State Farm Offer

[Recruiter1]

Re: State Farm Offer.

I recall being told at one time that you must have a 4 yr college degree to become a state farm agent. True or false? Also Allstate -I think.

This is false. State Farm will screen you strictly but you aren't bound to degree standards.

Also as stated in the thread...there is nothing fishy about State Farm's Training/Internship program. They do match your salary and are very up front with all aspects of the business. You have to remember...this is a Fortune 50 company, they have the money to do this.
You must note, (in California anyways) they match your salary from the previouse year up to 100k. Over 100k, it becomes a negotiation. It is very fair however. I would suspect it to be similar in other states.

 

[aspiringwealth]

Re: State Farm Offer.

I am looking at State Farm currently. Seems pretty consistent with the information posted. Does anyone know if they pay the salary for a year, 6 months, etc?

Also, has anyone successfully negotiated for a decent book coming in?

Thanks

 

[Insurance Phoenix]

Re: State Farm Offer.

Those seem like questions that need directed toward the SF rep negotiating with you. I would assume everything would be on a written contract, including sales expectations of you. SF still has a great reputation and would be a good job to have. Living in the country would give you country-folks to approach (assuming you are not in a deserted part of the country), and likely they do not get alot of attention from insurance agents either. So it would seem like a great opportunity.

 

[chickenfarmer]

Re: State Farm Offer.

I've been negotiating with State Farm as an approved candidate. It is at the discretion of AFE in that district as to size of the book but from what I've seen its 1.5 to 1.9 million in premiums. I have enjoyed the process so far and am optimistic I'll be a state farm agent sometime soon. I have a 4 year degree and a real estate background and they have been very encouraging and thorough in their seletion process. I haven't checked out any other companies really... I thought they were the best from day one.

 

[aspiringwealth]

Re: State Farm Offer.

I've been negotiating with State Farm as an approved candidate. It is at the discretion of AFE in that district as to size of the book but from what I've seen its 1.5 to 1.9 million in premiums. I have enjoyed the process so far and am optimistic I'll be a state farm agent sometime soon. I have a 4 year degree and a real estate background and they have been very encouraging and thorough in their seletion process. I haven't checked out any other companies really... I thought they were the best from day one.

How did the panel interview go? Did they give you a template for the business plan?

 

[chickenfarmer]

Re: State Farm Offer.

They basically tell you what they will use to evaluate your plan and they give a nice spreadsheet to help determine what it will take to make the kind of money you are looking for. I thought all the inverviews went really well and it sounds like I'll be agent.

The executive interviews were a little stressful, I think the rest in my group were not selected. But it went ok for me.

 

[series7]

Re: State Farm Offer.

I am looking at State Farm currently. Seems pretty consistent with the information posted. Does anyone know if they pay the salary for a year, 6 months, etc?

Also, has anyone successfully negotiated for a decent book coming in?

Thanks

SF will match whatever salary you were making in your previous job upto $100k (you must show them pay stub or w-2) This is only during the training period. once you open your agency you are on your own. be ready to not see a pay check for 2 to 3 yrs

 

[series7]

Re: State Farm Offer.

My questions were a little different from the recent post by another individual. I've been a successful financial advisor for the past five years. My wife and I are desperately wanting to move to the country and raise a family and there is no way that I would be able to do that as a financial advisor without having to start over or luck into a retiring Edward Jones broker's office.
Hence, I've been looking at insurance agencies. I've been approached by State Farm and have talked to an existing agent. I'm supposed to have an interview with a recruiter next week. I was wondering if folks could give me some advice as to rather or not this would be a wise decision and also some questions that hopefully weren't answered on the previous topic post.
1) I would only go here to take over a retiring agents office and it's my understanding I'd be at the front of the line since I have the ability to cross sell LTC, LIFE, Mutual Funds successfully AND because I want to live in the country and I guess nobody else wants to anymore. I assume this is correct as they wouldn't waste there time interviewing me knowing this is the only way I'd come on board.
2) I was told for the first year I'm paid a salary and it is whatever I was making in my last year of my previous employment. This would be a major draw as I did 100k this year. I've never heard of a company willing to do this, is it a salary or actually some kind of forgiveable loan or draw?
3) What to look for if I did get the offers to take over an office in small towns? I get the impression I need to be the only shop in town. Do any of the old timers really cross sell? I was wondering if there is a way of finding out how many existing homeowners and car policies there is per capita for the counties ahead of time and how many existing ltc, and life policies there are in place?
4) I expect to make 85-115,000 at my peak in a small town. Is that normal or higher than I should expect? .
5)This should have been the first question. It is my understanding that you don't have to buy a retiring agent's book but when you retire you don't get to sell it or give it to your kid either, where other companies you buy the book and then get to sell it. Correct? Are there other companies I should be considering for the market I'm wanting?

Thanks for everyone's help.

If you are making $100k as a financial advisor i would go to one of the brokerages in the town that you want to move to and see if they will help move your book over.

The new SF contract is NOT very lucrative. you will not take a pay check for several years. this may not work if you are looking to statrt a family

 

[Sailor]

Re: State Farm Offer.

SF will match whatever salary you were making in your previous job upto $100k (you must show them pay stub or w-2) This is only during the training period. once you open your agency you are on your own. be ready to not see a pay check for 2 to 3 yrs

Correct, and dont forget to add that after that 2-3 yrs you will be 80-100k in debt.

 

[Sailor]

Re: State Farm Offer.

Keep in mind, your expense ratio the first year will be around 80-95%.

Then after 3yrs it will be around 75-85%

Some agents are 118-120% expense ratio.