STATE FARM STAFF TO AGENT OR START NEW WITH FARMERS

[alphazjj]

Hi Folks,

I've been working as state farm agent staff for almost 7 years. Now I got a chance to start a new career but I'm confused not sure which one is better for my situation.

1. from state farm staff to state farm agent and(maybe) a 1.5M assignment.

2. partner with farmers existing agent. start from new.

My location is LA, California. from my view, state farm's p&c at 2018 is very weak, high premium and limitation of policies scared a lot customers away. I cannot expect too much from 8% commission of 1.5M assignment minus utility & employee salary, plus those p&c and life apps requirement for the first year is gonna choke me.. Bright side is stable income, even for the starting year.

The other side, partner with farmers agent(who he also owns broker as well). I have more chances to do sales, build up my client. But shortcoming is obvious: only half renew commission, starting from cold calls/leads/business walk...

My current preference is second option, I know it's hard but caps is more satisfied if everything go smooth in 2-3 years. What do you think?

 

[Markthebroker]

Don't do either. Of all the financial decisions I have made in my life, I can isolate the top two good ones.

1 - Investing in real estate.
2 - Leaving State Farm and going Indi.

 

[MIBizInsurance]

Search here and the net on Farmers as they are in bad shape right now and have never been a good choice. With your experience 100% go indi as suggested above.

 

[IvanZhang]

According to 2016 NAIC report, State Farm was number 1 insurer in Ca, which means state farm is very competitive. why dont you start your own state farm agency or go for independent.

 

[AZDave]

Indy all the way! I did 22 years as a captive. The first 10 were actually quite fun and learned a ton. But you will come to a point where the constant grind of the captives machine will wear you out, whether it be State Farms, Farmers, or for me American Family. Let alone the limitations of products.

I'm guessing that your area of expertise and interest is the personal lines market. ? Why limit yourself to just one choice and with such low commissions? 8% vs 15%. Plus how many times have you had to say no because you can't write it for some silly reason? What if you decide you want to pursue commercial lines? Or how about getting paid 100% of that first year term insurance premium. There is just no comparison to the choices available as Indy.

Lots of ways to go Indy, and much easier today than 12 years ago when I made the move. You can either join a group or go talk to a few Big indy shops in the area and discuss what opportunities they offer for producers. Not having the headache of overhead, E&O and service work does have advantages over having your own gig.

But I like my own gig!

Go Indy!

Dave

 

[Markthebroker]

According to 2016 NAIC report, State Farm was number 1 insurer in Ca, which means state farm is very competitive. why dont you start your own state farm agency or go for independent.

Using that same logic one could also conclude that car crashes and cancer is very popular.

 

[marindependent]

Do it yourself and go independent!

 

[NCAgent828]

I was State Farm. Had the chances to get an office but watched the agent I work for lose his office because he sold 30 life policies instead of 33. All that time and money he spent to have it taken. He also had a snake of an agent a few miles down the road take $500k from his book by coaching his clients how to switch to her office. “Leadership” did nothing. Never would I suggest going captive. On State Farm’s best and most competitive day I have a carrier that is the same price. Outside of that I can beat them anytime I want.

 

[Markthebroker]

I was State Farm. Had the chances to get an office but watched the agent I work for lose his office because he sold 30 life policies instead of 33. All that time and money he spent to have it taken. He also had a snake of an agent a few miles down the road take $500k from his book by coaching his clients how to switch to her office. “Leadership” did nothing. Never would I suggest going captive. On State Farm’s best and most competitive day I have a carrier that is the same price. Outside of that I can beat them anytime I want.

Wow. My experience has been nearly identical.

 

[NCAgent828]

Wow. My experience has been nearly identical.

Most experiences are. There is a video posted on IAOA (Facebook group) basically of 2 people having a dialogue about this “opportunity”. It’s funny that many will post their experiences being so negative and others have had the same. Makes you wonder if you are the problem or if it’s them??? Ha. They call some agencies “puppy mills” because they hire young kids to work for next to nothing making the agent a ton of money. What a good neighbor!