Becoming a State Farm Agent

[235Williams]

Hey smavo,
I am also going through the SF process to become a candidate. I am having problems putting together the business plan based on a phantom office i.e. production numbers on all the different product lines. What are realistic numbers of production for Auto, Fire, Life, Health, Bank, and so on? Can I get a copy of your Biz Plan?

 

[teambuilder]

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.

Those were my thoughts exactly, shuddering at what this gentleman has been through. I remember riding in an elevator with an old-time manager with All-State, who had been canned previous to pension, and him saying he should have gone with State Farm... Now we all know the way to go is indy.

 

[frmrTICA]

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.

This sounds a little too familar

 

[Numbers Man]

Greenman,

You have the right idea: get your contract and then really run your agency like a business. If you can make a reasonable return on additional investment, spend the money. If not, be patient and grow yourself to prosperity. I did just that, getting by with one staff until I could afford two and now three. And, of course it is easier to sell more life and bank with more customers. You'll get there and you'll be glad you hung in there. I, too, enjoy running the show and taking care of customers! It is a good life. I just hope they treat TICA's better in the future.

 

[fastrack1]

Greenman,

You have the right idea: get your contract and then really run your agency like a business. If you can make a reasonable return on additional investment, spend the money. If not, be patient and grow yourself to prosperity. I did just that, getting by with one staff until I could afford two and now three. And, of course it is easier to sell more life and bank with more customers. You'll get there and you'll be glad you hung in there. I, too, enjoy running the show and taking care of customers! It is a good life. I just hope they treat TICA's better in the future.

I'm curious how long you have been an agent? Are you under the new contract?

 

[fastrack1]

Hey Numbers

Thanks for the encouragement. I just want New Market Tica's to be realistic about the fiscal and mental stamina it takes to get one of these things off the ground. It is NOT like getting a book - at all. In some limited ways it actually has it's advantages, but with regard to cash flow and investment required, there is no comparison between assignment and book. And you cannot expect advice on how to run a business from the company - the reality is that if you fail, they've actually invested very little and they'll throw someone else in and give them what you've built. Financial services is ALL they care about. Period. End of discussion.
Now, for you people considering scratch - the cold hard truth:
PBP max year 1:$132,000
Signing bonus: $ 18,000
That's $150,000 plus whatever renewals and financial services you can write. For fun, let's add another $25,00

$175,000 Gross - looks pretty good, huh?

2 team members

Seriously, you pay your team members $80k per year? I've never paid a salary greater than $25k and then they have to make the rest in production. If they don't produce, you don't have to pay. Just starting out, I'm confident I could make it work on $175,000, including two team members.

 

[1manshow]

Man oh man, what a world of crap to be a SF agent. Thank God for the Erie Insurance Exchange! who gave me a chance 22 years ago...and being able to represent other fine carriers with no strings attached. I just took 1/2 hour of my day to read this and I'm appalled. I noticed that recruiter guy hasn't put up a post in the last four or so pages..... maybe he got promoted ?

I was joking with my staff just this morning about taking a school bus fleet away from the local SF girl. Now that I know she is only in her first full year, I don't feel nearly as happy.

 

[BANKERFA]

I like the colors red and white.

 

[xrac]

In my 4th year as a State Farm agent, I have to kick in $3,000 a month to stay in business with 2 staff. How many other careers are there where a 14 year insurance producer with college degree would pay that much to do what I love?

I could lay one off and break even but then I would not grow as fast and I'd prolly have to work 70 hours a week instead of the 55-60 i work now..

I'm poor and happy being a SF agent. Going to Hawaii!!! Went on Mediteranian Cruise last year.

I'm a part of a community. One day I will be paid.

If I had a business doing that I would be looking to sell it, close it, or find some way to shake it up.

 

[fastrack1]

I heard they made big changes to the contract. Basically guaranteeing you $11,000 per month regardless of assignment. Anybody know more details? I'm an AA97, so I don't know all the facts because it doesn't affect me.