Becoming a State Farm Agent
- Thread starter shawn17ths
- Start date
rdsoxfan58
Expert
- 23
helpful post- thanks everyone
Numbers Man
New Member
- 9
Re: how many units a month is reasonable?
Here's a formula that I have found to be a good measure. An employee should be writing 1 app every 4 hours. It also takes 1 hour per year to service a policy.
So...let's say you inherit a book with 1000 auto, fire, health and life policies. It will take 1000 hours to service that or 1/2 a full time employee. If you have 2 staff and yourself, that leaves 2.5 people with 5000 more hours to sell. In those 5000 hours, you should be writing 1250 apps, or about 104 apps a month.
Now let's say you have 3000 policies in your book. This requires 1.5 employees and leaves you with 1.5 employees to sell. With those 3000 hours, you should be able to knock out 750 polices or around 60 a month.
This post pretty much explains why agencies stop growing. The guy with 3000 policies should be hiring another employee to get back up to 100 apps a month! Many agents run out of office space, don't want to invest in payroll, etc. etc. and stop growing due to stunting their own growth. Every time I lose an employee, I simply hire two and this keeps me on track.
Here's a formula that I have found to be a good measure. An employee should be writing 1 app every 4 hours. It also takes 1 hour per year to service a policy.
So...let's say you inherit a book with 1000 auto, fire, health and life policies. It will take 1000 hours to service that or 1/2 a full time employee. If you have 2 staff and yourself, that leaves 2.5 people with 5000 more hours to sell. In those 5000 hours, you should be writing 1250 apps, or about 104 apps a month.
Now let's say you have 3000 policies in your book. This requires 1.5 employees and leaves you with 1.5 employees to sell. With those 3000 hours, you should be able to knock out 750 polices or around 60 a month.
This post pretty much explains why agencies stop growing. The guy with 3000 policies should be hiring another employee to get back up to 100 apps a month! Many agents run out of office space, don't want to invest in payroll, etc. etc. and stop growing due to stunting their own growth. Every time I lose an employee, I simply hire two and this keeps me on track.
My father was the first State Farm agent back in 1970, at that time someone knocked on his door and said, "would you like to be a State Farm agent?" A few years later he got his brother in, now my family currently owns and operates 6 State Farm offices in the chicago land area (my father passed in 05' which would have made it 7). I will be opening my own office in the next year or so. The bottom line is, I am very familiar with the process, opportunity, and products...and oh yeah, how much money you can make as an agent. I have famliy members who make anywhere from $150K (new agents) a year to $950k a year (seasoned agents), so anything is possible, but you will have to work hard to do it! It's not easy or cheap to start an office! Please feel free to message me if you have any specific questions, but your on the right track, State Farm is a great opportunity!
In our office, each salesman is expected to produce 50 apps a month per person, with 7-10 life insurance policies mixed in there. The 50 apps a month is not so hard, but getting the 10 life can be challenging. So you do the math. How many people would you need to hire to reach your sales goals.
If you can't believe right now that one person can do 50 a month (which they can), then set your goal at 35 apps a month per person. But anything lower is unacceptable. I hope this helps to give you more perspective on what's possible.
Oh yeah, just to through it out there, I have friends in other agency that do 80-100 policies a month per person. One guy i know just had a guy do 80 apps in one month part time, and he didn't even live in the state he sold insurance in, he did it over the phone using VoiP. Anything is possible, don't set your goals too low.
50 apps a month? Anything is possible, but at some point, stop and ask yourself whether its the right thing to do.
50 apps of monoline liability only auto is a waste of time. I'd rather have 5 good households that are well rounded accounts, even though it might only be 20 policies.
I guess it depends what the agency goals are. Once upon a time, I was only after total policy count myself. I get that.
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1 hour per year to service, 4 hours to sell a policy. I like this and did some rough math. It seems reasonable for most personal lines stuff. Obviously, commercial doesn't approach this, but thats understandable.
I'm going to have to drive the numbers a bit and see if it can help keep things focused.
Dan
50 apps of monoline liability only auto is a waste of time. I'd rather have 5 good households that are well rounded accounts, even though it might only be 20 policies.
I guess it depends what the agency goals are. Once upon a time, I was only after total policy count myself. I get that.
----
1 hour per year to service, 4 hours to sell a policy. I like this and did some rough math. It seems reasonable for most personal lines stuff. Obviously, commercial doesn't approach this, but thats understandable.
I'm going to have to drive the numbers a bit and see if it can help keep things focused.
Dan
Numbers Man
New Member
- 9
Those apps per month include added cars to housholds and rewriting homeowners who buy different houses.
- 558
Here's a link at WikiAnswers with replies that different people posted in reply to that question. Interesting posts that they made. I wasn't expecting to see the kind of replies I saw there.
WikiAnswers - How much does an state farm agent
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