Opportunity of your life

1. The Farmers Agency Ownership Program
Kerrie Ogden, District Manager
Boise, Idaho
Building a successful business is the goal of every entrepreneur. Our
District has a history of showing candidates such as you how they can
realistically develop a satisfying and profitable small business. The
insurance and financial services industries are among the most important
businesses in the communities in which we live. Some of the following
questions are the most frequently asked by prospects who are considering
a career as a Farmers Insurance and Financial Services Agent.
1. Why is insurance so important?
The days of litigation are here. The days of not suing your neighbor are
long gone! Some people who are involved in an accident believe their ship
has just come in. Jury awards in the millions are commonplace for people
who have burned themselves on hot coffee, slipped and fallen on your
property, or have been injured in automobile accidents. In today’s
environment, a person can lose their assets and be forced to file
bankruptcy due to a simple accident. Proper insurance coverage can’t
prevent a lawsuit, but it can prevent the catastrophic consequences of that
lawsuit.

2. 2. What is the insurance agent’s role?
As a Farmers Insurance Professional, you will assist people in building and
protecting their assets. You will identify risks and gaps in your prospects’
coverage, offer choices that will give them excellent coverage at fair
prices, and convert those prospects into clients. As your career
progresses, you will hire staff and agency producers to market and convert
new households, and you will become the manager of the business.
3. What products will my agency offer?
Farmers is a multi-line insurance company. We offer:
• Property and Casualty - Auto, Home, Manufactured Home, Boat,
Motorcycle, Travel Trailer, Personal Umbrella, ATV, and others.
• Life and Financial Services – Traditional Whole Life, Universal Life,
Term Life, Variable Life, Fixed and Variable Annuities, Roth IRAs,
Mutual Funds, College Savings Plans.
• Commercial Insurance – Workers Compensation, Business Owners
Packages, including Restaurant, Auto Service, Manufacturing, Dry
Cleaners, and many others.
4. How do I get paid?
Insurance agents are compensated by sales commissions. Insurance
policies are purchased for a period of time that is known as the “policy
term”. For example, an auto insurance policy has a six-month term.
Every six months, Farmers will renew that policy to the policy holder and
as the Agent for that policy, you will get paid each time it renews. Most
other property and casualty policies (such as a homeowner’s policy) have a
12 month term. Agents get paid annually on a 12 month policy term.
Obviously, the more policies the Agent has in his or her book of business,
the more money the Agent earns. This is called the “renewal effect”, and
it is what makes the insurance business unique and financially rewarding.

3. 5. What is the process for becoming a Farmers Agent?
Step 1 – The Initial Interview – If the Initial Interview is successful,
you will be considered a Candidate. You will complete an online
application which will be submitted to the Farmers Insurance Idaho State
Office. A background check will be performed, including a request of
your credit record and your driving record.
Step 2 – Approval Interview – After you have been approved, you
will meet with the District Manager to prepare your schedule for pre-
licensing classes and examinations. Pre-licensing time frame: 2 –4
weeks.
Step 3 – Reserve Agent Program – After you have successfully
completed your pre-licensing exams, you will graduate to the Reserve
Agent Program. This is the stage of your career where you will begin
training on product knowledge, sales, prospecting, and business skills.
You may also complete and submit a U-4 Application to FINRA if you
choose to add Financial Services to your product offerings. As a Reserve
Agent you will begin to sell and earn full commissions. This is unique part
of the Farmers Agency Development Process that allows you to continue
in your current employment while you train for your career as a Farmers
Insurance and Financial Services Agent. Reserve Agent Time Frame:
3 – 6 months.
Step 4 – Career Agent Program – After you have met your sales
goals, you will be eligible to convert to the Career Agent Program. You
are now a full-time Farmers Agent! For the next two years, you can
receive financial assistance from Farmers in the form of matching
commissions, staff subsidy, and office rent subsidy. Time Frame: 24
months.
Step 5 – The Rest of Your Life – You will be a successful business
person, have stature in the community, help people, and get compensated
for doing so. As a successful Farmers Agent, you will enjoy a six-figure
income, Achievement Awards, vacations, and the satisfaction of being
your own boss.

4. 6. What are some of my initial costs?
Approval:
Background check: $63.50
After Approval:
Insurance Licensing: $260
(Includes: training, registration and tests)
After Reserve Agent Appointment:
Securities License (Optional) $721
As a Reserve Agent
Notebook Computer $400 - 800
Cell Phone $50 monthly
Marketing & Lead Generation Provided By District Manager
E&O Insurance Provided By District Manager
7. How much can I expect to earn?
Reserve Agents: Typically $500 - $2000 monthly
Career Agents 1st Year: $35,000 - $50,000
2nd Year: $60,000 - $90,000
3rd Year: $100,000 +
The Farmers Agent’s Roadmap to Success provides you with the plan to be
over $250,000 annually in your fifth year of business!
Achieve Greatness!