OneInchPunch
New Member
I'm going through the recruiting process at State Farm to open an agency. I am told I would be an independent contractor. Can appreciate anyone's advice on going this route, especially from SF agents.
1. I'm told I need 50k accessible. I have that accessible in credit and savings but it's my understanding you are using this to invest in your own business, not as a lump sum payment to SF. The recruiter told me if my spouse can pay our household expenses, then I can reinvest money business income and using credit lines may not be needed depending on business success.
Does this sound right to you?
2. Also, does an independent contractor have the ability to adjust rates? In other words, could a new agent, charge the cheapest rates (within reason) to attract rate shoppers?
3. Do independent contractors still work within SF quotas? I keep hearing that you're an independent contractor and you operate your business independently the way you see fit, but I gotta figure you have to meet quotas?
4. The recruiter told me there are several agencies in my region where the agent is retiring or quitting and I could take over their book. One agent has been in business for 40 years. However, it was explained that I wouldn't get the whole book right off the bat, and that is delivered partially over a few years. Who services clients of the book before they are given to a new agent?
5. Are there any pitfalls I should be aware of opening a SF agency. Not talking about long hours, cold calling, training, etc as a "pitfall." I mean pitfalls in the "context" of State Farm using new agents to open the doors, committing their own resources, and then canning them, etc.
Thanks in advance for your help and advice. This is a big life changing decision and I'm trying to get as much information as possible.
1. I'm told I need 50k accessible. I have that accessible in credit and savings but it's my understanding you are using this to invest in your own business, not as a lump sum payment to SF. The recruiter told me if my spouse can pay our household expenses, then I can reinvest money business income and using credit lines may not be needed depending on business success.
Does this sound right to you?
2. Also, does an independent contractor have the ability to adjust rates? In other words, could a new agent, charge the cheapest rates (within reason) to attract rate shoppers?
3. Do independent contractors still work within SF quotas? I keep hearing that you're an independent contractor and you operate your business independently the way you see fit, but I gotta figure you have to meet quotas?
4. The recruiter told me there are several agencies in my region where the agent is retiring or quitting and I could take over their book. One agent has been in business for 40 years. However, it was explained that I wouldn't get the whole book right off the bat, and that is delivered partially over a few years. Who services clients of the book before they are given to a new agent?
5. Are there any pitfalls I should be aware of opening a SF agency. Not talking about long hours, cold calling, training, etc as a "pitfall." I mean pitfalls in the "context" of State Farm using new agents to open the doors, committing their own resources, and then canning them, etc.
Thanks in advance for your help and advice. This is a big life changing decision and I'm trying to get as much information as possible.