Working for State Farm agency

[insurance82]

Can anyone share their experience working with State Farm agency? I got my P&C license and currently studying for L&H license. I really want to make a career in insurance industry. Agent made me offer with condition that I will get my P&C and L&H license before I start working for him. Compensation structure is Base salary + Commission. What is pro and con working for state farm agency?

 

[Markthebroker]

I have no idea why your posting has an exclamation mark!

But since you are yelling, I figure I should yell TOO!

State Farm is a great place to learn the business, but not a great place to stay! Work there, learn the business, then go indi after a year or two! They'll feed you nonsense about how great SF is to try to get you to stay, but you don't want to stay any longer than 2 years, good luck!!!!!

!!!

 

[insurance82]

I have no idea why your posting has an exclamation mark!

But since you are yelling, I figure I should yell TOO!

State Farm is a great place to learn the business, but not a great place to stay! Work there, learn the business, then go indi after a year or two! They'll feed you nonsense about how great SF is to try to get you to stay, but you don't want to stay any longer than 2 years, good luck!!!!!

!!!

Sorry for the typo. My intention wasn't to scream or yell but thanks for the your feedback.

 

[Mike007]

Depends on what you want to do with your life and your career. Do you want to run your own agency one day or do you want to be a producer for an agent for the rest of your life as an employee? Either way, you can use this opportunity to gain experience but in the long run, you will be better off in the independent arena simply because you have more options and you make more money.

Captives for large companies, in general, make 50% commission lesser than Independent Agents whether its selling P&C or Life Insurance. So if you work for a captive agent, your guaranteed salary may be the same as someone who works for an independent agent but when it comes to the commission split, you will be far behind.

 

[insurance82]

Depends on what you want to do with your life and your career. Do you want to run your own agency one day or do you want to be a producer for an agent for the rest of your life as an employee? Either way, you can use this opportunity to gain experience but in the long run, you will be better off in the independent arena simply because you have more options and you make more money.

Captives for large companies, in general, make 50% commission lesser than Independent Agents whether its selling P&C or Life Insurance. So if you work for a captive agent, your guaranteed salary may be the same as someone who works for an independent agent but when it comes to the commission split, you will be far behind.

One day I would like to have my own agency. I'm ambitious and want to be financial independent. Agent is very straight forward about me working there and see if I like it insurance business. He even mentioned that may be down the road I can have my own agency.

 

[shawnmwalker]

Well you have a decision tree here. I'll lead you down one path, but it is biased.



"Begin with the end in mind"- 7 habits of Highly effective people.



Decision #1:



What end of the Ins Spectrum do you want? if you answered P&C keep reading. If ''Other" wait for the others to respond



Decision #2: Captive or Independent.



Captive:

Pro: They will teach you a lot but inevitably you will go Indy at some point in your career. Another Pro, they will subsidize your life for a time.

Con: The District Manager will push too hard or force life on you or cut your commissions or change your contract, or, ext, ext. Your Captive will take rate increases and kill your production and you will have one price point while others dissect your book one policy at a time.



Independent: :

Pro: Control expenses. Get higher commission. Higher conversion. Higher retention. All of those factors equal more money.

Con: Starting out. Getting knowledge. Your personality type could sink yourself.



Decision #3:



Once you decide Indy is for you, in the next week or 22 yrs from now. The question will be how to do it. Your options include:



Buy an agency.

Join a group.

Become a producer for an agency.

Get direct appointments.

Get an agency that provides the back end service so you can hunt full time.



You decide which one is best for you.





Decision #4: What group should I join?



There are a lot. Consider the following. NOT ALL GROUPS ARE CREATED EQUAL! They range from good, better and best.



Any group claiming to be best of class should provide the following:

1. Transparency
2. Training and support
3. Carrier Alignment
4. and a great Contract

Give me a call, shoot me am IM. Good luck and have fun with your choices.



I have been in Insurance for 15+ years and the great thing in this industry is you can choose to never stop learning. Your learning curve is never ending. Meaning you will never get bored.

 

[Mike007]

One day I would like to have my own agency. I'm ambitious and want to be financial independent. Agent is very straight forward about me working there and see if I like it insurance business. He even mentioned that may be down the road I can have my own agency.

I agree. No point in investing money into something you may hate doing. Test drive this career at someone else's expense. If it turns out you love this industry, you can move on when you are ready.

 

[RichardCO]

Going to a captive first is a fine way to learn the business on their dime. If possible do it the hard way, don't write your family and friends to start, write them after you have started your agency.

 

[insurance82]

I agree. No point in investing money into something you may hate doing. Test drive this career at someone else's expense. If it turns out you love this industry, you can move on when you are ready.

So true. I really appreciate his being upfront, honest abt it. I come from entrepreneur background (hospitality), so it will be interesting to see how this will turn out.

 

[insurance82]

Going to a captive first is a fine way to learn the business on their dime. If possible do it the hard way, don't write your family and friends to start, write them after you have started your agency.

That's what excatly I'm going to do. Don't like chasing friends and family and pushing them to do business with me. That's why I didn't became Investment Consultant. Every Brokerage firm I talked to wanted me to start selling to my friends and family first. I wasn't really comfortable with that idea.