[COLOR=blue]Okay I am back and let me just tell you I keep hearing more and more agents that started in 2004 and 2005 and some now in 2006 leaving the company. The NEW contract is a BAD DEAL PERIOD. They are having problems filling some spots after TICA's leave, some TICA's have done well only to be told in month 11 NO CONTRACT. This company is doing one of two things planning a way to get rid of agents eventaully or simply making it a blue collar level paid job and that's the bottom line. This is NOT a good deal once again go see some Agents that started in 2004 and 2005 and now 2006 and get the truth, shame on the company for saying it was our fault for not controlling our expenses when they basically made new agents get a $20,000 furniture package, 3-4 staff when the 97 deal would have let you have 2 with an avg. book and an expensive office, this contract has caused many bankruptcies and divorces and the call for action is being heard.[/COLOR]
[COLOR=#0000ff]I had to re-visit a prior post for some background as I have not been on here lately like many I have had to take on a second job to make it. I am not going to let them ruin me like they did 8 out of 12 of a recent TICA class.[/COLOR]
[COLOR=darkred]They say you should hear it from someone that has actually been there. Then that is me . I was a TICA & I did earn my contract. What has been said is true. This AA05 contract has ruined lives, it has caused divorce and bankruptcies. I know an agent that started around the time I did and he is leaving agency after 3 years of trying to break even. You WILL go $100,000+ in debt with an average book much less one of less than 1000 cars. They will show you template of what you are supposed to make, but you won't come close to that. I know of TICA that were in the top 20 in the nation that didn't make that so what about the other 800-900? I easily got my contract, it was never in question.[/COLOR]
[COLOR=darkred]Most of the money is spent on payroll and marketing. In the past with these books of business they would have let you have 2 staff. Now they "suggest" you have 3 full time and a one or two part time "team members". My payroll was over 65% of my gross my 1st year. Show me a business model that shows that will work. If you don't sell enough the first year be prepared to hear you won't get your contract. I personally know of an agent that was almost on time to travel & they told him in month 11 that he was NOT getting his contract. He had borrowed over $50,000 and had a multi year lease.[/COLOR]
[COLOR=darkred]The contract is very ambiguous & the CO. can basically change it at anytime. They are not sending prospective agents to agents that have been around over 3 years that started as TICA's. Go see like was said 5 of them before you make this mistake. If you are willing to go for it then have NO debt going in a spouse that makes more than what you need to live on. Think twice and think again.[/COLOR]
[COLOR=darkred]Now then you may ask about me? Finally after all this time I have started to make progress on my debt so for me its worth it to stay. There are some benefits but you ask me if I would do it all again with my knowledge and I would say "absolutely NOT"[/COLOR]
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Originally Posted by Legion
Here are the things that some people don't realize when they first become a TICA State Farm agent. I could literally be fired for revealing this small facts, but I feel it is important for agency candidates to know the "rules" of the game so they are in the best position to succeed. It is best for the company, and better for the candidates.
Only a previous new agent worked it so hard and squeezed every life policy out of it so he or she could then jump into management that there is not much left for the next newbie.
4) Your managers (AFC and AFE) are not there to be your business consultants. If you want business advice (and you should) go pay a small fee and get it independently from a third party. Your C and E are there to get you to sell whatever upper management tells them to get you to sell. (First of all, Life). Many managers are nice people. Many were agents at one time (however, it is startling how more and more new managers jumped out of agency after only one or two years). Be nice to your manager--he or she has a family and is a more good than bad. But if you think that your nice manager is there to truly help you with your business, and you rely on your manager for help with your business, you will be very disappointed when their answer to every problem you have is "Sell more life insurance" or "Hire more people to sell more life insurance".
.
[COLOR=darkred]Most E's and C's do NOT care as long as they make their boss the VPA happy and they get their bonus. My E doesn't come around but once every other month to ask why I am not spending more money marketing and to critcize something else. He really doesn't care that the AA04/05 contract has ruined lives and caused so many new agents to leave the company in years 4 and 5 this used to not happen. Agency with this company now is NOT a good career be careful and wise and look elsewhere. Contact somebody at NASFA and get the truth on what is happening to newer agents, the real truth.[/COLOR]
Last edited by AgentZ : 03-26-2009 at 02:14 PM.
Reason: Posts merged
[COLOR=black]I met with a State Farm Recruiter this past week.[/COLOR]
[COLOR=black]State Farm is now offering $11,000 a month for expenses during the first 3 years. You still receive the signing bonuses of $18,000 in year one, $12,000 in year two, commissions, $25,000 credit, and a book of business. [/COLOR]
[COLOR=black]You often see organizations forgetting the sales force is the bloodline of the organization. In life we all take “our bloodlines” for granted: our family, friends, and health. Then something tragic happens we go back internalize the problem and reproach the situation. [/COLOR]
[COLOR=black]It is apparent State Farm is focusing its attention on the sales force. You can also see a shift in the way they are advertising. State Farm has always been a heavy advertiser, however signing LeBron James sends a different message. They are trying to target the internet generation. “Call my agent” and his care free attitudes sends a powerful message to the young consumer.[/COLOR]
[COLOR=black]I know some employees inside State Farm's corporate office; they said that State Farm is restructuring contracts in order to help it’s agents to succeed. Is the new contract sufficient to run a successful agency or is one still doomed for failure? [/COLOR]
[COLOR=black]Please do not say that “hard work takes care of everything”. I know success comes from hard work, external factors, and being a part of a great system.[/COLOR]
[COLOR=black]Thank you in advance for a response[/COLOR]
[COLOR=black]I met with a State Farm Recruiter this past week.[/COLOR]
[COLOR=black]State Farm is now offering $11,000 a month for expenses during the first 3 years. You still receive the signing bonuses of $18,000 in year one, $12,000 in year two, commissions, $25,000 credit, and a book of business. [/COLOR]
[COLOR=black]You often see organizations forgetting the sales force is the bloodline of the organization. In life we all take “our bloodlines” for granted: our family, friends, and health. Then something tragic happens we go back internalize the problem and reproach the situation. [/COLOR]
[COLOR=black]It is apparent State Farm is focusing its attention on the sales force. You can also see a shift in the way they are advertising. State Farm has always been a heavy advertiser, however signing LeBron James sends a different message. They are trying to target the internet generation. “Call my agent” and his care free attitudes sends a powerful message to the young consumer.[/COLOR]
[COLOR=black]I know some employees inside State Farm's corporate office; they said that State Farm is restructuring contracts in order to help it’s agents to succeed. Is the new contract sufficient to run a successful agency or is one still doomed for failure? [/COLOR]
[COLOR=black]Please do not say that “hard work takes care of everything”. I am a high achiever however I know success comes from hard work, external factors, and being a part of a great system.[/COLOR]
Since the servers have been down for a while. I thought this thread might have been nuked. I'm giving it a bump as I appreciate the pro and the con threads.
When you become accepted into the pool to wait for an assignment or to apply (post) for an assignment. Where are these postings visible? On a secure website? How does it work can anyone expound on this some? So I make sure I follow the advice here and try to pick up an assignment with an exisisting book of business.
Started late 2006 high producing agent close to bankruptcy. Started on a blended contract with PBP. Currently receiving 2.87% SMVC and still imploading. Future looks very dismal. Love my job and the company hoping for some changes to the contract in the future.
Started late 2006 high producing agent close to bankruptcy. Started on a blended contract with PBP. Currently receiving 2.87% SMVC and still imploading. Future looks very dismal. Love my job and the company hoping for some changes to the contract in the future.
Wow! How sad and SF is allowing this to continue! That does not sound like a wonderful company!
Scratch agent here. Started in 2008 in Northeast. It definitely has been tough. I have a few thoughts on the program - from a scratch perspective.
- they (Corp) are going to have to realize sooner than later that there is not a major financial incentive to go scratch. Compared with the agents who got an assignment, i dont really know of many that are making it financially. What we can only see is the front run numbers, but not the amount of money it takes to make that happen. ie, sure "so and so" is producing the DAFO says, but they dont care if you have to spend a bazillion dollars to produce numbers.
- compared to scratch agents, is it equitable that an agent who got a 2000 car assignment also get a 2nd year signing bonus? If so, i think scratch should get more.
- if you have an opportunity, try to get an assignment. If you are scratch and you produce 500 auto a year, by the end of year 4 you are at the same spot as your peers who took an assignment.
- three people i know in my zone are nearly close to bankruptcy - which means you have to surrender your license. One of those is getting divorced due to the strain. A different one walked away at the end of the first year. He realized it was not worth the financial stress.
- with scratch, you are generally going to have more initial costs as well (upfitting a new location). The DAFO wants you to hire at least 2 team members minimum. If not, well, guess you dont have the coachability, leadership courage, business acumen, etc competencies.
- throw the comp illustrations out at the door. They showed something like $3000 a month in expenses. We all know what a joke that is.
- i see that more and more people who made it out of the DAFO are trying to get C positions for monetary reasons. Not because they truly want to go into management.
Can someone tell me if your credit score will affect you if you are just going to work at State Farm for another agent as a team member? Does anyone know if they check all 3 credit scores? The reason I ask is I had some past due accounts but have paid them all off. My Experian report shows this but the other 2 have them still as delinquent. Thanks in advance for any help you can provide me with.
When talking with SF, can you specifically request to be put on a wait list to take over an existing office as opposed to going scratch?
I like SF alot...but...judging by the horror stories, I have no interest in incurring high levels of debt with no personal gain competing in an area already saturated with existing SF agents.
@dt1970: once you go thru the process and get to be approved, you have an opportunity to compete for the opening you want to apply for. Youll know whether it is scratch or traditional, or additional intern. the traditional ones are more competitive because people want those more for what has become obvious reasons.
I am going to watch this thread.. Actually - kind of funny to read after 11 yrs away from the "frickas and frackes" of State Farm. Born w/SF Tattooed on my butt - as i was a St Farm Son. Dad in the business for 30+ yrs - he started scratch - did well. 93/94 - something like that - he wanted to retire - and of course the curse of being a SF Son was not good at that time. 11 openings - 4 former SF Sons/Daughters in our area - NONE hired. What a joke - and - as we found out - all those "New Contracts" - even bigger joke. Our agency was in the top 100 for Life Sales Nationwide - for 30 + yrs. Crystall Excellence - etc etc etc... What a joke there for bonuses.
I started scratch as a Independent Agt - after the Agy Mgr (AFE?) and the Regional AVP came to our parents house and decided they were going to sue them for losing so much business.
Not ever day is roses - whose is.... but - my profit bonus for just personal lines is larger than most people make. 20% on Auto new - 15 % renewal... Take that as a meat and potatoes - and my bonus is the gravy.
Go independent - but do what you want - eat what you want - sell what you want. No one tells me what to do - when or how. Somedays i sell life - some months i sell life. I sell to who and with whoever helps the clients interest.
Again - not ever day is sunshine - but after 11 years - AND starting scratch - i make more than any SF, Farm Bureau (etc..) - agent.
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Hey - Dont mean to be snotty on the last post.
Do yourself a favor - if you are going to become a SF Agent - go 100 miles away - 2 counties away - a State away - and speak to old and new SF agents - ask around - see what is what - how and who. Money is the big driver here - and no one wants to work hard for nothing.
The current SF agent who took over my dad's agency was NOT informed of what was going on. No "Welcome Wagon" party w/the new agent saying hello to clients w/the retiring agt - no knowledge of the $/commission %'s - and what it takes to COMPETE - yes COMPETE. We did NOT take all the "Old" SF customers - didnt want them - and in some cases they NEEDED to stay at SF - but, its a TON of money out - when you are working 14-16 hr days to make ends meet.
I would leave a note here - i dont want to be negative - but i cant leave my email or contact info. SF Came after me (and several other former SF sons/daughters) - as they said i had "Trade Secrets" and was using them.
I sent the local phone book to the SF attorney on the letter - and said "here is my marketing plan" - go ahead and sue me! ha! And BTW - I am publishing your letter and my letter in the 3 largest papers in our state - so everyone knows whats going on.
I did - w/a letter from a client who said " I would soon chew glass - than keep state farm"! LOL
Last edited by cv3 : 04-17-2009 at 03:56 PM.
Reason: Posts merged
I bit and bit hard. The opportunity is as stated by WIN, if you have at least 3 years worth of your current financial needs set aside to use and can also wait at least 6-8 years before you see any real money, it's worth the effort.
Two very important issues to consider-1- Make sure you know the area you want to be an agent in. IF you are an outsider the other SF agents in the area will eat you for lunch as they are your largest competitors and 2- make sure you understand that there are no rule books and the underwriters control the business and change the rules for the benefit of the company. With todays internet and savy customers you only have relationshipping as an offering that no one else has.
Based upon what I am reading why in the world would anyone that is in their right mind want to start out with SF under the present contract unless they are given a substantial book of business? I don't mean that someone can't eventually become successful but why put so much at risk when there are other avenues open that will yield potentially as much or greater rewards on a shorter time horizon with less at risk.
In looking back over your posts, you often make very astute observations, and describe the plight of the starving TICA/Newbie ICA in vivid detail (it has been very educational for me). But then you go sailing off on a sea of your own bile, lashing out at the world.
You sound very angry. You say you are happy with your chosen path? Who are you trying to convince? Yourself, perhaps--you don’t sound so happy. (Hey, I don’t blame you though.) But I would tell anyone to be careful about being happy with 80 or 100 grand a year. One new insurance law in your state legislature can drop that by 25% overnight, then what will you do? Get a part time job? (Now, a new law can also raise it overnight too . . .)
I am exactly what I say I am. I have been “exposed” only insofar as I would have to try very hard to get fired—not because I have 12 years in and bunch of plaques, and awards, and a picture shaking Ed Rust Jr’s hand. I can’t get fired because I now have friends in high places (MDRT does the for you). Most any review panel formed would have many people I knew personally. I said that “I could get fired for writing this” in my first post so as not to reveal myself as what most readers of this thread probably despise: the propped up rich agent with several staff who do all the work, a big retail storefront office, trip after trip, policy assignments that you will never get (even though you truly need them) and so on.
So you, and a couple others are right: I certainly can’t get fired for a few posts on a website, or for “talking out of school.” However, my guess is that you haven’t made too many friends in high places, so be careful if you think you enjoy the same luxury. You don’t. If you come off as a malcontent this early in your ICA years, your name is on a list somewhere . . . Think about it for a minute and you will feel that I am right. Don’t believe me? It really doesn’t matter--your name is still on the list.
Now for the irony. I didn’t look in on this thread to burst any bubbles or rub anyone’s nose in excrement. If I had to come through the TICA program now, scratch or with an assignment, I would certainly fail. So would several other bigshot agents in my Zone. We are used to being staged to be successful—we couldn’t deal with the adversity you are dealing with. (Tiger Woods could not shoot a 7 under par on some of the crappy municipal courses in my city, the greens are too bumpy and the fairways are lousy, but he can shoot 12 under par on the most pristine courses in the world.)
I looked in on this site because I constantly have wannabe agents, and agency interns paraded through my office. I never followed up on any of them to learn of their successes and failures (I’m not the mentoring type). But a couple TICAs failed recently in my AFO and I thought would try to find out what is really going on on the street with TICAs. I had lunch yesterday with a new ICA who spent some time in my office to get his insight as well. It sounds tough. The young man I had lunch with yesterday will never have close to the number of households I have—no matter how much money he spends on marketing. Hopefully, however, he can grow enough to provide a good life for his family.
So, I don’t know if I have any suggestions to help those in your situation (as I said, if I was in your shoes, I probably would not make it myself).
I did have some advice for the new ICA I had lunch with:
Focus solely, entirely, and singularly on growing quality new households based on relationships. Your AFC suggests you spend $500 a month on PAVe leads? (That’s just throwing confetti in the air with your name on it). I say spend the same $500 each month and take 10 clients out to lunch each month and tell them how truly important they are to you and your family. Be sincere. Be appreciative. Be grateful. Tell each one over lunch that you want to grow your business with more people JUST LIKE THEM. Then, if you have earned the right, ask them if they would feel comfortable giving one of your cards to a few friends. (Five).
You went to an AFO meeting and some TICA with money to burn is speaking on how he gets 250 internet leads a month and writes 50 raw new auto? Don’t get lured into it. Go around to each home around your office and bring something with your name on it and a business card. Just to say hello. Go to businesses. Be active in your kids schools. It’s not who you know, it’s who knows you. Get used to saying, “I am the kind of agent who ____________” to set yourself apart and to be memorable.
Here’s why you have to do this. Right now, State Farm probably insures about 1/3 of the people in your area. Of the other 2/3, half of them are unwriteable and undesireable to an insurance company. That leaves 1/3 of the people in your area as actual targets. Do not be stupid and think you can get to that 1/3 by mailing a bunch of crap to them every month, or putting your name on a bench, or having a clever internet site, or an ad in the paper. The best way to get to that magic third is THROUGH THE PEOPLE YOU ALREADY KNOW OR HAVE A CONNECTION TO YOU. Get to them through your book of business, kid’s school, church, etc. Also, get to know some of them by going around and shaking some hands.
Those internet leads? Most of them are from the 1/3 of the population that you really don’t want. Crap.
No PAVe. No internet leads. No telemarketers. No bench or bus stop ads (now, I do bus stop adds, but only to remind my existing clients that they are with a bigshot--the ads don't drive new business). Get to the magic 1/3 through your best clients and others you already know. Spend your marketing money on Starbuck’s cards, and gift baskets, and bottles of wine for the people who send you their friends and family. Sounds “old school” or too obvious? Bet you are not doing it. But I bet you bought some crap list of “qualified life leads” or “new homebuyers” that you thought would work.
Last thing. Don’t chase the scorecard—you don’t have enough money yet. I do. You don’t. Truthfully, I really just need to write as many autos as I lose each year. You probably need to grow some. Even though your E can convince a lot of people to spend money chasing bank or health or life because “you can make it up on the scorecard”, don’t you fall for it! You must have renewals first and foremost—more and more each year. What good is a $50,000 bonus that you spent $25,000 to get if you failed to add 120 quality households to your book? (The new households pay you each year, a bonus comes once.) So, it sounds easy to spend time chasing around some clients to get a loan out of them, but that time needs to be spent getting BRAND NEW quality households into your book first. Otherwise, how are you going to be better off 5 years from now?
Bottom line, grow 120 quality new households each year based on a genuine personal relationship or referral and you will be "set" in 5 years or less. Whore yourself out to every crap internet lead or "just shopping around" phone call off a "35% Off" postcard and you will be in the same rut you are in now.
Excellent post, despite Greenman's lack of response so far. If you are an imposter, you are a good one!
Re: Becoming a State Farm Agent
That does not sound like a wonderful company!
Re: Becoming a State Farm Agent
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