State Farm Offer

[AgentZ]

Re: State Farm Offer.

Jack sorry but you are right you don't need these things but if you want your permanent contract these days you will do them or NOT get the contract. They say they "suggest" wink wink these things and threaten your contract when you don't. The agents that didn't do these "suggestions" did NOT get their contracts and some were on time to travel.

Not quite true.... you can and do negotiate. Sign on Bonus, monthly payment etc.

I dont understand why anybody would put in thousands and thousands of dollars knowing full well that they could pull the plug on you at any time and for any reason.

You dont need a $20-30,000 set of office furniture. You dont need 3 or 4 staff member at start up. These kind of issues should have been settled before you opened the doors.

 

[AgentZ]

Re: State Farm Offer.

Jack I know you all worked hard to get your contracts as well, its never been easy, but you have no conception of this new contract. We are not saying you guys didn't work hard we all did. I bet you didn't build your agency with debt. Most TICA's have if not they would not have got their contracts. I sold over $74,000 life premium my first year, $8K in bank bonus and over 100 apps a month. ALL from an agency that had not traveled in 25 years. All while 3 others company agents are within a mile of me. I wasn't only top 100 I was top 10 and made ALL publications. I am sure it wasn't easy for any of us but the debt that new agents must take on to get their contracts is factual you either do certain things or you are out. Jack please go talk to 5-10 agents that were hired in 2004 and 2005 and get a reality check.

How would you like to sell what you did and earn less than 30% of what you did. I know you didn't have 3 staff then as the company paid your expenses. You go see how many sons and daughters are following in dad's footsteps , not many.

You older guys did a lot to build the company but many of you are "not engaged" these days and spend little time in your offices at least in my region they don't. The company is top heavy with older agents and AFE's that work part-time and now the results end up in the lap's of the new agents. 40% took the AA97 and all regretted it, good for you not taking it. Bottom line here is jack you are out of touch with what you would have to do today and you would not dictate what you would do to be an agent with this company and if new agents do what you say they Would NOT get their contracts and most would be better off for it.

As for the securities you are probably better off. I know to many older agents that took the Series 63 test and failed it so many times and failed it that they can't even take it again. Good luck to you Sir

Anyone that is considering agency with this company should talk to at least 10 agents that were hired in 2004 and 2005 before moving forward.

Au contraire Agent Z... It is asinine to operate a business on those percentages. You are setting yourself up for failure.

Buying your office furniture through and from SF is another mistake. A little judicious shopping will get you the same thing for about half the price.

If you come in the door bending to their every whim, you will be destined to a future of the same. Stand up to them from the beginning and use common sense.

You ask what contract I hold.... AA3/4. Any agent that willingly took the AA97 or the Blend will tell you now that is was a huge mistake. Trusting the company is a mistake... it is not the same company it was years ago under the reins of Ed Rust Senior and Don Rood.

You say it was different back then and imply how easy it was. Was it different,...of course. Was it easy.... not at all. I started Scratch in a small town working 12 to 14 hours a day for the first year. In the 13th month renewals kicked in. I finished first in both my course schools and made the TOP 50 in the Reflector. (its top 100 now) Bottom line is, how bad do you want it and are you willing to pay the price.

I signed a contract under a defined set of circumstances. I have lived up to my end of the bargain and honored the contract. I fully intend to enjoy the rewards of those 30 yrs of work.

You have signed a different contract with a different set of conditions. You came in with eyes open (I assume) and now must live up to your contract.

I personally would not have accepted the contract you signed. I am an INSURANCE AGENT.... not a securities broker or banker. I do not and will not do securities. I do hold the CLU designation which means that I have more knowledge of securities than any agent who just took a course to pass the test.

Jack of all Trades and Master of None ? I choose to be Master of Insurance. That's what I do...and I do it damn well.

 

[AgentZ]

Re: State Farm Offer.

No don't do it ! I know a two AA97 agents that did (went to AFC) and came back and did get a bigger book but had to take the current contract and they both really regret it. You got the best deal these days stick with it. We 2004 and 2005 agents would jump for joy if we were put on your contract. You see the older agents never thought the 97 was a good deal and maybe it wasn't compared to their 34 deal but the 97 is looking like a sweeet deal compared to the current contract.

Word in my region is also AFC coming back to "personal production" are not getting the 3000-4000 car books they are getting more like 2300 and hoping the block that was assigned out will return to their agencies.

I know an agent that just started had 1700 cars & 900 fire from a split book and AFC just took the other part. The new agent a few months after starting has 900 cars and 500 fire as the AFC kept all the previous staff and building and a smart move on their part but they new agent has about 1/2 what he started with and the company does nothing. Please talk to 10 agents that were hired in 2004 and 2005 before considering a position with this company. They do have a better deal for new agents then we had but in the end you will still have the current contract which pays you 30% of the illustrations we were shown.

I'll tell you that management doesn't seem the way to go either. They continually drop their pay as well and then you become part of the problem that has been laid out in this post. If you don't follow the party line there, you really aren't going anywhere. The only way it is worth it is if you think you can hack it for a few years and then go back into production with a really large assignment. That doesn't always work out.

I've been approached several times and can't find any reason why it would be worth doing it.

 

[AgentZ]

Re: State Farm Offer.

Base is 8% and semi monthly is 2% default (first 2 years) so now they get 10% auto/fire where we got 8 1/2% as base was 7% then. They also get a $12,000 bonus at the end of the 12 month TICA phase in addition to the $18000 sign on bonus that still exists. Let's look at what this means. Let us say your P&C book is $2 million and the $12,000. $2 mill x 1.5%=$30,000 x 2 years of default.

Year 1 + $30,000
Year 2 + $30,000
Bonus at end tica $12,000 =$72,000


New agents with a good book will make $72,000 MORE than agents did that started in 2004 and 2005. Now why did they leave out agents that started in 2004 and 2005 ? These agents are leaving the company as many can NO longer borrow money and are "tapped out" Why was the date of 1/1/06 picked for relief ??? The tica's that need help the most are the ones being left out. I know several agents that are very close to leaving. Fortunately for me I had some money saved and I have been in the top 10% of my AFO since my first quarter of agency, but the illustrations they showed us before starting showed we would make about 4 times what most have made. I can't imagine how some are even paying their bills. They have had to cut, cut, cut to get by. The semi mo variable is mostly based on growth 2/3 of it and its a catch 22. You can't grow your agency short staffed and you can't pay your bills with a full staff. What is the ANSWER ? Why did they not help the 04/05 agents, why was this date picked ? There are also better provisions for new market agents "scratch" as well.

AFE's for the most part do NOT care. Mine does not he just wants me to travel so his bonus is better. ALL they want is you to travel. I will make travel this year for the 4th time (every year of agency). Looks like I could hit level 2 again maybe 3 if I close a few LARGE cases I am working on. I am not going this time or ever again as long as I am stuck in AA05 hell. I will not take a vacation/trip with people who I do not trust and do not have my best interest at heart. I love this company and I love my policyholders and staff but I can't stand to be with the leadership who has consistently lied to us since day one.

Why did they change it if it wasn't broken, and why did they pick the date of 1/1/06 ?

Lastly leadership says we "should have controlled our expenses in year one" They were the ones that made us pay everything, rent, payroll (3 staff in most cases) new furniture etc or the THREAT of NO CONTRACT at end of tica phase. I know agents that as soon as they got their contract fired 2 of their 3 staff. Now thats a hard business decision but they are doing financially better than the ones with 3 staff that are still trying that program. How hard is it to fire 2 staff that have done a good job but if you don't you might and probably not make it. I know many 04/05 agents that had to make this decision. Yes its only a business decision and its not personal. But if you semi monthly comp ever drops lets say 1% then that makes it hard to pay staff and I know way to many that this has happened to. The company will not tell what % take a pay cut off of default but we tica's believe its over 70%?

PLEASE if you are considering agency with this company talk to 5-10 agents that were hired in 2004 and 2005 before you move forward. ALL we want is some help older agents have a better deal and newer agents have a better deal. The 04/05 agents started at the worst time ever to be an agent with this company.

Are you talking about they are raising the base, or the semi-monthly variable comp?

 

[chickenfarmer]

Re: State Farm Offer.

Do you think this increase will allow TICA's to be profitable? When are the changes to the contract going to be announced?

Thanks

 

[frmrTICA]

Re: State Farm Offer.

Negotiate? Negotiate?

And there-in lies the answer.... in your ending statement. If you did not negotiate a contract that you could live with, you should not have taken the deal and let the chips fall.... fall away that is.

Not sure what a "peep" is.... but if that means I am a comfortable old time agent you are correct.

Do I feel sorry for the Tica's.... yes. Did SF stick it to them... hell yes. Should they have done a better job checking it out ahead of time.... once again yes.

There is simply too much information available from current Tica's, former Tica's, and onboard agents that should have opened your eyes prior to signing a contract.

I went in blind, and my eyes opened before they gave me the chance to get deeper. I drank the Kool-Aide and should have learned it..

except

I'd bet over half the agents on any contract don't undnerstand it, much less the new one with variable comp (read, the second you quit growing, is when we cut your pay)

There was nothing like this available that I was aware of them. But there is now.

 

[AgentZ]

Re: State Farm Offer.

Correct you won't negotiate the contract, it is as they say what it is...period.

Must be a "MOLE" No one has ever "NEGOTIATED" a SF Contract. It is take it or leave it.

Proly an Allstate agent.

 

[AgentZ]

Re: State Farm Offer.

the e-mail is out there now. What it will do is keep new agents from going so far in debt. Its a better deal the first 2 years only then you still end with the current contract. Still its a much better deal than 2004 and 2005 agents got when they started. As far as answering your question each opportunity is different and some are good opportunities, some are not so good. Remember you can be terminated at will on this contract. There is no retirement . You do not own your book of business and you will be paid on average much less comission than the prior 2 contracts that agents are still under. Also consider that in most cases you should think about other career opportunities as well as maintaining your agency. Many agents hired 2004-2005 are working other jobs just to make payroll and expenses.

Do you think this increase will allow TICA's to be profitable? When are the changes to the contract going to be announced?

Thanks

 

[fastrack1]

Re: State Farm Offer.

What other job can you work without it going on the U4?

It doesn't matter if it ends up on the U4. I have a completely separate business and it is on the U4. They know about it and it is fine as long as there is no conflict of interest and you don't violate anything within your SF contract.

 

[irjack]

Re: State Farm Offer.

Negotiating the "contract" was a poor choice of words. The contract is offered on a take it or leave it basis. Your initial pre-contract period is negotiable with regard to assignments, bonus, payments etc.

The seem to range from very low to damn high.