Lawsuit Filed Against State Farm

[scagnt83]

There are two very different worlds in SF agency. One is old contract Pre-2004 and the other post 2004 and beyond.
Those prior made major coin and bleed company red in loyalty, while many after bleed serious red ink, so neither has sympathy for the other. Once the company forces all to sign a uniform contract, then we'll see them all scream together.

X2!

Two partners in the local GA im with started at SF. One actually owned her own agency.

Both of them say exactly what is quoted above.
These are two extremely capable agents. And both of them have said that the new SF contracts set an agent up to not only fail but to be in debt.

SFs new contract lowers them to a level of turn and burn and guaranteed failure that puts them about equal with NAA!


I have 4 SF agents as life clients.
They all struggle tremendously financially. (they also say their term product is sh#t, which is why they are clients)

Last year one of them wanted more coverage and asked me to get an app ready. Last min they cancel.
She said she needed to sell it to herself, because her agency owner was giving out $100 instant cash bonuses for every term app placed.

She said she knew she would pay more over the long run but that she really needed the $100 at the moment....

They get piss poor training, and absolutely RAPED on comp...

 

[Guest]

X2!
They get piss poor training, and absolutely RAPED on comp...

Having gone through SF's training last year, I can say that it was good training overall and light years ahead of the training I received at Am Fam about 10 years ago.

In the training, they were very upfront about the potential financial challenges, but seemed to be very inaccurate about how many new agents would become intimately familiar with these challenges. The message was basically,"follow our formula for success and this shouldn't happen to you".

Upon completing roughly 80% of the training, I discovered that the book I was taking over would be 40% smaller than what I was originally led to believe, so I passed on the opportunity.

I'm still in contact with many of those I was in training with, and nearly all of them claim to be $10-25k in the red after nearly 1 year.

For a few of them in the right circumstances, it will prove to be a wise investment, but I think most will be left facing extreme financial hardship. It's unfortunate, as many of them are competent, hardworking, intelligent people simply trying to provide a better life for their families.

The running joke around The Farm is that if you're really, really successful in your agency, you will be rescued from imminent financial ruin by receiving a reasonably high-paying corporate position and they will wipe out your outstanding debt.

Not quite the business plan that I had in mind when I started the process.

 

[swamp]

Stella 12, thanks for the post. How did you find this forum and this thread since this is a first post.

and did you accept the 5K?

put differently... did you now join the class action?

 

[CaNewAgent]

I hope the attorney sticks it to State Farm. Once his work is done there he can work on the other major carriers who make it virtually impossible for new agents to make it in the business the first 5 years.

 

[HuntAssuranceGroup]

Whats the status on this suit?

 

[Play Fair]

Interesting post from ASU67: You must be a "Gravy Train" agent, ie, you must be one of the Legacy Agents who earn 15% Commission while the New Scratch Agents only earn 7.50% Commission ( and don't try to quote the Semi Variable Compensation, because hardly anyone can hit it unless there is Nepotism from either Mommy and/or Daddy who are also Gravy Train or Legacy Agents ). Also, why does State Farm hire Family Members with NO Sales Goals while the New Employee Agents down the road have to sell twice as much just to stay alive. Family Members of State Farm agents get DIFFERENT Contracts than Non-Family Members . . . .why is that?

 

[louiedoo]

All of these agencies are franchises - you'll always have to live by their rules & payment schedules. That's just a fact whether its state farm, am fam or others. I've had recruiting calls from these types of outfits and they want to make sure you are financially secure before you open an office with them - there's a reason for that . . . .

 

[BIG RED IS BACK]

Go IA and OWN your own book and make more commissions and bonuses.

 

[ASU67]

Not a company man. An agent near Charlotte. Age 67. Was an agent 14 years then agency manager then AFE then back to agency for last 10 years. It's been a great ride however the market conditions have changed with more competitive conditions and it is much more difficult for an agent to be successful now than it was 36 years ago. The business model today is much different and everyone is not going to be successful due to varying skill levels of new agents. I have observed some new agents blowing others out of the water while others sink. My observation is that just like all other "store front" businesses some make it and some don't. Is State Farm perfect? No! Because people are not perfect. Is life fair? No! When I came back to agency I did not get a big book of business like others. Did it bother me at the time? Yes however I was grateful as I do not know many companies that would have done the same thing and allowed retiring AFEs to rejoin the company in personal production. I can only do things that affect my future and everyday when I wake up I count my blessings.

 

[Putt 68]

ASU 67, I'm starting the SF Agent Training Process. I came on this forum looking for an example of the Autobiography I have to write. As an experienced State Farm Agent, what advice would you give a "newbie"? Haven't been called that since I joined the Army in 1987.