Becoming a State Farm Agent
- Thread starter shawn17ths
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How's the SF agency opportunity looking these days...any better/worse?
Good question....I'm currently in the candidate pool and all I know is that the number of new market agency opportunities seems to exceed that of existing agency opportunities. It appears that the concept of the the bonus income for the first 2 years helps, but that 3rd year on, agents have to cut expenses to survive and marketing decreases, which then would lead to more new market opportunities because that's the only way to maintain market share and/or grow. My personal theory is that the approved candidate with the largest bank balance wins because the candidate has more marketing dollars they can be pressured into spending. SF is a great Company, don't get me wrong, but I just think that they are still riding the branding they established on the older contracts that is was a great gig. And, you won't find many current agents that are willing to say anything bad about SF. And that's okay, since you have to believe in what you sell, it's best for the agents to keep a positive mindset. However, one can't go in today thinking it's a $200k plus job and you can kick back. I think it's becoming more like a 70-120k a year job now for those successful and they have to keep hustling. I do know SF changed their training period income requirement. Used to be a min of 50k, and they removed that. So, if you made 30k, you will make 30k in training with SF. That also tells me they are lowering the standards. Nothing against anyone making 30k, but they used to claim to want those that were already successful in another occupation to come to SF. Now, maybe they are attracting a younger demographic with less experience, etc. Or maybe they need to find someone used to living on less than 50k for a reason? I don't know. I hope that's not the case. I do know of a highly successful agent that went into management after 4 years. I don't know what they pay for mgmt, but if someone was on the path to 200k and kicking back, mngmt wouldn't be enticing to do. If an agent was pulling in 80k and that mngmt job was 110k, sure, I can see that. That's just my outsider perspective. If you go in with the right mindset and attitude and your expectations are to work hard, long hours, be willing to invest in the business, and build a great agency with a strong Company and make a reasonable living, then my opinion is it's a good gig for many. I would advise chasing an intern role or existing agency, new market is much harder.
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- 21
I'm in the candidate pool, too...about a month into the process I know many 15+ year agents that are doing well and came in under old agreements. I'd like to hear from some < 5 year agents under TICA and AA05. SF just made a major revision to their candidate internship process, starting in November, that provides interns much less. Every change SF has made in the last 10 years has taken from the agent and given to corporate. That doesn't mean it's still not a good opportunity; just not what it was and getting worse. Although I am aware of a new market agent doing "well" (relative to the situation), my only intention is to accept an anticipated/unanticipated opening.
All that being said, it seems the "forum consensus" across multiple sites is to stay away and go indy, go Nationwide (or anyone else), etc. I will say, I don't like the fact that they can yank the TICA away at any time for apparently any reason, and potentially leave the losing agent absolutely screwed financially...and at a minimum with a substantial loss. I guess it would rarely happen without good cause...but it provides management ridiculous leverage on "suggesting" how you spend your capital. If I can't tell them no on staff/office decisions without fear of hearing "it's our way or the highway", then I really don't have my own agency at all; I'm basically footing the bill as a SF employee that doesn't have an equivalent benefit package and can be cut loose anytime. Long story short, it would be great to hear from some agents who have recently lived TICA, what it took for them to get through, etc. However, it seems like actual SF agents are scarce on here or any other forum over the last couple of years. Makes me wonder why/how that is, too. Good luck with it. FT
All that being said, it seems the "forum consensus" across multiple sites is to stay away and go indy, go Nationwide (or anyone else), etc. I will say, I don't like the fact that they can yank the TICA away at any time for apparently any reason, and potentially leave the losing agent absolutely screwed financially...and at a minimum with a substantial loss. I guess it would rarely happen without good cause...but it provides management ridiculous leverage on "suggesting" how you spend your capital. If I can't tell them no on staff/office decisions without fear of hearing "it's our way or the highway", then I really don't have my own agency at all; I'm basically footing the bill as a SF employee that doesn't have an equivalent benefit package and can be cut loose anytime. Long story short, it would be great to hear from some agents who have recently lived TICA, what it took for them to get through, etc. However, it seems like actual SF agents are scarce on here or any other forum over the last couple of years. Makes me wonder why/how that is, too. Good luck with it. FT
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Actually, I also talked to Allstate and looked at buying an agency as well. I have decided to take the various points of advice from agents I talked to and am going to work towards going Indy. They suggested to give that a go and use the captive as a fall back if it was absolutely necessary. So that's the path I am taking. None of it will be easy, captive or otherwise, might as well start out eliminating "working for the man" up front 
- 111
I got the chance to interview for some SF Agent opportunities and came out of both thinking all they wanted was for me to have $100,000+ to spend and if I made it good, if I didn't good as well! It is all branding for them. God has His reason for me not getting the positions and at first I was upset. Now, I am glad I did not get them. I have run into or know at least 4 people that left SF. One had just gotten her contract but was so far in debt, I guess it just did not make sense for her.
SF used to care... I don't know what happened. Let's see if they are trying to go the stock route (like Allstate) like one Agent believes. By them cutting costs, it seems that way! Plus, in Florida they own 40% of a reinsurance company therefore they can screw their Agents for homeowners yet still make money corporately!
SF used to care... I don't know what happened. Let's see if they are trying to go the stock route (like Allstate) like one Agent believes. By them cutting costs, it seems that way! Plus, in Florida they own 40% of a reinsurance company therefore they can screw their Agents for homeowners yet still make money corporately!
- 16,880
The world is made up of potential customers who are either price conscious or brand loyal.
I think it's getting easier and easier to get the brand loyal ones to to move toward better value.
It would be very frustrating for me as an agent to be limited to selling a heavily advertised brand that gets murdered every day on price.
I think it's getting easier and easier to get the brand loyal ones to to move toward better value.
It would be very frustrating for me as an agent to be limited to selling a heavily advertised brand that gets murdered every day on price.
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- 21
A sales leader told me agent complacency is an issue. I think a lot of the pre-AA05 guys have said "we're doing well enough and thanks but no thanks on selling financial prods." Financials are now their major thrust and P&C is assumed/expected; all bonuses are heavily tied to selling financials. The built-in high-performance measures of the current contracts is by design, and I understand that. I also understand it takes substantial capital for overhead and marketing. What I don't like is the constant threat of losing the TICA....and I've heard of multiple people who did. I'd like to knowwhy; how poorly were they performing for it to get to that point...is there a set threshhold/criteria...etc.? I don't mind high performance requirements, but I do expect to be able to know where I stand relative to them all the time. Basically, losing TICA should never be a surprise to anyone, and it seems like it often is.
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That's a great point, Newby. It seems brand recognition, financial strength, and marketing are SF's play...and it still works for them. They're still #1 in P&C. They're also still promoting the 80% new-agent success rate (5 yrs). That doesn't seem to be in line with the handful of stories I've heard...who knows.
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That's a great point, Newby. It seems brand recognition, financial strength, and marketing are SF's play...and it still works for them. They're still #1 in P&C. They're also still promoting the 80% new-agent success rate (5 yrs). That doesn't seem to be in line with the handful of stories I've heard...who knows.
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FirstTimer
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- 21
Antfarm,
Thanks for your post. It sound like it's been an up hill battle, but you've finally turned the tide. Were you a scratch or did you take over an existing agency? I'm assuming your recommendation would be to pass. I'm meeting with an agent Tuesday for lunch to get his take, but he's been at it for 20+. I know him well, though and he has a good grasp on agent performance in the area. He should be able to give me a good idea of the general climate around here. Thanks again and hope you continue to grow.
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Wow...that's sobering. Did your friend feel she would never earn more than she was spending? I find it interesting that she wasn't making any money for herself, but was doing well enough for the company to keep her on. That is definitely not a win win. Sounds more and more like that reported 80% success rate is skewed.
Thanks for your post. It sound like it's been an up hill battle, but you've finally turned the tide. Were you a scratch or did you take over an existing agency? I'm assuming your recommendation would be to pass. I'm meeting with an agent Tuesday for lunch to get his take, but he's been at it for 20+. I know him well, though and he has a good grasp on agent performance in the area. He should be able to give me a good idea of the general climate around here. Thanks again and hope you continue to grow.
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Wow...that's sobering. Did your friend feel she would never earn more than she was spending? I find it interesting that she wasn't making any money for herself, but was doing well enough for the company to keep her on. That is definitely not a win win. Sounds more and more like that reported 80% success rate is skewed.
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