State Farm Vs Allstate Sales Rep Job

[picard3420]

Hey guys/gals, new to the forum. I've recently been in contact with both State Farm and Allstate agents and have gotten very similar offers from both. A SF agent offered me a base of 31K, which is nice but the commission is what I'm more focused on. The Allstate agent is local and offered $13 an hour with 8% commission. The biggest thing for me is that the SF agent is literally opening his doors September, 1st which I think would be an awesome learning/training experience for me but the job would require me to move to Baton Rouge (about 2 hours away from my hometown) where I don't have the relationships (i.e. real estate agents, mortgage loan originators etc.) that I have in my hometown which I believe could be beneficial. I was also told that SF is less competitive in terms of homeowner insurance but don't know how true that is. At this point ANY input/advice would be greatly appreciated.

Thanks!

 

[Mattjm24]

I have worked for a State Farm agent in Florida for 2 years and will be happy to share my knowledge with you.

The $31K base is good. My base is $25K. I get 5% on raw new autos and 2% on added vehicles and transfers. If I get 5 life apps and 2 vehicle loans, those numbers increase to 8% and 4% respectively for the month.

How long has your agent been a State Farm agent for? Keep in mind that the old agents are on a very, very different contact than the new agents. If you work for a new agent, there will be a huge expectation to multi-line customers and you will not be there long if you only produce P&C. They will want regular production in life, health, and bank too. This may also be the case if you have an old agent as it is tied to their bonuses too, but the new agents NEED the multi-line production to eat. I would ask your agent what his/her YTD production in life/health/bank are. This will give you a good idea of the expectations that will be on you.

Also keep in mind that rates are cyclical and right now State Farm is on the wrong end of that cycle. Our auto rates are ridiculously high for most people. I am often embarrassed to even tell them the price. Our HO rates are not even close to competitive here ether, largely because of the peril of hurricanes. You will likely find the same environment in Baton Rouge, where the risk of hurricanes is similarly high. Forming relationships with realtors and mortgage brokers doesn't mean much if you can't get them competitive prices. My own parents are realtors and I just asked them to stop sending me referrals because we were always double or more.

I don't mean to discourage you. State Farm is a great company and the people who love State Farm, LOVE State Farm. You'll get lots of loyal customers, repeat business, referrals, and life apps. You can still make a decent living at it. It is especially a good opportunity to give you experience/practice to become an agent yourself one day. (Although I wouldn't suggest you become a State Farm agent).

Hope that helped.