My name is Matt, and I'm looking at jumping into the world of insurance. I have an entrepreneurial spirit, I'm willing to learn, and I feel that I could make a good career out of this. I live in California (Sacramento area) and I just had an interview with Farmers Insurance. So, I have a couple of questions...
Is Farmers a good way to get my foot in the door? I'm not set on anyone as of now and am going to check out other companies. It sounds like they'll help me get started with training to get my licensing and start selling for the first couple years, then I'm on my own. Should I go about getting my licensing on my own, or would this be a better way to do it? Sounds like I'll need to be working my full time job in the meantime while training with Farmers if I go that way. That brings me to my next couple of questions. How reallistic is it for people becoming agents to be working a full time job then training/selling on the side? How long does it typically take? I mean I could do long hours for quite some time, but I feel like I'll get burnt out and want to do something else. I'd love to find somewhere (probably a pipe dream) that would have a base pay, and I could bust my ass and go head first into it and prove myself. Is there such a company or possibility of going about it that way or any way similar?
If anyone has any pointers, helpful hints, or advice, I'm all ears. I really feel that I could be great at selling insurance, and I want to go about it the most realistic way without me having to litterally drive myself into the ground and kill myself. (well, maybe not literally)
All of the Farmers training comes from the District Manager you are hired by. Most of them will not spend much time with you. State Farm will offer superior training and support. Look at most of the S.F. agents most of the books are very large. If you are looking to write personal lines, what you are looking at is fine, although there are many commercial brokerages looking for new agent. Commercial is a different animal, but big commissions. Choose the product line, then choose the training path.
Also, with Farmers you will have to get your 6 & 63.
The Series 6 & 63 are the securities licensed required to sell variable annuities, variable life insurance, mutual funds, etc. These licenses make you a Registered Rep and subject to regulation by the Financial Industry Regulatory Authority (FINRA), is the largest non-governmental regulator for all securities firms doing business in the United States formerly known as the NASD.
I have worked for State Farm (as a team member) and now starting my adventure with Farmers Insurance. Farmers is alot different than State Farm. I went through the series of interviews for State Farms Agency Program, but I did not like that I might set as a Agent In Training for a while before finally finding the right place. State Farm has a great opportunity, but it may require you moving. Farmers offers a little different of an opportunity. Farmers opportunity seems more like going independent, but having a single company to represent. Again, Farmers opportunity is a captive opportunity, but will not offer the level of support of that of State Farm. Why? At the end of your adventure with State Farm another agent will take over your book of business. The Good News? You start off with a nice commission coming in. The Bad News? Your kid will not be able to take over "the family" business after you retire. Farmers offers the opportunity for the family to take over after retirement. This was one plus for me. Going independent would be amazing, but you must be financially stable to afford it. Insurance is in no way a get rich quick scheme. Farmers offers the opportunity to use their money to get started. The issue with this is that if you do not meet their goals, than they will ask for this money back. If you do continue to meet their goals you are fine. It's all about you. If you are willing to work as many hours as needed to meet these goals go to farmers. If you are looking for good money over the next 30 years, and not worried about it after you retire, State Farm is there for you.
I interviewed with farmers locally and did get a good feeling about the training. I went to work for an independent and have got alot of hands on training. Not saying it is a bad company, just maybe a the local management staff
Farmers is a great company but depending on where you plan on starting it can be an uphill battle. In Vegas their auto/home rates are very off right now. They only want the best possible customers and will not help anyone under that. State Farm is the same way but much more stable system. Farmers is coming out with a new product between november and january called farmers 2.0 which is supposed to completely change the way they do business. Farmers will buy you out (your book of business) if you want to leave after a few years or transfer it to a family member. Only other advice is to stay away from subsidy (its only a loan that needs to be paid back one way or another.)
I worked as a farmers producer for many years and recently opened up my own indpendant agency.
I am currently going through the program. What did you think of the company overall? The subsidy is nice to start off on considering it's hard to even get a small business start up loan. My understanding is that you get to keep all the subsidy money if you meet all of your goals in the first five years? I am currently in Ohio, where I have found that rates are current ok, much like Grange and State Farm. I just actually graduated college and am working toward a Masters degree, and found it almost impossible to afford being independent. I worked for State Farm as a team member, and wasn't impressed with their company overall. I am not taking anything away from State Farm, other than it wasn't a true fit for me. Also, what all do you know about this 2.0?
I have worked for State Farm (as a team member) and now starting my adventure with Farmers Insurance. Farmers is alot different than State Farm. I went through the series of interviews for State Farms Agency Program, but I did not like that I might set as a Agent In Training for a while before finally finding the right place. State Farm has a great opportunity, but it may require you moving. Farmers offers a little different of an opportunity. Farmers opportunity seems more like going independent, but having a single company to represent. Again, Farmers opportunity is a captive opportunity, but will not offer the level of support of that of State Farm. Why? At the end of your adventure with State Farm another agent will take over your book of business. The Good News? You start off with a nice commission coming in. The Bad News? Your kid will not be able to take over "the family" business after you retire. Farmers offers the opportunity for the family to take over after retirement. This was one plus for me. Going independent would be amazing, but you must be financially stable to afford it. Insurance is in no way a get rich quick scheme. Farmers offers the opportunity to use their money to get started. The issue with this is that if you do not meet their goals, than they will ask for this money back. If you do continue to meet their goals you are fine. It's all about you. If you are willing to work as many hours as needed to meet these goals go to farmers. If you are looking for good money over the next 30 years, and not worried about it after you retire, State Farm is there for you.
I am also a current team member at State Farm and just signed my Reserve contract with Farmers. Just curious, Cahall, what advice you have for me since you have been in the exact seat I am sitting in...
You guys have the best comments and advices on board. I am currently taken Farmers Reserve Training too. I feel that Farmers will drop you at any time if you dont meet their sale goal.
AgentJaf,
The best advice I can give you is to stay strong and work hard. State Farm is totally different than Farmers. For one Farmers has an up to date quoting system (I wasn't much on NECHO). Along with that I can also tell you that this is a whole different experience. I read all the bad things on here, and even looked other places, but overall Farmers is a great company and offers alot of support. If you need anything message me. I am currently in my 2nd week of training and it's truely amazing. Jaf I wish you the best of luck.
This is my last month to end my 2 yrs career program with Farmers. It has been tough because we have to meet all the requirements in order to stay in the program. I saw many people drop out from the program during these 2 yrs. But it's a wonderful journey for me, because the company and district manager provided me training and support to grow my business. For all the new agents, you have to expect to work very hard for the first 2 yrs. Good luck all!
I am definitely not afraid to work hard. I have a lot of experience in the insurance industry working for both an independent agency and State Farm. I am excited to begin the journey on my own and own my own business! I know it's going to be challenging but I think the efforts will be rewarded down the road.
I've been w/Farmers 15+ years. The new contract is quite different from older contracts so read it carefully to make sure you can live with the terms. You cannot broker outside business which will hurt you, you have a limited appetite with Farmers especially on commercial business which is where the money is. Times are changing and there are plenty of unhappy captive agents with every company. We are overrun with agents in a small town so competitive is an understatement, we are all fighting over the same prospects.
Once you sign up and begin building your book of business you are stuck so make sure you are where you want to be. Check out your District Manager, if they are good they are good, if they are lazy, then they are a death sentence just trying to reach their own quota. They can help or hurt you and many don't care which it is, they care about meeting their goals and their income only.
Can you office for free for a year or two at the Dist Ofc? Do they really have a good training program and work it? Do they have adequate support staff to help you when you need it? All critical for your chances to succeed.
If I had it to do over I am not sure I wouldn't start out as an independent but who knows, it's easy to say what you might have done, doesn't mean it would have worked out better. The only thing I am not to happy about is that the agents are responsible for 90% of the customer service which eats our time which we should be using to sell new accounts. The more service work there is the more employees you have to have which drives up your overhead costs. If I were you I might consider going on as someone's Agency Producer. If you can get a 50/50 split you will be way ahead in the long run. No overhead, no headaches, no quota, which means you could actually take a day off now and then. After 15 years I'd glued to the office, rarely take a day off, and have staffing headaches that won't end. I would love to get to keep 50 cents on every commission dollar I earn, in reality it just doesn't happen.
Fifteen years into it, I'd probably do the same thing again just as I did. I went with Farmers because you can hand the business down to family when you get ready to retire, you cannot with Allstate or State Farm. Is it hard, you better believe it is, but what isn't that is worthwhile. We have had agents go independent and closed shop after a couple of years. It is extremely difficult to get a contract with a standard market carrier unless you can promise and deliver extremely high volume and when you consider that each carrier will have their appetite to satisfy you can't put everything with one carrier, they just dont' all want it all.
I can tell you that Farmers does have it's issues but talk to any State Farm, Allstate, Nationwide or other captive agent and there are issues with them all. I know that shortly after I got into the business I was grossing a 6 figure income and while I am in the top 20 percent in my District, I'm not at the top so you can imagine what the top agents are bringing home. Where else can you expect to make that kind of money and have some control over your environment? Definitely not in corporate America that I know of.
If you know up front that you will have to work your tail off and then do it, you will make good money. Will you have stress, sure - that's part of being a good agent who can produce. If you can succeed you shouldn't have to worry about the quota, if you can't meet quota you can't earn enough to pay your bills and overhead anyway. Make sure you have family support so they will understand why you can't pick up and leave the office at 5:00 every day. They will enjoy the rewards, the money, the trips, etc. when they come, and they will come.
Just make sure you sign up with a great DM, there are a lot of lazy DM's with an attitude, they could care less if you make it or don't. Then get out on your own as soon as you can and get off his skirt tail.
Two very good perspectives from long time Farmers agents. Thanks so much for your input. It's hard to know if you are making the right decision, but I guess you sometimes have to take chances in life, work your butt off and do the best you can. What will be will be.
As TXA said, there are pros and cons with any company- direct writer or independent- I have worked for both and know what to expect, or at least I hope.
Interview with Farmers
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