Nobody here can answer this for you, except for State Farm. They probably won't until it comes time to try.
Have fun!
Dan
Thank you kind sir!
Unfortunately, this situation puts me in kind of a limbo for the time being and makes my future with State Farm quite indeterminable. I hope with this collective of minds I may receive a bit more clarity and direction. Not knowing if you made the right decision really sucks!
What you made certainly isn't average, or should I say, not average for a top producer. You sound very ignorant to assume that your experience represents a broad range of agents. Sounds like you worked for someone that didn't know anymore than you. My sales guys make $60k+. And they shouldn't be called a SF agent, because they aren't. They are insurance agents however.
My guy also works all kind of hours and never gripes about overtime because he is producing and GETTING PAID. People like you that "whine" about hours and watch the clock tick will never make it working for yourself. Don't know how long you been out of the SF "sweat factory" but I'm sure you're knocking it dead somewhere where your talent can truly be appreciated.
P.S. The same policy that you sold and got paid $15, the agent made a hundred bucks on it over time without doing anything but giving you a computer (which he didn't pay for). Man, I love agency.......
I thought I was pretty clear that I was sharing my experience working as a team member at State Farm. Since a guy posted who is considering a job as a team member I thought my experience as a team member could be useful information.
At no time have I ever claimed to be an expert on the insurance business. In fact, if you look at most of my posts I am pretty open about being a rookie.
I won't argue that my boss didn't know much about being an insurance agent either. He spent 20 years in underwriting and I am sure that he was great at that, but he is not a good businessman.
I mentioned the not being able to call yourself an agent more as a pet peeve of mine.
I do love how you jumped to so many conclusions about my work ethic. My pay was set up so that I made very little on commissions so my primary wage was my salary. A high average commission was $5 for P&C, which was where my boss wanted me to be focused. If you figure a sell every hour (which none of the local SF agents are doing here) my wage wasn't too bad with that commission added to my hourly wage. Now anything over 40 hours was no salary. $5 an hour wouldn't be worth staying for if I didn't have a family. I was certainly not going to miss out on time with my wife and son for that. I didn't mind the long days, it was the coming in for 3 hours that bugged me. It was gas and time wasted for under $50. When I took the job, my schedule was supposed to be such that I could focus on my ministry. He kept changing it so that I dealt with a horrible schedule that made it difficult to have time for my ministry and my family, both of which are way more important to me than money, especially $5.
As far as my being self-employed goes; I have been self-employed most of my life and have always paid my bills and been happy. I work the long hours when it is needed and work what I need to in order to get what I need and then focus on life. Not life insurance, life. I will never be rich, but I am more than OK with that. I do keep close track of how much time I spend on the things in life that are necessary to survive in this system of things, but has no bearing on God's Kingdom (such as work, my yard, recreation, etc...)
As far as the agent making $100 off of the policy I made $15 on. I would rather make that $100 myself so that I don't have to sell as many to pay my bills. Isn't illogical that I would rather make more money per policy while working for a boss I like (me) than make much less and work for a boss who I find incompetent and irritating.
So, in conclusion, yeah I don't represent everyone but neither does your team member. It sounds like you pay them well and I say good for them. You will continue to have success as an agent I will find success as an agent that you probably won't consider success. I will continue to feel that State Farm has good P&C products that I will continue to use as a customer, but that life insurance is better done by companies that focus on life insurance. I will continue to feel that SF is a horrible place to work (at least here locally). You will likely continue to be a huge mark for SF. I will hopefully stop being so grouchy when the Tylenol I took for my knee that is sore after helping my brother move kicks in and the pain and swelling go down.
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Originally Posted by fastrack1
What you made certainly isn't average, or should I say, not average for a top producer. You sound very ignorant to assume that your experience represents a broad range of agents. Sounds like you worked for someone that didn't know anymore than you. My sales guys make $60k+. And they shouldn't be called a SF agent, because they aren't. They are insurance agents however.
My guy also works all kind of hours and never gripes about overtime because he is producing and GETTING PAID. People like you that "whine" about hours and watch the clock tick will never make it working for yourself. Don't know how long you been out of the SF "sweat factory" but I'm sure you're knocking it dead somewhere where your talent can truly be appreciated.
P.S. The same policy that you sold and got paid $15, the agent made a hundred bucks on it over time without doing anything but giving you a computer (which he didn't pay for). Man, I love agency.......
OK. I went back and and re-read my post and now I find myself more irritated with the guy who posted the above. I had forgotten my exact wording so I had assumed that I wasn't clear about the fact that I was just giving my experience and wasn't sure if it was average.
Bold Italics are quotes from my post
I was a State Farm Team member and I don't know for sure that what I was making was average, but I will share my experiences in an attempt to save you some misery.
I don't know that I could have been clearer that I wasn't sure what the average pay and experience was for a SF team member. That "ignorant" statement doesn't make much sense when you read that quote does it?
My complaint about the hours I was working was that we had come to an agreement and my agent kept breaking that agreement. I wasn't super clear on that, but I was open about the pay arrangement. With that pay arrangement for me to make $60k would require me to work 50 hour weeks (remember only 40 are paid anything but commission) and would need to sell 2 policies in an hour. While that is not impossible keep in mind that this is a very recessed community that doesn't take well to people from out of town (which my agent was) that has had some negative experiences overall with State Farm claims in the last year. If you do the math you will see that I would need to sell 5000 policies to a community of 10,000 people. Oh, and this community has a SF market share of 33% so really it's a community of under 7,000. Now fortunately, I really don't have a desire to make 60K a year. If it happens I am more than OK with that, but I am satisfied with $25k. So yeah, if I am paid hourly with small bonuses I don't work for commission only. You can call it "watching the clock", I call it basic math.
I will end this post with the same message for you that I gave to the guy looking at being a team member.
You can spend the rest of your working life pursuing your financial goals or you can spend the rest of your working life helping State Farm get richer. Either way I hope you enjoy yourself and make the best of it.
Last edited by cheeno : 09-04-2009 at 03:36 PM.
Reason: Posts merged
He is an old dog and is truly convinced he can and will pass his entire book of business, the office, and commence to grandfather into his original contract.... me.
By all of your experiences, what do you think I should expect?
Will his contract from the Stepford Era be honored by SF?
Or shall I just become a Surplus Lines Broker?
I can tell you this, expect that if you truly are the best canidate for that position you will have it, if you've started working there as a team member and the clients are attached at the hip to your service that stands to help you out.
EXPECT to have the newest contract, be the one you sign.
If you are NOT the best canidate for the position then You SHOULD'nt get that posting, If you are as intelligent as you seem, I can see you understanding this notion.
You seem like a go getter, If you get your step father's posting, I'd be grateful with any contract Id receive, particularly in the predicament you say you are in. With hard work and dedication and a book to help you get started, you can make a good amount of money for yourself regardless of the contract.
Of course, your area and miles may vary...
P.S. Ive heard of agents taking over their parent's office but even they did NOT receive the ENTIRE book.
This might be something you like. Legal insurance is sweeping across North America with Prepaid Legal Services. A publicly traded company on the NYSE. They have been in business for 37 years. No competition in this industry. The only company that can do what they do. Employers are now offering this family legal plan to employees as a benefit. People need it and want it, they just don't know about it yet. You can now become an independent broker with Prepaid Legal Services. No office and no overhead. The commission is great, unlike any other company is this country. If you are interested in learning more you can email me or call me.
This might be something you like. Legal insurance is sweeping across North America with Prepaid Legal Services. A publicly traded company on the NYSE. They have been in business for 37 years. No competition in this industry. The only company that can do what they do. Employers are now offering this family legal plan to employees as a benefit. People need it and want it, they just don't know about it yet. You can now become an independent broker with Prepaid Legal Services. No office and no overhead. The commission is great, unlike any other company is this country. If you are interested in learning more you can email me or call me.
Gee, this sounds awesome! I've never heard of such a thing. I'll be calling you tomorrow
Seriously, I have another business where a guy threatened to sue me and refused to pay for services rendered. Said he had a team of lawyers that would put me out of business. He then told me it was pre-paid legal. I laughed in his face. They did send me a threatening form letter that I promptly ignored and slapped a lein on his home until he paid the bill, which he did. Never heard from pre-paid legal again.
Just had to tell that story. Pre-paid legal is a MLM scam to take advantage of those at the bottom of ladder, hoping to get rich. But lets stick with insurance on this thread. There is another entire thread regarding pre-paid already.
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Originally Posted by cheeno
I thought I was pretty clear that I was sharing my experience working as a team member at State Farm. Since a guy posted who is considering a job as a team member I thought my experience as a team member could be useful information.
At no time have I ever claimed to be an expert on the insurance business. In fact, if you look at most of my posts I am pretty open about being a rookie.
I won't argue that my boss didn't know much about being an insurance agent either. He spent 20 years in underwriting and I am sure that he was great at that, but he is not a good businessman.
I mentioned the not being able to call yourself an agent more as a pet peeve of mine.
I do love how you jumped to so many conclusions about my work ethic. My pay was set up so that I made very little on commissions so my primary wage was my salary. A high average commission was $5 for P&C, which was where my boss wanted me to be focused. If you figure a sell every hour (which none of the local SF agents are doing here) my wage wasn't too bad with that commission added to my hourly wage. Now anything over 40 hours was no salary. $5 an hour wouldn't be worth staying for if I didn't have a family. I was certainly not going to miss out on time with my wife and son for that. I didn't mind the long days, it was the coming in for 3 hours that bugged me. It was gas and time wasted for under $50. When I took the job, my schedule was supposed to be such that I could focus on my ministry. He kept changing it so that I dealt with a horrible schedule that made it difficult to have time for my ministry and my family, both of which are way more important to me than money, especially $5.
As far as my being self-employed goes; I have been self-employed most of my life and have always paid my bills and been happy. I work the long hours when it is needed and work what I need to in order to get what I need and then focus on life. Not life insurance, life. I will never be rich, but I am more than OK with that. I do keep close track of how much time I spend on the things in life that are necessary to survive in this system of things, but has no bearing on God's Kingdom (such as work, my yard, recreation, etc...)
As far as the agent making $100 off of the policy I made $15 on. I would rather make that $100 myself so that I don't have to sell as many to pay my bills. Isn't illogical that I would rather make more money per policy while working for a boss I like (me) than make much less and work for a boss who I find incompetent and irritating.
So, in conclusion, yeah I don't represent everyone but neither does your team member. It sounds like you pay them well and I say good for them. You will continue to have success as an agent I will find success as an agent that you probably won't consider success. I will continue to feel that State Farm has good P&C products that I will continue to use as a customer, but that life insurance is better done by companies that focus on life insurance. I will continue to feel that SF is a horrible place to work (at least here locally). You will likely continue to be a huge mark for SF. I will hopefully stop being so grouchy when the Tylenol I took for my knee that is sore after helping my brother move kicks in and the pain and swelling go down.
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OK. I went back and and re-read my post and now I find myself more irritated with the guy who posted the above. I had forgotten my exact wording so I had assumed that I wasn't clear about the fact that I was just giving my experience and wasn't sure if it was average.
Bold Italics are quotes from my post
I was a State Farm Team member and I don't know for sure that what I was making was average, but I will share my experiences in an attempt to save you some misery.
I don't know that I could have been clearer that I wasn't sure what the average pay and experience was for a SF team member. That "ignorant" statement doesn't make much sense when you read that quote does it?
My complaint about the hours I was working was that we had come to an agreement and my agent kept breaking that agreement. I wasn't super clear on that, but I was open about the pay arrangement. With that pay arrangement for me to make $60k would require me to work 50 hour weeks (remember only 40 are paid anything but commission) and would need to sell 2 policies in an hour. While that is not impossible keep in mind that this is a very recessed community that doesn't take well to people from out of town (which my agent was) that has had some negative experiences overall with State Farm claims in the last year. If you do the math you will see that I would need to sell 5000 policies to a community of 10,000 people. Oh, and this community has a SF market share of 33% so really it's a community of under 7,000. Now fortunately, I really don't have a desire to make 60K a year. If it happens I am more than OK with that, but I am satisfied with $25k. So yeah, if I am paid hourly with small bonuses I don't work for commission only. You can call it "watching the clock", I call it basic math.
I will end this post with the same message for you that I gave to the guy looking at being a team member.
You can spend the rest of your working life pursuing your financial goals or you can spend the rest of your working life helping State Farm get richer. Either way I hope you enjoy yourself and make the best of it.
This was your advice to someone asking if they should pursue becoming a team member (of course the name of this thread is "Becoming a State Farm Agent")
"You can make so much more money being independent and be much less miserable. I will give you an example using my life insurance as an example. I bought a 20 Year Term policy from State Farm for $100k for $25 a month. I made $15. Now if I sell myself a similar policy I will pay $13 a month and make $140. If you assume you spend around 4 hours on the phone searching for a prospect and then selling them this product you made about $65 (including a $12 per hour wage) with SF. Even if you assume that you spent $40 in expenses trying to get that client you still made $35 more on that client. And depending on your sales goals you can either start calling more people or take the rest of the day off. At SF they will tell you your sales goals and you will be staying the rest of the day even if means calling back the no answers you just got when trying to reach that sale you just made (They are big fans of busy work and calling back to back until you get an answer even if just makes the prospect feel harassed)"
You have worked for one sorry SF agent and you somehow know that you "can make so much more money being independent and be much less miserable"? Seems like your in no position to make such a recommendation. Sure, let us all know about your situation, but don't make blanket statements based upon your individual circumstance. I'm contended that your situation is NOT normal. At least not for high producing team members.
And P.S. your work, yard, recreation, etc ALL have a bearing upon God's kingdom. I Corinthians 10:31 "Whether therefore ye eat, or drink, or whatsoever ye do, do all to the glory of God."
Last edited by fastrack1 : 09-06-2009 at 01:08 AM.
Reason: Posts merged
This might be something you like. Legal insurance is sweeping across North America with Prepaid Legal Services. A publicly traded company on the NYSE. They have been in business for 37 years. No competition in this industry. The only company that can do what they do. Employers are now offering this family legal plan to employees as a benefit. People need it and want it, they just don't know about it yet. You can now become an independent broker with Prepaid Legal Services. No office and no overhead. The commission is great, unlike any other company is this country. If you are interested in learning more you can email me or call me.
This was your advice to someone asking if they should pursue becoming a team member (of course the name of this thread is "Becoming a State Farm Agent")
I swear that there was a post where someone was talking about how they were not able to be an agent, but were pursuing a team member job.
You have worked for one sorry SF agent and you somehow know that you "can make so much more money being independent and be much less miserable"? Seems like your in no position to make such a recommendation. Sure, let us all know about your situation, but don't make blanket statements based upon your individual circumstance. I'm contended that your situation is NOT normal. At least not for high producing team members.
Fair enough. I thought my intention was clear. I was giving advice based on my situation without knowing if it was average. Since several people here didn't look at it that way, I must not have.
And P.S. your work, yard, recreation, etc ALL have a bearing upon God's kingdom. I Corinthians 10:31 "Whether therefore ye eat, or drink, or whatsoever ye do, do all to the glory of God."[/quote]
I mow my yard because it reflects on my cleanliness which reflects on Jehovah and I don't want to reflect badly on Him. I am not, however one of those people who will spend all day mowing, trimming, landscaping, etc... I mow, weed wack, and move on. I was saying that it was something that was necessary, but not something that warrants more time than is absolutely needed when I have things that are more important (My family, preaching, Bible study, etc...) that I could be spending the extra time on.
I also feel that my work is important because if I do not act like a Christian (show integrity, honesty, and compassion) or I don't give my boss the work he is paying me for I am reflecting poorly on Jehovah and I am damaging my relationship with Him. I also feel that it is important that I work hard and provide for my family.
I wasn't trying to say that a Christian shouldn't work. What I was trying to say is that I try to only work what I have too. This doesn't mean I don't give full effort when I am at work, but it does mean that if I have the choice of working 30 hours a week and subsisting financially I will choose that over working 50 and doing well financially. There is nothing wrong with someone choosing to work more hours, I was just trying to say that my focus is on sharing the good news of God's kingdom. Matthew 6:33-34. I don't expect everyone to live as simply as I try to and a good deal of my friends do not. I am in a position where I can choose to live very simply and therefore spend as little time as possible working and more time helping others.
In conclusion, (these posts have been long enough to deserve a conclusion):
1)I was giving an opinion based on my experience.
2)I believe in working hard, but no more than you have too.
3)If the pay is not worthwhile I will go do something else.
4)I don't like my local State Farm agent and the few others that I have met in my area are not super worthwhile either.
5)I think it makes more sense (if you have the circumstances) to make a higher commission and to own the book of business when you are done.
6)My opinions are my opinions and based on my experience. In retrospect I should have been more specific because SF agents are not necessarily like those around here and I really don't like to offend people. I will try to be more clear when something is my belief as opposed to something being fact.
7)My knee was hurting and I had a bad week that I would rather not talk about and I got a bit grouchy and defensive in my last couple posts. Sorry. My bad.
Wow! The bible has entered the Becoming A State Farm Agent thread. When you get to the part about the Anti-Christ, they are really talking about the DAFO.
The DAFC had 999 branded on his arm, but I was reading it upside down. (DAFE = DEVIL)
Finally someone as bitter about their State Farm experience as I am.
Wow! The bible has entered the Becoming A State Farm Agent thread. When you get to the part about the Anti-Christ, they are really talking about the DAFO.
The DAFC had 999 branded on his arm, but I was reading it upside down. (DAFE = DEVIL)
How were you reading it upside down? Did he have you pinned to the floor with an elbow to your throat because you only sold 10 life that month?
Sold 45 raw new auto 18 fire and 11 life last month...hit premium builder -- Yee Haw! Pay -- $5500 - no real deductions from the company. Can you ever actually make money as a agent anymore? This is year 4! Any ideas? Underwriting is so slow issuing. This can't be right!
You are right, just last check, but still in order to pay for office expenses and home I need to gross around $14000/mo...Its never going to happen. Rent $1500, utilities $500, SF fees, $500, advertising $1000, loans/cc $1000, employees - $3000 see where I'm going.. no where.. I don't want my contract now because I will lose what little premium builder I get...Is it really worth getting the contract?
I started scratch and without a DAFO. We just have our AFE...which I think is just as bad. I guess being free and clear to run the business is fine, but you still have to play the game to see if there is a whisper of hope for a future assignment. I have 3 agents in 3 miles of me who are in their late 60's. Great guys, but said they never will retire, actually they are rarely in their office so I guess they are retired!
I'm sure the AFO will decide to put another poor tica in my backyard if those books are ever released.
I recently attended a career seminar with State Farm. They brought in five-six different guys (I dont know AFE/AFO/DFO....) They all were like just trying to prove how great SF is. A few points I noted:
1. Either they give the agency to someone who is from inside the company or known to someone in the company or someone who is financially strong to put in 150k into the business.
2. The attitude of the most guys was not adequate. They gave the impression like they are superior to everyone sitting in the seminar.
3. They spoke very high on how gracious SF is to give the new agents a "free book". They didn't answer how a 1000 auto-book renewals commission can cover the expenses of two employees needed just to serve those 1000 auto - but they were like, just take my words - you make "tons" of money just out of these renewals.
Honestly, I'm not considering this as such a good opportunity, and would like to consider either:
1. being independent with Farmers, or
2. Being sub-contractor to another State Farm agent, and split commission with him.
I have talked couple of other SF agents, if they would be willing to split commisison, if I bring them the clients -and so far none of them is ready.
Does anyone want to comment, why a SF agent would not be willing to split commission for the business I would give him.
Does anyone want to comment, why a SF agent would not be willing to split commission for the business I would give him.
I'm not trying to offend you as I don't know you, but maybe those two agents don't consider you good enough to work for them. For one, if all you do is split commissions, unless you are a superstar, you won't make much money. Secondly, that is a good deal for the agent if you are any good.
I would give you 100% of my commission on all new customers that you would bring me, because I'm going to get all the renewals and the increased scorecard bonus.
Maybe you should just keep shopping it around, but only if you intend to become a SF agent down the road. If not, working for an agent is not much of a career path for an aggressive salesperson.
I'm not trying to offend you as I don't know you, but maybe those two agents don't consider you good enough to work for them. For one, if all you do is split commissions, unless you are a superstar, you won't make much money. Secondly, that is a good deal for the agent if you are any good.
I would give you 100% of my commission on all new customers that you would bring me, because I'm going to get all the renewals and the increased scorecard bonus.
Maybe you should just keep shopping it around, but only if you intend to become a SF agent down the road. If not, working for an agent is not much of a career path for an aggressive salesperson.
Thanks for the nice points. The two agents I spoke to were looking for 50% of the 1st year commission - I was willing to give them 10%, because I know, like you said, they would be keeping the renewals and scorecard bonus. It would be good for me also, because I will not have any pressure to sell, and would keep on doing my job. I will not be employed in SF agent's office, I will just bring in the policies to them.
Who would you be employeed by? Were you going to find the leads yourself and just send them to the SF agent and he would write it and you would take a cut?
Thanks for the nice points. The two agents I spoke to were looking for 50% of the 1st year commission - I was willing to give them 10%, because I know, like you said, they would be keeping the renewals and scorecard bonus. It would be good for me also, because I will not have any pressure to sell, and would keep on doing my job. I will not be employed in SF agent's office, I will just bring in the policies to them.
I'll keep on looking though.
Maybe because it against SF regulations to use "outside brokers" as an appointed Agent. If caught using any outsourced lead from a licensed but un-appointed person/broker not approved by SF, there is a strong possibility of losing the appointment and quite possibly their office. I've seen it happen.
My 2 cents as a TICA
Last edited by FromBarMagnate2InsMan : 09-15-2009 at 06:36 AM.
Reason: Posts merged
Re: Becoming a State Farm Agent
) than make much less and work for a boss who I find incompetent and irritating. 
Re: Becoming a State Farm Agent
Finally someone as bitter about their State Farm experience as I am.
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