agency today or do you foresee sustainable opportunities in the future?