How Much Money is Needed to Start a State Farm Agency?
- Thread starter wwgsrevo
- Start date
To my knowledge is nearly impossible to start your own State Farm agency in Florida. They have a long list of agents waiting for openings. I wouldn't start with less then 100k.
- 11,997
It may be different by the area, but you could much more easily start as an independent agent and not have all the baggage that comes with a captive agency scenario.
How are you defining "rewarding"?
- Thread starter
- #4
- 11,997
They can do better than that, but most certainly don't. You have a job. You make more right now than most new agents do. If your goal is a higher income, you definitely are on the right track with looking for something else. Have you looked at any life insurance options? Those typically pay much better (no salary of course). P&C is very much a "get rich slow" system.
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- #6
I do sell life at SF as well. I have all pc and Lh licenses. I don't understand how a life agent who only sells life can make more than someone who sells all lines.
- 11,997
It's pretty simple math if you look at it from the right angle. It's also a part of why you have a ceiling on what you can make.
What do you think the agency cut is on the business? For easy math let's call it ten percent, but that's probably a touch low. What's the average household premium? Let's call it 2k, but that's probably high. So the agency cut is roughly $200. Factor in the service work and acquisition cost and on the first year the agency is probably losing money. On an individual basis, how much time do you think it would take to go straight through the process if the stars were aligned right? An hour?
In contrast, take the final expense guys, they meet a client for an hour and walk or with $500-$1,000. No service work.
- 882
But, IMHO, it is Way, Way easier to prospect for Life from a P&C book than just for Life/FE by itself
I'd never go the Life only route...but hey, I'm a P&C guy
- 11,997
But, IMHO, it is Way, Way easier to prospect for Life from a P&C book than just for Life/FE by itself
As is not often the case, I'm going to Hagee tip disagree with you. If your focus is life, you can be as busy as you want with just life.
- 882
Josh,What I love about P&C is the renewal wheel. If you build your book right, it gets bigger & bigger. Whereas Life is one hit up front & very small tails for commissions after that.
So each year in a Life agency, you have to start over from almost Zero, whereas a P&C book, if you do it like I did in KY & TN, after about 36 months, your renewal commissions are averaging around $20,000 a Month! So, give me the P&C model any day!
