State Farm Independent Agent Salary
According to Glassdoor's salary data, the estimated total pay for a State Farm Agent is $77,289 per year, which is calculated using our proprietary Total Pay Estimate model based on salaries reported by our users. This number represents the median, which is the midpoint of the salary ranges. The estimated base pay for this occupation is $52,076 per year, and the estimated additional pay is $12,405 per year.
Benefits of becoming a State Farm independent agent
What is it like to work at State Farm?
State Farm provides valuable insights into its agent work culture. Starting at an entry-level role, agents ensure customers receive necessary insurance while progressing in their careers to manage their own team of agents. While income information is not explicitly expressed, this information provides a glimpse into the job duties and potential for career advancement as a State Farm agent.
Who are State Farm ® agents?
State Farm ® agents are independent contractors who are responsible for hiring their own employees. These employees, who are not employees of State Farm, are solely managed by the agents themselves. Additionally, agents make every employment-related decision regarding their staff.
How much do State Farm agents make?
State Farm agents can earn an annual salary of $34,646 as a starting point and have the potential to increase their income up to $127,000 with experience. State Farm also offers their agents a range of great benefits.
What makes State Farm different?
State Farm's well-known brand distinguishes the agency from others in the industry. Agents can leverage this brand by simply identifying themselves as being from State Farm without explicitly mentioning insurance, as the public already associates the name with insurance services.
Licensing requirements for State Farm independent agents
What is the State Farm agent intern program?
The State Farm agent intern program offers product and leadership training, coupled with a field development experience alongside an established agent. Independent contractors are selected for this opportunity with no base compensation. Compensation, instead, is based on sales and commission.
Can you become a State Farm agent after a TICA period?
According to the lawsuit, term independent contractor agents (TICAs) can become full-fledged State Farm agents after a 12-month TICA period. The lawsuit is seeking class action status for many others who were also taking their first steps toward becoming a State Farm agent.
How do I become an agent for State Farm?
To become a State Farm agent, you need to determine your sales interests, research your state's licensing requirements, take a pre-course, pass an official licensing exam, and apply for jobs.
State Farm independent agent commission structure
Are state Farm agents employees?
State Farm agents hire their own employees and are responsible for making all employment decisions regarding them. Although State Farm agents' employees are not employees of State Farm, agents are independent contractors who earn compensation and invest in the development of their businesses. Therefore, State Farm agents are not employees of State Farm.
How bad is State Farm's new agent contract?
The new contract for State Farm agents has been criticized for its unfavorable commission structure. Previously, agents earned 15% commissions, but the new contract reduces this to just 7%. Despite claims of increased earnings through bonuses, it is advised that agents be cautious and not believe such statements.
Can I move my State Farm Client/lead over to my independent agency?
As a State Farm Agent, opening an independent agency right next door allows for easy transfer of State Farm clients/leads. This convenient option eliminates the need for cumbersome transitions and helps retain existing clients. The State Farm Commission Structure is available for review on the Insurance Journal Forums.
Average commission earned by State Farm independent agents
How much does a insurance agent at State Farm make?
State Farm's estimated total pay for an Insurance Agent is $84,933 per year, based on the median of the proprietary Total Pay Estimate model and salaries collected from users. The estimated base pay for this position is $56,241 per year, with an additional pay of $13,157 per year.
How much commission does a State Farm agent make?
State Farm agents can earn a commission cut of 40% to 90% on the full premium of sales during the first year. The amount of commission for subsequent years will differ based on the agreement with State Farm. The earning potential for "producers" is not mentioned in the data source.
How much Commission does a state farm sub agent get?
According to a friend who worked as a sub agent at State Farm, she received less than 15% of the total commission paid out from a policy. This is a significantly lower percentage compared to the typical commission for "street level" agents, which ranges from 65% to 90%. Unfortunately, the text does not provide information on the specific commission rate for State Farm sub agents.
Cost of starting a State Farm independent agency
How much do State Farm Insurance Agency owners make?
State Farm Insurance Agency Owners make an annual salary of $250,000, which is significantly higher than the national averages for Agency Owners and working Americans.
Is there an insurance franchise with State Farm?
Many insurance franchises have been eliminated by State Farm. As per a former State Farm agent, an agent's business is owned by State Farm and the agent is just an independent contractor. It is not stated whether there is currently an insurance franchise with State Farm.
Qualifications necessary to become a State Farm independent agent
Is state Farm a good insurance agent?
State Farm is a company that employs insurance agents who are well-compensated based on commission and sales. While emphasizing the potential for a profitable career, the tone remains formal and unbiased, simply presenting the facts. No negative statements are made, and possessive adjectives are avoided.
How do I become a State Farm agent?
To become a State Farm agent, one must complete an internship and a 1 year independent commitment. Once completed, agents are eligible to sell insurance packages such as home, auto, and life insurance. The "Agency Brochure" PDF file, available on statefarm.com's recruiter information page, provides additional details.
Long-term earning potential as a State Farm independent agent
How much does a agent at State Farm make?
According to Glassdoor's salary data, the estimated total pay for a State Farm Agent is $77,289 per year, which is calculated using our proprietary Total Pay Estimate model based on salaries reported by our users. This number represents the median, which is the midpoint of the salary ranges. The estimated base pay for this occupation is $52,076 per year, and the estimated additional pay is $12,405 per year.
Is state Farm an equal opportunity employer?
State Farm is indeed an equal opportunity employer. However, it's important to note that State Farm agents are independent contractors who are responsible for hiring their own employees, and these employees are not considered employees of State Farm. Ultimately, the agents are the ones who make all employment decisions regarding their employees. Additionally, State Farm offers the opportunity to become an agent and provides information about agent earnings, costs, compensation, and development.
Is state Farm a good job?
State Farm appears to be a good job for those who have the necessary skills to become a successful insurance agent. The job entails assisting people in obtaining insurance and can provide both a stable income and attractive benefits. The article also provides information on the average salary for State Farm agents in 2022.
