I am new to this forum and in the VERY beginning stages of trying to become a state farm agent. This thread started out optimistic and positive and as I kept reading turned a little negative and there seems to be some tension.
Although I do have a very successful agent as a friend and mentor I also have cards stacked against me... age, credit, and education... I have a lot of sales, management and entrepreneurial experience though, I have a strong business plan and I am numbers driven. I have literally dropped everything in my life to focus on getting my own agency- but not just any agency... I have fallen in love with State Farm culture.
Now, back to the process... does anyone have suggestions for business plans, the interview process, a time line from start to finish ect? From your experience what worked well and what didn't. I'd just like to gather other opinions besides my mentor's to make sure I'm as prepared as possible.
Thanks so much!!!!
Birdie
Last edited by Birdstheword84 : 08-01-2008 at 12:57 PM.
Sba.gov will have sample plans and good tools and resources to help you design a plan. Also check out your local library and bookstores. I bought the "Dummies" Business Plan Kit. It was helpful but you need to do your market research. Look at local government sites for demographic info. AND PLAN TO SPEND HOURS AND DAYS creating your plan. Good luck.
[COLOR=darkred]Okay again its not negative its reality. Some of the agents on the older contracts really don't have a clue as to how the "new deal" works Before 2004 [COLOR=red]they[/COLOR] paid your staff & many expenses for start up now just a sign on bonus and some marketing money. You can have the best business plan in the world but its not going to keep you out of deep debt. You better make sure you can borrow or have saved up to $100,000 and your spouse can support your household for at least 5 years.[/COLOR]
[COLOR=darkred]GO TALK to some Agents that started in 2004 or just after that were NOT previously in management. The company is losing agents IMO at a record pace more than anytime in history. In months 3 (in pre-TICA and month 14 (Last month of 12 month TICA phase) they are being cut loose they are told "you didn't make it". These are people who put their entire lives at risk and are $50,000 in debt & have 2 more years or more on a lease that is $1700+/- a month.[/COLOR]
[COLOR=darkred][COLOR=darkred]You want the path of all this. [/COLOR] [COLOR=darkred]1. You are sold on being an agent for them & it looks Awesome[/COLOR] [COLOR=darkred]2. You do it all business plans, panel interviews, site interviews etc and you are HIRED ![/COLOR] [COLOR=darkred]3. You train & do field development & get assigned unless they think you won't make it then you are cut loose here (remember month 3)[/COLOR] [COLOR=darkred]4. You sign your TICA and away you go. They make many "suggestions" as how to run your agency & as how to spend your $. You may be given a book ( or some are scratch & we can discuss that another time just ask) but other agents will raid it to the point some are less than 50% of what you walked in on day 1 ([COLOR=red]they[/COLOR] will DO NOTHING to preserve the book for you) [COLOR=red]they[/COLOR] will tell you they own the policies but see what happens when the policyholders start switching ([COLOR=red]they[/COLOR] will do NOTHING) just tell you to "sell more."[/COLOR] [COLOR=darkred]5. In month 11 of TICA phase after you are $30,000-$50,000 in debt you will either get your contract or be sent out.[/COLOR] [COLOR=darkred]6. After 2 years the default rate on P&C commission is variable and MOST take a pay cut (ask them what the % is and you will not get the same answer twice , they will just ask " you are not going to be an average agent are you?") and it can be up to 1.5% REDUCTION on P&C. This could be enough to pay for one "team member" or what most real people call staff[/COLOR] [COLOR=darkred]7. After you get the default removed and you pay is cut all you can do is cut expenses. Hopefully you have done this in time to save yourself & family from financial ruin. You are still working 12 hour days but instead of 3-4 employees you have one or two. You hope each 1st & 15 th your compensation is enough to make payroll and pay expenses. You hope your spouse still believes this is a "great opportunity" You hope you can survive another year and you hope they will wake up & pay you closer to industry average. You either tuff it out and realize its a job that pays what you could get working for someone else without all the risk and debt after 5 years, and if you work hard and can sell eventually you get out of debt and start saving for retirement because this contract provides NO retirement and you will NEVER be able to retire unless you save enough $$$.[/COLOR]
[COLOR=darkred]IS this a clear enough picture of agency with [COLOR=red]THEM[/COLOR], Wonder why fathers that are agents are mostly discouraging their sons and daughters from being agents? What once was one of the most sought after jobs in the industry is one that is no longer. For all intensive purposes you are an employee except you are disposable and they will send you out and plug another person in if you don't make it. When reality sets in after 3-4 years and the [COLOR=indigo]Grape Kool-Aid[/COLOR] has all been drunk then you will remember, hey it wasn't like I wasn't told this would probably [/COLOR][COLOR=darkred]happen. No this is not the way it happens for all. Some get a break on a retiring agent & due to logstics get a much bigger than average book. Others go in to management which can be a good deal if you can be a robot for 3-4 years. Good luck[/COLOR][/COLOR]
Originally Posted by Birdstheword84
I am new to this forum and in the VERY beginning stages of trying to become a state farm agent. This thread started out optimistic and positive and as I kept reading turned a little negative and there seems to be some tension.
Although I do have a very successful agent as a friend and mentor I also have cards stacked against me... age, credit, and education... I have a lot of sales, management and entrepreneurial experience though, I have a strong business plan and I am numbers driven. I have literally dropped everything in my life to focus on getting my own agency- but not just any agency... I have fallen in love with State Farm culture.
I have been lucky enough to join my mentor on his speaking tour- going to a few State Farm agent planning meetings and seeing what goes on behind closed doors. This company and it's agents are amazing- I would give ANYTHING to be a part of it! I've had the opportunity to speak candidly with some of the top agents, some of the most experienced agents and some very green, brand new agents- I've heard about their struggles and frustrations and their success and good experience more than over compensates for it.
You can start from scratch and go into debt, make very little money for the first few years and then become a great success, or... if you're lucky you can take over an existing book/office and receive instant gratification for your hard work. I'm obviously hoping for the latter.
Now, back to the process... does anyone have suggestions for business plans, the interview process, a time line from start to finish ect? From your experience what worked well and what didn't. I'd just like to gather other opinions besides my mentor's to make sure I'm as prepared as possible.
[COLOR=darkred][COLOR=#8b0000]Sorry but I didn't answer you question. There is a template for that business plan asks your friend the Agent for it. The business plan is important but mostly they want to see how well you take criticism after you submit it the first time. A lot of the things you won't have a clue about and they know that. Things like internal marketing systems, actual compensation (not that template they show most people), start up costs etc .I would call a few agents that have been around less than 2 years and they will share their plans and give suggestions. Most people stress over this with them but the content is not any more important than how you present it to them.
A business plan is an important part of any successful business but they are not looking for a 50 page plan with charts and graphs just a clear concise plan that has the high numbers and action plans as how to get them. They will want to know how much you will spend and how much you need to sell to get there. Now you won't make (earn) what they say you will, but they don't know you know that so just plug in some high numbers and constantly talk about how important you KNOW it is for absolutely EVERYONE to have more life insurance and they will think you are just awesome. Have real life stories about how having or not having life insurance impacted people's lives and you will be 3 steps ahead of your competition.[/COLOR]
[/COLOR]
AgentZ, I appreciate you shedding light on this "opportunity." At first read, I figured you were just negative but after reading more of your posts, esp. this last one, I think you are really speaking truth from experience. I have talked to a couple of agents in my state who are TICA and they still seem excited (but why would they tell me something negative - --it wouldn't look good on their behalf). They have all told me that they haven't taken a paycheck (most are coming up on one year) and that all compensation after expenses, including salary, is put back into the agency. But they also add that SF "takes care of them" sort of like, don't be concerned about finances.
However, I have several calls into other TICA agents who won't return my call....makes me wonder.
Because P&C and Life is what I know best (been in it for 10 years), this is what I want to do, own an agency. Have you heard anything about opportunities with other carriers? I know Farmers pays much better commish but apparently the company sucks. I'm considering American Family. Have you heard any news on this agency opportunity.
Again, AgentZ, thanks for your insight; it's really got me thinking and I truly hope that things work out for you so you can actually share in the gift-giving with your spouse this Christmas.
MM
</IMG>
[COLOR=darkred]My first question to them would be ?[/COLOR]
[COLOR=darkred]Are you off the 2 year default yet ? What is their P&C comp after the first 2 years compared to the 3rd and 4th ? [/COLOR]
[COLOR=darkred]Remember this contract only really got going in October 2004 and those agents were on default for 2 years. They do get 1% now more on default than those that started back then did but the bonus is different. I really have worked hard and done well as far as sales in my agency its just the compensation is not close to what they promised and I have a good book of business. WE keep hoping they will wake up, but as long as Ed is in charge We doubt it. There is still opportunity there and it a pretty much permanent career just that agents now will never make close to what agents did 15-17 years ago or even the ones on the previous contract. [/COLOR]
[COLOR=#8b0000]My old Boss said " watch out those BIG companies just look out for themselves these days" Boy was he ever right.[/COLOR]
[COLOR=#8b0000]I will ask any questions I can. Good Luck ![/COLOR]
Originally Posted by magicmarker
AgentZ, I appreciate you shedding light on this "opportunity." At first read, I figured you were just negative but after reading more of your posts, esp. this last one, I think you are really speaking truth from experience. I have talked to a couple of agents in my state who are TICA and they still seem excited (but why would they tell me something negative - --it wouldn't look good on their behalf). They have all told me that they haven't taken a paycheck (most are coming up on one year) and that all compensation after expenses, including salary, is put back into the agency. But they also add that SF "takes care of them" sort of like, don't be concerned about finances.
However, I have several calls into other TICA agents who won't return my call....makes me wonder.
Because P&C and Life is what I know best (been in it for 10 years), this is what I want to do, own an agency. Have you heard anything about opportunities with other carriers? I know Farmers pays much better commish but apparently the company sucks. I'm considering American Family. Have you heard any news on this agency opportunity.
Again, AgentZ, thanks for your insight; it's really got me thinking and I truly hope that things work out for you so you can actually share in the gift-giving with your spouse this Christmas.
MM
</IMG>
Based upon observation it seems that everything in life cycles. What was once in style no longer is, the Republicans were in power and now the Democrats, and so on. As the Byrds said and the Bible says. Ecclesiastes 3:1 There is a time for everything, and a season for every activity under heaven: 2a time to be born and a time to die, a time to plant and a time to uproot, 3 a time to kill and a time to heal, a time to tear down and a time to build,
It looks to me like the contract with SF has cycled. Based on the contract with SF prior to 2004 it seemed to be the best thing going in insurance. A coveted can't lose proposition if you could get selected. Now based upon the things I am reading it is no longer the golden opportunity it once was. If much of what I am reading is true then one should look long and hard before considering SF. Here is the bottom line. If one has experience and $50-$75,000 to invest why would they want to be anything but INDY?
To me this is the biggest thing we have lost in the last 10 yrs. Local management and agents truly were family.
Those days are long gone. Today local management is really not relevent at all in the agents life, unless you choose to play with them and there small promotions.
To me this is the biggest thing we have lost in the last 10 yrs. Local management and agents truly were family.
Those days are long gone. Today local management is really not relevent at all in the agents life, unless you choose to play with them and there small promotions.
Sailor,
How much of the culture change is due to the changing nature of the business? Specifically, does pressure come from the managers to sell newer products like mutual funds and banking services because that is the way the industry is going and SF wants to leverage its industry-leading P&C customer base to obtain a comparable (or at least respectable) share of L&H along with mutual funds, variable annuities and other financial planning products?
Second, what is the default P&C commision rate? What level does it drop to after 2 years? What about commisions on other products? Is the TICA contract just a temporary/probationary contract? Is there a long term contract for agents who qualify? How does its terms compare to the TICA and how do you qualify for it?
Third, you say business is good, but the pay isn't. What kind of numbers for P&C, L&H, etc. equals "good" on a monthly basis?
Fourth, what kind of marketing/advertising does SF expect new agents to do and at what monthly cost? Some large numbers for debt have been thrown around, and I'm curious as to what goes into it.
Finally, SF touts its 5-year 80% retention/success rate. That is a really good number in this industry. Does it accurately reflect the turnover on the TICA 04 agents?
Hello,
I am new comer of your Insurance forum.I am also Life Assurance Agent in Pakistan i have the experience in this field from 08 to 09 Years i am also the Member Of MDRT last 06 Years.I have atteneded many time the meetings of MDRT and meet many members in those days but i still not know those people. After a long struggle i found this web site where i can know the members whom i will meet in my next meeting days which will held in january2009 in new york.I want to built good relation with my fellows so that we can share our ideas without any hasitation. Hope for your positive response.Thanks
Muhammad Islam Butt
Cell No;00923008711267
islambutt@sales.efulife.com
How much of the culture change is due to the changing nature of the business? Specifically, does pressure come from the managers to sell newer products like mutual funds and banking services because that is the way the industry is going and SF wants to leverage its industry-leading P&C customer base to obtain a comparable (or at least respectable) share of L&H along with mutual funds, variable annuities and other financial planning products?
Second, what is the default P&C commision rate? What level does it drop to after 2 years? What about commisions on other products? Is the TICA contract just a temporary/probationary contract? Is there a long term contract for agents who qualify? How does its terms compare to the TICA and how do you qualify for it?
Third, you say business is good, but the pay isn't. What kind of numbers for P&C, L&H, etc. equals "good" on a monthly basis?
Fourth, what kind of marketing/advertising does SF expect new agents to do and at what monthly cost? Some large numbers for debt have been thrown around, and I'm curious as to what goes into it.
Finally, SF touts its 5-year 80% retention/success rate. That is a really good number in this industry. Does it accurately reflect the turnover on the TICA 04 agents?
We are all aware of the changing nature of the business, that is not where we as agents are having problems. The problem is the relationship between the managers and agents. The managers used to be the Agents Ally. This is not the case any more.
I am not an expert on the new contract, as I do not have it. My understanding is that the TICA contract and the AA05 contract are the same. The company changes the bonus program at will, and this has a huge affect on the new contract.
The number of apps varies by region. In my area the top producer averages over 100 apps a month. Top new agents averaging 60 apps a month, and not making enough money due to the new contract.
I attempted to send you a PM but I haven't posted my required 20 posts -ridiculous!
I am going through a process similar to yours: State Farm. Word on this forum has it that SF is no longer the best opportunity.
I called around to agents with other carriers and began a process with American Family. They are fairly new to my state but seem to support new agents on many levels.
I, like yourself however, am interested in Nationwide and can't seem to find anything pertinent on their website. They have very few agents in my state and no agents in my city. I contacted a Nationwide agent a couple towns away and that's as far as I got.
Any news from you on Nationwide --or American Family, for that matter?
Thanks,
MM
Originally Posted by Quarter Pounder
The individuals that were hired as potential agents were more effective than I was. This goes without saying since I was not hired. However I have heard, from State Farm sources, that the positions were filled by State Farm employees or current Agent staff that did not have to complete many of the steps I had to. This has been verified not by the individuals that were offered the jobs but from insiders that have been reliable sources in the past.
I have 2 questions for you; 1. Do you work for or are you associated with State Farm in any way? 2. What is your location?
[COLOR=darkred]The TICA contract and the AA05/AA04 are the same compensation except the default rate for P&C is set the first 2 years the its variable after 2 yrs., and MOST agents take a pay cut after 2 years. That 80% retention IMO is on the older contracts I personally know of 4 out of 10 agents that started within 2 months of me that have left agency within the last 2 months, and that doesn't take in to consideration the ones who didn't make it in months 3 and or 11.[/COLOR]
[COLOR=darkred]Your manager is NOT your ally. He/She has hard pressure on them for auto/life and loan sales and they don't care what it does to you to get it they just want it. They want it at your cost of health, financies or even your marriage. They will just plug someone else in if you fail. The bonus program has already been changed and many agents will see a significant reduction in their 09 bonus. When is this company going to figure out that all we want to do is make a good living and stop screwing us around. It is as if Tony Soprano were our Boss and every time we did well he wanted a bigger taste.[/COLOR]
Originally Posted by Sailor
We are all aware of the changing nature of the business, that is not where we as agents are having problems. The problem is the relationship between the managers and agents. The managers used to be the Agents Ally. This is not the case any more.
I am not an expert on the new contract, as I do not have it. My understanding is that the TICA contract and the AA05 contract are the same. The company changes the bonus program at will, and this has a huge affect on the new contract.
The number of apps varies by region. In my area the top producer averages over 100 apps a month. Top new agents averaging 60 apps a month, and not making enough money due to the new contract.
My friend is also going to go through the process to become a SF agent. but he filed bankruptcy 2 years ago- his credit is ok now, but will that disqualify him?
Just ask the State Farm guy you are working with (district manager?). This is one of the earliest things they do, so they will gladly answer the question for you, rather than anyone here guessing.
If I had to guess, I would think it will disqualify him, it will with most P&C companies, but it's a simple question to ask.
I told him to, but i think he's hoping they won't notice (i know) so I figured I ask on here and see if anyone knows. I have a different recruiter than him so I will ask mine, but in the mean time I was just checking! Thanks
Re: Becoming a State Farm Agent
Linear Mode
