Farmers Agents

Insurance951 · 04-08-2009, 01:23 PM

What is a realistic first year income expectation for a Farmers agent in southern CA? I know this is a very subjective question; I'm just trying to get a general idea.
I'm in sort of a unique situation; I have a mortgage office with four LO's, we had 11 at one time. We occupy two suites in a commercial building. I am turning one suite into an insurance agency and I plan to move one of my best telemarketers with me. So, it will be me; the insurance agent and one effective telemarketer. What do you think?

atgnut · 04-08-2009, 04:03 PM

The only reply to this and it is a serious reply. Run like the olympic gold depended on it when it comes to Farmers. If you want to risk all that you've work for up to this point, then give them a try. STAY AWAY FROM THIS COMPANY!!!!!!

Insurance951 · 04-08-2009, 05:00 PM

Originally Posted by atgnut

The only reply to this and it is a serious reply. Run like the olympic gold depended on it when it comes to Farmers. If you want to risk all that you've work for up to this point, then give them a try. STAY AWAY FROM THIS COMPANY!!!!!!

WOW....care to elaborate?

patch36 · 04-08-2009, 07:01 PM

If the search function is working, do a search. There is a ton of info on them, State Farm, Allstate, and etc.

I am an ex-Farmers Agent. I spent a year and a lot of money. Hit and exceeded all targets and was going to starve for years. I do well as an independent and am not sorry I quit and paid the money back they advanced.

Insurance951 · 04-09-2009, 02:12 AM

Originally Posted by patch36

If the search function is working, do a search. There is a ton of info on them, State Farm, Allstate, and etc.

I am an ex-Farmers Agent. I spent a year and a lot of money. Hit and exceeded all targets and was going to starve for years. I do well as an independent and am not sorry I quit and paid the money back they advanced.

What about all the successful Farmers agents.....how do they do it? I've heard of many bad experiences that people have had with Farmers...but isn't that the case with any company? Their are plenty of people that have negative things to say about any company. No company bats 1000 with their past or present personnel....I'm very interested in hearing specifics.
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Are their any Farmers agents here? I'd still like to hear what someone thinks the first year income expectation should be given my scenario.

patch36 · 04-09-2009, 05:55 AM

There are not that many wildly successful Farmers Agents. Those that seem successful have very large books of business that pay for their offices and staff. The only 'real money' is in the Life and the Securities, and even that does not pay what you get on the street as an independent.

The customer service you will provide for the P&C is not to be underplayed. The new contract does not allow you to work lines outside of Farmers, which is where many of the old agents really make their living. If you do well you might make $20k the first year. If you are lucky some of that will not be the subsidy they pay you on top of commissions so you can survive.

I got a pretty good basic insurance education from Farmers. I learned how to make real money when I left Farmers.

atgnut · 04-09-2009, 01:11 PM

There are a few successful Farmers agents and I mean a very few. Even then, if you took the money that they are making with Farmers and compared it to the same size IA you would see that Farmers agents commission structure sucks. I will say that if you can sell Farmers products you can make a great deal of money as an IA. I know I'm in the transition as we speak. If you want to get into this industry and don't have alot of upfront money Farmers is the way to go. The recruitment process is fairly simple. If you have good credit and can breathe and are willing to sell your soul and ethics for the Farmers Way, then this is the place for you. You must be willing to risk (as I've said in the previous post) everything because that's what required of you. Oh by the way, be ready to fund your success with every dollar that you have once the subsidy runs out and you are no longer able to sell the more than overpriced products. After a while spending three hours with a client trying to convince them that they should spend more money with you gets old. Farmers is a way to get in the industry. Just ask one of the 5 million Farmers agents. (Okay maybe not that many, but I hope you get my point). I'm sure if you look out the window you can probably see two other offices near you and you'll be the third but not the last.

patch36 · 04-09-2009, 01:55 PM

Like many companies Farmers manages the field with district managers. The catch is, there are NO districts, so one area can and does have 6 or more DM's, all competing against each other. They have virtually no limits on how many agents they can place in a given area and there is no protection, territory or exclusivity on their part. You on the other hand will be totally captive to their products, which in most areas are not even close to being competitve. Don't take my word for it, get a quote from Farmers with all the possible discounts then try Geico, Progressive and a few others. Chances are that most, if not all, will beat the rates. Makes it very difficult to sell their P & C, or Life, or Annuities, or ...

And now that the new agent contract forbids outside contracting on non competing products you are screwed. That is how most were supplementing their Farmers income. It is a pretty high franchise fee for a non competitive company. Your competition will be other Farmers Agents.