Allstate V State Farm - Worried Wife

[Josh]

In General - which company has a better profile and does one treat their people better than the other? In other words, what's the word on the street??

You're looking for a definitive answer on a subjective question. I personally know agents that have done very well with both. Honestly, considering the amount of risk involved and what very little we know about based off of what you've posted, I think your husband should have his head examined if he goes with either of them. As others have said, the amount of stress in your personal life will drastically impact work performance and general well-being. Assuming you like your husband and value your marriage, either one of these is potentially going to create an amount of stress that plenty of other opportunities wouldn't force him (and you) to deal with.

Anecdotally, there aren't really major differences between the two. Rates go up and down, companies go in and out of being competitive, commissions and bonus schedules go up and down, it all ends up being a wash. A lot of it can be very regional too.

In short, he should probably go find another management job. You're so close to retirement and considering all of the above it's really the only reasonable choice.

 

[holly_sue]

Wow. 500K? I was thinking maybe 200k. Yikes. Thank you so much!

 

[VolAgent]

Wow. 500K? I was thinking maybe 200k. Yikes. Thank you so much!

Josh pretty much hit the nail on the head. The similarities vastly outweigh the differences for the most part. Probably the biggest right now is that Allstate wants huge agencies while State Farm seems to prefer smaller operations.

You mentioned your husband is over 55, when he is wanting to retire, 5 years, 10 years, when? He really won't be hitting his stride until at least 5 years in. The first year or more will almost certainly be unprofitable with profit only starting to grow after that.

Also, he is at the mercy of the home office either way. Many State Farm TICAs never get their contract and I'm sure Allstate does similar things to new agents.

 

[WLTHKR8R]

Thats just my thought.

 

[holly_sue]

He is a workaholic. Probably will work until he can't.
Looks like the agreed points are that the differences are nuances, profit won't happen until 5 years out and how much do you think it will cost to get in? Do you agree with the 500k? We live in Rochester, NY.

 

[xrac]

You're looking for a definitive answer on a subjective question. I personally know agents that have done very well with both. Honestly, considering the amount of risk involved and what very little we know about based off of what you've posted, I think your husband should have his head examined if he goes with either of them. As others have said, the amount of stress in your personal life will drastically impact work performance and general well-being. Assuming you like your husband and value your marriage, either one of these is potentially going to create an amount of stress that plenty of other opportunities wouldn't force him (and you) to deal with.

Anecdotally, there aren't really major differences between the two. Rates go up and down, companies go in and out of being competitive, commissions and bonus schedules go up and down, it all ends up being a wash. A lot of it can be very regional too.

In short, he should probably go find another management job. You're so close to retirement and considering all of the above it's really the only reasonable choice.

I agree with Josh. My choice would be neither of the above.

 

[Josh]

He is a workaholic. Probably will work until he can't.
Looks like the agreed points are that the differences are nuances, profit won't happen until 5 years out and how much do you think it will cost to get in? Do you agree with the 500k? We live in Rochester, NY.

That makes it even worse; I'm originally from Syracuse. NY is a really tough state.

Maybe this will help clear things up. Those people that reached out to your husband are recruiters. They don't care at all about his future or background, their goal is to get him to sign the dotted line. Do they care a little more than that? Sure, but ultimately their goal is to recruit as many people as possible and hope it works out.

 

[LostDollar]

(I am not an insurance agent)

One of the things above was my first thought when I saw your age range. A former mentor told me years ago when I was looking at some things that I needed to allow at least five years to become proficient in a field when I chose it.

My second question would be what burned your husband out. From all the reading I have done here and from watching commercial bankers trying to get my employing companies' business over a 30 year period, I see a tremendous amount of people interaction in both situations. I would suggest some careful consideration of "burnout" reasons from the banking thing and seeing if those carry over into this insurance plan. It seems to me that the proposed plan would once again place him between a corporate hierarchy and customers who don't know him and would just as likely go down the street as do business with him.

Third observation-if he truly is a big kahuna, and given maybe closeness to retirement, maybe an option that would capitalize on his strengths and would not put so much of your capital at risk would be to talk with some large management consulting firms about their need for bank/mortgage consulting expertise on their staffs.

Maybe he has already thought those things out-those are just some observations that come to my mind.

 

[holly_sue]

Lost Dollar. I really like your third point, albeit all are solid. I think I have my answer and I thank everyone on here.

 

[WLTHKR8R]

Good luck in whatever route you take. Postings you read on this board, you will always have people with negative posts where some of whom have never worked for any company they are referring to.
Only people you see complaining is the ones who failed because they were lazy or was expecting all the calls/customers to walk into their office. Show me one successful agent/sales people who complain?
Look..you can work for the best of the company and fail and you can work for the worst of the company and succeed. It's up to you and your mindset..Indies will say they are the best...captives will say they are the best..They both have their strengths. Go with what you feel is right and do it and just give it your all.
Seems like your husband have a great amount of influence with many referral sources. Doesnt mean he will succeed or fail but you never know until you try..