Becoming a State Farm Agent

Its hard to see the benefits of being a State Farm Agent...Lets put it in a slightly different light and see what you think.

John wants to start his own business selling widgets and Company A says they will sell him widgets at a great price if he agrees that they are his exclusive provider of widgets.
John agrees to the deal.

In the contract for this exclusive business deal
Company A maintains total control of the end user price of the widgets.

They maintain the ability to change the commission level on the widgets they sell through Johns Company.

Company A demands a high level of service for its end users and requires John to employ 3 staff members upon the opening of his business.

Company A has a side business that provides phone answering services for companies. Company A requires Johns company to use their subsidiary company.

Company A also sells bearings and rollers and even though John doesn't know anything about rollers or bearings nor wish to sell them as part of this exclusive agreement John must sell a certain percentage of these products.

Company A has a national marketing campaign and even though John's Company nor his phone number are mentioned John must pay for a portion of this marketing campaign.

Company As marketing campaign creates leads which they sell at a profit to Johns Company.

Company A maintains the ability to contract with additional exclusive manufacurers Reps within Johns area as well as the ability to contract with Independent Manufacters Reps within Johns business area.

If John wishes to retire or passes away Company A names Johns successor and his family no longer receives the commissions on the sale of widgets, rollers or bearings.




Okay so all you State Farm reps how did I do...I have experience in the wholesale world and dealing with Manufacters Reps and can't imagine those companies taking a deal like that...How close did I come to the state farm experience.
 
Speaking of the devil, forums like this will make SF have a devil of a time in fooling new agent candidates.

You would think companies would realize that something is wrong when they go from turning away candidates who just showed up asking for the position, to having to beg everyone and their brother to be an agent.
 
People look at you like you are crazy when you tell them you turned down a chance to work for SF as an agent. "Well my agent has a ton of clients and does really well for himself" is a common response.
That's because he or she is a dinosaur, established, writing under a better contract agreement and is coasting to retirement.
I was totally amazed myself when I heard new agents telling me NOT to take this opportunity. You grow your business, but have to shrink everything that is a cost, just to make some money for your family. That's insane.
 
I am a dinosaur on the new contract ( 6 + years ) and have had to slash my operating budget to the bone, including laying off a team member to try to survive on my reduced commissions. I expected to be twice the size I am by now, instead I am going backward fast.

When I try to tell the new agents ( 2 years and less) what they could be in store for soon, they look at me like I am crazy and it could never happen to them.
I just hope I am around in a few more years to tell them all "I told you so...."
 
I am a dinosaur on the new contract ( 6 + years ) and have had to slash my operating budget to the bone, including laying off a team member to try to survive on my reduced commissions. I expected to be twice the size I am by now, instead I am going backward fast.

When I try to tell the new agents ( 2 years and less) what they could be in store for soon, they look at me like I am crazy and it could never happen to them.
I just hope I am around in a few more years to tell them all "I told you so...."

I feel for ya toga...I've been in the insurance biz 15 years from sales, claims and now a corporate consultant. My job will end soon, so I was just researching the SF opportunity when contacted. Holly crap...it made me run away in a hurry. 6 + years and getting commissions reduced is ridiculous at this point in someone's career. The days of building and earning your rewards are over in SF. You have to produce like a whore in the red light district, every day, every year and no rest until they've used you all up or you die.

Well, they are going to get sued by their agents in a class action law suit is what's going to happen. Just like the customers did with the aftermarket parts lawsuit. This one, is going to hurt their reputation really bad.

I wish I could help you get out my friend, but it does appear you are in for the ride now, wih no turning back, unless you have an exit strategy.
 
I will be interviewing for an existing opportunity shortly.

Current book of business includes:

2000 autos at $450
1100 fire at $600
600 life $800

Existing agent doen't do any bank, financial, crop hail, or health. Would these numbers make it justifiable to consider the SF opportunity? Lower than average overhead currently. If you need more numbers let me know, but I'm trying to be as vague as possible.
 
Back
Top