State Farm Vs Edward Jones

[Freddyboy]

Hello all:

I am new to this forum. It has been a tremendous research tool for me. I've been lurking around for a few months.

Where to begin.

I have a pretty good job making $60,000 yr base salary plus around 10K in annual bonuses plus decent bennies working 40 to 50 hours per week in medical equipment sales. My bonuses are capped at $20,000.
So, I've been looking for an opportunity to do better than that.
I had been considering State Farm, and I am still scheduled for the structured interview within the next few months. Reading the experiences of others is certainly sobering, so I have begun to re evaluate my options. I am simply not sure if I am prepared for the level of risk. Other than my mortgage, and one $200 month car payment, I have no debt and pretty good credit, plus 10k cash for the biz. My wife is a teacher and makes 45k per year.

Enter Edward Jones. I know it's not "insurance" but perhaps some of you might have had some experience with this company.
They pay the bills, the assistant and office expenses. You don't own the book, but you can buy into the firm. Of course, there is risk involved, especially with the volatile market and economy.
Can anybody give any insight of the opportunity?

Thanks in advance.

 

[chastain77]

I personally turned down an offer from EJ for a couple reasons. They of course want you knocking on doors and making 125 quality contacts per week. That wasn't too big of a deal because most sales jobs especially in insurance require cold calling and prospecting. The biggest factor for me though was that you could potentially be knocking on doors for 5-10 years before you can stop and live comfortably. They only pay commisions on new business so it doesn't matter how many clients you landed last week/year. I personally would rather get a job in insurance where you are getting residuals off renewals so after a few years hopefully you will have a nice book of renewals to help out. Thats just my $.02.

 

[patch36]

It will be several years before you net what you do now, and that is assuming you are not one of the large percentage that washes out with a debt to the companies: either SF or EJ.

If your job is solid you may want to ease into the insurance business.

 

[Mark]

Welcome to the forum!

 

[blackhammockcat]

I have taken a good look at both opportunities and have remained an independent life and health producer. I am still in the approved candidate pool with State Farm. However, I am very content with what I am doing. There is just too much freedom and reward to give up for me.

 

[CHUMPS FROM OXFORD]

Freddy...for unbiased advice, feel free to call or email.

Long-term...EJ is not the answer. ST...tough call.

 

[Freddyboy]

Thank you to those who have responded. The tidbits are quite helpful and your insight is appreciated.

Chumps, how do I get in touch with you? Through the linked website?

Patch: Yes, my job is solid, so I could "ease" into the biz. My clients in my current job are all professionals: MD's, Social Workers, Nurses, etc. They have money, and families and businesses to protect, so I see lots of potential.

Would you guys agree that Life and Health Sales is the best way to "ease" into the ins. biz?

Thanks again.

 

[patch36]

Great point and advice greenman and echo's what I was getting ready to post.

Also, your credibility as a part timer is not the same as if you make a full time commitment. My point about easing into it aside, I was insinuating that you have a decent job right now and to jump both feet into a commission only position may be more of a shock than you realize. It also may not be as quick and easy as most would assume. There may be a lot of potential, but it develops slowly. This business is about trust, and that takes time, even in an established relationship.

 

[Freddyboy]

Patch and greenman:

That's the type of advice I'm looking for. Plain talk and reality.

I have very good relationships with a good number of my client base. I have asked some of them if they would support me in future insurance ventures, and received a very favorable response. Naturally, as a sales rep one always thinks that we can leverage current relationships for profit.
And I couldn't agree more that credibility in sales is priority.
But I live grounded on planet earth, not in la-la land, so a dose of reality is good.

And certainly, it is true that everyone wants a piece of these folks' pie.

So, bottom line, starting out slowly making a sale here and there and gradually building a client base and industry credibility might be a good way to go. Would you guys agree with that?

 

[LGilmore]

Also try to think that these people in your "current market" might already be set up quite well and not need your services in an insurance or financial arena.

I would be surprised if more than 10% would need a product from you. Because honestly, if all of them didn't have stuff in place right now, that would be a pretty dumb crowd.

The other thing to think about is the profession you're considering requires Malpractice insurance. There's a reason for that. You are legally responsible for your financial advice once you license.

And finally, you would be going from selling "things" to selling "concepts". Alot of folks who are great salesmen of things, struggle when they have to sell ideas.