Career Advice

[Itsjustmemario]

First off, I want to think everyone who contributes to these forums. I have been lurking for the past couple of months and the information is greatly appreciated. My question pertains to me and a potential opportunity in State Farm. I am currently in the business plan phase and just want some recommendations if this is a good move. I know Independent is recommended by most, but I have zero experience in the Insurance Industry.

Currently in my career I have managed stores as well as being a sales rep for a retail company. I make about $72,000 per year and I am looking for a change because I feel like my career with my current company is pretty much topped out. Unless I move to corporate which is multiple states away, I can expect only a 1-3% increase a year. What intrigues me about State Farm is the potential to earn income that far surpasses what I currently am making. I know that insurance is super tough your first 3 years, but would anyone else recommend the move? Is it a good idea to leave the company I have been with for over a decade to peruse the potential of more money? Thanks

 

[fed up]

In retail, the customer comes to you. In insurance you have to find the customer. You are faced with state laws on what you can and can't do for a customer and a home office which doesn't say the customer is always right.
I love what I do and I worked retail for 20 years before insurance. If you have a decent cloud to land on for the first 3 years then go for it.

 

[Markthebroker]

I've been in the industry for close to 10 years, and started out helping build a State Farm office. I've been fortunate and done very well, partly through luck, partly though making good decisions.

If you are thinking of opening a State Farm office, I'm sure you got some great song and dance from the recruiter, but if you're planning to open an insurance office with no experience, that's a terrible idea. If you want to get into the business, I suggest you start by working for a State Farm office on their nickel (not risking your own money) get an understanding of the business, then go independent.

 

[Itsjustmemario]

In retail, the customer comes to you. In insurance you have to find the customer. You are faced with state laws on what you can and can't do for a customer and a home office which doesn't say the customer is always right.
I love what I do and I worked retail for 20 years before insurance. If you have a decent cloud to land on for the first 3 years then go for it.

Thank you for the response. We actively have to call and engage customers daily, because what we sell is mostly for contractors. My cloud only consists of my 401k, which is only about 150k.

 

[DHK]

Regardless of your decision, I'd watch this 4 hour training first:

 

[Ghost]

Thank you for the response. We actively have to call and engage customers daily, because what we sell is mostly for contractors. My cloud only consists of my 401k, which is only about 150k.

How much will they pay you monthly? And what percentage do you get from each sale? Do you have quotas?

 

[fed up]

Liberty Mutual is hiring all over. About $50K to start, 4 months training and then it is sell time. Learn the business and help people

 

[Life Hawk]

Thank you for the response. We actively have to call and engage customers daily, because what we sell is mostly for contractors. My cloud only consists of my 401k, which is only about 150k.

It's more of a question of your debt load. You have to ramp up in this business. Some do it very quickly, others it takes more time. You need to eat and live while you take time to navigate the curve.

Using your 401K prematurely might have some nasty tax consequences you need to consider.

 

[Jason Henderson]

How much will they pay you monthly? And what percentage do you get from each sale? Do you have quotas?

It is a definitely a risky move since you are making pretty good money currently, but you are capped like you said at 1-3% raises. If you have a decent pipeline of people or business owners you know that would be a good start. I think starting captive at State Farm is a good idea, but if you can get to an Indy that is ideal. I like being Indy because I never have to turn away business unless it's a super specialized line like aviation. State Farm you will be capped at what businesses you can insure and states.
It's also hard to build a book at a captive and walk away from it....Id go find a decent size locally owned Indy agency and sell yourself and work off a draw or some sort of arrangement. It will be hard at first but worth it in the long run.

 

[pfg1]

I have a friend that opened a SF office in VA about 5yrs ago. He did good his first year, and much better his second year. Hit his numbers - and they pulled the rug out from under him right before he was due a production bonus from year 2. He said that some of old bigger SF agents in the area got heartburn over him and corporate pulled his plug. I don't know all the details, but I know him well and they didn't treat him fairly, imo. Not saying that is the norm, just one experience. Dumping him a couple weeks before his bonus was due (and not paying it) was total BS - for any company.

The other thing that puzzled me... there are a ton of SF shops in our area, which is small town. I don't see the value in that, too much competition imo. ymmv