State Farm VS. American Family

[BrendanF]

I am contemplating taking a position with either State Farm, or American Family. I have spoke with both and as far as pay goes they are going to be offering about the same commission splits/ base ect.

My question is for you guys with more experience then me, which is a better agency to work for?

 

[moonlightandmargaritas]

My question is for you guys with more experience then me, which is a better agency to work for?

State Farm is the major leagues. American Family is Triple A.

 

[shawnmwalker]

Going Independent is the Major leagues! Everything else is temporary.

Is it where you are at (captive) or what you are doing (Insurance) that you don't like.

 

[AgentProvocateur]

Brendan,

I checked out your posting history, to get a better understanding for what you're doing. I assume these are producer positions at an agency?

With State Farm, you'll be pursuing preferred business, which will make it harder to qualify prospects. You'll also be expected to sell banking products, in addition to P&C, & L&H, if you are licensed.

American Family will be more about auto & home insurance, and you'll be able to sell nonstandard auto, if the agent hiring you wants you to sell it.

The big difference you should be considering is in the agencies, not the companies. Ask the agency owners and yourself these questions:

What specifically will you be doing at each agency, and how will the agent set you up to succeed? How much service work is expected of you? Does the agent have more than two years experience running the agency ? What type of training will you get? How will you market? That is, will the agent provide Internet leads, or will you be primarily cross-selling, or will you be cold calling 8 hours a day? What happened to each agency's last producer they hired, and how long did the producer work there?

You've been working with an independent broker. What were the challenges to selling there, and how will either of these jobs be a better choice for sales success?

 

[BrendanF]

Brendan,

I checked out your posting history, to get a better understanding for what you're doing. I assume these are producer positions at an agency?

With State Farm, you'll be pursuing preferred business, which will make it harder to qualify prospects. You'll also be expected to sell banking products, in addition to P&C, & L&H, if you are licensed.

American Family will be more about auto & home insurance, and you'll be able to sell nonstandard auto, if the agent hiring you wants you to sell it.

The big difference you should be considering is in the agencies, not the companies. Ask the agency owners and yourself these questions:

What specifically will you be doing at each agency, and how will the agent set you up to succeed? How much service work is expected of you? Does the agent have more than two years experience running the agency ? What type of training will you get? How will you market? That is, will the agent provide Internet leads, or will you be primarily cross-selling, or will you be cold calling 8 hours a day? What happened to each agency's last producer they hired, and how long did the producer work there?

You've been working with an independent broker. What were the challenges to selling there, and how will either of these jobs be a better choice for sales success?

I am currently at an independent broker and I really like it. I like working with people and selling a product at the end of the day protects people and there families.

I got licensed in January, and so far I have been doing pretty good. I haven't yet hit 25K a month in premium but I am getting closer and closer every month. The issue is I am 100% commission here. I am making $800-$1500 a month from commission. I see the value in working here, next year with residuals would be awesome.

My mother has had some complications with her health and is going into assisted living, I am only 20 years old and was living with her/helping her with everything around the house. I need to move out and get some things tied up.

With that being said, both American family and state farm are offering what would be about $2000 a month salary and then maybe a few hundred dollars for commissions. Both agency owners are willing to supply leads, possibly pay more commissions as I hit goals, both are rather new agents. AmFam has been in the insurance industry for 10 years was Indy then went to captive.

The state farm guy worked at state farm and just ended up becoming an agent.

I am still in the first steps of my career, I am not saying that I want to open my own agency up and just think everything is going to fall into place. I am willing to work for it, I just want to be working in the best place for my current situation.

I don't have family or friends that would be able to answer these questions for me so I do greatly appreciate everybody's input.

 

[AgentProvocateur]

I'm sorry about the situation with your Mom's health, Brendan. I hate to see you give up your current job, which I think has better potential for you long term, because of your short term need for steady income.

If you can get by on $2,000 a month, can you find part time work to supplement your current commissions? Can you put in more hours to close more sales? If you are establishing rapport with your customers, maybe you should get life licensed, and x-sell term with your P&C sales, which pays a larger first year commission. I guess your decision depends a lot on how immediate your need for money is.

I know you need a guaranteed paycheck, but that's a small guaranteed paycheck, for a job that's not likely to have a future for you.

As a broker, you have more options. You'll find sales harder at AmFam or SF, and they may not have competitive rates for many prospects. Unless the agent needs you for service, they may be quick to fire you. Many captive agents churn and burn producers & staff. If you sell a lot, you're not likely to make much money for your efforts. You don't usually find producers staying long at captive agencies. You're giving up the start of a potentially lucrative career, for which at best, will be a mediocre paying job.

Right now, you are building something, and it would suck for you to give it up for a job with nowhere near the same income potential. Starting again independent in a couple of years, will still be rough going financially, so it would be great if you can find a way to stick with what you are doing now, until renewals kick in, and income improves. It'll be just as tough, if you try to go independent in future.

 

[BrendanF]

I am just going to keep working as hard as I can, and stay as positive as I can. I appreciate everybody's input and opinions. Thank you!

 

[xrac]

I am currently at an independent broker and I really like it. I like working with people and selling a product at the end of the day protects people and there families.

I got licensed in January, and so far I have been doing pretty good. I haven't yet hit 25K a month in premium but I am getting closer and closer every month. The issue is I am 100% commission here. I am making $800-$1500 a month from commission. I see the value in working here, next year with residuals would be awesome.

My mother has had some complications with her health and is going into assisted living, I am only 20 years old and was living with her/helping her with everything around the house. I need to move out and get some things tied up.

With that being said, both American family and state farm are offering what would be about $2000 a month salary and then maybe a few hundred dollars for commissions. Both agency owners are willing to supply leads, possibly pay more commissions as I hit goals, both are rather new agents. AmFam has been in the insurance industry for 10 years was Indy then went to captive.

The state farm guy worked at state farm and just ended up becoming an agent.

I am still in the first steps of my career, I am not saying that I want to open my own agency up and just think everything is going to fall into place. I am willing to work for it, I just want to be working in the best place for my current situation.

I don't have family or friends that would be able to answer these questions for me so I do greatly appreciate everybody's input.

I would go with State Farm unless the agent with American Family just seem to have overwhelming potential and would be a better fit to work for.