Couple Questions about StateFarm

TheSlurpeeKing · 03-14-2008, 07:20 PM

How long does it take to become an agent? from the interview process to having office? The Lady I interviewed with seemed very vague about it as well as the initial investment (50k-100k).

I need to get all my licenses aswell.

Thanks

theinuranceguy · 03-14-2008, 07:22 PM

Quote:

Originally Posted by TheSlurpeeKing

How long does it take to become an agent? from the interview process to having office? The Lady I interviewed with seemed very vague about it as well as the initial investment (50k-100k).

I need to get all my licenses aswell.

Thanks

Uh in OH and in some states its takes 40 Hours and passing a state test, but Im still confused as to where 50k came in?

TheSlurpeeKing · 03-14-2008, 07:27 PM

I'm mostly concerned about the timeline from the interviewing process to having my own office. She said the typical investment is between 50k-100k to get started. I'm assuming she talking about office space and such. She did say you get a small book to start.

TheSlurpeeKing · 03-17-2008, 02:21 PM

I know not much interest in this thread, but I do have my test tomorrow morning. It's not an interview, however, the recruiter will be there. I typically don't wear a tie for my current situation but i would like to make a good first impression. I thinking dress slacks and dress shirt and no tie.

How important is this test they give?

insuremojo · 03-17-2008, 02:34 PM

Quote:

Originally Posted by TheSlurpeeKing

I know not much interest in this thread, but I do have my test tomorrow morning. It's not an interview, however, the recruiter will be there. I typically don't wear a tie for my current situation but i would like to make a good first impression. I thinking dress slacks and dress shirt and no tie.

How important is this test they give?

I think you're talking about a "personality" test to see if you have the goods for owning and working with people in your own agency.

Have you been licensed yet to sell insurance? If you do you might want to keep in mind that most people who open up their own agency don't make any profit for the 1st 3 years on average and they go into debt for a lot more than 50-100k, that's just enough to probably get you started.

I think the way you mentioned dressing is satisfactory for test taking and meeting a
Recruiter.

You can expect a timeline of test taking to opening up for business to be anywhere from 3 months to 6 months in general.

TheSlurpeeKing · 03-17-2008, 02:46 PM

Yes, it's the personality test. They mentioned starting out with a decent sized book that they give, plus a small bonus to start. I guess we'll see how it goes.

insuremojo · 03-17-2008, 03:45 PM

I would think twice about this "opportunity" especially if you have no
Experience in the insurance industry.

It's a huge leap of faith for someone with no license to jump right into a state farm insurance agency as owner.

How big is this "book of business" and will you be able to cover your ass with the renewals plus sales you're bringing in?

Make sure you've got that ace up your sleeve to take the plunge...I hope you do.

TheSlurpeeKing · 03-17-2008, 03:55 PM

Sorry I forgot to mention I have my L/H/VA and series 6. I worked for Mutual of NY, and as EFS for Allstate for a little while. I'm studying for the 2 20 now. I have no experience on the P&C side though.

New_Insurance_Agent · 03-19-2008, 04:11 PM

I am a new insurance agent, full license in California (F&C, Life, Health - and gonna take series 6 & 63 exam pretty soon). I went to "Statefarm Agency Opportunity" in Northern California last year, took the test, attended the career opportunity session, met the mentor (one of the successful Statefarm agent), and finally I quitted before the "Business Plan" presentation. The reason I quitted was the amount of the investment, which in my area (Northern California) $50K will not be enough (rent is so expensive, the cost to hire agents, etc.). Based on my conversation with several agents, I will need at least $80K to $100K to start a new agency and to survive (marketing costs, operational costs, etc.). Now I work as an independent insurance agent for other famous insurance company in U.S. which doesn't require me to open an agency before I feel confidence (at least in 2 or 3 years).
FYI, selling insurance is very tough nowadays especially for a new agent. Selling insurance isn't like selling other products which you can do it by knocking "door-to-door". It needs more personal relationship. I started it from my families, relatives, and friends. Then I got referral from them.
Finally, before you make a decision to invest those money, please learn your business plan carefully. Can you achieve your sales goal each month so you can survive?
Good luck.

TheSlurpeeKing · 03-19-2008, 04:52 PM

great advice... I'm feeling very uneasy at this point and I'm not sure if I even qualify with them due to a few credit hiccups around 3 years ago (nothing crazy, but I spoke with the lady that does background checks and they're very strict in their guidelines). Can you PM me with the company you're with now? do you have an office? sub lease an office? home office (is that possible writing all lines)? I've done ins. sales in the past and it was tough, but I believe I'm in a different "frame of mind" at this point in my life.

Shoot me a PM with some details. I'll really appreciate it.

THANKS!!!!!

New_Insurance_Agent · 03-19-2008, 05:52 PM

I am with Farmers Insurance now. Go to Farmers website, click "Career Opportunities", then click "Contact a Farmers district manager", type your zip code and click "search" button. It will show you who is your nearest "district manager". Call them and ask them about more information. I use my district manager office as my business office, and it's free. Our office is huge and nice. Once I feel confidence and have enough 'book of business', I can invest and have my own office.

CHUMPS FROM OXFORD · 03-19-2008, 06:23 PM

Don't need the extra "ted"...

djs · 03-19-2008, 10:38 PM

Being a State Farm Agent is a little bit like opening a McDonalds franchise (okay, maybe a subway). With varying degrees, almost all succeed, but not many are cut out to get the franchise off the ground.

The same is not true for most other P&C agents.

It's not that the State Farm product is better, its the screening process is lengthy and forever long. When I talked with them, it averaged 2 years from 'acceptance' to being a full agent with your own office. Of course, you had an office for the second year, but you were considered a training agent.

I opted to not go the State Farm route (or they opted to not invite me if you really want to know). Nothing wrong with the company, but they are by far the strictest out there that I am aware of. Of course, McDonalds is very strict with their franchises as well.

For those who don't follow franchise logic, franchises are little about products, mostly about business systems and procedures. A franchise will almost always fail if it is solely about a product, but will succeed if they have a system that succeeds. State Farm brings decent systems to the table, and have the products to fit them.

Dan

TheSlurpeeKing · 03-19-2008, 11:15 PM

Quote:

Originally Posted by djs

Being a State Farm Agent is a little bit like opening a McDonalds franchise (okay, maybe a subway). With varying degrees, almost all succeed, but not many are cut out to get the franchise off the ground.

The same is not true for most other P&C agents.

It's not that the State Farm product is better, its the screening process is lengthy and forever long. When I talked with them, it averaged 2 years from 'acceptance' to being a full agent with your own office. Of course, you had an office for the second year, but you were considered a training agent.

I opted to not go the State Farm route (or they opted to not invite me if you really want to know). Nothing wrong with the company, but they are by far the strictest out there that I am aware of. Of course, McDonalds is very strict with their franchises as well.

For those who don't follow franchise logic, franchises are little about products, mostly about business systems and procedures. A franchise will almost always fail if it is solely about a product, but will succeed if they have a system that succeeds. State Farm brings decent systems to the table, and have the products to fit them.

Dan

Thanks Dan... I'm seriously torn on what approach to take and how to go about it. Starting a scratch book in S. FL seriously scares me. My good friend that owns 3 non-captive offices says to jump at the SF opportunity. I won't make the most money, but have the best odds of success is what he believes. He started out by purchasing his books of business.

Thanks for all the info!

Recruiter1 · 04-03-2008, 05:51 PM

Having read much of this thread, there is certainly a good share of misinformation going around here. Although, State Farm is strict in the selection process, they also take very good care of insuring you will succeed. Yes, like Mcdonald's the turnover rate for State Farm Agents is very low (especially for industry standards).
Most succeed.
State Farm is not a franchise, however. The 50k startup costs are not paid to State Farm. It is to assist you after you spend the signing bonus should you need it (see below).

Even if you aren't licensed the company will pay all the required licenses, train you for approximately 10 months with pay matching your previous year's salary and give you a substantial signing cash bonus (In California the minimum is 18k signing). You can either choose a new office or an existing office with an open book. The 50k minimum is a requirement because the company is spending much more than that training you with your current pay, licensing you, and interning you. They want you to succeed. An additional 50-100k certainly helps.

If you want to start from scratch you have that option. If you want a book you also have that option. The truth is that most State Farm Agencies have been around for many years. Many of them approaching retirement. The company is investing millions in making sure they have "qualified" candidates fill those offices.

Hope that clears up some stuff. I'm sure your recruiter went over more of the specifics.

moonlightandmargaritas · 04-03-2008, 06:23 PM

Quote:

Originally Posted by TheSlurpeeKing

Starting a scratch book in S. FL seriously scares me.

Have worked as a manager with Allstate, and having worked closely with the State Farm account as a wholesaler, you are wise to consider this carefully.

The lack of property markets is well obviously...a problem. Homeowner's is the BEST line for all other lines.

You will have to walk all but the most pristine auto risks. You better be able to sell life, their bank products, and cheesy mutual funds. You'll get unbelievable pressure to do so.

They don't have an seed accounts for you?

The Rabbi · 04-03-2008, 10:07 PM

Nothing wrong with having a State Farm agency. You just have to let everyone know by networking.