what is the socio-economic condition of the market in the locality?

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PostPosted: Wed Mar 12, 2008 5:32 am   Post subject:   

Hey Guest, you are sounding to have a great experience in the field of selling insurances. Why don't you join us? I'm sure this community can gain a lot from your expertise.



Waiting to seen you in this community.

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PostPosted: Sat Mar 15, 2008 6:04 am   Post subject:   

I'm here now.



I've found these forums are a great way for us to share knowledge and customers to benefit by obtaining the unbiased answers they need.

MBTexas
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PostPosted: Fri Jul 04, 2008 11:35 am   Post subject:   

With the fierce competition in the market, it all will depend upon your performance. In addition, you're required to meet their sales obligations in each period, otherwise they may choose not to allow you to use their names.



However, I'd suggest that you do your own research regarding the competitiveness of the products offered by the companies and also contact some of the local agents for insights.


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PostPosted: Fri Jul 04, 2008 11:54 am   Post subject:   

Well, there are other aspects to look into....



  • what product you intend to sell?and what the company offers in that line?

  • whether the company's products are competitive enough, as compare to its competitors?

  • what is the socio-economic condition of the market in the locality? is the market capable enough to pay the premium?

  • what is overall market scenario? whether there is enough demand in the market or not?

  • How much the other agents are making?

  • demand in the market, like- if you find that there is a huge demand for small business insurance in the locality, but no agent is offering the right kind of product, you may consider channelizing your business to that line.




Regards,

Dan

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aspiring-agent
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PostPosted: Fri Jul 04, 2008 12:07 pm   Post subject:   

I'm looking into entering the insurance agent profession. However, I don't have any experience in this field, neither do I have the license. Well. I'm planning to get the license soon. But I've another issue, I've a pretty bad credit and wud like to know if it'll affect my prospect in becoming the agent?



Any advise will help...Thanx


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PostPosted: Fri Jul 04, 2008 1:44 pm   Post subject:   

Quote:
I've a pretty bad credit and wud like to know if it'll affect my prospect in becoming the agent?
Absolutely, especially with the larger carriers I would think....


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PostPosted: Sat Jul 05, 2008 10:23 am   Post subject:   

Hi Arnold, your bad credit may or may not affect your prospect of becoming an agent. Though there is no direct correlation between efficiency and credit score, but employers are gradually putting emphasis on credit report as the criteria for employment. The general concept is that if you're bad in managing your finance, you're ought to be bad in managing your business. However, some employers won't mind recruiting you if you can prove your worth.

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PostPosted: Sat Jul 05, 2008 10:36 am   Post subject:   

Credit score won't affect your job prospect. As far I know both State farm and AllState don't look into the credit score of the candidate while recruiting.



however, an independent agent should be good in managing finance. I've seen agents ending up in debts for bad financial management.


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PostPosted: Tue Jul 08, 2008 8:26 am   Post subject:   

Hi all !!



It seems to be an interesting discussion to drop in Very Happy State Farm certainly offers good opportunities for aspiring agents. However, when the name of State Farm ensures minimum business, it is often difficult to meet the break-even point. Its not only because of the competition from the other companies agents, but also because of the competition amongst the State Farm agencies. Moreover, the turnover of the State Farm agents, for the initial years, remains pretty low.



However the success of all the State Farm agents can be attributed to the fact that State Farm follows the strictest policy of recruiting agents. They take the pain to train you for around ten months before you're all set to operate your own business. And, during this period you'll be paid by State Farm.



Hence, if you've decided to join State Farm, ensure that you also possess the hardest set of mind with the zeal to excel.



Hope I was of some help.



Regards,

Juanita

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PostPosted: Tue Jul 08, 2008 9:13 am   Post subject:   

Let me throw some light upon the recruitment process of StateFarm. Juanita has mentioned its right that StateFarm train their agents for the necessary skills.



The recruitment process involves evaluation of sales aptitudes, background checks, face to face interviews and personality test. It may even take 2 years from ¬Ďacceptance' to become fully operative StateFarm agent with own office. State Farm mainly look for the following characteristic in the candidate¬Ö.





  • Ability to operate a business

  • Ability to sell insurance and financial products of the company

  • Desire to excel and self motivation

  • Dedication towards work and desire to be compensated best.

  • Strong written and communication skills




After approval you'll receive training from the in-house trainers of StateFarm.



Wishing you all the best!!

Darla

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PostPosted: Thu Aug 28, 2008 11:02 pm   Post subject:   

Its not the AA97 that is the bad contract its the TICA or AA04 contract that current agents are on that is causing them problems. They came up with the new contract in 2004 and almost every agent on it is still struggling. They have been many agents that have left State Farm due to it. I know agents that filed bankruptcy and have been divorced over it. They had meeting just this week with more lies and deceit from the company. You can't make any real money on this contract at best its a 50K a year job in your 5th year even if you are above average. There are rumors of a change to all getting the AA97 a good contract its not what the oldest agents have but still a good overall deal. Right now I would avoid State Farm like the plague unless you have $100,000 you want to invest with no guaranteed return.


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PostPosted: Mon Sep 22, 2008 9:31 pm   Post subject:   

I looked at both and choosing Allstate was an easy decision. As "Guest" stated above, with State Farm, you do not own your business. With Allstate, I own my book of business and when I retire, I can sell it and 100% of the proceeds are mine.



One side note, I would never sell back to Allstate. They will pay approximately 1.5 times the value of the book. Selling on the free market will bring me anywhere from 3 to 4.5 time the value.

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PostPosted: Mon Jan 19, 2009 8:05 pm   Post subject: Allstate vs State Farm  

Reading all of this information is very helpful because I am also considering both companies. I have a relative who is with State Farm and has done very well but he is pushing me towards Allstate. To say the least I a confused. I am making the jump from a career in claims to the agency side and want to choose the right company.



My biggest concern with State Farm is they don't have any expected agency opening in my area this year. With Allstate, they do have a local openning but I don't know much about the company (pay structure, products ect). If anyone has any advise in that relm I would love to hear it.



Thanks


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PostPosted: Tue Jan 20, 2009 1:42 am   Post subject: Statefarm VS. Allstate  

Matt,

I looked into both companies and It came down to my long term goal of owning the book. I think the Allstate model is good but both contracts require invested time and money. I think the requirement for both is around 30 k in liquid capital to open an agency and that is no where near enough. 50-100k is much safer and also a working spouse so you can invest in staff. With Allstate you need to write 50k a month in P&C which is approx 100 policys a month so by year 3 when the enhanced comp goes away you will have renewals around 160k that is with 90% retention. If you look at top producers there is about 4-5 agents in my region across 3 states writing this amount of business. So plan well dont just look at a 44% commission for the first year...it goes away what ever you write monthly plan on 10% renewals after three years. My advice is if you dont at the minimum have 50k and a working spouse avoid Allstate, go to Statefarm it seems that you can make a living with seeded accounts. Which may not be what you want to make but with Allstate your income can come when you build the book.


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PostPosted: Wed Jan 21, 2009 9:12 pm   Post subject:   

I would suggest developing an independent agency rather than a captive agency like you mentioned. If and/or when the day comes that you leave the industry, captive agencies will not allow you to take your block of business. If they buy the block of business back from you, they will set the price. If you are independent, you take the business with you and you own it. Good luck.



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