Brand New Rookie in the Game

[arnellwest]

I am brand new to this forum. I know that there are probably 100s of post that have already touched on my questions. I will visit those post and do my research, but I just want a few posts to my own specific questions. First off, I know very little about the industry. Today, I was contacted by a State Farm recruiter, whom wants to put me through their training program. So from what I understand, it will be up to 9 months training and education to get all of my licenses. They will pay me my annual salary from last year (Unrelated to Insurance Industry), then after I am licensed, I will get a $30,000 sign on bonus. Well that got me interested, so I done some research for the last few hours. Remember, before today, I did not know anything about the industry or the business. I still know nothing, but I know a few terms and have a general idea. I'm pretty smart. I have an MBA. So I know something about business.

I know what a captive vs an Independent is. So I'm considering about breaking in to the business, but I would prefer to be an independent. Please provide some feedback about what State Farm is offering me. Is it a good deal?

Also, about being independent. Would I need to be hired by a brokerage firm that already has companies they work with, or can I branch out on my own and create relationships with insurance companies and sell their products.

If I was to do this, I would open my own office and reap all the benefits from the hard work I put out. But I'm not sure if it even works that way if where an independent.

Please provide some feedback based on my details so far. Please keep in mind, I admit that I know nothing about this industry and how it works. I have just always been a buyer of insurance. Never thought about selling it. I understand that it takes hard work and dedication. Everybody has to start somewhere, and I'm starting here on this forum. I will look through the topics to learn as much as I can. But any info or links to sites with additional info would be great.

By the way, I live in Washington State. Just to give some perspective on state laws, license, and the market I live.

 

[MikeM.]

There are a lot of State Farm threads on this forum. Read as many as you can and know the pros and cons of what State Farm brings to the table. Once upon a time, State Farm was a great place to be in this industry but I don't know if it's still is.

As far as independent goes, just be prepare to learn and do everything on your own. And you are 100% financially responsible for your agency. There are websites online that will teach you the ins and outs of insurance for membership fees.

Getting contracts for life insurance contracts as an independent agent is easy. Getting P&C contracts to sell home and auto insurance is not. So far, I have no such luck in finding one.

Whether you succeed or not, is up to you. If you can approach any one and get them to buy insurance from you. You are well on your way. If you have to have a sound marketing plan and a nice network of people to refer business over to you, you will have a fighting chance. Most people who failed this industry failed because they can't find enough people to sell to.

 

[wfs]

A few points. First of all, if you plan on working as a State Farm agent, you better have at least $75,000 of cash/credit available to you on day one. You will make little to no money your first year, ever if you run the business very well. You get $18,000 on day 1, but your other part of the bonus ($12,000) comes in month 13, assuming that you are renewed.

Do not go new market. Period. Go traditional or AI. If you go new market, that $18,000 initial bonus will vaporize soooo fast. If you take over a book and the existing office, you will save tens of thousands of dollars.

I would talk to a dozen agents in your area. Go and see ones that State Farm has NOT recommended to you so that you can get the story from all angles. You must especially talk to new agents... Ones that are in 1 to 5 years.

Most of the people on this board are independent and slanted that way. I have been on both sides of the fence and there are positives to each. As a newby starting out, I think starting with a captive company is good because you will get some good experience and training. If you decide to go the State Farm Agent route, it's a very tough ride, especially if you don't have the cash. If you're broke, don't do it. If you have a little savings, don't do it. If you have $100k, make sure that you do a lot of due diligence before you proceed. A forum like this is not enough. I would also recommend talking to other captive companies such as Allstate, Farmers, American Family, etc... before you make a decision. Go talk to some Indy agents. The State Farm paid training should not be a large part of your decision making in my opinion.

Good luck.

 

[JimmyUt]

A few points. First of all, if you plan on working as a State Farm agent, you better have at least $75,000 of cash/credit available to you on day one. You will make little to no money your first year, ever if you run the business very well. You get $18,000 on day 1, but your other part of the bonus ($12,000) comes in month 13, assuming that you are renewed.

Do not go new market. Period. Go traditional or AI. I you go new market, that $18,000 initial bonus will vaporize so fast. If you take over a book and the existing office, you will save tens of thousands of dollars.

I would talk to a dozen agents in your area. Go and see ones that State Farm has NOT recommended to you so that you can get the story from all angles. You must especially talk to new agents... Ones that are in 1 to 5 years.

Most of the people on this board are independent and slanted that way. I have been on both sides of the fence and there are positives to each. As a newby starting out, I think starting with a captive company is good because you will get some good experience and training. If you decide to go the State Farm Agent route, it's a very tough ride, especially if you don't have the cash. If you're broke, don't do it. If you have a little savings, don't do it. If you have $100k, make sure that you do a lot of due diligence before you proceed. A forum like this is not enough. I would also recommend talking to other captive companies such as Allstate, Farmers, American Family, etc... before you make a decision. Go talk to so Indy agents. The State Farm paid training should not be a large part of your decision making in my opinion.

Good luck.

That advice will save you thousands of dollars and lots of headaches.

 

[xrac]

That advice will save you thousands of dollars and lots of headaches.

NASFA Membership

 

[arnellwest]

You guys are great. Thank you for your advice.