What is the Process of Owning a State Farm Agency and How Much it will Cost?

If you want to own a State Farm agency then keep a close eye on the State Farm website for an agency job opening. You have to submit a business proposal as well as attend a one-day seminar at State Farm’s local recruiting center. Then you have to go through a few other processes to become selected by the State Farm. In order to open a State Farm Agency you will need an initial investment that could range from $100,00 – $150,000.

Key Takeaways

• State Farm is a very recognizable name in America’s insurance industry and it is one of the oldest insurance service providers in the USA
• In order to open a State Farm agency, first you have to contact a State Farm recruiter
• You should keep in mind that if there is no agency job opening then it won’t be possible for you to open a State Farm agency
• In order to own a State Farm agency you have to participate in a paid internship program for six to nine months and get the required licenses  

Benefits of Owning a State Farm Agency

Below are some key benefits of owning a State Farm Agency – 

• Owning a State farm agency means you will be the boss of your business and you can run the business like none other
• You will be the leader and you will hire, develop, and lead a team
• Existing State farm agents and staff will provide help to grow your business
• You will be able to make an impact in your neighborhood and help them achieve your goal
• You can earn potential travel incentives & bonuses
• As an owner of the agency, you will be able to offer more than 100 State Farm products to the customers

Detail Process of Owning a State Farm Agency

Owning a State Farm agency is a step-by-step process. You have to go through a systematic process to become an owner of the State farm Agency. Now follow the below steps – 

Step – 1

The very first step of owning a State farm agency is to contact a State Farm recruiter and then tell him/her that you are interested to open a State farm agency. Then the State Farm recruiter will give you a questionnaire that will help the State Farm recruiting team assess whether you are a good candidate. You can check the State farm official website or contact State farm customer service to find a State farm recruiter. 

Step – 2

In this step, you have to attend a one-day seminar called “Career Understanding” at State Farm’s local recruiting center. The State Farm recruiting agent will provide you with the date and time of the seminar. This seminar will help you understand what are the duties and responsibilities of a State farm agency owner.

Step – 3

Next, you have to develop a business proposal, how you will operate the agency, etc., and then present it before an executive approval committee. Your business proposal must include the initial sources of funding, staff, location of the agency, marketing initiatives, and other important topics regarding running a State Farm agency. The more detailed you can make the proposal, the higher chance for your approval to get approved.

Step – 4

You have to look for an agency job opening where you can apply. You have to keep a close eye on the State Farm website’s recruiting page because the agency openings are posted regularly by State Farm on that page!

Step – 5

The next step in owning a State Farm agency is to participate in a paid internship program for six to nine months. In this internship program, you will learn all the daily activities as well as obtain all the required licenses.

Step – 6

Now you have to find a suitable location to open your State farm agency. You are now a licensed and approved independent agent for State Farm.

Step – 7

This is the last step of owning a State Farm agency where you have to acquire staff, buy office equipment and start the official activities.

How Much Money is Needed to Open a State Farm Agency

If you want to open a State Farm agency then you have to make some investment. You will need an initial investment between $115,200 and $181,000 to open the State Farm agency. It might seem like a lot of investment but a State Farm agent who owns an agency can make lots of money. A State Farm agent with his/her own agency can make $100k to $250K per year.

FAQs about What is the Process of Owning a State Farm Agency

How much does a local State Farm agent make?

A local State Farm agent on average can make $44,400 annually. However, the actual number is more than the average number. Check the below table – 

Type	Salary Range (Percentile)
25th	75th
Annual Salary	$41,500	$100,000
Monthly Salary	$3,458	$8,333
Weekly Salary	$798	$1,923

How can you successfully run a State Farm Agent?

Below are some tips that you can follow to run your State Farm agency successfully – 

• You have to build a book of business and gain the trust of your clients
• You have to provide excellent customer service and create a brand value for your agency
• For the first few years, you have to work hard to establish your business and with time your hard work will continue to pay off
• You have to understand that your agency is not a paycheck, it’s your career therefore you have to provide great service to your customers
• Try to hire the most qualified candidates for your agency
• You should use pre-approved job templates and pre-screen questions to hire employees

What does an insurance agent do?

An insurance agent sells and negotiates various insurance products inducing life insurance, health insurance, auto insurance, and many more. They have to offer all types of products that will match the requirements of the clients. Other key duties of an insurance agent are – 

• Promote various insurance products to potential clients
• Contact with potential customers
• Share various offers with each insurance client based on their needs
• Evaluate the current insurance policy of clients and offer them better coverage or additional coverage
• Maintain all the information and insurance documents confidentially and don’t share them with others

What’s the best insurance company to work for?

Below is a list of the top 10 insurance companies in the USA where you can work as an insurance agent – 

1. Burnham Benefits Insurance Services, LLC
2. Questpro Consultants
3. Captive Resources
4. Worthy Insurance
5. Houchens Insurance Group
6. McConkey Insurance & Benefits
7. Employee Benefit Services of Maryland
8. RBN Insurance Services
9. Christensen Group Insurance
10. One Agents Alliance (OAA)

References:

https://www.entrepreneur.com/article/241731
https://www.indeed.com/cmp/State-Farm-Mutual-Automobile-Insurance-Company/reviews?fjobtitle=Agency+Owner

Last Updated on November 15, 2022 by Magalie D.