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Reply to Becoming a State Farm Agent     
Old 05-19-2008, 08:58 AM   #21
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Becoming a State Farm Agent Re: Becoming a State Farm Agent
Originally Posted by Recruiter1 View Post
Agree with information above. It is pretty accurate, however, the signing bonuses are only a minimum of 18k. It depends on the market area. Also some areas get supplimental marketing bonuses.

Some people may also not realize that SF will also pay/license/ and train two of the Agent's staff prior to the Agency opening.

To answer a few questions above. SF does require Series 6 and 63 as well. (They do pay for the licensing though).

All in all, State Farm does screen very much, but that's to keep the turnover rate low.
How is the negotiating process coming along? Are you able to get a larger book and sign on based on negotiating skill or is it all predetermined? I have been led to beleive that it is predetermined (for the most part). Of course that's what they want you to think coming in, but what has been your experience?

Also, how did your initial panel interview to become an approved candidate go?
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Old 05-19-2008, 09:34 AM   #22
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Becoming a State Farm Agent Re: Becoming a State Farm Agent
market penetration? There are so many state farm agents around here, literally one every half mile or mile or so, in south Austin, I have no clue how they could each have 3 mil on the books. They are not as bad as farmers, though. farmers could have two different agencies in the same strip center around here, then have one more on the next block!!! there's a street in waco with one on every corner for a mile or two!
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Old 05-19-2008, 10:48 AM   #23
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Becoming a State Farm Agent Re: Becoming a State Farm Agent
Originally Posted by aspiringwealth View Post
Wow, those execs are definitely getting paid!

Although, the Execs get paid well by everyday standards, they are overwhelmingly underpaid when compared to other Fortune 50 companies. State Farm is ranked 31, yet the Execs are paid at about a 200 rank level. Alot has to do with the company being the largest mutual company rather than a pubicly traded company.
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Old 05-22-2008, 03:47 PM   #24
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Becoming a State Farm Agent Re: Becoming a State Farm Agent
I am an agent with SF and I would not let a member of my family become an agent at this time.

The new contracts are very restrictive, you are an employee, for all practical purposes. They can change the bonus requirements at any time.

Do yourself a favor talk to some new trainees, and ask them how many have debts now of over 70k.
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Old 05-22-2008, 07:36 PM   #25
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Becoming a State Farm Agent Re: Becoming a State Farm Agent
I am in IN. Yes the bonus requirements can change at any time. and your contract will read that you can be fired at any time without cause.

I personally know 2 agents 70-100k in debt. Talk to Tica's in your area. Talk to 5 or more. All the DAFO is going to care about is the amount of financial services you sell. The pressure they use only breeds unethical, non compliant behavior. A better measure in my opinion would be how many IFR's you are having, and how well you cross sell. Not how many life and mutual funds you and sell.

They are jamming agents in left and right here and dont care if some fail. Some wont. Some of these agencies have had 3-4 different agents in 5 years. Once a trainee gets in the policyholders are ticked and want to move to an established agent. Cant blame them.

Personally my wife is looking to open an independent agency. She is the owner and will hire licensed producers. She will actually own the business, and can market as she pleases. No games to play with scorecards etc. You sell, you get paid. Simple.

Again, talk long and hard to the new guys in your area. Ones that have made through in the last 2 years. They can talk freely.
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Old 05-23-2008, 09:10 AM   #26
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Becoming a State Farm Agent Re: Becoming a State Farm Agent
First of all I do not work for State Farm. I am an Approved Candidate. I have been through several interviews and each time the agent hired was either someone inside the company who was not required to go through all the steps that I took or they had an inside track to the job. In other words they knew someone or something. I, on the other hand, do not have an inside contact that is pulling for me. I do have over 12 years of owning my own business, not insurance but financial related, along with the financial resources to invest. Not good enough. It seems to me that the most important thing leading to a job with SF is knowing someone or something. Not how good your business plan is or how much money you have or what your existing business reputation is. None of this seems to matter.
Concerning the debt that Sailor mentioned, I have found out that many agents are in a lot of debt. I heard of a least one bright eyed potential agent who was over $100,000 in debt after his TICA year and was terminated.
The only way to avoid at least $75,000.00 in debt is to receive an assignment of at least 1500 autos and 1000 h/o. More than likely that size of book would be split between 2 new agents and you would receive PBP money for obtaining sales goals. Even with this size book, the marketing plan or formula that they want you to follow will still put you at least $30-50k in debt or out of pocket depending on the market you are in. Expect no pay for at least 2 maybe 3 years.
SF seems to be a good opportunity from the surface. But once you start really asking the right questions and inquiring further you may found out, like I did, that it is not the golden opportunity that the recruiters are selling. Maybe at one time it was but with the changes in the contract it appears to have become less coveted. If it is as great as they make it sound then why do they spend so much money trying to get agents?
I have only given my opinion and yes I have spoken, interviewed or had lunch with at least; 8 agents, 5 AFE's or AFC's, and gent office staff.
Remember this is a business they want you to invest in not a job.
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Last edited by STIBROKER; 03-01-2011 at 07:30 PM.
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Old 05-23-2008, 09:19 AM   #27
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Becoming a State Farm Agent Re: Becoming a State Farm Agent
What is the purpose of the debt? Is this just for office furnishings, rent, and phone systems? Or is this for advertising, salaries, and other expenses?

Just curious. I didn't ever get far enough in my interviews with them to discuss this part.

Dan
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Old 05-23-2008, 12:06 PM   #28
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Becoming a State Farm Agent Re: Becoming a State Farm Agent
From what I have been able to discern the debt comes from many of the things that are considered cost of doing business, such as rent, salaries, outfitting your office, phone systems, etc. But the biggest part is in the marketing and advertising. SF really spends a lot as a company and they want the agent to do a lot of advertising.
Again the debt is dependant upon the book size. Many agents take an office in a New Market and those expenses I mentioned are more of a reality since you have no commissions what so ever to offset them.
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Old 05-23-2008, 01:03 PM   #29
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Becoming a State Farm Agent Re: Becoming a State Farm Agent
Originally Posted by Quarter Pounder View Post
First of all I do not work for State Farm. I am an Approved Candidate. I have been through several interviews and each time the agent hired was either someone inside the company who was not required to go through all the steps that I took or they had an inside track to the job. In other words they knew someone or something. I, on the other hand, do not have an inside contact that is pulling for me. I do have over 12 years of owning my own business, not insurance but financial related, along with the financial resources to invest. Not good enough. It seems to me that the most important thing leading to a job with SF is knowing someone or something. Not how good your business plan is or how much money you have or what your existing business reputation is. None of this seems to matter.
Concerning the debt that Sailor mentioned, I have found out that many agents are in a lot of debt. I heard of a least one bright eyed potential agent who was over $100,000 in debt after his TICA year and was terminated.
The only way to avoid at least $75,000.00 in debt is to receive an assignment of at least 1500 autos and 1000 h/o. More than likely that size of book would be split between 2 new agents and you would receive PBP money for obtaining sales goals. Even with this size book, the marketing plan or formula that they want you to follow will still put you at least $30-50k in debt or out of pocket depending on the market you are in. Expect no pay for at least 2 maybe 3 years.
SF seems to be a good opportunity from the surface. But once you start really asking the right questions and inquiring further you may found out, like I did, that it is not the golden opportunity that the recruiters are selling. Maybe at one time it was but with the changes in the contract it appears to have become less coveted. If it is as great as they make it sound then why do they spend so much money trying to get agents?
I have only given my opinion and yes I have spoken, interviewed or had lunch with at least; 8 agents, 5 AFE's or AFC's, and gent office staff.
Remember this is a business they want you to invest in not a job.
Great information. I advise anyone considering State Farm to read this.
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Old 05-23-2008, 07:57 PM   #30
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Becoming a State Farm Agent Re: Becoming a State Farm Agent
I have a SF recruiter calling frequently, inviting me to group lunches for recruits. Makes you wonder, if it's such a great opportunity, why do they have to sell it so hard?
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