todd02, As I said earlier I was a 20 year Farmers agent with over 2,500 pif. During your career at Farmers you will realize that you will eventually hit a wall that no matter how much business you write at Farmers, Zarmers will have a way to ruin your growth with high run off (low retention). I had a 94% retention for years, but then the price increases took over about 6 or 7 years ago. Your too new to realize that 95% of Farmers GWP comes from their in force, overpriced older auto and home policies. Todd, do some research, its your career we are talking about. Next Gen is a sub standard home contract in the industry, Farmers older Protector Plus was a much better contract. You are writing new business away from other insurance companies, and your customers most likely had a better written contract. I hope you don't open your agency up to a potential E&O claim. Todd, I wasn't lazy, just niave for staying too long. If you're the professional that you think you are, then learn about the industry. The whole point of becoming a Farmers agent is to learn the business and build a book so that you can cut ties with your master (Farmers) and become your own boss. Just so you clearly understand, you own NOTHING at Zarmers, not your book, certainly not your business. You are a puppet on a string. Your an *** if you think that all your giving up by not being an independent is 4-6% commish! That 4-6% commission represents a 50% increase in commissions in annual income. How much bonus money have you earned so far at Farmers? Their profit bonus program is a joke! 4% of your "combined profitability report", IF you write all of life insurance quota and the other 20 hoops Farmers requires. Independent agents typically recieve 2% of GWP not profit. Todd, I suppose to you, 4% from Farmers is more than 2% of GWP. To me 2% of $2,000,000 is $40,000 and 4% of "combined profitability" of $350,000 (my yearly average for 20 years) is $14,000. I don't know about you but my annual income of 15% of $2,000,000 plus bonus equals an extra $126,000 of income each year! How's your math Todd?
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Popeye, those of us that have the gold get to make the rules. You need a book of business in order to get the good contracts on your own. If you don't have a book, try writing with companies like insurance noodle which offer a reduced commission of around 10% (instead of 15%) and no profit bonus, but offer many companies to choose from, then build that book until you can go on your own or join a cluster like SIAA. Learn your mistakes now with State Farm, make sure you love the business and then venture out on your own and build your own business where you make the rules and sell what YOU want to. I actually can offer many companies and the rates are all better than my old clients at Farmers had. It really boils down to better coverage on auto and home insurance. How about offering your client a true HO-5 or an HO-3 with an HO-15 rider with GUARRANTEED building replacement, 50 to 100% building ordinance and POLICY LIMITS on sewer back up, not to mention guaranteed renewal (no drop), first accident forgiveness, declining deductibles, use of OEM parts and on and on..... all while saving customers over a $1000 a year on insurance!!!
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Popeye, those of us that have the gold get to make the rules. You need a book of business in order to get the good contracts on your own. If you don't have a book, try writing with companies like insurance noodle which offer a reduced commission of around 10% (instead of 15%) and no profit bonus, but offer many companies to choose from, then build that book until you can go on your own or join a cluster like SIAA. Learn your mistakes now with State Farm, make sure you love the business and then venture out on your own and build your own business where you make the rules and sell what YOU want to. I actually can offer many companies and the rates are all better than my old clients at Farmers had. It really boils down to better coverage on auto and home insurance. How about offering your client a true HO-5 or an HO-3 with an HO-15 rider with GUARRANTEED building replacement, 50 to 100% building ordinance and POLICY LIMITS on sewer back up, not to mention guaranteed renewal (no drop), first accident forgiveness, declining deductibles, use of OEM parts and on and on..... all while saving customers over a $1000 a year on insurance!!!
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