Video: 10 Reasons I Closed My State Farm Agency

[DHK]

This guy, Len Perroots, talks about some of the pitfalls of having a State Farm Agency. The first part talked about the life insurance compensation (paid as earned, expensive term, no accelerated living benefits) so that got my attention. Then he expounded upon the Scorecard bonus and paying staff, etc.

Obviously he's promoting something with his site (I haven't clicked on it yet), but I thought I'd post the video anyway. At the very least, if you have State Farm team members... they should watch this video to understand their agent's business perspective.

 

[Warrior]

SMART CHOICE IS A BAD CHOICE - There are far better options that won't cost you in the long run.......

 

[BADTROUT]

SMART CHOICE IS A BAD CHOICE - There are far better options that won't cost you in the long run.......

That's the one thing that most fail at is the exit, that WILL cost you in the long run unfortunately.

 

[VolAgent]

I have not watched the video, but one thing I have noticed. People tend to focus on the upfront cost way too much.

You should look at a cluster in one of two ways. Either as a short term solution, to help you get some contracts right now and then you quickly move on. Or as a long term solution. They help you get contracts and help you get better comp and bonuses than you could otherwise get. More of a marriage where you intend to stay for a long time.

For those short term deals, if anything in it prevents you from getting a contract with one of its carriers after you leave, RUN!!!!

For the long term deals, it is much better to pay more now so you can pay less later. It seems too many agents start this under capitalized, so they make bad decisions now that will cost them a lot of money later on.

 

[marindependent]

Thanks for posting