How Much Money is Needed to Start a State Farm Agency?

[Josh]

Josh,
What I love about P&C is the renewal wheel. If you build your book right, it gets bigger & bigger. Whereas Life is one hit up front & very small tails for commissions after that.

So each year in a Life agency, you have to start over from almost Zero, whereas a P&C book, if you do it like I did in KY & TN, after about 36 months, your renewal commissions are averaging around $20,000 a Month! So, give me the P&C model any day!

They're definitely different models. There is also a LOT more service and commitment on a property and casualty book. The renewals come at a price.

 

[The Colonel]

Ask a local agent that started in the past few years.

 

[tikibarrister]

They have a long list of agents waiting for openings.

SF will give an agency to whoever will write them a check. The long list are just people who can’t write the check.

Show SF your money and you’ll move right to the front of the line because selling agencies is SF’s primary line of business.

 

[Markthebroker]

In my area a successful SF agent will be about $100k in debt after two years. That's a successful one.

Keep in mind, that's $100k, (best care scenario) and they don't actually own anything. You miss quota's, get a rate increase, etc., bye bye investment.