Considering an agency/owner opportunity with Farm Bureau of Michigan

May 14, 2019

  1. Travelman77
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    Travelman77 New Member

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    Hello,
    I am in the final stages of the decision process with Farm Bureau of MI. I’ve met with AAA, Allstate, and Farmers, but Farm Bureau seems to have the best contract, business model, support, and training. I know you have to sell a lot of life insurance to make it with them which I’m comfortable with. Can anyone share an experience? I don’t have a huge natural market and I’m coming from outside the insurance agency. I do have well above average work ethic, organizational skills, relationship building skills, and sales experience. Thanks!
     
  2. Allen Trent
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    Allen Trent Guru

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    As crazy as this may sound, the fact that you have not gotten a pile of negative responses to this post likely is very positive. If you post the same question saying you are planning to open an Allstate or Farmers agency, you will likely get a ton of negative responses as I have seen happen before. That may be more about those 2 carriers being National publicly traded stock
     
  3. EugeneM
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    EugeneM Guru

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    I hear they give extensive sales training. The few that I talked to knew what they where doing. Never heard anything bad.
     
    EugeneM, May 17, 2019
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  4. JimA
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    JimA New Member

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    I was an independent agency manager for 15 years before coming to an IMO and know many people in the Detroit area who run Allstate, State Farm, and Farmers agency’s. My buddy owns a State Farm office and does very well.

    They provide the best location, train, split costs, and help pay for branding. I actually work with two State Farm offices with their final Expense insurance. I am Interested in what area. I live in metro Detroit and say go for it.
     
    JimA, May 26, 2019
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  5. Magicmarker98
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    Magicmarker98 New Member

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    I would agree with this statement. I had a friend go with them and you will get a lot of sales coaching. They do a great job.
     
  6. Allen Trent
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    Allen Trent Guru

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    Yeah, that is all very nice, but what in in the world does it have to do with the question the person asked?
     
  7. BADTROUT
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    BADTROUT Guru

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    I would honestly look less at the contract for how good a fit it would be... I would look at how that contract will play out 3-5 years (or sooner) from now when you are likely to get the notion of owning your own agency and being in control of your own job security.

    Is there any opportunity to sell what you are building or convert your customers to another agency down the road... What contractual obligations are going to handcuff you weighted against the best experience/training. Best of luck to you no matter which way you go.
     
    BADTROUT, May 26, 2019
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  8. Montana Insurance Kingpin
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    Montana Insurance Kingpin Expert

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    Read the contract and know your financial obligations if you choose to leave. The biggest mistake new agency owners of captive companies make is failing to do so. Most failing Farmers and other captives wind up on the hook from anywhere from 40 to 200K for the agency financing.
     
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