Becoming a State Farm Agent

[togatown]

So I am preparing my business proposal for becoming a SF agent. I have heard so many bad things on this thread about "The Opportunity" but wonder if my situation is a little different and could be a success. We live in a small county by population, but large by size, only 48,000 residents. There are three SF agents in the county, two fairly large and one very small. All are separated by 10 to 25 miles of freeway travel. I am only interested in taking over the office of my agent, one of the larger two. He is nearing retirement and I have made it very clear to the recruiter and team leader as to my goal. I am very well established in the community. I am young 30s and successful but looking for a career with less physical demands than my current career. Our current agent does financially very well. I have been told SF will not be splitting the market area into two offices, either. With the infamous new contract everyone mentions and a book of business with probably around 3600 auto policies, could a new agent be successful? I currently make around $100K per year. I see this situation as being successful, but want to make sure I am not being too naive about the situation. Comments?

Sounds suspicious, since 3600 autos is a fairly large book especially for one new agent. Assume you get 10% default for the first two years, figure out the average auto premium for that area and you get an idea of your revenue stream on just auto alone. I bet they would put some really hefty financial services expectations on you if you take this opportunity. This is a far better situation than opening scratch if it is what is appears to be. While they expect your business plan to have huge numbers as goals, do your own private business plan using an 8% default rate after year two and make sure the numbers work, just as a precaution.

Do your homework carefully and good luck to you!

 

[infoe]

So I am preparing my business proposal for becoming a SF agent. I have heard so many bad things on this thread about "The Opportunity" but wonder if my situation is a little different and could be a success. We live in a small county by population, but large by size, only 48,000 residents. There are three SF agents in the county, two fairly large and one very small. All are separated by 10 to 25 miles of freeway travel. I am only interested in taking over the office of my agent, one of the larger two. He is nearing retirement and I have made it very clear to the recruiter and team leader as to my goal. I am very well established in the community. I am young 30s and successful but looking for a career with less physical demands than my current career. Our current agent does financially very well. I have been told SF will not be splitting the market area into two offices, either. With the infamous new contract everyone mentions and a book of business with probably around 3600 auto policies, could a new agent be successful? I currently make around $100K per year. I see this situation as being successful, but want to make sure I am not being too naive about the situation. Comments?

they are lying to you, you won't get nor do you deserve that office...get ready for it to go to someone in leadership if no one from leadership takes it they will split it. You have no say...and put yourself in their shoes...they will get 2-3 newbies that will gladly a quarter of the agency to get going.

 

[upsidedown01]

SF would not consider giving you 3600 cars. They will either bring in 2 agents and split the book or give it to an AFE/AFC coming back into production.

You can't even consider what the current agent makes compared to what you could make with SF. It's like comparing grapes to cantelopes. With you being the grape.

I'm living the current contract and see the terrible financial shape it leaves people having to live with.

Are some doing ok? Yes, but most are returning AFC's or the son of a AFE or came from inside SF and were given a large book of business.

Myself and other agents that came from outside SF see it, If you're not from inside SF then you're from outside SF and are treated VERY different when it comes to assignments.

If you're serious, only talk to AA05 agents. Not the 1 or 2 year agents, the 4,5,6 year AA05 agents (if you can find any).

Good lucking in your decision.

 

[Freeman 370]

Thanks for all the encouragement. One thing I do know about the area is when the current agent got the agency, he was from SF, but there was also very little interest in the office. Our area is economically and socially dying. My dad was a highway patrol officer with the state. He had to wait for almost 15 years as transfers were solely on seniority. Now, there are guys with only two years on the patrol as no one wants to come here. Just a few thoughts...

 

[infoe]

Thanks for all the encouragement. One thing I do know about the area is when the current agent got the agency, he was from SF, but there was also very little interest in the office. Our area is economically and socially dying. My dad was a highway patrol officer with the state. He had to wait for almost 15 years as transfers were solely on seniority. Now, there are guys with only two years on the patrol as no one wants to come here. Just a few thoughts...

Price of tea in china... Answer is the same. Youve been warned.

 

[wornout]

You are kidding yourself if you think you are going to get the entire book. If the economy is as bad as you say, there are probably 4 other candidates waiting for an assigment. The best you can hope for is about 300 cars. They will put another new agent near you and give him/her another 300 cars etc. It doesn't cost them a thing to have 5 agents in 5 miles or 50 miles apart. You will need to sell a lot of life, and mutual funds to hit your scorecard. In addition, the premium builder they brag about is not as great as it sounds. They will deduct the comp you are getting from your assigned book. you will need to write about 40 raw new policies a month. Count on 8% commission -- if you can live on that you are good to go.

If I were you I would also check out how state farm rates are compared to other agents. Price is key in growth -- go on to netquotes and ask for a quote...see how competitve they are...Agent relationship is great and will keep the business but price is king when you are new and unknown.

 

[Freeman 370]

If everyone is so sure SF will split up the current book and give it to a bunch of new agents, do you think they would put a scratch agent in the area as the current agent is aging, not retiring quite yet, and running his business from 3000 miles away?

 

[togatown]

If everyone is so sure SF will split up the current book and give it to a bunch of new agents, do you think they would put a scratch agent in the area as the current agent is aging, not retiring quite yet, and running his business from 3000 miles away?

Ask the recruiter or AFE to put it (or anything else for that matter )in writing, see what happens.....

 

[jmancuso]

Interesting! This shows that SF is very careful of agents backgrounds and do not want someone if there is any credit (integrity) issues. I like that although it could make it hard for some people. To me this says they look for quality.

It tells me that they are a nit-pick company that will nit-pick you to death on everything you do and submit. In insurance it's hard enough to get someone to get a quote but then when you are forced to reject half of them you have got to be kidding me! After doing the research I have done and working captive for a brief time you couldn't get me to work for Farmers, Allstate, or State Farm if they were the last gigs out there! If that were the choice I had I would just get appointed with Progressive and be done with it. They offer the same stuff as the others. Just my 2cents

 

[xrac]

.....After doing the research I have done and working captive for a brief time you couldn't get me to work for Farmers, Allstate, or State Farm if they were the last gigs out there!...........

I totally agree with you and I say your are one of the smart ones by not allowing these companies to lure you in with their song and dance. These companies are victimizing a lot of new agents and their families in my opinion.