State Farm agents opening Goosehead

Feb 18, 2018

  1. Camerond
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    Camerond New Member

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    i hope someone has experience with this but I’m curious why so many State Farm agents are closing and opening as Goosehead Insurance agents. Spare me the reasons you like or don’t like either of those brands. Just looking some some insight on the details. I really appreciate the feedback. I’m someone who is relatively new to this and everyone tried to paint their company with rainbows. Hoping to get a better perspective.

    Thanks again!
     
    Camerond, Feb 18, 2018
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  2. meganbailey
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    meganbailey New Member

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    Camerond - I hope this helps. Here are the facts based on my experience in working with State Farm agents who have made the transition to Goosehead:


    1. State Farm agents do not have ownership or equity in their book of business. Goosehead agents own their book with options to sell, transfer, or take a guaranteed buy-out.

    2. Agents and clients prefer a choice model platform over an exclusive model.

    3. Commission and revenue opportunities are higher on the independent side.

    4. State Farm requires their agents to service their book as well as oversee a premium fund account, BOD (Beginning of Day) management responsibilities, training, etc all of which is time consuming and limits the amount of time to focus on marketing, sales, and business growth. Goosehead is a sales-only model.

    5. State Farm's marketing strategies heavily focus on price driven clients (internet leads/mailers/seo) and have agents spending high amounts on marketing annually with a high lapsecan. This and the high cost of staffing causes a lot of agents to go in debt. Goosehead has a unique strategy to marketing that drives high quality referral business and is very low cost, driving ROI and allowing agents to invest more in high quality sales staff. Staff are not required at Goosehead, and when you do hire, they offer free training for your sales staff.
     
  3. Markthebroker
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    Markthebroker Guru

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    Camerond, this is the funniest post I have read in a while. Your first sentence says "I'm curious why" Your second sentence says "spare me the reasons why". You remind me of some of my bad clients.
     
    Last edited: Feb 9, 2019
  4. NCAgent828
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    NCAgent828 Super Genius

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    Wasn’t intending to contradict. This was 2 months before I opened my agency. Was prepared for a lot of why State Farm and Goosehead are crap. Wanted to hear the positives from those who had actually been involved with it. Rookie post I know. I was still with State Farm at that point. There was a lot of things I was doing backwards. Haha
     
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