Becoming a State Farm Agent

To me this is the biggest thing we have lost in the last 10 yrs. Local management and agents truly were family.

Those days are long gone. Today local management is really not relevent at all in the agents life, unless you choose to play with them and there small promotions.


Sailor,

How much of the culture change is due to the changing nature of the business? Specifically, does pressure come from the managers to sell newer products like mutual funds and banking services because that is the way the industry is going and SF wants to leverage its industry-leading P&C customer base to obtain a comparable (or at least respectable) share of L&H along with mutual funds, variable annuities and other financial planning products?

Second, what is the default P&C commision rate? What level does it drop to after 2 years? What about commisions on other products? Is the TICA contract just a temporary/probationary contract? Is there a long term contract for agents who qualify? How does its terms compare to the TICA and how do you qualify for it?

Third, you say business is good, but the pay isn't. What kind of numbers for P&C, L&H, etc. equals "good" on a monthly basis?

Fourth, what kind of marketing/advertising does SF expect new agents to do and at what monthly cost? Some large numbers for debt have been thrown around, and I'm curious as to what goes into it.

Finally, SF touts its 5-year 80% retention/success rate. That is a really good number in this industry. Does it accurately reflect the turnover on the TICA 04 agents?
 
Hello,
I am new comer of your Insurance forum.I am also Life Assurance Agent in Pakistan i have the experience in this field from 08 to 09 Years i am also the Member Of MDRT last 06 Years.I have atteneded many time the meetings of MDRT and meet many members in those days but i still not know those people. After a long struggle i found this web site where i can know the members whom i will meet in my next meeting days which will held in january2009 in new york.I want to built good relation with my fellows so that we can share our ideas without any hasitation. Hope for your positive response.Thanks

Muhammad Islam Butt
Cell No;00923008711267
[email protected]

Efu Life assurance (pvt) limited
Pakistan
 
Sailor,

How much of the culture change is due to the changing nature of the business? Specifically, does pressure come from the managers to sell newer products like mutual funds and banking services because that is the way the industry is going and SF wants to leverage its industry-leading P&C customer base to obtain a comparable (or at least respectable) share of L&H along with mutual funds, variable annuities and other financial planning products?

Second, what is the default P&C commision rate? What level does it drop to after 2 years? What about commisions on other products? Is the TICA contract just a temporary/probationary contract? Is there a long term contract for agents who qualify? How does its terms compare to the TICA and how do you qualify for it?

Third, you say business is good, but the pay isn't. What kind of numbers for P&C, L&H, etc. equals "good" on a monthly basis?

Fourth, what kind of marketing/advertising does SF expect new agents to do and at what monthly cost? Some large numbers for debt have been thrown around, and I'm curious as to what goes into it.

Finally, SF touts its 5-year 80% retention/success rate. That is a really good number in this industry. Does it accurately reflect the turnover on the TICA 04 agents?


We are all aware of the changing nature of the business, that is not where we as agents are having problems. The problem is the relationship between the managers and agents. The managers used to be the Agents Ally. This is not the case any more.

I am not an expert on the new contract, as I do not have it. My understanding is that the TICA contract and the AA05 contract are the same. The company changes the bonus program at will, and this has a huge affect on the new contract.

The number of apps varies by region. In my area the top producer averages over 100 apps a month. Top new agents averaging 60 apps a month, and not making enough money due to the new contract.

Those retention numbers do not seem right to me.
 
QP,

I attempted to send you a PM but I haven't posted my required 20 posts -ridiculous!

I am going through a process similar to yours: State Farm. Word on this forum has it that SF is no longer the best opportunity.
I called around to agents with other carriers and began a process with American Family. They are fairly new to my state but seem to support new agents on many levels.
I, like yourself however, am interested in Nationwide and can't seem to find anything pertinent on their website. They have very few agents in my state and no agents in my city. I contacted a Nationwide agent a couple towns away and that's as far as I got.
Any news from you on Nationwide --or American Family, for that matter?

Thanks,
MM




The individuals that were hired as potential agents were more effective than I was. This goes without saying since I was not hired. However I have heard, from State Farm sources, that the positions were filled by State Farm employees or current Agent staff that did not have to complete many of the steps I had to. This has been verified not by the individuals that were offered the jobs but from insiders that have been reliable sources in the past.
I have 2 questions for you; 1. Do you work for or are you associated with State Farm in any way? 2. What is your location?
 
The TICA contract and the AA05/AA04 are the same compensation except the default rate for P&C is set the first 2 years the its variable after 2 yrs., and MOST agents take a pay cut after 2 years. That 80% retention IMO is on the older contracts I personally know of 4 out of 10 agents that started within 2 months of me that have left agency within the last 2 months, and that doesn't take in to consideration the ones who didn't make it in months 3 and or 11.

Your manager is NOT your ally. He/She has hard pressure on them for auto/life and loan sales and they don't care what it does to you to get it they just want it. They want it at your cost of health, financies or even your marriage. They will just plug someone else in if you fail. The bonus program has already been changed and many agents will see a significant reduction in their 09 bonus. When is this company going to figure out that all we want to do is make a good living and stop screwing us around. It is as if Tony Soprano were our Boss and every time we did well he wanted a bigger taste.


We are all aware of the changing nature of the business, that is not where we as agents are having problems. The problem is the relationship between the managers and agents. The managers used to be the Agents Ally. This is not the case any more.

I am not an expert on the new contract, as I do not have it. My understanding is that the TICA contract and the AA05 contract are the same. The company changes the bonus program at will, and this has a huge affect on the new contract.

The number of apps varies by region. In my area the top producer averages over 100 apps a month. Top new agents averaging 60 apps a month, and not making enough money due to the new contract.

Those retention numbers do not seem right to me.
 
For sure. Now he has to wait another 5 years to get out of the hole SF is going to put him in ;)
 
Just ask the State Farm guy you are working with (district manager?). This is one of the earliest things they do, so they will gladly answer the question for you, rather than anyone here guessing.

If I had to guess, I would think it will disqualify him, it will with most P&C companies, but it's a simple question to ask.

Dan
 
We are all aware of the changing nature of the business, that is not where we as agents are having problems. The problem is the relationship between the managers and agents. The managers used to be the Agents Ally. This is not the case any more.

I am not an expert on the new contract, as I do not have it. My understanding is that the TICA contract and the AA05 contract are the same. The company changes the bonus program at will, and this has a huge affect on the new contract.

The number of apps varies by region. In my area the top producer averages over 100 apps a month. Top new agents averaging 60 apps a month, and not making enough money due to the new contract.

Those retention numbers do not seem right to me.


On average, how many of those "60 apps" become policies?
 
I told him to, but i think he's hoping they won't notice (i know) so I figured I ask on here and see if anyone knows. I have a different recruiter than him so I will ask mine, but in the mean time I was just checking! Thanks

Give up on the "won't notice" part. Even if somehow State Farm misses it (which they won't), when you fill out the U-4 for the securities license you are required to report it, and FINRA will turn it down. Without a securities license, I doubt that you can get a State Farm appointment.

I believe FINRA will accept a discharged bankruptcy (not sure on this) with discharge and explanation. This will have to come from State Farm though, so I would highly suggest being open and upfront about it.

Dan
 
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