Becoming a State Farm Agent

[Jinc]

- Wow...that's sobering. Did your friend feel she would never earn more than she was spending? I find it interesting that she wasn't making any money for herself, but was doing well enough for the company to keep her on. That is definitely not a win win. Sounds more and more like that reported 80% success rate is skewed.

It is hard to say what she was making as I did not ask specifically. I remember her saying that she left State Farm with a lot of debt. She had previously been an AFS and the Agent I worked for did not think that she would make it. There was a SF recruiter on my LinkedIn who all of a sudden became an Allstate Agent in Texas I believe. SF used to be the opportunity but not anymore in my opinion. They like a$$kissers and yes men... But those guys stop after the debt grows as in the case of the lady who left right after she got her contract.

Yes, 80% is skewed as it takes into consideration the old Agents. They need to come out with one for New Agents only! Those old fat-cat South Florida Agents are suffering and Mama Mutual ain't caring much!

 

[32fever]

What antfarm states I think happens quite often. The way out of debt and sustaining some income is to cut expenses. If part that expense cut is marketing, then SF isn't seeing growth, so they add new markets. If you're in the pool you can look at the new markets in areas that seems like there would be no reason for it. But, many agents are not marketing aggressively, they're cutting expenses to get out of debt or increase personal income. If there are more agents, there is less to go around among those that are agents. SF is already #1, how much more market share is there to be taken? Accounts have to be serviced, so SF allows it to happen and doesn't end contracts because they just pay less commission. The 2% bonus goes away and agents have to make it on 8%. So, they won't cut those agents that choose to do this since they pay 8% instead of the higher %ages of previous contracts that were lucrative. That's my perspective from the pool looking in. They want the agent to be sales rep for financial products and hire staff to maintain and grow the P&C. I ran the comp simulator at 8% to see what it would tell me about that scenario should it exist for an agent. Someone going in must follow the SF plan and be willing to do it. You have expenses no matter what you do, indy or captive. The main difference is following the SF formula for selling those financial products and learning how to do that well It seems like that extra 2% is where the additional income increase for the agent lies since the 8% covers expenses.

 

[togatown]

Antfarm,
Thanks for your post. It sound like it's been an up hill battle, but you've finally turned the tide. Were you a scratch or did you take over an existing agency? I'm assuming your recommendation would be to pass. I'm meeting with an agent Tuesday for lunch to get his take, but he's been at it for 20+. I know him well, though and he has a good grasp on agent performance in the area. He should be able to give me a good idea of the general climate around here. Thanks again and hope you continue to grow.

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Wow...that's sobering. Did your friend feel she would never earn more than she was spending? I find it interesting that she wasn't making any money for herself, but was doing well enough for the company to keep her on. That is definitely not a win win. Sounds more and more like that reported 80% success rate is skewed.

You cannot compare the success and contract of an older agent to the new contract. They are worlds apart.

 

[antfarm]

Do it again drinking the koolaid? No. Do it again with what I know now? Yes.

I started with a small assignment. So I was on a blended contract with premium builder payments.

If I was to considering the opportunity today the only way I would do it is if there was at least a 1.5 million premium assignment. Do not go scratch even if the sales leader anticipates a future assignment. In most cases agents don't get what they were promised.

Older contract agents make nearly twice the net income as the newer ones. It really is not a good comparison.

When I stopped qualifying for travel, cut marketing way down, moved to more affordable location things became a little more manageable. I also found myself having to do less work to make more money.

If you decide to do it be smart about spending money on stuff like furniture, signs, marketing. The company has many programs to help you out which is nice but it is really expensive.

There are a couple of things I am very grateful for, one being my freedom and two the support from the company.

Do most of the work yourself for the first 3-4 years. Prepare your family for financial ups and downs. Spend money on one great employee not two crappy ones.

 

[xrac]

I'm in the candidate pool, too...about a month into the process I know many 15+ year agents that are doing well and came in under old agreements. I'd like to hear from some < 5 year agents under TICA and AA05. SF just made a major revision to their candidate internship process, starting in November, that provides interns much less. Every change SF has made in the last 10 years has taken from the agent and given to corporate. That doesn't mean it's still not a good opportunity; just not what it was and getting worse. Although I am aware of a new market agent doing "well" (relative to the situation), my only intention is to accept an anticipated/unanticipated opening.

All that being said, it seems the "forum consensus" across multiple sites is to stay away and go indy, go Nationwide (or anyone else), etc. I will say, I don't like the fact that they can yank the TICA away at any time for apparently any reason, and potentially leave the losing agent absolutely screwed financially...and at a minimum with a substantial loss. I guess it would rarely happen without good cause...but it provides management ridiculous leverage on "suggesting" how you spend your capital. If I can't tell them no on staff/office decisions without fear of hearing "it's our way or the highway", then I really don't have my own agency at all; I'm basically footing the bill as a SF employee that doesn't have an equivalent benefit package and can be cut loose anytime. Long story short, it would be great to hear from some agents who have recently lived TICA, what it took for them to get through, etc. However, it seems like actual SF agents are scarce on here or any other forum over the last couple of years. Makes me wonder why/how that is, too. Good luck with it. FT

Some agents were on here posting a few years ago and overnight they vanished and had their posts all deleted. Should tell you something about SF.

 

[Gooner]

I am in my 10th year. I made 63k last year. Stuck it out because I had no way out due to high debt level. Still have 45k in debt but it is going down instead of up. Cut all expenses I could. I am a glorified customer service agent.

This is the saddest post I've read all day. 10 years with an insurance company as a producer barely scratching out a living and still 45k in debt.

You really should look at other opportunities. IMO

 

[Jinc]

This is the saddest post I've read all day. 10 years with an insurance company as a producer barely scratching out a living and still 45k in debt. You really should look at other opportunities. IMO

Unfortunately, you are true in what you say! Unfortunately...

 

[antfarm]

This is the saddest post I've read all day. 10 years with an insurance company as a producer barely scratching out a living and still 45k in debt.

You really should look at other opportunities. IMO

You struck a nerve. I can tell you though I work on average 20 hours a week. The freedom is the pay. I'm single so it's manageable but if I had a wife and kids to support I would have quit 3 years in like 50% of the agents that started when I did.

 

[blue_wynd]

You struck a nerve. I can tell you though I work on average 20 hours a week. The freedom is the pay. I'm single so it's manageable but if I had a wife and kids to support I would have quit 3 years in like 50% of the agents that started when I did.

Seriously, consider going indy. Unless you plan on being single for the rest of your life.

 

[jason5436]

I am independent and Started my carreer at State Farm. It was short because I moved on pretty fast. I got a job for an agent who was a friend of a friend. After 6 month of hard work and being a top producer I got fired. Why you ask? Well I worked my ass off until late at night and he called in with his RESPECT MY ATHORITY attitude. I saw 3 agents who got fired for things like not signing life policies the right way or marketing the wrong way. ETC. This may sound very negative but I am not a fan of captive. I worked for another agent the next day after getting fired for talking back. I then sold 90 policies plus per month in GA for a few months. The agent I worked for once again was very arrogant and non appreciative. I then continued to hear stories of ppl getting fired from State Farm or not happy ETC. A family member did the Allstate thing. He made a big mistake. Cant sell anything because the underwriting is impossible. So now he spent 75 k to market Allstate. At least with allstate he can sell his business. State Farm your screwed. So my story is simple. I had 20k in credit cards. 20k in cash. I am on my 25th month. Make 15% on most everything. Have top technology. Have 30 life and health companies. created 325k book in 24 month by myself. I sucked because I hated the hard work in my office by myself but looking back I am so happy I made the indy choice. I can leave my office when I want. I never have those guys from State Farm come into my office and tell me how to be a milllionair. Its funny cause I always thought about it when listening to them talk with my agent. Why are they trainging other ppl for success when they failed at there own state farm. It just dosnt make sense any way you look at it. Look to all ppl on the fense do yourself a favor and go INDY. Do be a matcho and do it all on your own. Join a group that will help you get the knowledge. Join a group who will let you take your book with you when you are ready. But don't give your life to State Farm. They are snakes just like allstate. Grow a pair and go INDY you wont regret it.

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Also one more thing. SF makes you sell life ETC but pays you like crap. INDY here are the general commissions. 90% for perm and 100% term. I have a good idea of what SF pays for life and know that I make 3 to 4 time what they do. Just saying. Don't join the colt. This year I sold, Annutities, Medicare, Life, commercial, HI's, Home, Auto, Umbrella, ETC. Meaning I sell everything but make way more than a state farm agent. I should make in residuals alone next year with out any sales 100k. State Farm and Allstate agents are starving year 3 cause there bonus structure is gone. Not me friend I will be making money and golfing. I sound pationate in what I am saying cause I truly hate what my brother is going though with Allstate and some friends who did go State Farm. No one in insurance can complain because insurance is amazing but GO INDY you wont regret it.