State Farm Offer

[AgentZ]

Re: State Farm Offer.

how many do you have ? What % of your gross is payroll expense ?

No, don't believe the basement would work .

What's the solution?

Lay off one of my staff and move to a basement to cut costs?

 

[frmrTICA]

Re: State Farm Offer.

DO NOT go into agency with this company right now.

There is only ONE solution SFTICA is for the company to just say "To better align our agency force all agents that were hired in 1997 and later will be on the same contract aka the AA97." Give us ALL some back pay for underpaying commissions and move ahead. Approx 5000-7000 agents are thought to be retiring in the next 10 years and the company will falter under this current deal.

They will fix the contract, eventually. They WILL NEVER give you any "back pay" (are you on drugs?)


Same thing is happening at Allstate. Year 3 and 5 guys selling their book in DROVES.

New guys have a better deal (slightly), but it doesn't help the old ones...

[still chuckling on the back pay thing]

 

[chickenfarmer]

Re: State Farm Offer.

Are you losing money at those levels SFTica or breaking even?

Thanks

 

[frmrTICA]

Re: State Farm Offer.

My guess is that including office expenses, he might do better under the new minimum wage.

I feel for him.........

 

[irjack]

Re: State Farm Offer.

I have 900 auto and 800 fire.

I have $1,600,000 of premium

My payroll is $80,000 a year for 2 full time and 1 part time.

That's not my Rover, I just got the pic off the internet to stay incognee.

Thats asinine.... your payroll alone is over 50% of the gross. Total expense should not exceed 50%. At those kind of numbers you will NEVER be "comfortable."

 

[fastrack1]

Re: State Farm Offer.

I have 900 auto and 800 fire.

I have $1,600,000 of premium

My payroll is $80,000 a year for 2 full time and 1 part time.

That's not my Rover, I just got the pic off the internet to stay incognee.

I figured as much, but just had to say it. I had a trainee in my class that drove a Hummer. It really ticked me off while I was struggling to get things going. Of course, his dad was a big huge coastal agent.

 

[AgentZ]

Re: State Farm Offer.

You would have a hard time finding a tica hired from 2004-2008 that did not have a first year payroll 50-70% . Now are there any business books out there that say this is a good idea, NO. Even non-profits run at only 50%, but this is reality for ticas. In today's environment with this company you will have payroll this high in year one or you will NOT get your contract. You will also get the really nice office and the furniture package (in most cases). You can take your asinine comment back as you don't know what you are talking about. This is all part of why you should talk to 10 agents that were hired in 2004 and 2005 before ever considering this "opportunity"

Thats asinine.... your payroll alone is over 50% of the gross. Total expense should not exceed 50%. At those kind of numbers you will NEVER be "comfortable."

 

[AgentZ]

Re: State Farm Offer.

AN AFE told me this week that they are raising the first 2 year default again. TICA's get a full 1.5% more than we did, an extra $12,000 when they sign their contract and that is a lot of $. He also told me some were getting retro pay, so if you are a recent hire you will have some money coming. Laugh all you want its the truth,There is an e-mail coming from corporate soon. I haven't seen it but there are to many new agents being told that there IS SOME RETRO pay coming. Some rumors are BS and if this one is I will surely come back and say they are or are not.

New deal is slightly better???. NOT it's A LOT better the FIRST TWO YEARS okay let's say they have an average book. The 1.5% gets them about $15,000 more in year one and year 2 and they get a $12,000 bonus in addition to the sign on bonus of $18,000. Let's break that down.

$15,000 yr 1+ $15,000 yr 2+ $12,000 contract bonus=$42,000

I don't know about you but thats a lot of $ and it would have made the difference if some agents would have made it or not. I know of a few agents that started around when I did and now are gone and would not have been on this package, still after 2 years new agents will be on the same terrible contract we are under current contract.

Talk to 10 agents that were hired in 2004 and 2005 before considering going to work for this company.

They will fix the contract, eventually. They WILL NEVER give you any "back pay" (are you on drugs?)


Same thing is happening at Allstate. Year 3 and 5 guys selling their book in DROVES.

New guys have a better deal (slightly), but it doesn't help the old ones...

[still chuckling on the back pay thing]

 

[AgentZ]

Re: State Farm Offer.

Jack are you on the AA34 or the AA97 did you take the switch back then? Jack you career agents really don't understand what OUR company has done to agents under current contract. Call some of them in your area especially the ones hired in 2004 and 2005, I bet you won't believe some of the stories they will tell. I like when older agents start talking about how hard it was "in the old days" . I usually ask them if they borrowed $100,000 (or what was relative to that back then) like most tica's have today? They ALWAYS say no. Jack the deal was totally different when you guys started. There are agents out there today making less than 50% what you do on the same fire policy and 38% less on the same auto policy Now go back and take your pay statements from your early days. Take out let's say 40% of income and add in 2 more staff maybe 3 or a part time. Get the company to "suggest" you rent that beautiful but expensive office, the $15000 furniture package and YOU pay ALL the expenses and see where you would be? Jack its an entirely different deal.

I challenge you to talk to 10 agents that were hired in 2004 and 2005 and then you will see what its all about these days compared to the 1970's.


You are 100% correct payroll should be more like 30% but thats not reality for current contract agents.

Thats asinine.... your payroll alone is over 50% of the gross. Total expense should not exceed 50%. At those kind of numbers you will NEVER be "comfortable."

 

[wornout]

Re: State Farm Offer.

AgentZ is right. The new TICA offer only gives those TICA that started in 2006 the $12000 so what if you started a few months earlier you are SOL. I have run the numbers, you cannot break even until year 5 if you are a scratch TICA and unless you were loaded before you will go bankrupt! The additional % for Premium builder would have helped if you got it all along, but now you have already taken on more debt. Its a viscous cycle.

It is impossible to keep your costs at 50% these days. SF really eats up the money with the chargebacks -- Necho time, computers, furniture, health care etc. In our area, it is tough not to pay at least $18/hour plus commissions. Nothing was disclosed during the interview process. Most months you cannot make operating expenses with your compensation, not to mention your families living expenses. And we are a top five agency -- averaging 45 auto and homes a month. We close to 1000 households from scratch and its still low $$, This is a very tough situation. Basically in year 3 we are working for free!! State Farm has made the best deal for themselves. Free accounts.