I have interviewed with State Farm and an independent brokerage. They're both willing to pay me 3k a month base pay. State Farm is also going to be paying me commission-amount still to be determined. The brokerage doesn't want to pay commission until I'm fully trained but the boss is willing to revisit this in 6 months. Since I will be getting paid the same base either way, I am looking long term profitability. Thoughts? Does anyone know of other things I should consider? I'm fairly new to insurance....
State Farm or Independent Brokerage Firm?
- Thread starter reneesita
- Start date
agentinnc
Expert
You interviewed with an agent of SF or the company to apply for the candidate pool ( to own your own office)?
If the former, while each agt has their own comp structure they offer, the 3000 a month seems fair. Captive and Indy both have their pros and cons.
You have to view both jobs as the opportunity to be trained. Once you know what you are doing the sky is the limit because you can leave and potentially start your own business. My personal choice would be to probably give up the extra commission I could make at SF for the chance to gain a broader exposure and knowledge of the business, products, and companies. At SF you will deal with SF products for the most part and may be required to spread yourself thin on other financial products and services. At the independent you will probably have a chance to gain a great knowledge of P&C.
However, the experience level of the manager, the degree of rapport you have, and how trust worthy you believe them to be should influence your decision also. If you go indy it would be better to have a written agreement to review and institute some type of commission arrangement after a certain period of time or production goal that is attained.
The 3k a month + Commission as a sales rep for a SF agent seems more than fair. I worked as a Sales Rep for 3 years, so I got to know quite a bit of other people in my position and I think it's safe to say that most of us did not have that type of salary, let alone with a decent commission structure.
I think selling as a captive sales rep is a great way to start out in the insurance industry. You are forced to sell one product with one company, therefore, you instill good selling tactics with regards to selling value over rate. Once that philosophy actually becomes part of your norm as a sales person, moving into an Independent Agency really allows for your closing abilities to flourish considering you now have options to shop different rates.
I say this because that's exactly how my insurance career has gone so far. Worked as a SF rep for sometime right after college an now, I am officially in my 2nd month as an Independent Agent and I couldn't be happier.
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That is another different but valid means of looking at the offers.
Thank you sir and I actually read your comment after I posted but I wholly agree with your point of view too.
You will be forced to learn an array of products at State Farm (I.E. State Farm Bank products) that might end up being useless if you choose a different route other than the State Farm model. If you are dead set on just P&C or maybe just Life and Health, training on the Independent side definitely couldn't hurt you.
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HegemonFinancial
New Member
- 18
You probably can't go wrong as an employee of either. If you work for a State Farm office, you will probably always be able to get a job at any State Farm office, especially if you are somewhat decent. They love to hire people with experience that they can just plug in.
I suppose the same can be said for indy as well, but I think you will have much more opportunity with State Farm - especially in the beginning. But you really should be able to cross over regardless of who you choose.
Based on your question, I would just pick the best one that you feel will be a good fit. Environment is huge. Either way you are going to get experience.
The one thing I would watch with state farm: If you are working for a new agent ( < 10 yrs in business), then you will most likely be required to sell and bundle life insurance every month. The agent has certain benchmarks that he needs to meet, including sales of life and banking products. If you cannot help him meet these goals, his income suffers and it most likely will not work out. Older agents have a different contract and are very happy writing P&C only, since they make 15%. A far cry from the 8% base rate that newer agents get (plus a variable 0-3%).
I suppose the same can be said for indy as well, but I think you will have much more opportunity with State Farm - especially in the beginning. But you really should be able to cross over regardless of who you choose.
Based on your question, I would just pick the best one that you feel will be a good fit. Environment is huge. Either way you are going to get experience.
The one thing I would watch with state farm: If you are working for a new agent ( < 10 yrs in business), then you will most likely be required to sell and bundle life insurance every month. The agent has certain benchmarks that he needs to meet, including sales of life and banking products. If you cannot help him meet these goals, his income suffers and it most likely will not work out. Older agents have a different contract and are very happy writing P&C only, since they make 15%. A far cry from the 8% base rate that newer agents get (plus a variable 0-3%).
I just started to work for State Farm as well, yet my compensation is a little different. I am receiving a base salary of 2K a month, or commissions, whichever one is higher.
I am just excited to be I this career field, and cannot wait to see the full potential of this career.
Honestly, I really appreciate the environment here as well. Seems to be a very family oriented, traditional yet modern environment as well. Very interesting recipe or style they have here at State Farm. Best wishes to you on your career.
I am just excited to be I this career field, and cannot wait to see the full potential of this career.
Honestly, I really appreciate the environment here as well. Seems to be a very family oriented, traditional yet modern environment as well. Very interesting recipe or style they have here at State Farm. Best wishes to you on your career.
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