Agree with information above. It is pretty accurate, however, the signing bonuses are only a minimum of 18k. It depends on the market area. Also some areas get supplimental marketing bonuses.
Some people may also not realize that SF will also pay/license/ and train two of the Agent's staff prior to the Agency opening.
To answer a few questions above. SF does require Series 6 and 63 as well. (They do pay for the licensing though).
All in all, State Farm does screen very much, but that's to keep the turnover rate low.
How is the negotiating process coming along? Are you able to get a larger book and sign on based on negotiating skill or is it all predetermined? I have been led to beleive that it is predetermined (for the most part). Of course that's what they want you to think coming in, but what has been your experience?
Also, how did your initial panel interview to become an approved candidate go?
Market penetration? There are so many state farm agents around here, literally one every half mile or mile or so, in south Austin, I have no clue how they could each have 3 mil on the books. They are not as bad as farmers, though. farmers could have two different agencies in the same strip center around here, then have one more on the next block!!! there's a street in waco with one on every corner for a mile or two!
Although, the Execs get paid well by everyday standards, they are overwhelmingly underpaid when compared to other Fortune 50 companies. State Farm is ranked 31, yet the Execs are paid at about a 200 rank level. Alot has to do with the company being the largest mutual company rather than a pubicly traded company.
Even with a 1.5 million dollar book assignment, its still not like you walk into the business making money. My understanding is that you receive enough in renewals to pay for staff and office and to make money you must sell.
Panel interview went really well. I think I was the only one in my group that became an approved candidate and can post for openings... which are few and far between.. at least for something decent.
The executives get paid pretty well, but not that well by executive standards as far as I know. I think to move into "leadership" with State Farm, an agent would typically take a pay cut from their agency. That is how it is in my market area at least. I've heard the average book for a seasoned agent is 300 to 350K which would net 150 to 200K as I understand it.
What state are you in Sailor? I understand a typicall book assignemnt in my area is 1.6 to 2.0 which seems like a person wouldn't have to go into debt? Do the bonus requirements have the ability to change only during the TICA period? What company, if any, do you think offers the best chance today? Thanks for any advice.
I am in IN. Yes the bonus requirements can change at any time. and your contract will read that you can be fired at any time without cause.
I personally know 2 agents 70-100k in debt. Talk to Tica's in your area. Talk to 5 or more. All the DAFO is going to care about is the amount of financial services you sell. The pressure they use only breeds unethical, non compliant behavior. A better measure in my opinion would be how many IFR's you are having, and how well you cross sell. Not how many life and mutual funds you and sell.
They are jamming agents in left and right here and dont care if some fail. Some wont. Some of these agencies have had 3-4 different agents in 5 years. Once a trainee gets in the policyholders are ticked and want to move to an established agent. Cant blame them.
Personally my wife is looking to open an independent agency. She is the owner and will hire licensed producers. She will actually own the business, and can market as she pleases. No games to play with scorecards etc. You sell, you get paid. Simple.
Again, talk long and hard to the new guys in your area. Ones that have made through in the last 2 years. They can talk freely.
First of all I do not work for State Farm. I am an Approved Candidate. I have been through several interviews and each time the agent hired was either someone inside the company who was not required to go through all the steps that I took or they had an inside track to the job. In other words they knew someone or something. I, on the other hand, do not have an inside contact that is pulling for me. I do have over 12 years of owning my own business, not insurance but financial related, along with the financial resources to invest. Not good enough. It seems to me that the most important thing leading to a job with SF is knowing someone or something. Not how good your business plan is or how much money you have or what your existing business reputation is. None of this seems to matter.
Concerning the debt that Sailor mentioned, I have found out that many agents are in a lot of debt. I heard of a least one bright eyed potential agent who was over $100,000 in debt after his TICA year and was terminated.
The only way to avoid at least $75,000.00 in debt is to receive an assignment of at least 1500 autos and 1000 h/o. More than likely that size of book would be split between 2 new agents and you would receive PBP money for obtaining sales goals. Even with this size book, the marketing plan or formula that they want you to follow will still put you at least $30-50k in debt or out of pocket depending on the market you are in. Expect no pay for at least 2 maybe 3 years.
SF seems to be a good opportunity from the surface. But once you start really asking the right questions and inquiring further you may found out, like I did, that it is not the golden opportunity that the recruiters are selling. Maybe at one time it was but with the changes in the contract it appears to have become less coveted. If it is as great as they make it sound then why do they spend so much money trying to get agents?
I have only given my opinion and yes I have spoken, interviewed or had lunch with at least; 8 agents, 5 AFE's or AFC's, and gent office staff.
Remember this is a business they want you to invest in not a job.
What is the purpose of the debt? Is this just for office furnishings, rent, and phone systems? Or is this for advertising, salaries, and other expenses?
Just curious. I didn't ever get far enough in my interviews with them to discuss this part.
From what I have been able to discern the debt comes from many of the things that are considered cost of doing business, such as rent, salaries, outfitting your office, phone systems, etc. But the biggest part is in the marketing and advertising. SF really spends a lot as a company and they want the agent to do a lot of advertising.
Again the debt is dependant upon the book size. Many agents take an office in a New Market and those expenses I mentioned are more of a reality since you have no commissions what so ever to offset them.
First of all I do not work for State Farm. I am an Approved Candidate. I have been through several interviews and each time the agent hired was either someone inside the company who was not required to go through all the steps that I took or they had an inside track to the job. In other words they knew someone or something. I, on the other hand, do not have an inside contact that is pulling for me. I do have over 12 years of owning my own business, not insurance but financial related, along with the financial resources to invest. Not good enough. It seems to me that the most important thing leading to a job with SF is knowing someone or something. Not how good your business plan is or how much money you have or what your existing business reputation is. None of this seems to matter.
Concerning the debt that Sailor mentioned, I have found out that many agents are in a lot of debt. I heard of a least one bright eyed potential agent who was over $100,000 in debt after his TICA year and was terminated.
The only way to avoid at least $75,000.00 in debt is to receive an assignment of at least 1500 autos and 1000 h/o. More than likely that size of book would be split between 2 new agents and you would receive PBP money for obtaining sales goals. Even with this size book, the marketing plan or formula that they want you to follow will still put you at least $30-50k in debt or out of pocket depending on the market you are in. Expect no pay for at least 2 maybe 3 years.
SF seems to be a good opportunity from the surface. But once you start really asking the right questions and inquiring further you may found out, like I did, that it is not the golden opportunity that the recruiters are selling. Maybe at one time it was but with the changes in the contract it appears to have become less coveted. If it is as great as they make it sound then why do they spend so much money trying to get agents?
I have only given my opinion and yes I have spoken, interviewed or had lunch with at least; 8 agents, 5 AFE's or AFC's, and gent office staff.
Remember this is a business they want you to invest in not a job.
Great information. I advise anyone considering State Farm to read this.
I have a SF recruiter calling frequently, inviting me to group lunches for recruits. Makes you wonder, if it's such a great opportunity, why do they have to sell it so hard?
Let me just say this. I am from an SF family. I grew up with other agents and management as my family also. It used to be that their were 5 family members per agency opening. People were kicking down the doors to get in.
Now its the other way around. There are so many openings and not enough agents. Agents stopped recommending others for the jobs. The type of people they are hiring, are ok being pseudo-employees happy to net 50k a year (if lucky)
Dont get me wrong, I am grateful and the service and products are still great, but I am saddened at what has become of the future of the agency force.
A lot has changed. Talking with my father - you used to have a family agent who took care of everything from homeowners to auto.
Now a lot of people are shopping price online - we are in the "Geico" age and the regular shops are getting hurt.
I have no idea where the State Farm's will fit into the picture in 10 years but I don't think it'll be pretty.
The kid coming out of high school now in 10 years won't be trudging into his local office. Likely all insurance will be bought online.
Not sure on this. Geico, Progressive, e-surance, etc used to have some decent rates, so they could get started in the business. Now, they are some of the most expensive places to buy your insurance, with virtually every 'local' carrier beating them substantially. Of course, your area may be different.
I know this, I get asked this all the time. I've had clients sit in my office and wonder how I am so much lower than buying it online. Not always true, but more often than not.
I think people like not being hassled with a salesman, but they like personal service as well. Insurance is a maze, most people dont want to learn their way through. They count on a true advisor.
There will always be a group that just wants to have insurance, they will buy in the lowest cost / most convenient manner. There will always be a group that wants to be insured, they will stay primarily with the agent force.
Yes, there is definitely a difference between simply having insurance, and truly being insured.
Besides, commercial insurance, financial services, etc, require in person sales. Most personal lines require in person sales (few carriers will take a risk without the agent inspecting it first). This may change, but it will take a long while.
All I'm saying is the generation that's used to walking in a grabbing a chair is being replaced by college kids who are graduation and doing far more online.
Our fathers couldn't compre State Farm to Nationwide without sitting eith each. Now they can be compared online - and sold online.
A lot has changed. Talking with my father - you used to have a family agent who took care of everything from homeowners to auto.
Now a lot of people are shopping price online - we are in the "Geico" age and the regular shops are getting hurt.
I have no idea where the State Farm's will fit into the picture in 10 years but I don't think it'll be pretty.
The kid coming out of high school now in 10 years won't be trudging into his local office. Likely all insurance will be bought online.
I am not so concerned over the online big names. Most of our business is written over the phone. Granted I am in a metro area. I do household reviews in person if they want. All variable sales in person. The service my office gives is much better than the online only guys.
I am concerned over the quality of the future agency force.
Here in lies the problem. It turns out, Geico, Progressive, esurance, etc, found they couldn't sell online only, so they have people you can call. Between the 2, online and phone, people feel better about writing an app.
The agency force used to be the person who came to your house, knew who you were, and could recommend the appropriate coverages based on the type of furniture in your living room.
Today's agency force has migrated (for some legitimate reasons) to dealing largely over the phone, not meeting clients, doing almost exactly what the online companies are doing, but feeling for some reason, they are doing it better, or are more knowledgable. In many cases they do a better job, and have a better product knowledge, but not always.
For todays agent to be profitable, at least initally, you have to write like mad. To stay that way, looking into the future, you have to truly develop relationships like mad.
Turns out, that a lot of people like having a contact person they can go to if they have questions, someone who will take care of the issue from start to finish, so the client doesn't have to explain things over and over. This works well for the agency force, but, it won't take to long for the online companies to start to offer this type of service to premier clients.
First of all I do not work for State Farm. I am an Approved Candidate. I have been through several interviews and each time the agent hired was either someone inside the company who was not required to go through all the steps that I took or they had an inside track to the job. In other words they knew someone or something. I, on the other hand, do not have an inside contact that is pulling for me. I do have over 12 years of owning my own business, not insurance but financial related, along with the financial resources to invest. Not good enough. It seems to me that the most important thing leading to a job with SF is knowing someone or something. Not how good your business plan is or how much money you have or what your existing business reputation is. None of this seems to matter.
Concerning the debt that Sailor mentioned, I have found out that many agents are in a lot of debt. I heard of a least one bright eyed potential agent who was over $100,000 in debt after his TICA year and was terminated.
The only way to avoid at least $75,000.00 in debt is to receive an assignment of at least 1500 autos and 1000 h/o. More than likely that size of book would be split between 2 new agents and you would receive PBP money for obtaining sales goals. Even with this size book, the marketing plan or formula that they want you to follow will still put you at least $30-50k in debt or out of pocket depending on the market you are in. Expect no pay for at least 2 maybe 3 years.
SF seems to be a good opportunity from the surface. But once you start really asking the right questions and inquiring further you may found out, like I did, that it is not the golden opportunity that the recruiters are selling. Maybe at one time it was but with the changes in the contract it appears to have become less coveted. If it is as great as they make it sound then why do they spend so much money trying to get agents?
I have only given my opinion and yes I have spoken, interviewed or had lunch with at least; 8 agents, 5 AFE's or AFC's, and gent office staff.
Remember this is a business they want you to invest in not a job.
I hear what you are saying about 'not being a golden opportunity' as it is sold. Question - Would you be posting the same remarks had you been accepted with State Farm? The post almost sounds bitter about interviewing several times only to not be accepted... just my opinion. I think opportunity is what you make of it. If you are going in realizing that you have a capital outlay in front of you, then what is the issue? I was told that there are costs. 100K seems high, especially if you can negotiate a larger sign on or book upfront. 50K, I can see that...
Re: Becoming a State Farm Agent
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