State Farm Offer

[irjack]

Re: State Farm Offer.

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.

 

[Sailor]

Re: State Farm Offer.

I am not one to fail, I was always told what is so great about being an ICA is you can never be fired unless you do something illegal/unethical, if you don't sell you may go broke. I really didn't think I would be the first to go broke.

Sorry to burst your bubble but your contract states you can fired at any time, with or with out reason.

 

[fastrack1]

Re: State Farm Offer.

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.

While I agree with you that these guys went in with eyes wide open, alot of stuff was misrepresented to them. It is naive to say that you should not operate under those expenses when the AFE requires you to do so to get your contract. Under those circumstances, most do what the AFE says in order to eventually get their contract. They have worked to hard to get to that point to throw in the towel. I'm an AA97 agent and I agree and disagree with a lot of things these TICA's say, but I'm on their side when it comes to the pressure that the AFO's put on them to make financial decisions that are not always in their best interest. The AFE doesn't care. He is still going to get his paycheck and go to his big house at night regardless if the the TICA makes any money or not. All he cares is that the TICA travels, because his bonus is based on that.

These guys do have it hard. Much harder than I did and much harder than you did. I understand that you started scratch and worked hard, but your work was rewarded and you did it because of that. Anyone that starts a business works hard. There is nothing special about that. The problem with the TICA's is that they are working hard and are still going broke.

I agree with your stance on Mutual Funds. I'm about to throw in the towel on that and just go back to insurance. I'm convinced I'll make more money then spinning my wheels on financial services, even though I enjoy the trips. I think it would be cheaper to buy my own trips though, if you really put pen and paper to it.

I also hope that you are enjoying the fruits of your labor from 30 years, because you deserve it. State Farm has no right to try to make you do something you don't want to do after all the years of service that you have given. They do want you to change and if you want to, then great. But if you don't want to, I'm glad you can still make that choice. The TICA contract does not allow you to do that.

 

[frmrTICA]

Re: State Farm Offer.

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

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.

 

[frmrTICA]

Re: State Farm Offer.

A successful agent of the largest company in the US is officially poor.

And to the peep who called me asinine, if I did not have employees and buy furniture, sign an expensive lease, and advertise I would have been fired or non renewed and not an AA05.

A lot of the old guys really resent hearing about the $18K up front since the wore out the shoe leather starting scratch. A family member is one of those guys. He was an adjuster.

His agency manager showed up, took the car keys for the adjuster mobile, and dropped off a box of auto apps.

That was it.

What they don't realize is that if you don't hire properly, question the contract, or don't buy pAVE or the $35K office package, you are marked.

They can't believe the co that they (and I ) love and respect would do such things. No matter what.

It will.

Had a nice conversation with a former top agent in the co. One of his TICAs had a misunderstanding with the AFE, and was yanked. Nothing about sales, ethics, or "core competenicies. THe AFE was fired a short time later. The VPA, OPV and others came down to say the "door was open" (I'm getting the same thing to a lessor degree becuase they know they f'd up), but the young man is in debt, and has been burned. He isn't going back.

For others reading this, this is not a SF Insurance bash. They still have the best claims system going. It is the ethical treatment and promises kept to the agent that are are wanting.

Be careful. Consider yourself warned.

I wish somebody had taught me, or rather I would have learned myself what the contract and office politic bs was all about. I shot straight and expected the same. I had no reason to doubt them.

You do.

 

[frmrTICA]

Re: State Farm Offer.

Base staus 8, I hear default semi monthly going to 2%!

Nice, until you hit max penetration.

I understand the co's theory behind this, too many agents not still trying to grow, so they put into the new contract penalties if you don't. I get that.

No easy answer, I understand where they were trying to go, but the result cooked up on the top floor of the ivory tower didn't work out so hot.

 

[frmrTICA]

Re: State Farm Offer.

I think you could certainly put out some feelers if you haven't already. 2 AFCs and even an E are paying off their debt a little at a time......

Apply for the DAFO

I wouldn't tell him you are broke until you get some feedback. Fspas do OK, you need to get a C salary, though.You know who you know. Start putting out some feelers and get a speech ready to sell them on it. If you can sell life you can sell yourself.

Wish you luck, man

As far as the dead hourse is concerned, I think of this as a service to prevent others from getting hurt. Again, I love the co, just not my situation right now. I hope they fix it soon for everyone's sake.

Is this dead horse whipped?

I'm F'ed thats clear.

I have never been approached for management and I am a 4 year contracted agent with a track record of success. College digree and 14 years of total experience.

Should I tell my AFE I'm broke or instead tell him I am interested in "leadership"?

What about a FSPA type gig?

Some advice please. Who do I approach and how?

 

[fastrack1]

Re: State Farm Offer.

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.

 

[irjack]

Re: State Farm Offer.

The announcement for this year of back premium builder and additional $12K in year 2 will ONLY apply to agents appointed 1-1-06 or later.

Everyone else gets NOTHING.

I became tica in November 2004 I became an AA05 in November 2007 - I have gotten 0 premium builder in one year.

I was top 100 and qualified for travel (on time now) 3 out of 4 years and I am considering turning in the keys because I borrowed every dollar I can, ran up credit cards and even borrowed from family.

I am just trying to make it to March for scorecard bonus.

HOW SAD IS THAT???

A successful agent of the largest company in the US is officially poor.

I am not looking for sympathy but warning those considering the opportunity and I am looking for advice on how not to be so poor.

And to the peep who called me asinine, if I did not have employees and buy furniture, sign an expensive lease, and advertise I would have been fired or non renewed and not an AA05.

I am not one to fail, I was always told what is so great about being an ICA is you can never be fired unless you do something illegal/unethical, if you don't sell you may go broke. I really didn't think I would be the first to go broke.

It is the price I had to pay to get my contact. I now see it was too high a price and I should have let the chips fall.

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.

 

[irjack]

Re: State Farm Offer.

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.