Becoming a State Farm Agent

[kavedoggie]

I want to thank everyone for their comments, both positive and negative. Like any business venture there are definitely risks involved.
I have also gone through what they call the Agency Career Understanding Seminar and for the most part the comments on this forum are pretty accurate. The pitch I got was that we should all start out as New Market Agents as this was the best way under the current program to make the most amount of money. I asked about taking over a book of business and they said it was either not available or something that we could do, but we wouldn't make as much money. After reading the posts here it seems that if given the opportunity the consensus would be to start with a book of business. I'm not sure what the short term financial considerations are, but it would seem that you give up some of the early year bonuses. Obviously, besides the book, you can become an agent after the first year, so no one to tell you how to run your business after the initial period.

I also have been speaking with Allstate and they seem to have a much easier process, however they told me they don't pay for certification, or pay you while you're in training. They encouraged buying a book of business, but to stay under $1.2M so that you can take advantage of all the "Scratch" programs. In downstate NY, Allstate no longer sells home policies so I don't know if that is causing them to lose business or not.

Anyway, I am leaning towards SF and am working on my business plan, which quite honestly seems more like telling them what they want to hear from what I read on this forum.

I would love to hear from anyone new to SF, less than two years and if possible in NY or the northeast to hear what your experience has been.

David

 

[Freddie]

Expect to provide your own Vaseline...

Poor guy in my office bldg is a SF independent, As you know (Repub In Name Only) Charlie Crist pretty much forced SF out of FL. The poor SF guy is screwed now.

 

[Site Interviewer]

Greetings all! I am another approved candidate and am about to start posting for openings on the state farm site.

A question came up recently in my interview process that I do not know. I would like to know specifically what it takes to accomplish the following...

1. Top 100 new agent... what does it take?
2. Maximize scorecard bonus... perhaps 25-40k in
scorecard bonus. what exactly does that take?
3. Travel at level 1 and Level 2... what does it take?

I would like to know so that I can adjust my business plan and so that I can know going in what I need to do.

I really appreciate all of the good comments on this thread. I almost drank the glass of "take a new market opportunity," and was ready to throw up after reading some of the real-world results from the agents that chose that path. I really give you guys (or gals) much credit for going this route and continuing despite the rough years. I am sure that you are on a plan and are working toward making that plan a reality. Keep up the good work.

 

[kavedoggie]

I'm sorry if this comes across the wrong way, but I've read every post, posted some questions myself and read every response. I find that there are a lot of negative, even shocking comments like "run, run, run or prepare to go broke". An opportunity with State Farm is either a good business or not. I used to think there was a good mix of positive and negative comments, but when I re-read all the posts the comments are definitely more negative. Maybe it's true and being/starting/owning a State Farm agency is a bad decision, but I would like to hear from someone who can provide some quantitative data either way. I just received a comment from SFTICA "Spend money on Marketing and Staff and finance your ass off!" I don't mean to pick on anyone, but for someone that is considering State Farm as a career, what should I read into that comment? I understand that I have to spend money on marketing and staff. Whether I will have to "finance my ass off" really depends on the degree I want to over extend myself.

If everyone posting is really losing money working for State Farm or they're such a lousy organization to work for, then why continue? I have to believe there is a way to make money being a SF agent otherwise there would be empty SF offices everywhere.

Are there people out there that can provide an unbiased or at least try to provide an unbiased business case for why one would want to be or not be a SF agent?

 

[Sailor]

Last 4 TICA agents in my area have gone in debt over 100k. Three have been fired. In my area about half survive. The training program and contract I went through is much better. One out of twelve did not make it.

It could be that there is a reason for the negativity.

 

[squeed]

Greenman, good post. I'm curious, in your opinion, what's the main reason or reasons that people fail in the business ? StateFarm or otherwise.

-S

 

[kavedoggie]

Greenman:

I appreciate the feedback and trust me I'm not whining about this decision. As someone who has owned his own business and been successful in sales, I do not need someone else to make a decision for me, let alone a SF forum. However, as a business person with no background in THIS industry and very few outlets to get honest answers, I would be remiss if I didn't try to find as much information about this business as possible.

At the end of the day I will make my decision to either pursue this or not, but if I did that in a vacuum, then I AM going to fail. I am just looking to be as well informed as possible. I don't like too many surprises and after reading this board, I think I have a pretty good idea of what to expect.

I appreciate everyone's input, especially Greenman.

 

[djs]

Greenman, good post. I'm curious, in your opinion, what's the main reason or reasons that people fail in the business ? StateFarm or otherwise.

The reasons are many:
- Unrealistic expectations
- Want a job, not a business
- Suddenly need to pay bills (aka didn't have the capital to start)
- Was told they could make $X a year, didn't realize they would have to work at it.
etc....

I'm not a State Farm agent, but I doubt in the end, the core reasons State Farm agents don't make it vary much from other agents. They are screened a bit better up front, which is good. They are still sent into the lion's den.

Dan

 

[Bitnis]

"There is risk involved. And SF is a good company, IMO agency leadership has lost it's way"

They've been exposed, it's called GREED!

 

[djs]

They've been exposed, it's called GREED!

What's wrong with greed? It's also called capitalism. Face it, we are all greedy or we would donate our commissions to saving Africa or something.

Now, greed can cause people to do stupid things, but greed by itself is what makes the economy run.

Dan