State Farm Insurance First Year $$

[mccartney_1999]

How much can a new independent agent expect to earn in net income their first year? It seems if you keep your expenses down it could be quite a bit. 10% of current book of business, 30k in start up, plus the cash from new sales. Am I correct in this assumption that one who is motivated could make a good earning from day 1 or not?

 

[Agent5913]

Well, first, you will need to work with the company for about 3 years as a Associate agent. Then, you may get the chance to open your own agency. Not sure your current situation.

 

[OHInsAGNT]

How much can a new independent agent expect to earn in net income their first year? It seems if you keep your expenses down it could be quite a bit. 10% of current book of business, 30k in start up, plus the cash from new sales. Am I correct in this assumption that one who is motivated could make a good earning from day 1 or not?

You wouldn't be an independent agent if you were with SF. If you break even in P&C personal lines your first year opening an agency, you're doing decent. SF doesn't have commercial markets, which is about the only way to turn much profit year 1.

You can hit six figures in 3 to 5 years if you are good, consistent and a little lucky on personal lines P&C.

Again, I wouldn't write a business plan that includes any profit in the first year if you go personal lines P&C from scratch.

I'm not sure what kind of ramp up salary or existing business they might offer.

 

[dieselgeek]

Personaly I would become an independant agent reping mulitiple companies other than SF, especially if you are just starting fresh without a book of business. The reason I say this is because if I am not mistaken SF commision rates are not the highest (8%-Auto, 10%-home).

I know that if you are appointed with a company like Travelers you can expect 11% for auto and 20% for home. They also pay 15% for commercial (not sure about SF).

The point I am trying to make is that YES, SF is like the Mc Donalds of ins and you will have corporate franchise suport, but you will have to work very hard if you are starting a scratch agency. Dont get me wrong, you will work hard no matter who you rep, but I personaly would rather work just as hard and know I am making a higher commision rate reping companies that are just as well known as SF.

I personaly am with an agency that is appointed with 20 plus companies. I will not say that I always beat SF rates but we are very competitive. SF is a great company and does do well. Just make sure you weight out all your options. Afterall I know that for your first year you dont really have a contract with them and they can terminate you at anytime if you are not meeting your quota and they also will take over your location from you.

Point being = weight every option and make sure you have all your ducks in order ( especially if you are starting from scratch)

Just my 2 cents!

 

[newoneinNW]

I'm not an experienced agent, just looking for a career change so I'm not an expert. But I did look very closely at State Farm and Allstate a year or so ago.

If you are talking about opening your own State Farm office, I would look very closely at their current agent contract.

I went to their required "join us" meetings (to get you all excited-they try to get you pumped up and tears in your eyes on how the insurance agent helped so and so).

Before I went, I developed a business plan. They are pushing the idea that you are developing an office of other sales people (all at your expense and overhead). They do not encourage the one person office in their structure. Their 3 year bonuses may be enough for 3 years if you don't go overboard on overhead (find low rent space). Then the idea is you've established enough renewals to make a living. I was still biting on the idea until there was one bonus that no one could give me an answer on (based on your state). I couldn't get a real idea of the income potential based on their bonuses after 3 years. Their agent contract had just changed a couple years ago and I couldn't get any information on longevity.

They were interested in people outside the insurance field at the time because of retiring agents in areas. State Farm owns your book of business. You leave it when you go.

 

[oicu812nbama]

I have no personal experiences with sf, but I can tell you the info that I figured out. You go in debt to them, sell a ton of pnc and life, but they don't renew your contract if you don't sell enough banking products. Guess where people normal buy banking products? yep. their bank. my 2 cents
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If you don't sell enough banking products they will non renew your contract regardless of the amount of pnc and life that you sell. Guess where folks normally buy banking products? yep. Their bank. so be careful cause they make you go into debt with them. the only pnc opportunity that i've seen guys succeed in is buying an existing 2m dollar book and maintaining it.
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That being said. a sf contract used to be good as gold. ask a state farm agent if they would recommend that their children come into this new contract. you will hear an overwhelming "no".

 

[fastrack1]

That being said. a sf contract used to be good as gold. ask a state farm agent if they would recommend that their children come into this new contract. you will hear an overwhelming "no".

I would agree with that

 

[xrac]

Originally Posted by oicu812nbama

That being said. a sf contract used to be good as gold. ask a state farm agent if they would recommend that their children come into this new contract. you will hear an overwhelming "no".
​

I would agree with that

There you go folks and from a current SF agent!

 

[maxjlone]

I have no personal experiences with sf, but I can tell you the info that I figured out. You go in debt to them, sell a ton of pnc and life, but they don't renew your contract if you don't sell enough banking products. Guess where people normal buy banking products? yep. their bank. my 2 cents
- - - - - - - - - - - - - - - - - -
If you don't sell enough banking products they will non renew your contract regardless of the amount of pnc and life that you sell. Guess where folks normally buy banking products? yep. Their bank. so be careful cause they make you go into debt with them. the only pnc opportunity that i've seen guys succeed in is buying an existing 2m dollar book and maintaining it.

- - - - - - - - - - - - - - - - - -
That being said. a sf contract used to be good as gold. ask a state farm agent if they would recommend that their children come into this new contract. you will hear an overwhelming "no".

Agreed! Nice find .. Good stuff!

Term life insurance

 

[Soaringagent]

Great info. State Farm is a great company - they always seem to have competitive auto products and their client retention seems good. The downside is that you are captive and can only sell their products.

They do have a good amount of commercial products depending on your client's needs.