State Farm Vs. Farmers... Rehash Again

Okay, I currently work for a newer SF agent (3 years in). He had to borrow about 70k for his start up (although I think he borrowed too much as he completely renovated the office, etc.) He got a partial book so that is a cool possible benefit although some SF agents are scratch.

I will so own my own agency, but I will not do SF. I think it is a great company with great products, but there is one huge hangup for new agents. If you are not selling what they think you should (meaning not just auto and home, but also life, auto refinances, and mutual funds), they will cut your ace after the first year and you are out all the money your borrowed. A friend of the agent here had to file bankruptcy even though his p&c numbers were through the roof because he had too few life, loans, and mutual funds. That is a risk that I would not want to take personally.

I was considering indy or farmers. I might check out met-life now. One thing with farmers is that I can still sign up for selling health with health choice one. not sure if you can do that with met-life
 
I'm in an independent agency but with a couple of friends who are with American Family and it sure is a good gig for them. If I was going the direct writer route, I would make sure to check them out. They remind me of State Farm 20 years ago.
 
I was considering indy or farmers. I might check out met-life now. One thing with farmers is that I can still sign up for selling health with health choice one. not sure if you can do that with met-life

I would double check that. I believe the Farmers' contract is completely captive. No other contracts allowed. Between your contract with them, and their being your B/D and controlling your OBAs, you won't be able to sell for anyone else.
 
While Farmers IS captive, the exception is Health. I checked with my DM and he said I could work write for any Health company I want. Many/most of the agents in my office also sell Health.
 
I would double check that. I believe the Farmers' contract is completely captive. No other contracts allowed. Between your contract with them, and their being your B/D and controlling your OBAs, you won't be able to sell for anyone else.


YUP, Since Farmers does not have health insurance we are allowed to write outside carriers.

I chose Farmers over SF. My decision was simply based on how much money it costs to start up and the fact that I have more Freedom at Farmers. Granted we still have Life and PC goals. So unless you are great at cold calling, smart about marketing and have balls of steal be careful of any insurance agency. There is a reason there is <90% failure rate.

Careful of people who knock companies without a good explination, sometimes we get people who are bitter...
 
No dog in the fight but it's tough enough to run a business without having quotas on certain products. That leads to improper recommendations when certain quotas are not being met.

It would be like buying a Subway and told that you need to push a certain number of Veggie subs since the company earns more money. Just sell the subs.
 
So unless you are great at cold calling, smart about marketing and have balls of steal be careful of any insurance agency. There is a reason there is <90% failure rate.

I couldn't care less who you work for, but don't necessarily fall for the sales manager BS. There are many reasons for the high failure rate in this industry. Laziness and fear on the part of the new agent is only part of the reason. There are no innocent parties when it comes to such a high failure rate. The problem is, it is the new agent that is hurt the most, and thus has the most responsibility to insure his or her own success. Managers and companies can get away with a certain amount of churn and burn, after all, someone will stick. New recruits really only get one chance to succeed, don't waste yours.
 
Todd02, you are wrong! Any new agent that signs up at Farmers as of 2009 has a new contract that ONLY allows them to sell for Farmers. I agree that one nice advantage of Farmers in the past, was the ability to broker unwanted commercial and health insurance biz. It was the icing on the cake for income. Also the failure rate is >90%, not <90%. I would guess the 5 year success rate for all candidates is around 2%.
 
I made the move one month ago... left SF after 7 years as "team member/agent staff" to become a Farmers Reserve agent. The systems are much more up to date than SF, the support/training is great, the DM is always available and helpful, the other agents in the office are more than willing to help me/answer questions. I am extremely pleased!
It was a leap of faith - but I am so glad that I took the risk! Business is picking up and I am feeling very positive about this career!
Don't buy into all the negative comments... determine what is right for you - your finances, experience and the market in your area. Farmer's auto rates are beating the competition here!!
 
Welcome co, just remember we can't be the cheapest forever. Write as much as u can while the iron is hot
 
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