Becoming a State Farm Agent

Another agent I met/knew who had started in 2004 just left the company this agent basically said that they are leaving due to lack of continuing financial resources that the AA05 contract affords them. Again here is where they raised our expenses and lowered our commissions and wonder why 2004 and 2005 agents are dropping like flies.

Sad, to see him go. His only option was to take employment elsewhere, to stop the bleeding debt.
 
Hello! I'm a new poster to this forum, but I have been reading it for a while. One of my friends from college just left his job to become a SF Agent. All he has talked about is how great of an opportunity it is and how they only take the best of the best and on and on. I was a little skeptical of the whole deal, because of others that I know who are agents and because my friend is definitely not "The best of the best"....anyway, he has already completed his training and taken all of the tests and has now been given an office of a retired agent. He definitely thinks he is on the way to riches, but after reading this forum, it sounds like he may have been suckered. I have tried to tell him to be careful, but I don't want to seam like I am pissing on his parade. He turned down a 75k a year job, because he deemed SF to be "way more lucrative" I guess my question is....is he really being suckered into this, or is it really as great as he thinks? I just can't imagine agents making that kind of money (He says 120k+) and it being as easy as it was for him. It seams to me that if it was that easy, every college graduate would be doing it. What am I missing here? Thanks in advance.
 
Hello! I'm a new poster to this forum, but I have been reading it for a while. One of my friends from college just left his job to become a SF Agent. All he has talked about is how great of an opportunity it is and how they only take the best of the best and on and on. I was a little skeptical of the whole deal, because of others that I know who are agents and because my friend is definitely not "The best of the best"....anyway, he has already completed his training and taken all of the tests and has now been given an office of a retired agent. He definitely thinks he is on the way to riches, but after reading this forum, it sounds like he may have been suckered. I have tried to tell him to be careful, but I don't want to seam like I am pissing on his parade. He turned down a 75k a year job, because he deemed SF to be "way more lucrative" I guess my question is....is he really being suckered into this, or is it really as great as he thinks? I just can't imagine agents making that kind of money (He says 120k+) and it being as easy as it was for him. It seams to me that if it was that easy, every college graduate would be doing it. What am I missing here? Thanks in advance.

He did not do his due diligence. He wasn't suckered he was just shown the positive and past performance. He didn't do his due diligence and does not understand the current downside.
 
Does anyone know a ball park range of what a team member working for an existing agent start out around, or how the commission works?
When I first started with SF,I started with a scratch agent. I had no experience, the agent got me licensed and started me at 1500/mo salary and my commission was $45 per home, auto. Renters $15. Life was one months premium. After I was there a year. After he got his contract, he decided to change the compensation schedule to 2,000 salary and 2% on al P/C lines. I was transferred to another scratch agent and helped train him and the other staff members he hired. When I left there I was making $2330/mo salary and 7% commission on all P/C, 2 months premium on life, and $100 on health policies, $100 per bank loan. You are required to sell alot of life. Aug, Sept, and Oct is Life Promotion Month. You better meat the quota on life on your first year or you might as well hang it up. That will decide whether you get your contract or not. Good Luck
 
Does everyone realize how hard these last 2 posters are working for the money they are talking about?

This should make anyone looking at becoming a new SF. Farmers, Allstate, ect. agent think twice. Both of these guys have built a nice book of business and done well, yet they are making very little for their efforts.
 
It is a lifestyle choice. P&C has become a commodity. I actually prefer having an agent who will work for me and that I can go to their office to review my options. When I quit being a Farmers agent I was able to give my book of business, with the DM's blessing, to another agent I went to Career School with. It was a help to her and instead of once of the old timers who could have cared less, it went to someone who had to make numbers to survive.

I pay more for my home and auto by staying with my friend and agent. I could shop each renewal and find better prices online, but my agent is my 'go to gal' when I have a problem or a question. So I understand the sentiment.

The shear amount of customer service work provided by a store front agent is enormous, and with it comes very little compensation. Some of us appreciate it, but more often it is taken for granted and abused by the problem customers. The good customers generally don't have problems. Hats off to those of you who choose this route, I just wish the companies really appreciated the services you provide, and compensated accordingly.
 
I'm an AA97 contract in the GW Zone. Your experiences are very similar to a dozen or more scratch Tica friends of mine. Year 3 is the most difficult year, when the monthly PBP bonus really drops. I'm very thankful for the AA97 contract, started scratch, travel every year, nice scorecard, growing by 700 P&C year, and make more than I ever thought I would. That being said, I probably wouldn't take a scratch Tica position if I had to do it all over again. I know of 10 scratch Tica agents around me that are paying over $3k month rent and a staff person or two. Easy way to go broke if you're not hitting the PBP carrot.

Greenman, enjoyed reading your posts. Proud to have you as a fellow SF'er, we're in different markets but you're doing the right thing by running your Agency as a business and not giving in to the desires of AFE's/C's.

Best of luck
 
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So thanks to everyone through out this whole thread for all of the info. I am an approved canidate in the midwest and SF has just posted the location I want. So I have a couple of questions:

Will the recent compensation changes make it easier or are they still not offering enough?
  • Increase in the Premium Builder Payment (PBP) amounts in Yrs 3-4.
  • 5th year of PBP for New Market TICAs.
  • Increase the Semi-Monthly Variable Compensation (SMVC) default rate from 1.5% to 2%
  • Add a Year 2 Signing Bonus of $12,0000
  • All TICAs with an assignment over $100,000 in P&C Premium will be eligible for the first two years of PBP.
Will I be able to pay myself a little to live on during my first few years?

I know that I will be going in debt to make this work but is the risk ever going to be worth the reward? Because I'm starting to feel like staying in my current position and giving up on this whole thing.

Thanks in advance for any help.
 
do your diligence before starting scratch. have access to capital. they want you to be in a visible location (retail, shpping center, etc). most of the time you have to finance a buildout ($10 - $60k depenging on your sf, extent of upfit,, signage, etc). if you are in or near a major metro area, rent runs around $2000/mth for 1200 sf. obviously the part of the country matters. they would probably expect 5000 postcards a month. they would expect 2 team as well ("you have to be staffed for growth"). the DAFO will spend your money for you!

you have to make sure it is in an area that is growing, or where are agents who are not engaged in their marketing. the economy has definitely hurt home and auto sales around here (midwest)

you need to write P&C to survive, but it is all about life, bank, etc. scratch is definitely much tougher on the life sales. starting with 2000 autos from an existing agency is a potential goldmine for life. however, when starting scratch you have to write a lot of P&C to get the potential financial services customers. despite what they have you believe, you cannot write 2 cars, a home, 2 life, a hospital income, car loan, and Roth IRA with each new household. i would love to tell the DAFC that, but anything you say can and will be used against you (ie, competencies).
 
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