Becoming a State Farm Agent

[car253]

I have found that out too. Allstate and State Farm are only giving around 10% commissions and Farmers 20%. Maybe that is why Farmers premiums are so high. The agents can not be competitive because of their higher premiums and wash out. And, you are right that they will hire anyone that breathes.

Just wonder if there are better companies out there? Or is it just better to go independent?

 

[MarkForte]

I have found that out too. Allstate and State Farm are only giving around 10% commissions and Farmers 20%. Maybe that is why Farmers premiums are so high. The agents can not be competitive because of their higher premiums and wash out. And, you are right that they will hire anyone that breathes.

Just wonder if there are better companies out there? Or is it just better to go independent?

Both Allstate and State Farm have great commercial

 

[BigSteve]

Both Allstate and State Farm have great commercial

How so? How much commercial do you write with them?

 

[jsbarber12]

How so? How much commercial do you write with them?

I hope he means commercials, I'm an Allstate agent and we're only good on comm auto and our bop is only good for very few sics

 

[BigSteve]

I hope he means commercials, I'm an Allstate agent and we're only good on comm auto and our bop is only good for very few sics

Wow, I can't imagine what's like to be able to write BOPs with them! The market where I am is commercial auto, contractors w/ 1-4 vehicles. Makes it awfully hard when you can't also write or be competetive on all other coverages.

 

[CynthiaSperry]

I have worked in a State Farm office and I have had a friend who passed away, owning his own State Farm office. He told me that you don't own your business anymore - when you pass on they will have someone else come in and take over your agency. As long as you don't mind that State Farm might dictate what kind of policies you need to write, they might be a good outfit to go with. It's not always about price on policies. Some people who love State Farm always stay with State Farm. There are also State Farm Bank products they want you to sell at your agency. Best of luck to you! I have been an independent agent as long as I've had my insurance license and I just started as a Captive Agent for Family Heritage Life. We'll see how it goes!

 

[sminco123]

Both Allstate and State Farm have great commercial

State Farm has good commerical, not great. Selected industries just like every other captive. Some we rock, some we don't/can't. We don't do a lot of commercial in our office because money follows focus. SF pays the agent more to focus on Life, P&C, Banking products. Commerical? Not so much.

 

[alishabbir]

I've recently spoke with a State Farm recruiter. I am planning on trying to pursue the opportunity that State Farm has to offer...

What should I expect from this? Is there anyone that has had experience with this process? Does anyone have any advice regarding anything to do with becoming a State Farm agent such as likely hood of success, are the products competitive enough to sell without having to beg people, etc etc.

Sorry I'm so vague, I'm just kind of looking to find out anything and everything about this before I jump into this career change.

Hello Shawn,

Did you consider this opportunity? I am being offered a chance to be a state farm agent. What are you thoughts! Is this worth my time and efforts

 

[LuckyLefty]

They say you should hear it from someone that has actually been there. Then that is me . I was a TICA & I did earn my contract. What has been said is true. This AA05 contract has ruined lives, it has caused divorce and bankruptcies. I know an agent that started around the time I did and he is leaving agency after 3 years of trying to break even. You WILL go $100,000+ in debt with an average book much less one of less than 1000 cars. They will show you template of what you are supposed to make, but you won't come close to that. I know of TICA that were in the top 20 in the nation that didn't make that so what about the other 800-900? I easily got my contract, it was never in question.

Most of the money is spent on payroll and marketing. In the past with these books of business they would have let you have 2 staff. Now they "suggest" you have 3 full time and a one or two part time "team members". My payroll was over 65% of my gross my 1st year. Show me a business model that shows that will work. If you don't sell enough the first year be prepared to hear you won't get your contract. I personally know of an agent that was almost on time to travel & they told him in month 11 that he was NOT getting his contract. He had borrowed over $50,000 and had a multi year lease.

The contract is very ambiguous & the CO. can basically change it at anytime. They are not sending prospective agents to agents that have been around over 3 years that started as TICA's. Go see like was said 5 of them before you make this mistake. If you are willing to go for it then have NO debt going in a spouse that makes more than what you need to live on. Think twice and think again.

Now then you may ask about me? Finally after all this time I have started to make progress on my debt so for me its worth it to stay. There are some benefits but you ask me if I would do it all again with my knowledge and I would say "absolutely NOT"

Agent Z, I am curious if things have improved for you for the better or if you have struggled meeting the SMVC % as you have grown.

 

[richardroma]

I know of a chairmans circle agent (quite an honor at s f for being a top multiline producer ) who turned in the keys. Aa05 contract agent.