Work for Independent Agent or State Farm

[Ins.rob]

New to the business, been with State Farm for 6 months and have received an offer from an independent agent. What are your thoughts on which one is best to work for and eventually own my own agency.

Thanks !!

 

[indienoise]

As an employee, that's hard to answer. Your compensation will vary from one sf agent to the next, and contracts at independent agencies will vary greatly.
As far as ownership a concerned, there's no question. State farm is just like leasing a business - the expenses are all yours but compensation is limited, and when you're done, you're done. You'll make more as an IA owner, be able to serve much wider markets, there will be no cap to size of your book, and you're not tied to an exclusive contract.

 

[Ins.rob]

At State Farm, my base is 1650 monthly with commissions based on percentages of how much I sell of each product.

The independent agent is offering 1500 base salary, and 65% commission on auto and home. Or 45% and get a piece of the residual.
And 50/50 on life.

Thanks for your reply I do appreciate it!

 

[todd02]

What state, depends on who pays for marketing too?

 

[Ins.rob]

Florida, and State Farm pays, and I believe with the independent I'll be marketing on my own

 

[todd02]

If independent offers value in ability to sell back your policies if you leave I'd take that and learn the IA side of the business.

 

[Ins.rob]

If you don't mind me asking, how would I go about asking about having the option to buy back my book?
Also anything else I should I ask ?
I am new to the industry so this is all very helpful, thank you !

 

[insurance1822]

The only way it makes sense to stay w/ a captive SF agent is if they're dumping a limitless supply of leads on you, or if it's a huge office in a great location where the phones are constantly ringing w/ prospects (which is fair game to you ) and they're competitive in your area.

 

[Ins.rob]

It's a new office just opened in January, scratch agency, and she buys internet leads but she will be stopping that soon,

 

[indienoise]

State farm in fl means you're just selling auto insurance. I know they just rolled out limited home offering, but I hear it's not much. If thats all you want to do, go for it, but you can cross sell so much more when you're indy.