State Farm Offer

[fastrack1]

Re: State Farm Offer.

MY question to you is did you go in debt $75,000-$125,000 like MOST Tica's did? I know the usual answer to that and its NO. Did you take a pay cut after 2 years ? Did you have to pay ALL expenses your first year like rent, payroll, basically everything? Did they "suggest" you have 3 staff ? Under your contract with an average book you know as well as I do you would have had 2 staff at best. You ever see a 97 trainee agent ask for a 3rd staff they would have told you NO, top 100 or not.

Okay, fair enough. You are well versed on your contract issues and it is not fair for me to be to judgemental, as I don't have the same contract. A couple notes of interest that you will appreciate:

1. I did take a paycut after 2 years and it took a couple years to get it back.
2. They paid all my expenses, as you indicated.
3. I did ask for a 3rd staff and actually did get it, but I do agree that was rare.
4. I did not go into substantial debt.

I wish you the best of luck as you move forward. I hope things work in the favor of the agents, as they are the ones that built this company.

 

[lisar1208]

Re: State Farm Offer.

Everyone is talking about State Farm and Allstate. How about some of the other companies out there like Nationwide or Metlife?
Are there any of those agents out there and have they had similar experiences?

 

[xrac]

Re: State Farm Offer.

Everyone is talking about State Farm and Allstate. How about some of the other companies out there like Nationwide or Metlife?
Are there any of those agents out there and have they had similar experiences?

Or Nationwide? American Family? Farm Bureau? etc.

 

[Agent still waiting]

Re: State Farm Offer.

I am a SF agent under current contract. Talk to agents under current contract, different from who the recruiters send you to. I was recruited under a misleading illustration that is no longer used. Try and find an agent that is making any money since 2004...who wasn't given a larger than normal book. Might be tough; it is not a very trusting environment for agents. Messengers get shot. Unfortunately, customers usually figure out when agents aren't respected.

Almost all of the newer agents that I know feel mislead, and would not do this if this "opportunity" was illustrated as an opportunity that creates debt, not profit.

Hopefully after enough agents leave, SF will have to change to a fair and understandable contract. You may want to wait.

This a typical large corporate organization no longer feels the need or respect for their sales channels. The ever increasing internal overhead with bloated salaries and pensions are creating a competitive challenge. This is especially true as SF continues to lag behind the technical advancement in the industry from a sales and service perspective (i.e.; website, e-quotes, e-branding, e-apps).

The AFO structure is a tremendous waste of financial resource. How many agents feel the value in a $300 - $500K , part time, AFE tell them to spend $5000 on outside consultants that should be a SF/AFO program?

SF could improve the AA04 contract by reinventing the AFO structure so that it is cost-efficient and compensate the AFE's on a performance basis. The cost savings could be passed on in improved commission.

Successfully compensate AFE's to create teams to compete against the competitor(s) not the agents within the teams. Change the comp plan so AFE's and AVP's prosper and succeed when they help the agents succeed.

The older and complacent leadership is as much or more of the problem as the older agents.

Open the lines of communication. Why is this an environment where, across the board, people are afraid to speak? Successful relationships are two way. You do not need to like what you hear. Great ideas come from within if you allow them.

Rules are only rules if they are enforced. Eliminate the separate set of rules for those that come from "the SF Family". History shows that most generations of family run businesses do not succeed without outside influence.

QUESTIONS:

WHY IS THE CONTRACT SO COMPLEX THAT LEADERSHIP AND AGENTS CANNOT UNDERSTAND IT?

WHY DOES SF NOT WANT AGENTS TO KNOW HOW THEY ARE COMPENSATED?

Still waiting.

 

[xrac]

Re: State Farm Offer.

I am a SF agent under current contract. Talk to agents under current contract, different from who the recruiters send you to. I was recruited under a misleading illustration that is no longer used. Try and find an agent that is making any money since 2004...who wasn't given a larger than normal book. Might be tough; it is not a very trusting environment for agents. Messengers get shot. Unfortunately, customers usually figure out when agents aren't respected.

Almost all of the newer agents that I know feel mislead, and would not do this if this "opportunity" was illustrated as an opportunity that creates debt, not profit.

Hopefully after enough agents leave, SF will have to change to a fair and understandable contract. You may want to wait.

This a typical large corporate organization no longer feels the need or respect for their sales channels. The ever increasing internal overhead with bloated salaries and pensions are creating a competitive challenge. This is especially true as SF continues to lag behind the technical advancement in the industry from a sales and service perspective (i.e.; website, e-quotes, e-branding, e-apps).

The AFO structure is a tremendous waste of financial resource. How many agents feel the value in a $300 - $500K , part time, AFE tell them to spend $5000 on outside consultants that should be a SF/AFO program?

SF could improve the AA04 contract by reinventing the AFO structure so that it is cost-efficient and compensate the AFE's on a performance basis. The cost savings could be passed on in improved commission.

Successfully compensate AFE's to create teams to compete against the competitor(s) not the agents within the teams. Change the comp plan so AFE's and AVP's prosper and succeed when they help the agents succeed.

The older and complacent leadership is as much or more of the problem as the older agents.

Open the lines of communication. Why is this an environment where, across the board, people are afraid to speak? Successful relationships are two way. You do not need to like what you hear. Great ideas come from within if you allow them.

Rules are only rules if they are enforced. Eliminate the separate set of rules for those that come from "the SF Family". History shows that most generations of family run businesses do not succeed without outside influence.

QUESTIONS:

WHY IS THE CONTRACT SO COMPLEX THAT LEADERSHIP AND AGENTS CANNOT UNDERSTAND IT?

WHY DOES SF NOT WANT AGENTS TO KNOW HOW THEY ARE COMPENSATED?

Still waiting.

WOW! Another eye opener. Anyone considering SF pay heed!

 

[fastrack1]

Re: State Farm Offer.

If part time AFE's make $300-$500k, then why do they have such a hard time finding quality agents that are willing to become AFE's? For a new AFE, their compensation is nowhere near that. Maybe the old timers, but they have been cut back several times. SF has trimmed the management levels quite a bit from several years ago and probably will some more, due to expense management and some of the issues that you raised. What they do with the AFE's isn't going to change your contract though. You guys are going to have to rally together on that one to get something done.

 

[Sailor]

Re: State Farm Offer.

If part time AFE's make $300-$500k, then why do they have such a hard time finding quality agents that are willing to become AFE's? For a new AFE, their compensation is nowhere near that. Maybe the old timers, but they have been cut back several times. SF has trimmed the management levels quite a bit from several years ago and probably will some more, due to expense management and some of the issues that you raised. What they do with the AFE's isn't going to change your contract though. You guys are going to have to rally together on that one to get something done.

Agreed.

The real issue is that the AFO's are just irrelevant. They do not represent us agents, and they serve no real function. If they all went away tomorrow, absolutely nothing would change in our offices. Everything we need help with is a phone call away.

 

[fastrack1]

Re: State Farm Offer.

Agreed.

The real issue is that the AFO's are just irrelevant. They do not represent us agents, and they serve no real function. If they all went away tomorrow, absolutely nothing would change in our offices. Everything we need help with is a phone call away.

Now that I agree with! I would really miss those meetings though......

 

[fastrack1]

Re: State Farm Offer.

What is your expense ratio?

 

[patch36]

Re: State Farm Offer.

You can't make it (comfortably) in one of the major P&C companies selling only P&C. Without a substantial amount of Life and Securities sales on the books you will not make a good living and will work yourself to death servicing the P&C.

If you like customer service work it is a great opportunity to get good at data manipulation and entry. As soon as you get enough business on the books you have to hire someone just to do that, so there goes that potential profit.

Cross sell Life and Securities is your only hope of building a business that is sustainable and lucrative. Or you could just sell Life and Health and cut State Farm, Farmers, Allstate, ect. out of your life.