How do you become a state farm agent?

Answer 1

This post started off pretty but ended kind of abruptly. Wonder what happened with the poster below. I'm going through the process at the moment, and he's explained it pretty well with a couple of minor glitches.

I just wish we could find out more about what turned this guy off. From what I'm understanding, new agents for State Farm experience a pretty good success rate, somewhere around 82%.

SF also helps financially the first 5 years, not just with the 18K signing bonus, but another 12K the second year, plus monthly stipends when quotas are met, pretty substantial stipends, such as $11K per month which dwindles down every year until they wean you off at the end of the 5th year.

You have the option of electing to take an assigned book of business, which to me doesn't really make a big difference. If you do the math with their commission structure, it looks like to me one would be better off by starting scratch in a new location. I think it's really 6 of one half a dozen of the other. Either way you get financial assistance. It looks like on average one needs to plan on having either 50 to 60K in cash to start, otherwise, you're going to end up in debt like the original poster states. Don't go into State Farm as an agent unless you have some money, it's that simple.

The thing is, agents make a good living after they've been in a few years, most make upwards of $250 net income, up to I've heard over $1 Million depending on how aggressively one wants to grow their business. You're looking at ROI on expenses to net income somewhere around 50%. That's not bad, in other words, you need to gross about 500K in business to net 250K.

It's not a franchise, it's an independent contractor for State Farm. You have your own business, your own expenses, your own profit. The products you sell exclusively are State Farm products:

Auto - Fire - Life - Health - State Farm Banking (loans, deposits), mutual funds

It's not different from any other business you start, it takes an investment and it takes time to start making a profit.

Again, if you don't have enough money to start the business and allow it to grow over time, it's probably not for you.

AnswerContact a local agent who can direct you to an Agency Field Office. They will take it from there. The road to becoming an agent is long and difficult. I've been there.

Referred to agency recruiter by local agent. Spoke to him on the phone today & faxed resume. Recruiter will be scheduling me for some tests and taking me out to lunch to discuss the process. I will continue to update as I progress through the screening process. I have several years experience managing financial institutions so I'm hopeful about my prospects.

Received "prospective agent info packet" in mail today. Looks like it's quite a process. There are several interviews involved, you must take a personality screening early in the process. If you pass the pre-screen, background and credit checks you move on to an all day interview with several executives. You must prepare and present a business plan to the executive committee. The committee votes and if the like you, you than become an officially "approved agency candidate" and you will be allowed to view openings within State Farm. You apply for openings and if selected you begin a 9 month internship during which you are an employee of State Farm and are paid a salary equal to your previous year's income. The 9 month internship includes time spent in local agent offices, training and studying for licenses and 1 week in Nebraska. After successfully completing the internship you are given a 12 month "term contract" at your agency and assigned a business coach. You will also receive an $18,000 "sign on bonus" and a $25,000 business line of credit. After 12 months State Farm reviews your progress and will either offer a lifetime contract, a second 12 month contract, or will decide not to renew your contract at all.

It is best to contact the Agency Recruiter for your market area who can give you current information regarding your area as well as information such as market penetration and such. They, along the the Agency Field Executives, are the there to help provide you with the information that you need to make you business succeed.