Thinking About Becoming a Farmers Captive Agent

[fed up]

Farmers retail program is nice so long as you hit the numbers they want. If you don't you owe them back the up front money they have given you. I am sure it has been revamped since I left the Farmers corporate side in 2014 and they were just rolling things out. they forced agents to sign new contracts or forced them out. They opened and closed a call center in Northern Virginia within a few months and with the snap of their fingers put many new agents in the call center out of work. Farmers has been to the East Coast a few times and has tried to buy customers, each time failing and pulling out of the area. Find out haw many agents are already in your area of marketing. Find out who the competition is. if you are in a military zone you won't beat USAA. If you are in a high dollar zone you won't beat Erie. If you are in a low end area or middle income you will be battling Geico. But you have made up your mind so go ahead and see how much of your nest egg you have left in 3 years

 

[pskillet]

The current program, requires a minimum of $50k. I am putting in $60k, if I hit it great, if not I’m out!!

Thanks for the advice on Erie (no heard of them, not sure if they sell in the Texas). I’m fully aware of USAA, which I was a customer years ago and know their rates are very untouchable.

The Dallas market has State Farm, Allstate, Farmers, many independent agencies.

My thought process is this, the Dallas area is and has been in the top 10 places of people moving into the area. So that is a huge plus. The entire area is still growing. The state ad a whole is growing with transplants from other US states.

What other options or companies would you recommend?

thanks!

 

[fed up]

American Home made me an offer years ago where I would work for, and get paid by their agent while I worked on developing my book. Liberty Mutual just made me an offer of 50K to work for them before setting out on my own

 

[tikibarrister]

I need to do something else, and this appeals to me. I understand the huge mountain in front of me. I’ve got about 10-15 years before I want to retire. So trying this and jumping in the deep end and giving it 100% effort. I do not really have the time with the timeframe in front me to go work for someone else.

Where are you in Texas? In some areas there’s a Farmer’s every 2 miles.

 

[pskillet]

DFW area

 

[tikibarrister]

See that you’re in Dallas. On the arc between I-75 and I-30 (about 1/5 of the city), I count 19 Farmer’s insurance agencies. So there’s probably at least 100 Farmer’s in Dallas. How well do you think the 101st is going to do?

 

[pskillet]

There are about 425 State Farm agencies in the Dfw area.
I have talked to many people and of the top 3 (Farmers, State Farm and Allstate). Most people within the industry saw that either Farmers or State Farm would be the best. The negative about Allstate have been - high rates, lacks customer service and claim quality, lack luster training program.

The rates for Farmers and State Farm a almost equal, State Farm is has better rates on auto and farmers have better rates on homeowners. Both are much better with regards to rates than Allstate.

My main thing is I want to have to opportunity to sell my book when I am ready to retire (12-15 years). Farmers allows this but State Farm does not. So that box is not checked for State Farm.

thoughts?

 

[fed up]

You gave them 60K. Make the most of it and best of luck. Welcome to the world of P&C