Becoming a State Farm Agent

[Peter Ryan]

I guess you need to be clear on what you want out of your insurance career.

DO you want to be a 'company man' and be under the thumb of a large corp for the rest of your life?

The biggest drawback to the Farm is that your not really building any equity, and you are still under their jurisdiction if they decide they don't like you, etc. They CAN fire you, you don't own your agency.

On the flip side owning an independent agency can be great, for all the reasons mentioned above, but there is more risk, more stress, and it's tough to get markets.

So, I think an important question to ask is "where do I want to be in 10 years?" believe me, starting out and then deciding to change course after 5 or 10 is a major, major pain in the neck.

Peter

"Cold Calling Sucks"

 

[Zachery]

i took the test to become a State Farm agent, got accepted, was going to start their training program...

but then I spoke to a good friend of mine and he encouraged me NOT to do it.

Sure if you work their system and play with their balls and bats, then yes, I imagine you can make money.

However I wouldn't want to deal with all the red tape.

Matter of fact I just called my friends office and I spoke to his secretary and she told me that she feels that at times he thinks he made a mistake.

I am sure it can go both ways. Do you want to work for a large company that has a little more red tape or do you want to work as an independent? I would look at my skill set and my risk tolerance level and go from there.

Zach

 

[wornout]

My husband is a TICA scratch agent for over two years. We never were offered a loan at the start, and there was no salary paid for my husband for a year, he had only a few months of training. SF didn't license our employees. When did that start? I guess our timing was really off.

As a scratch agent it difficult to staff -- no advice on how to find people...just spend more money on Monster. The financial promises made by SF fall very short. Their business model in recruiting agents is off the mark considerably. We are very much in debt and the afo does nothing to offer support but threaten to let us go. Its a big secret on the forumula to get your permanent contract. It seems to be at the whim of the AFE.

Never a word of encouragement or advice...just sell more life and bank products!!! You could add a 1000 car to your book in a month, but you will still be hassled to sell the products older agents refuse to sell -- loans and bank products. No tools or resources to make it happen, just continued threats.
Other TICAS are in the same boat. A friend is a TICA in another state and its the same story. Business is good, its the pay that stinks! The debt comes from marketing and paying salaries, we don't pay ourselves --still! We are not giving up, we hope state farm makes good on their promise and we start reaping the rewards on our hardwork.

 

[chp]

Wow, what different views on SF. I am considering it, but based on what has been said here I am not so sure? I am going to go through the interview process, just to learn more, but will have serious questions before I would jump in.

 

[Sailor]

Wornout,

I feel for you. I have seen the same thing over and over again. Your story is why I currently tell people to look at other options.

 

[Hope]

Wow, Sailor have you had any good experince with SF? I know 4 STA's and a few that went to management one happens to be my best friend and they have nothing but good things to say. Sure they worked hard in the begining but it is all paying off now. I am also going through the process and my eyes are wide open. I'm in an area of sales that is not very stable right now (Real Estate) and I know there are risk but when you do any type of sales it's always about the numbers.

 

[Sailor]

My negativity is directed at the recruiting process, and the relationship between management and the agents.

SF has been fantastic to my family. I am very fortunate. I have no debts, and have the freedom to spend time with my young children. The agents, claims and underwriting partners are fantastic.

My beef is with the treatment of the new tica agents. It is not ethical in my opinion.

Good luck to you. Use your real estate contacts to write HO's. We have had good luck, getting referrals from mort brokers/realtors by getting dec pages to them asap, and giving $10 gas cards for their referral. Also the Phoenix first to die policy is very competitive (at least in my area) to cover the mortgage.

 

[SF Opp]

Does anyone have a Business plan that I can look at and get ideas from?

 

[patch36]

I ran into all of the above and more as a Captive Farmers Agent. I looked at the Allstate process and it is the same. It is really difficult to make a living with any of these programs for the first 5 years. At that point your renewals are paying your expenses, but you still have to hustle the financial and life to make a good living.

I hit all my numbers, won the plaques and awards and even then decided it was too long a road to travel. I was never told the whole truth and a lot of things were brushed over or not mentioned at all. They have tightened the programs so much it is nearly impossible to make it.

The most useless person in the Farmers organization? The District Manager.

 

[AgentZ]

They say you should hear it from someone that has actually been there. Then that is me . I was a TICA & I did earn my contract. What has been said is true. This AA05 contract has ruined lives, it has caused divorce and bankruptcies. I know an agent that started around the time I did and he is leaving agency after 3 years of trying to break even. You WILL go $100,000+ in debt with an average book much less one of less than 1000 cars. They will show you template of what you are supposed to make, but you won't come close to that. I know of TICA that were in the top 20 in the nation that didn't make that so what about the other 800-900? I easily got my contract, it was never in question.

Most of the money is spent on payroll and marketing. In the past with these books of business they would have let you have 2 staff. Now they "suggest" you have 3 full time and a one or two part time "team members". My payroll was over 65% of my gross my 1st year. Show me a business model that shows that will work. If you don't sell enough the first year be prepared to hear you won't get your contract. I personally know of an agent that was almost on time to travel & they told him in month 11 that he was NOT getting his contract. He had borrowed over $50,000 and had a multi year lease.

The contract is very ambiguous & the CO. can basically change it at anytime. They are not sending prospective agents to agents that have been around over 3 years that started as TICA's. Go see like was said 5 of them before you make this mistake. If you are willing to go for it then have NO debt going in a spouse that makes more than what you need to live on. Think twice and think again.

Now then you may ask about me? Finally after all this time I have started to make progress on my debt so for me its worth it to stay. There are some benefits but you ask me if I would do it all again with my knowledge and I would say "absolutely NOT"

My negativity is directed at the recruiting process, and the relationship between management and the agents.

SF has been fantastic to my family. I am very fortunate. I have no debts, and have the freedom to spend time with my young children. The agents, claims and underwriting partners are fantastic.

My beef is with the treatment of the new tica agents. It is not ethical in my opinion.

Good luck to you. Use your real estate contacts to write HO's. We have had good luck, getting referrals from mort brokers/realtors by getting dec pages to them asap, and giving $10 gas cards for their referral. Also the Phoenix first to die policy is very competitive (at least in my area) to cover the mortgage.