Maybe things are different in CA. FYI I traveled my first two years and the regular way not the alternative way. I know several agents besides me that are close to or over $100,000 in debt. You haven't gone through it. Sure you can always say "sell more" that's the DAFO's answer to everything. I have been in the top 10% of my regular AFO every month and I am just now working to pay off the debt. You know how ? By cutting expenses to the bare bones, still working 12 hour days cutting staff in half. Working every referral and X-date and not spending a dime to do much of anything else. My spouse and I have not exchanged any gifts since I started here, now that may seem insignificant but on Christmas day to not give anything is painful. We were promised so much and very little was delivered.
Sales are good but pay is not. You go be a TICA and put your money where your mouth is or get some better info so you will be really informed as to the truth of it all. Many of the TICA bought the furniture package they "suggested" it cost from $15,000-$23,000. Yea they supply the computers but not the ink, toner or paper. They don't even pay postage on the many things you still have to mail in. Most of the telephone numbers to the regional or corporate are not toll free.
As for the business plans you give them an honest good plan and the tell you to try again. They want numbers that have never even been closely accomplished by any previous agent. They want you to continue to grow your P&C by 5 times the state average to maximize your compensation. Bottom line here is you can tell us all you want about what it "should or could" be like , but you are just talking the talk, go start walking and the come back and tell us !
Sales are good but pay is not. You go be a TICA and put your money where your mouth is or get some better info so you will be really informed as to the truth of it all. Many of the TICA bought the furniture package they "suggested" it cost from $15,000-$23,000. Yea they supply the computers but not the ink, toner or paper. They don't even pay postage on the many things you still have to mail in. Most of the telephone numbers to the regional or corporate are not toll free.
As for the business plans you give them an honest good plan and the tell you to try again. They want numbers that have never even been closely accomplished by any previous agent. They want you to continue to grow your P&C by 5 times the state average to maximize your compensation. Bottom line here is you can tell us all you want about what it "should or could" be like , but you are just talking the talk, go start walking and the come back and tell us !
It would be safe to say that most debt in the first year comes from primarily marketing expenses. Office expenses aren't usually at the top of expenses since you get assistance on all office materials, desks, computers, etc, from SF. Some individuals do incur debts on office furniture because they would rather get their own rather than the furniture available through SF. At that point, it becomes a matter of wants verses needs. Again, a solid business proposal can essentially help you budget your first year.
Depending on where you are, the debt incurred will obviously be different. SF realizes that, so signing bonus are different according to the market you are entering. The current minimum is 18k. I am recruiting to an area that right now where I can offer a minimum of 24k for example.
It is also possible to quality for additional marketing bonuses on top of the signing bonus, but that is at the discretion of the Field Executive you are aligned with and how much budget he has been allocated.
The bottom line is that you are opening a business. As with any other business, you should be prepared to incur some debt. But a well planned business will obviously do better.
I personally haven't seen someone with that much debt, and I'm in California.
Do the math...if you are using 18k cash from State Farm, 25k line of Credit from SF Bank (which every agent receives), and 50k of your own funds (required), then that is nearly 100k of investment in your business already. If your going into further debt then the obvious answer is that the agent is not producing at a sufficient rate.
And yes..SF only uses internal recruiters.