Becoming a State Farm Agent

[Chevarian113]

Starting scratch with SF is a VERY tough gig. We have a very small niche market, and not always the cheapest. A great company, yes, but 90% of people don't care about more than price. I'd certainly ask for support of that statistic of 90%!

 

[Mark]

I wish I could get a job at StateFarm! Show me the $$$$$$.

 

[Chevarian113]

I wish I could get a job at StateFarm! Show me the $$$$$$.

You funny guy!

 

[moneymaker1]

So you are licensed, correct? You're going to make base AND salary? If you're a go-getter, you would probably make more money if you told her to forego your base and pay you a higher percentage on your salary.

 

[jcarring99]

I spoke with an agent who was 6 month into it. He said that he was able to take money out of the business since the first month and has not gone into any debt at this point. He seemed to be happy so far although he said it was challenging in many regards. What start up business isn't? He semed to be very positive about the opportunity. I can't wait to talk to more agents.

 

[Guest]

I spoke with an agent who was 6 month into it. He said that he was able to take money out of the business since the first month and has not gone into any debt at this point. He seemed to be happy so far although he said it was challenging in many regards. What start up business isn't? He semed to be very positive about the opportunity. I can't wait to talk to more agents.

Well Just remember, for every 1 that succeeds, there are what, 20 that fail?

Just cause 1 guys makes it doesnt mean you will.

 

[xrac]

I spoke with an agent who was 6 month into it. He said that he was able to take money out of the business since the first month and has not gone into any debt at this point. He seemed to be happy so far although he said it was challenging in many regards. What start up business isn't? He semed to be very positive about the opportunity. I can't wait to talk to more agents.

Talk to agents who are 2-3 years in and see what they say.

 

[infoe]

Well Just remember, for every 1 that succeeds, there are what, 20 that fail?

Just cause 1 guys makes it doesnt mean you will.

I wouldnt say 20 fail...I would say of those 20...maybe 10-12 don't make it...the other 8-12..decide it's not worth it and quit.

I definately made it, no question about that...I cruise control and still top of my AFO..I have just REALIZED for my long term career. It's not for me.

You know, If I had the old contract (i know this sounds like a whining session) I would stay part of the farm..10% on auto 15% on fire? heck even the 97 contract of 10%auto 12%fire gauranteed I would stick around.

the fact I didnt own my book of business..not that huge of a deal. I don't need to own an enterprise of 15 agencies and at one agency your only going to get 2x earnings at the most so when you compare, what the branding of SF gives you over being indy...you say hey I can live with that...but the current contract at 8% base?

for that I go join Geico HAH!

There will always be noobs (such as I) that thought it doesnt matter how many people didnt make it...I know I've got what it takes to make it..(true, and I definately did make it) but I know there are factors (OUTSIDE OF MY CONTROL) that will inhibit me from always growing to infinity and as such bring down my base below 10%.

No thanks...
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I spoke with an agent who was 6 month into it. He said that he was able to take money out of the business since the first month and has not gone into any debt at this point. He seemed to be happy so far although he said it was challenging in many regards. What start up business isn't? He semed to be very positive about the opportunity. I can't wait to talk to more agents.

The 6 month agent doesnt know squat...he's still wet behind the ears. He's defaulted at 10% and living off the farm's subsidies still.

 

[togatown]

I wouldnt say 20 fail...I would say of those 20...maybe 10-12 don't make it...the other 8-12..decide it's not worth it and quit.

I definately made it, no question about that...I cruise control and still top of my AFO..I have just REALIZED for my long term career. It's not for me.

You know, If I had the old contract (i know this sounds like a whining session) I would stay part of the farm..10% on auto 15% on fire? heck even the 97 contract of 10%auto 12%fire gauranteed I would stick around.

the fact I didnt own my book of business..not that huge of a deal. I don't need to own an enterprise of 15 agencies and at one agency your only going to get 2x earnings at the most so when you compare, what the branding of SF gives you over being indy...you say hey I can live with that...but the current contract at 8% base?

for that I go join Geico HAH!

There will always be noobs (such as I) that thought it doesnt matter how many people didnt make it...I know I've got what it takes to make it..(true, and I definately did make it) but I know there are factors (OUTSIDE OF MY CONTROL) that will inhibit me from always growing to infinity and as such bring down my base below 10%.

No thanks...
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The 6 month agent doesnt know squat...he's still wet behind the ears. He's defaulted at 10% and living off the farm's subsidies still.

+1 on this post. Especially the final paragraph, do yourself a favor find an agent off default and see how much debt they are if they started scratch.

 

[AZAA05]

I am 7 years out, one of the first on this contract. I have a lot of debt. Be ready with a significant cash investment or lines of credit in order to make it work. If you start scratch you have to grow a large volume in order to get to the size you need to be once you get your perm contract and they are no longer providing additional money. I know several agents who didn't go into debt and they are not big enough. They are having to go 100% comm off of their book now and it isn't enough. They are quiting or shutting things down and trying to survive. The reason you go into debt is that you can't grow it fast enough just cold calling, door knocking, networking, etc. You need to be about 2000 cars to be able to make a go of it once they give you your permenant contract. You have five years to get there if you start scratch. That means you grown by 400 cars a year or about 34 cars a month. That is about 8 cars a week or basically one new household a day. Sometimes you can do that in the early stages just cold calling, door knocking. However, once lapse/can kicks in as your book gets bigger (say 15%) and service starts bleeding into your prospecting...it doesn't happen. Plus, you have to write a certain amount for them to even match you monthly. Everyone turns to lead sources and direct mail. Plus, you have to staff up to do all the quotes. This all takes money and lots of it.


Then, if an agent hits the numbers on the front end and gets to the 2000 cars by going into debt they have to jump the next hurdle State Farm has created. They have to deal with the semi-monthly variable comp. Once your lapse/can reaches your production numbers and your growth stalls out your pay goes from in the mid to high 10's to the mide to low 8's. For me that was $60,000 in commission.

Most new agents don't know anything about either of these two issues. They are being given $11,000 a month from State Farm plus commission on what they write. They don't start to see the writting on the wall until year 4 and 5. Then it is too late.

Oh, and they don't have the slightest clue on what is in store for them with the semi-monthly variable compensation. They think they are going to be running at 10.8% their entire career. Even though the company came out in a memo stating that the goal for the contract is 9.5% and they will manage to that. I am at 8.5%...