State Farm Offer
- Thread starter Turbodiesel
- Start date
Re: State Farm Offer.
Do they make you have expensive offices and spend a ton on media advertising?
Yes, they will "encourage" more staff than affordable, and a ton on advertising. Plus the new contract pays less. You would have to have a much larger book to survive. They are more concerned about jamming as many storefronts as they can in each market. You have to be a engineer just to figure out the bonus/scorecard.
What has changed is that view the agent not as an asset but an overpaid liability.
Do they make you have expensive offices and spend a ton on media advertising?
Yes, they will "encourage" more staff than affordable, and a ton on advertising. Plus the new contract pays less. You would have to have a much larger book to survive. They are more concerned about jamming as many storefronts as they can in each market. You have to be a engineer just to figure out the bonus/scorecard.
What has changed is that view the agent not as an asset but an overpaid liability.
Re: State Farm Offer.
Also the assignment they promise or even give up might not stay. I have seen them break up books only to have 300-450+ policies go back to where they were transferred from. That could be because they liked the staff, location or many other reasons. They do NOTHING to help preserve your book.
I know of an agent that started recently and they have had almost 400 policies in 3 months go back to the previous office and the AFO/DAFO is doing NOTHING for that new agent. He was shown that he would have A LOT more policies. He has his business plan based on this. Now you know what they are telling the new agent "Just sell more" that's always their answer.
You can't trust them as they will tell you anything to get you in. They are having a lot of new agents leave not because they did not get their contract but because they can & will no longer borrow any money. You also have to realize that they will force you to move to very close to your office many times before you have been able to sell your current house. So you go from making one house payment to TWO house payments and paying rent for an office that can range from $1200-$2200+ depending on your city and rent averages. Many older agents are in small offices and they are not going to allow you to ever get your contract in a small office that is not what they call professional, visable or community friendly.
Also the assignment they promise or even give up might not stay. I have seen them break up books only to have 300-450+ policies go back to where they were transferred from. That could be because they liked the staff, location or many other reasons. They do NOTHING to help preserve your book.
I know of an agent that started recently and they have had almost 400 policies in 3 months go back to the previous office and the AFO/DAFO is doing NOTHING for that new agent. He was shown that he would have A LOT more policies. He has his business plan based on this. Now you know what they are telling the new agent "Just sell more" that's always their answer.
You can't trust them as they will tell you anything to get you in. They are having a lot of new agents leave not because they did not get their contract but because they can & will no longer borrow any money. You also have to realize that they will force you to move to very close to your office many times before you have been able to sell your current house. So you go from making one house payment to TWO house payments and paying rent for an office that can range from $1200-$2200+ depending on your city and rent averages. Many older agents are in small offices and they are not going to allow you to ever get your contract in a small office that is not what they call professional, visable or community friendly.
magicmarker
New Member
- 7
Re: State Farm Offer.
Chickenfarmer: I've been going through the process too. The posts I've read about SF make me suspect about this opportunity but I've also heard good things as well. Also, I was told by an AFE that this is not a get rich overnight deal; it will take time.
My question for you: tell me a little more about the interview; what are some sample questions? What can you tell me to prepare myself for this stressful part of the process?
And to others: Starting a decent business takes 3 - 5 years before profits are seen so don't let the prior posts of being in debt scare you from any business venture. If you come across a get rich quick opportunity, it's a scam.
If you want to be a successful business owner, you need to have capital and good financial sense.
Chickenfarmer: I've been going through the process too. The posts I've read about SF make me suspect about this opportunity but I've also heard good things as well. Also, I was told by an AFE that this is not a get rich overnight deal; it will take time.
My question for you: tell me a little more about the interview; what are some sample questions? What can you tell me to prepare myself for this stressful part of the process?
And to others: Starting a decent business takes 3 - 5 years before profits are seen so don't let the prior posts of being in debt scare you from any business venture. If you come across a get rich quick opportunity, it's a scam.
If you want to be a successful business owner, you need to have capital and good financial sense.
chickenfarmer
Expert
- 25
Re: State Farm Offer.
Magic & Bird,
I made it through and am now in the State Farm training. I have discussed the State Farm opportunity with a lot of successful agents as well as some newer agents. I think this forum attracts two types of people primarily... newbies considering the business such as you two (and myself until very recently) and people who took their swings and struck out. I advise to listen to each persons account and understand that some people have an axe to grind.
As far as the process, I thought it was great. I was referred to a local AFE by a distant family member who is an agent and took the personality test...basically it determines if you have an aptitude for sales (Would you rather go to a party or sit at home... Have you ever sold something on commission... Would you have a problem mixing business with personal activity...) After that, you go through a couple of resume interviews (mine were on the phone) to see how you describe your experiences... naturally you paint a positive picture of how your experience will relate to your future success. Next is the introduction to the business plan. Its a 10 to 12 page document in which you analyze a market area and detail the steps you will take to grow your business. From what I understood, they evaluate your general business acumen as well as want to see your ability to develop a strategy. After submission of that document, along with a projected compensation worksheet, you interview with some executives. The questions were pretty typical interview questions such as "tell me about a time when you were faced with adversity, how did you respond and what was the outcome" etc. They are boiler plate questions they ask all candidates. My understanding of what they are looking for is to answer the question first and foremost, what I mean is that they want you to address all parts of the question without distracting yourself on a tangent and not completing all parts. Also they want to hear what you have to say... this is their only chance to see who you really are and you have to tell them. I was nervous I wouldn't have two hours of material to talk about myself but I ended up overdoing it if anything. They try to make it conversational and make you comfortable. Sounds cliche but I really think the people at State Farm are exceptional. All the ones I have met, which is 50 maybe?? have been great.
Anyway, if you pass that you are approved and then post for real jobs. Now I'm getting my licenses and couldn't be happier. They didn't overpromise me anything. Its a great opportunity but each person has to develop their own book. They give you enough to pay your bills but if you want to make money you have to earn it. I am nervous about scraping by at first but I am confident that I will build a nice business.
One last thing Bird... re: your second post. The car loan would be a personality test question... i.e. would you be willing to invest in your business. Life insurance question is basically do you believe in life insurance. And the last question is a likely Executive Interview question where you have to answer a weakness but be able to answer in a postive way.
Thats my story!
Oh, and I'm in California.
Magic & Bird,
I made it through and am now in the State Farm training. I have discussed the State Farm opportunity with a lot of successful agents as well as some newer agents. I think this forum attracts two types of people primarily... newbies considering the business such as you two (and myself until very recently) and people who took their swings and struck out. I advise to listen to each persons account and understand that some people have an axe to grind.
As far as the process, I thought it was great. I was referred to a local AFE by a distant family member who is an agent and took the personality test...basically it determines if you have an aptitude for sales (Would you rather go to a party or sit at home... Have you ever sold something on commission... Would you have a problem mixing business with personal activity...) After that, you go through a couple of resume interviews (mine were on the phone) to see how you describe your experiences... naturally you paint a positive picture of how your experience will relate to your future success. Next is the introduction to the business plan. Its a 10 to 12 page document in which you analyze a market area and detail the steps you will take to grow your business. From what I understood, they evaluate your general business acumen as well as want to see your ability to develop a strategy. After submission of that document, along with a projected compensation worksheet, you interview with some executives. The questions were pretty typical interview questions such as "tell me about a time when you were faced with adversity, how did you respond and what was the outcome" etc. They are boiler plate questions they ask all candidates. My understanding of what they are looking for is to answer the question first and foremost, what I mean is that they want you to address all parts of the question without distracting yourself on a tangent and not completing all parts. Also they want to hear what you have to say... this is their only chance to see who you really are and you have to tell them. I was nervous I wouldn't have two hours of material to talk about myself but I ended up overdoing it if anything. They try to make it conversational and make you comfortable. Sounds cliche but I really think the people at State Farm are exceptional. All the ones I have met, which is 50 maybe?? have been great.
Anyway, if you pass that you are approved and then post for real jobs. Now I'm getting my licenses and couldn't be happier. They didn't overpromise me anything. Its a great opportunity but each person has to develop their own book. They give you enough to pay your bills but if you want to make money you have to earn it. I am nervous about scraping by at first but I am confident that I will build a nice business.
One last thing Bird... re: your second post. The car loan would be a personality test question... i.e. would you be willing to invest in your business. Life insurance question is basically do you believe in life insurance. And the last question is a likely Executive Interview question where you have to answer a weakness but be able to answer in a postive way.
Thats my story!
Oh, and I'm in California.
Re: State Farm Offer.
You better talk to 5-10 agents that started in 2004 on this new contract. DO you have a $100,000 to invest. Can your spouse support your family for 5-7 years ? You realize that template that you were shown about income is absurd. I know agents TICA's in the top 20 that didn't make 40% of that the first year. SO what about the other 800-900 guess what they made? You better do some more research before this "Awesome career" turns out 4 years later like 90 % of the agents that started in 04 on the new contract. We are working to pay off HUGE debt that almost ALL of us have. THE TICA contract has bankrupted many new agents already.
'
You better talk to 5-10 agents that started in 2004 on this new contract. DO you have a $100,000 to invest. Can your spouse support your family for 5-7 years ? You realize that template that you were shown about income is absurd. I know agents TICA's in the top 20 that didn't make 40% of that the first year. SO what about the other 800-900 guess what they made? You better do some more research before this "Awesome career" turns out 4 years later like 90 % of the agents that started in 04 on the new contract. We are working to pay off HUGE debt that almost ALL of us have. THE TICA contract has bankrupted many new agents already.
'
Re: State Farm Offer.
You are not being rude. When you are told things by people you know and trust you believe it. When you want something you will usually believe the positive aspects much more than if you are not wanting it. They do make it extremely difficult to get an agency that is true. I can give you over 15 names of agents that started in 2004 that will assure you that they are all above average in their AFO and state for financial sales and growth and they are not making $80,000 net. You would have made that on the prior contract with a book of 1500 autos and a 1000 fire policies and good financial sales.
I don't see any point in trying to convince you. You know much less about it than I do. I have been through it and you have not. Also I know that recruiting and managment reads and posts to these boards and anybody can come in here and say anything. I would recommend that anyone interested in agency would contact 5-7 agents that started in 2004 on the new contract. Contact NASFA www.nasfa.com National Association of State Farm Agents . This is an orginization of State Farm Agents and they have a lot knowledge for you.
You know they already changed the contract (last year) and they are having meetings soon to guage how well its being recieved. They are losing agents in years 2-4 at record numbers. Agents are leaving after they get their contracts that rarely happened before this new contract.
I know an agent that started 3 months ago with over 1500 cars. He based his business plan and expenses on the starting book. After 3 months this agent has less than 600 autos. The book he was given was originally split off in to 2 agencies. One new agent started just over a year and got his contract 1 month before the newest agent started which was 3 months ago. The first agent was servicing the entire book until the new guy started. He wouldn't allow the new guy to share the office like he wanted. Also the first agent hired all the staff from the prior agent. The 900+ policies went back to the prior agency because the policyholders had been dealing with "team members" for all these years. Guess what the company did? NOTHING the DAFO told him "just to sell more" now he has 3 full time and 2 part time staff. His agent compensation is $4000 a month less than his total expenses at minimum and that us if he reaches his sales goals. he has not been close to the "suggested" goals but has significantly increase sales. Lets see $4000 x 12 = $48,000 now if he cuts anything at this point they will start telling him that those type things could and probably will lead him to not get his contract. There are many other stories like this and for privacy concerns can't and won't be discussed here.
Also his spouse doesn't work as she is a stay at home mom. He will be $60-70,000 in debt his first year at least. Now this may not be typical but its reality for him.
Those 20-30K in debt Agents are on the AA97 contract not the AA05, AA04 or TICA contracts they are 2-3 or more times in debt than that.
Their history of success is not based on this new contract. Lastly I will say if you want it go for it.Why does the company let new agents borrow up to $75,000? you know why because most need that in the first 2-3 years.
You are not being rude. When you are told things by people you know and trust you believe it. When you want something you will usually believe the positive aspects much more than if you are not wanting it. They do make it extremely difficult to get an agency that is true. I can give you over 15 names of agents that started in 2004 that will assure you that they are all above average in their AFO and state for financial sales and growth and they are not making $80,000 net. You would have made that on the prior contract with a book of 1500 autos and a 1000 fire policies and good financial sales.
I don't see any point in trying to convince you. You know much less about it than I do. I have been through it and you have not. Also I know that recruiting and managment reads and posts to these boards and anybody can come in here and say anything. I would recommend that anyone interested in agency would contact 5-7 agents that started in 2004 on the new contract. Contact NASFA www.nasfa.com National Association of State Farm Agents . This is an orginization of State Farm Agents and they have a lot knowledge for you.
You know they already changed the contract (last year) and they are having meetings soon to guage how well its being recieved. They are losing agents in years 2-4 at record numbers. Agents are leaving after they get their contracts that rarely happened before this new contract.
I know an agent that started 3 months ago with over 1500 cars. He based his business plan and expenses on the starting book. After 3 months this agent has less than 600 autos. The book he was given was originally split off in to 2 agencies. One new agent started just over a year and got his contract 1 month before the newest agent started which was 3 months ago. The first agent was servicing the entire book until the new guy started. He wouldn't allow the new guy to share the office like he wanted. Also the first agent hired all the staff from the prior agent. The 900+ policies went back to the prior agency because the policyholders had been dealing with "team members" for all these years. Guess what the company did? NOTHING the DAFO told him "just to sell more" now he has 3 full time and 2 part time staff. His agent compensation is $4000 a month less than his total expenses at minimum and that us if he reaches his sales goals. he has not been close to the "suggested" goals but has significantly increase sales. Lets see $4000 x 12 = $48,000 now if he cuts anything at this point they will start telling him that those type things could and probably will lead him to not get his contract. There are many other stories like this and for privacy concerns can't and won't be discussed here.
Also his spouse doesn't work as she is a stay at home mom. He will be $60-70,000 in debt his first year at least. Now this may not be typical but its reality for him.
Those 20-30K in debt Agents are on the AA97 contract not the AA05, AA04 or TICA contracts they are 2-3 or more times in debt than that.
Their history of success is not based on this new contract. Lastly I will say if you want it go for it.Why does the company let new agents borrow up to $75,000? you know why because most need that in the first 2-3 years.
Re: State Farm Offer.
I know from the experiences I have shared with most of the major captive P&C agents that AgentZ is more close to the truth than the new or soon to be new agents who have had limited exposure to anything other than what State Farm has shown you. The smoke that is being blown is not realistic and you will starve the first 4 or 5 years. I seriously doubt the average or stellar new agent on the new contracts is making anywhere near 80k a year, unless he is counting what he is borrowing and not counting his office expenses. That is pure smoke. Sorry.
I know from the experiences I have shared with most of the major captive P&C agents that AgentZ is more close to the truth than the new or soon to be new agents who have had limited exposure to anything other than what State Farm has shown you. The smoke that is being blown is not realistic and you will starve the first 4 or 5 years. I seriously doubt the average or stellar new agent on the new contracts is making anywhere near 80k a year, unless he is counting what he is borrowing and not counting his office expenses. That is pure smoke. Sorry.
Re: State Farm Offer.
An idea to consider, and its free advice, so it is worth what you are paying for it...
Consider searching out successful older agents and see if they will take you on to work their client base cross selling the stuff they are too busy (lazy) to pursue. The old guys all sit back and live off the renewals and get complacent. Be a way to break into the business without starving, and it could open up other opportunities. There has to be a bunch of SF, Farmers, Allstate, ect agents in the St. Louis area that fit the bill.
I looked at becoming the financial & life rep for a group of Allstate agents in my area, but decided not to after I saw how complacent they all were towards those products. My main job was going to be getting them to refer their customers to me and if they were too lazy or afraid to sell those products on their own, how could I expect them to refer the business to me? I talked to a few others doing the same thing and they were facing those same challenges.
Older agents sit back and draw their renewals. There are real opportunities at those agencies. Plus they are on the old contracts and can afford to give you the lions share of the commissions because of the back end production credits they get.
An idea to consider, and its free advice, so it is worth what you are paying for it...
Consider searching out successful older agents and see if they will take you on to work their client base cross selling the stuff they are too busy (lazy) to pursue. The old guys all sit back and live off the renewals and get complacent. Be a way to break into the business without starving, and it could open up other opportunities. There has to be a bunch of SF, Farmers, Allstate, ect agents in the St. Louis area that fit the bill.
I looked at becoming the financial & life rep for a group of Allstate agents in my area, but decided not to after I saw how complacent they all were towards those products. My main job was going to be getting them to refer their customers to me and if they were too lazy or afraid to sell those products on their own, how could I expect them to refer the business to me? I talked to a few others doing the same thing and they were facing those same challenges.
Older agents sit back and draw their renewals. There are real opportunities at those agencies. Plus they are on the old contracts and can afford to give you the lions share of the commissions because of the back end production credits they get.
Re: State Farm Offer.
SF, be careful, I know agents that have to take a part time job the first 3-5 years just to make it, Being captive is a pain, they have very little financial products
SF, be careful, I know agents that have to take a part time job the first 3-5 years just to make it, Being captive is a pain, they have very little financial products
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