Becoming a State Farm Agent

[rookie agent]

I met with a State Farm Recruiter this past week.

State Farm is now offering $11,000 a month for expenses during the first 3 years. You still receive the signing bonuses of $18,000 in year one, $12,000 in year two, commissions, $25,000 credit, and a book of business.

You often see organizations forgetting the sales force is the bloodline of the organization. In life we all take “our bloodlines” for granted: our family, friends, and health. Then something tragic happens we go back internalize the problem and reproach the situation.

It is apparent State Farm is focusing its attention on the sales force. You can also see a shift in the way they are advertising. State Farm has always been a heavy advertiser, however signing LeBron James sends a different message. They are trying to target the internet generation. “Call my agent” and his care free attitudes sends a powerful message to the young consumer.

I know some employees inside State Farm's corporate office; they said that State Farm is restructuring contracts in order to help it’s agents to succeed. Is the new contract sufficient to run a successful agency or is one still doomed for failure?

Please do not say that “hard work takes care of everything”. I know success comes from hard work, external factors, and being a part of a great system.

Thank you in advance for a response

 

[rookie agent]

I met with a State Farm Recruiter this past week.

State Farm is now offering $11,000 a month for expenses during the first 3 years. You still receive the signing bonuses of $18,000 in year one, $12,000 in year two, commissions, $25,000 credit, and a book of business.

You often see organizations forgetting the sales force is the bloodline of the organization. In life we all take “our bloodlines” for granted: our family, friends, and health. Then something tragic happens we go back internalize the problem and reproach the situation.

It is apparent State Farm is focusing its attention on the sales force. You can also see a shift in the way they are advertising. State Farm has always been a heavy advertiser, however signing LeBron James sends a different message. They are trying to target the internet generation. “Call my agent” and his care free attitudes sends a powerful message to the young consumer.

I know some employees inside State Farm's corporate office; they said that State Farm is restructuring contracts in order to help it’s agents to succeed. Is the new contract sufficient to run a successful agency or is one still doomed for failure?

Please do not say that “hard work takes care of everything”. I am a high achiever however I know success comes from hard work, external factors, and being a part of a great system.

 

[infoe]

Since the servers have been down for a while. I thought this thread might have been nuked. I'm giving it a bump as I appreciate the pro and the con threads.

 

[infoe]

When you become accepted into the pool to wait for an assignment or to apply (post) for an assignment. Where are these postings visible? On a secure website? How does it work can anyone expound on this some? So I make sure I follow the advice here and try to pick up an assignment with an exisisting book of business.

 

[xrac]

Started late 2006 high producing agent close to bankruptcy. Started on a blended contract with PBP. Currently receiving 2.87% SMVC and still imploading. Future looks very dismal. Love my job and the company hoping for some changes to the contract in the future.

Wow! How sad and SF is allowing this to continue! That does not sound like a wonderful company!

 

[CaptiveAgent2009]

scratch agent here. Started in 2008 in Northeast. It definitely has been tough. I have a few thoughts on the program - from a scratch perspective.

- they (Corp) are going to have to realize sooner than later that there is not a major financial incentive to go scratch. Compared with the agents who got an assignment, i dont really know of many that are making it financially. What we can only see is the front run numbers, but not the amount of money it takes to make that happen. ie, sure "so and so" is producing the DAFO says, but they dont care if you have to spend a bazillion dollars to produce numbers.

- compared to scratch agents, is it equitable that an agent who got a 2000 car assignment also get a 2nd year signing bonus? If so, i think scratch should get more.

- if you have an opportunity, try to get an assignment. If you are scratch and you produce 500 auto a year, by the end of year 4 you are at the same spot as your peers who took an assignment.

- three people i know in my zone are nearly close to bankruptcy - which means you have to surrender your license. One of those is getting divorced due to the strain. A different one walked away at the end of the first year. He realized it was not worth the financial stress.

- with scratch, you are generally going to have more initial costs as well (upfitting a new location). The DAFO wants you to hire at least 2 team members minimum. If not, well, guess you dont have the coachability, leadership courage, business acumen, etc competencies.

- throw the comp illustrations out at the door. They showed something like $3000 a month in expenses. We all know what a joke that is.

- i see that more and more people who made it out of the DAFO are trying to get C positions for monetary reasons. Not because they truly want to go into management.

-

 

[johnanderica]

Can someone tell me if your credit score will affect you if you are just going to work at State Farm for another agent as a team member? Does anyone know if they check all 3 credit scores? The reason I ask is I had some past due accounts but have paid them all off. My Experian report shows this but the other 2 have them still as delinquent. Thanks in advance for any help you can provide me with.

 

[DT1970]

When talking with SF, can you specifically request to be put on a wait list to take over an existing office as opposed to going scratch?

I like SF alot...but...judging by the horror stories, I have no interest in incurring high levels of debt with no personal gain competing in an area already saturated with existing SF agents.

 

[CaptiveAgent2009]

@dt1970: once you go thru the process and get to be approved, you have an opportunity to compete for the opening you want to apply for. Youll know whether it is scratch or traditional, or additional intern. the traditional ones are more competitive because people want those more for what has become obvious reasons.

 

[DT1970]

How do you compete?