I've recently spoke with a State Farm recruiter. I am planning on trying to pursue the opportunity that State Farm has to offer...
What should I expect from this? Is there anyone that has had experience with this process? Does anyone have any advice regarding anything to do with becoming a State Farm agent such as likely hood of success, are the products competitive enough to sell without having to beg people, etc etc.
Sorry I'm so vague, I'm just kind of looking to find out anything and everything about this before I jump into this career change.
State farm is pushing hard around here for recruits, in TX, wanting to grow. I had always heard they prefer a 4 yr degree, maybe not, but you probably have that. The goal is to have your own office eventually, I would imagine.
Most State Farm agents do very well. They have a secret recipe for success, that works well for them. It's not for everyone though.
Agents keep a very clean book of business, low loss ratios.
It's hard to find clients, but they become very loyal once found.
Customer service is a requirement.
It's a decent way to go. When I looked into it, I was amazed at how upfront they were with me on the opportunity and the challenges. It's a long road from when you start down the path to getting your own office, but it can be a very rewarding one.
State farm is pushing hard around here for recruits, in TX, wanting to grow. I had always heard they prefer a 4 yr degree, maybe not, but you probably have that. The goal is to have your own office eventually, I would imagine.
State Farm used to be the prime insurance job. I don't know about that anymore but certain it's still a great opportunity. They've had issues like everyone else but still a top company. If I were starting out in insurance and had the chance to work there I would.
I am currently pursuing a State Farm opportunity as well. So far, I have made it past their LIMRA 'screen' and they are doing the background check. I received a call today about my credit. Everything is perfect except a disputed medical bill from 2001 for $300. I was told that it had to be resolved or it was a deal breaker (assuming there is a deal here in the first place).
Otherwise, I am waiting for a DVD packet to come in the mail and provide more information?
It does seem like the process is a long one so far...
Thanks for the information guys. I've been talking to the recruiter for my area and also another State Farm agent. I have absolutely no experience in the insurance business so he advised me to start out as a team member to get my foot in the door and learn the business a little and then from there try to go forward with becoming an agent and owning my own office. He is confident that he can get me on somewhere as a team member. I'm not really sure what that means as far as job wise, but it seems like a good chance for me to get my feet wet and learn the business.
Does this seem like a good idea? And another thing, the thought of becoming an independent agent down the road is still lingering in my head. Would this be a good way to learn the ins and outs of the business and give me the experience I would need to maybe one day go independent? And if so, what are the pros and cons of being an independent agent as opposed to owning my own State Farm office?
.....Everything is perfect except a disputed medical bill from 2001 for $300. I was told that it had to be resolved or it was a deal breaker (assuming there is a deal here in the first place).....
Interesting! This shows that SF is very careful of agents backgrounds and do not want someone if there is any credit (integrity) issues. I like that although it could make it hard for some people. To me this says they look for quality.
XRAC are you questioning my integrity? How dare you! Kidding...
Anyway, I got the DVD packet and it is not what I expected. I thought it would be more specific about the opportunity. Turns out is is a recruiting DVD with a bunch of agents saying how great it is to work at State Farm. Oh yeah, and more paperwork of course...
XRAC are you questioning my integrity? How dare you! Kidding...
Anyway, I got the DVD packet and it is not what I expected. I thought it would be more specific about the opportunity. Turns out is is a recruiting DVD with a bunch of agents saying how great it is to work at State Farm. Oh yeah, and more paperwork of course...
You know and I know that there can be legitimate reasons why a bill is disputed. It just says that SF is very cautious and conservative.
I've recently spoke with a State Farm recruiter. I am planning on trying to pursue the opportunity that State Farm has to offer...
What should I expect from this? Is there anyone that has had experience with this process? Does anyone have any advice regarding anything to do with becoming a State Farm agent such as likely hood of success, are the products competitive enough to sell without having to beg people, etc etc.
Sorry I'm so vague, I'm just kind of looking to find out anything and everything about this before I jump into this career change.
As long at you've got about 100k laying around to get your office up and running and 2-5 years before turning a serious profit I think it's a great place to start. Ok...a little sarcastic...before moving in that direction you need to talk to half a dozen agents that have started their agencies in the last 5 years and then make your decision. My two cents are they were a great company for the agent two decades ago and they are currently a great company for State Farm.
For a captive insurance job, it's still probably a good opportunity. You'll need to have to sell life insurance, I've been told there's quotas for that. Ask what those are. And would not doubt they are moving in same direction for securities products as well. Did you ask if you are going to need a 6 and 63?
.....My two cents are they were a great company for the agent two decades ago and they are currently a great company for State Farm.
Has State Farm changed or has the industry changed. Is this opinion based upon personal experience, conversation with other agents, personal observation, or a combination of those? What does anyone else think? Does anyone else share this opinion? Any SF agents want to chime in?
State farm is hardcore about their process but it does get results. They will be on your butt every single week so its not going to be stress free and working independently. Expect to be working long hours and being poor for a good 1-2 years. But if your serious and want to break into the business its a decent company to get started with.
Definately check around the different companies in your area so you can find out who has the good pricing right now. All companies do great in some states/metros and horrible in others. On top of that it tends to swing back and forth every 5 years or so.
Would working for State Farm and gaining all of this experience eventually help me become an independent agent if I decided not to go through the recruitment route?
Would working for State Farm and gaining all of this experience eventually help me become an independent agent if I decided not to go through the recruitment route?
For me the answer would be yes! Knowledge and experience are always valuable.
Here is what I have been led to beleive so far: In my state, State Farm already has 28% penetration with a strong aging agent base. I will probably be taking over an office of a retiring / leaving agent. All of the customers still have to be serviced and someone has to service them. I was told that the average SF agent has about 3mil in premium grossing about 10% of that. I was also told that taking over an existing office would land me a book of about 1mil, or enough to cover some office expense. After the salaried training period of about 6 months, you get 18K bonus when you sign the contract. This is supposed to be a small sliver to get you started.
I guess that State Farm Bank will also loan new agents 25K almost guaranteed on really good terms. (hence the good credit I guess). You get a 5K credit card for everyday stuff and the office is already established so the equipment is there. I can re-interview the existing staff and hire or fire them.
State Farm insures 1 in every 5 houses and cars in the US. They must be doing something right. My personal insurance is with SF and since they are a mutual company, I get a premium refund every year that they experience lower than expected loss. From a customer's point of view, I am not paying to line the pockets of shareholders because the policyholders own the company.
SF can't be out for just SF. The execs probably get fat checks, but there are no greedy shareholders to influence decision making.
Here is what I have been led to beleive so far: In my state, State Farm already has 28% penetration with a strong aging agent base. I will probably be taking over an office of a retiring / leaving agent. All of the customers still have to be serviced and someone has to service them. I was told that the average SF agent has about 3mil in premium grossing about 10% of that. I was also told that taking over an existing office would land me a book of about 1mil, or enough to cover some office expense. After the salaried training period of about 6 months, you get 18K bonus when you sign the contract. This is supposed to be a small sliver to get you started.
I guess that State Farm Bank will also loan new agents 25K almost guaranteed on really good terms. (hence the good credit I guess). You get a 5K credit card for everyday stuff and the office is already established so the equipment is there. I can re-interview the existing staff and hire or fire them.
State Farm insures 1 in every 5 houses and cars in the US. They must be doing something right. My personal insurance is with SF and since they are a mutual company, I get a premium refund every year that they experience lower than expected loss. From a customer's point of view, I am not paying to line the pockets of shareholders because the policyholders own the company.
SF can't be out for just SF. The execs probably get fat checks, but there are no greedy shareholders to influence decision making.
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.
I have been through the entire State Farm process.. except getting hired! It is a thorough process to become an approved candidate, at which time you can apply for job postings. Depending on your area, the 1M in premiums seems low from what I've seen. I'm a newbie with no experience or licneses but have been given a very fair shot and I'm optomistic I'll be sporting the red and white soon.
Becoming a State Farm Agent
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