Insurance Forum

[kavedoggie]

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I have been contacted by Allstate and begun the process of becoming an agent and before I get too involved I wanted to hear from other Allstate agents, preferably in the northeast, to give their experiences on the process and then owning an agency.

I have also spoken with State Farm and the biggest difference I have noticed so far is that SF has offered to pay for licenses and pay you a salary during training and Allstate has offered nothing. In fact when I asked I was told even the flight and hotel for the three days I have to be in Chicago are at my expense.

Does this seem accurate? Anyone have a different experience? Can anyone describe the major differences between Allstate and SF?

Sorry for all the questions, just trying to make an educated decision.

David

[moonlightandmargaritas]

The biggest difference is that with Allstate, you own your book of business (bob), and one day you can sell it. With State Farm, they own the bob, and you can't sell it....

[soupdawg]

Do NOT enter Allstate's scratch agency program! I went in with a group of 20 agents and the only one that is still around is the agent who purchased a book of business. I was going to buy an agency but thank goodness I didn't. Remeber this with them you DO NOT own your book of business, what you do own is an economic interest. However, if you do not meet the company's expectations you will be out on your arse with what they call a TPP settlement. On top of that the rumor right now is that the commission is about to be cut below 8% with no overhead expense. You need to send an email to runningclock@aol.com and ask for a secret decoder ring. It is a newsletter about the inside workings at Allstate. Also, there will more than likely be an Encopass(independent Allstate brand) with better rates and commission just down the road from you. Go to the allstate website and look at all the agencies across the nation for sale, for an agent Allstate is a sinking ship.

[Tomfromtheshade]

You want advice from a guy in the north east that worked for Allstate?
RUN!

[gzpxyj]

If captive, beter to have base salary and good training. NY lif seems a good place to start.

[JNJ]

I have several friends that own Allstate offices. They bough their book of business! They do very well in the business...but like everything else in life, you have to work! I think the key here in this case is, to look out there and buy a book of business. You have spend money to make money.

[xrac]

I just read in the newspaper this morning that Allstate is going to add 65 offices in Indiana. I am not saying this is a good opportunity but it is something you may want to check out if you are in Indiana and wanting to get into insurance.

[moonlightandmargaritas]

Originally Posted by xrac

I just read in the newspaper this morning that Allstate is going to add 65 offices in Indiana.

Soon it will be like Subway...with one on every corner!

The overall effect is a "cannibalization" of the market in question, which the management really doesn't care about. No skin off their _____.

[xrac]

Originally Posted by moonlightandmargaritas

Soon it will be like Subway...with one on every corner!

The overall effect is a "cannibalization" of the market in question, which the management really doesn't care about. No skin off their _____.

Moonlight, you are correct that this would be the overall effect although there are obviously areas that are underserved where this might be a good move. In market's where there are an abundance of agents it is bad for the scratch agent and for the veteran agent. Don't most captives do this? I think SF does.

[DJM]

All they care about is

"The cream of the crop rising to the top"

Who cares what happens to everyone else

Same mentality as all captive agencys, throw everything at the wall and see what sticks

Like moonlight said, no skin of their ______