The Farmers Agency Ownership Program Kerrie Ogden, District Manager Boise, IdahoBuilding a successful business is the goal of every entrepreneur. OurDistrict has a history of showing candidates such as you how they canrealistically develop a satisfying and profitable small business. Theinsurance and financial services industries are among the most importantbusinesses in the communities in which we live. Some of the followingquestions are the most frequently asked by prospects who are consideringa 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 arelong gone! Some people who are involved in an accident believe their shiphas just come in. Jury awards in the millions are commonplace for peoplewho have burned themselves on hot coffee, slipped and fallen on yourproperty, or have been injured in automobile accidents. In today’senvironment, a person can lose their assets and be forced to filebankruptcy due to a simple accident. Proper insurance coverage can’tprevent a lawsuit, but it can prevent the catastrophic consequences of thatlawsuit.
2. What is the insurance agent’s role?As a Farmers Insurance Professional, you will assist people in building andprotecting their assets. You will identify risks and gaps in your prospects’coverage, offer choices that will give them excellent coverage at fairprices, and convert those prospects into clients. As your careerprogresses, you will hire staff and agency producers to market and convertnew 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. Insurancepolicies are purchased for a period of time that is known as the “policyterm”. For example, an auto insurance policy has a six-month term.Every six months, Farmers will renew that policy to the policy holder andas the Agent for that policy, you will get paid each time it renews. Mostother property and casualty policies (such as a homeowner’s policy) have a12 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”, andit is what makes the insurance business unique and financially rewarding.
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 onlineapplication which will be submitted to the Farmers Insurance Idaho StateOffice. A background check will be performed, including a request ofyour credit record and your driving record. Step 2 – Approval Interview – After you have been approved, youwill meet with the District Manager to prepare your schedule for pre-licensing classes and examinations. Pre-licensing time frame: 2 –4weeks. Step 3 – Reserve Agent Program – After you have successfullycompleted your pre-licensing exams, you will graduate to the ReserveAgent Program. This is the stage of your career where you will begintraining on product knowledge, sales, prospecting, and business skills.You may also complete and submit a U-4 Application to FINRA if youchoose to add Financial Services to your product offerings. As a ReserveAgent you will begin to sell and earn full commissions. This is unique partof the Farmers Agency Development Process that allows you to continuein your current employment while you train for your career as a FarmersInsurance and Financial Services Agent. Reserve Agent Time Frame:3 – 6 months. Step 4 – Career Agent Program – After you have met your salesgoals, you will be eligible to convert to the Career Agent Program. Youare now a full-time Farmers Agent! For the next two years, you canreceive financial assistance from Farmers in the form of matchingcommissions, staff subsidy, and office rent subsidy. Time Frame: 24months. Step 5 – The Rest of Your Life – You will be a successful businessperson, have stature in the community, help people, and get compensatedfor doing so. As a successful Farmers Agent, you will enjoy a six-figureincome, Achievement Awards, vacations, and the satisfaction of beingyour own boss.
6. What are some of my initial costs?Approval:Background check: $63.50After Approval:Insurance Licensing: $260(Includes: training, registration and tests)After Reserve Agent Appointment:Securities License (Optional) $721As a Reserve AgentNotebook Computer $400 - 800Cell Phone $50 monthlyMarketing & Lead Generation Provided By District ManagerE&O Insurance Provided By District Manager7. How much can I expect to earn?Reserve Agents: Typically $500 - $2000 monthlyCareer 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 beover $250,000 annually in your fifth year of business! Achieve Greatness!