TY PECK: Let’s go
ahead and get started. Welcome, everyone who is on. It looks like we just
have one person so far. This is going to be our overview
of a career with Farmers Insurance. We’re going to start off just
kind of introducing ourselves. My name is Ty Peck. I’ve been with Farmers Insurance
for a little over five years now. I started off as a
sales representative in a local agency in
Ferndale, Washington. I spent a couple of years
there and worked my way up to my current position
as a business consultant with our district office. So what I do is
essentially, I go around and help all of our agents
within our district. We have 35 offices, so ranging
from one year of experience to 40 years, where I’m helping
them on a regular basis grow their businesses, develop
marketing and sales strategies, and just helping them run the
day to day of their businesses. So a little about me
on the personal side, I’ve been married for six years. I have two beautiful
daughters that are four years old
and 20 months old. BRITTANY SORLEY: So my
name’s Brittany Sorley. I’ve been with Farmers for
about a year and a half now as the recruiting manager
in western Washington. My previous experience is in
different types of management. I started off in a restaurant
and worked my way up to management there, as
well as personal assisting. I like to focus my interviews
around really just helping someone pursue
their career goals and how can I
incorporate Farmers into that to make their
ultimately career dream and be successful. Personally, I’m a
military spouse. So I’m actually from Ohio
and have made my way over to beautiful Washington. I have a two-year-old
daughter, as well as two dogs and a cat that we
like to take on hikes and really enjoy the
weather out here. So basically, our
presentation overview today– we’re going to talk
about Farmers’s history, take a dive into the products
that Farmers Insurance offers. We’re also going to look
into just the insurance industry– so a captive carrier
versus independent carrier, and what do those
really look like, and how Farmers fits in there. Next, we’re going to take
a look at the careers within the insurance industry– so different customer service or
management roles and what those are. Next, we’re going to look into
how to become an insurance agent, specifically, obviously,
with Farmers Insurance, and all the steps needed to
really pursue that career path. Most importantly,
we’re going to look at how insurance
agents make money and why is this a successful
career for people. And then lastly,
we’re going to take a look at why
Farmers specifically and what we have to offer you. TY PECK: Thanks, Brittany. Next– all right, there we go. So Farmers’ history, we
wanted to give some background on Farmers Insurance, where
we’ve come from, the journey up until this point in 2019. So Farmers was founded in 1928
by John C. Tyler and Thomas E. Leavey. They both grew up on farms,
and so they understood kind of the grind of being a farmer. But they also understood the
type of low risk customer that a farmer is. That they’re going to handle
most of the maintenance issues for their
vehicles on their own, and they’re not going
to file any claims. It’s a profitable
clientele to be targeting. So, they opened their first
office in downtown Los Angeles. And as you know from history,
one year after founding, at the time, it was
called Farmers Automobile Inter-Insurance Exchange. Pretty long name– I’m
glad we changed that. That’s a mouthful. One year after founding,
the Great Depression hit the country. And if you think about being
a brand new company trying to get going, trying to grow,
and then having something like that happen, it’s going
to be a struggle, right? So, kind of our
claim to fame is we continued to grow through
the Great Depression. And most importantly, anyone who
filed claims would pay in cash. We didn’t pay in IOUs,
like a lot of companies were doing at the time. We wanted to make
sure our clients were being taken care of. And obviously, over
the years, we’ve grown to be one of
the biggest insurance companies in the country. We have a lot of information
about why Farmers and more specifics
about us, but been around for a little
over 90 years now. We just celebrated our
90th anniversary last year. Some products that
we offer today– so really looking at the bread
and butter of the insurance industry on the property
and casualty side is your auto and your
homeowner’s insurance. So that’s going to be
the bulk of our business. But Farmers Insurance
is also well known for handling small
business insurance. We’ve been one of the top,
as far as client satisfaction goes, over the past few years
with small business insurance. Think about your
local restaurant– maybe an apartment complex
or condo association and the little auto
service repair shop– those are the types of
things that we like to target and that we’re really good at. So, another thing about
Farmers– we really take care of our
clients, not only on getting them the right
coverage for what they need, but also on the claims side. So if you’re filing
a claim, you’re going to have a great experience
with our claims adjusters. They’re going to
walk you through it. They’re going to
hopefully find ways to give you coverage in maybe
some gray areas that typically other companies are going to
be trying to find some wiggle room out of a claim. So, we try to make sure
we take care of people. We also own a couple companies– [? Bristol West ?] and
[? Foremost ?] Insurance to handle some of our toys,
like motorcycles and boats, motor homes. And then also on the
non-standard auto insurance side, some people do maybe have
some activity on their records with DUIs or lots of
accidents and tickets. We do have a market
for pretty much anyone who’s coming in our door
shopping their insurance. And then of course,
the life insurance side– pretty standard
there with some term life and some permanent
life insurance, but universal and whole life,
and then financial services plans as well. It’s not required to be an
insurance agent with Farmers, but it is a nice benefit
to add to your business. A look into the
insurance industry– just kind of a quick
overview of what’s out there. You think of your
captive agencies and then your
independent agencies. So, Farmers Insurance, State
Farm, Allstate, American Family– those
are all considered the captive carriers,
where you got a nationally recognized brand. You got the commercials. With State Farm, you see Aaron
Rodgers doing commercials. Farmers– obviously,
we have JK Simmons– great actor– doing
the commercials. You hear the jingle. The marketing is all done
at a corporate level. So if you’re a Farmers
agent, what’s nice is you get the logo. You get the brand right
on your front door. People are walking
into your office because they see
the commercials. And they know a little
bit about Farmers. We do have a smaller playbook,
being a captive carrier. You only sell one
company’s products, and we’ll also actually
touch on that later and talk about why
Farmers has an advantage over other captive carriers. But if I’m a State Farm
manager or an Allstate agent, and something walks
in that doesn’t quite fit our appetites, I’m going to
have to turn that person away. On the independent
side, you’re kind of building your own brand. So if I wanted to go out
and be a Ty Peck Insurance Agency or Ty Peck
brokerage, I’m going to have to build my own logo,
build my own local brand. I’m going to have to connect
with all the local centers of influence and
really try to gain some traction around my agency. But I have a larger
playbook, so I can sell for multiple carriers. So you can see down below,
we got Liberty Mutual, Progressive, Travelers, [? Mutual of Enumclaw,
Oregon Mutal ?]. There’s a bunch of
carriers that you get appointed with to really
be able to go after it. If someone walks
in the door, you’re going to be able to walk
out with five or six different quotes for
their auto insurance or homeowner’s insurance
and really find the best deal for them. On the captive
side, again, you’re only given production
goals by one company. So Farmers would say, here’s
your goals for the year. Hit these, and you’re
going to get a bonus. On the independent side,
your production goals are set by multiple
companies, just to keep those relationships alive. So if I want to have a
Liberty Mutual appointment, I got to be willing to put up
a million dollars in premium money a year. And if I don’t hit
that target, they’re going to pull that
appointment away from me. So there’s a little bit of
a grind on that side of it because you’re trying to please
multiple relationships there, multiple companies. The other advantage
to being captive– you get all the local support
from the district office. Especially with
Farmers, we provide a ton of training classes. We even have the
University Farmers, which we’ll touch on later. But in our specific
operation, you get me coming out to your
office a couple times a month to meet with you
and meet with your staff. On the independent side,
you’re going alone. Unless you have a business
partner who knows the insurance industry, it’s learn as you
go, pretty much, so kind of a quick difference there. I wanted to touch on
some typical careers within the insurance
industry as well. So I know some people watching
this webinar may be thinking about some other types of
careers within the insurance industry. So we didn’t want to
leave anything out. We’re going to focus more on
the agent side of it today. But thinking about
claims adjuster– so you have a car accident,
a house burns down, or something-
[? A claims adjuster ?].. The person’s coming out and
assisting you in that process of hiring contractors or taking
your car to the auto shop to get it fixed and then
negotiating with another insurance company or
with the shops what their contractors’ on, right? So they get your
stuff taken care of. An actuary– so for those
math nerds out there that love numbers– I’m not one of those,
but those are the people that analyze statistics. And they look at how
to set different rates for auto insurance, home
insurance, all the products that we offer. They’re the ones who kind
of play with the numbers and raise or lower premiums
for different products. An underwriter is
someone that I would go to if I have a risk that I’m
trying to sell insurance to, like a homeowner’s policy,
or let’s say, a restaurant policy, for example. I’m going to call my
underwriter, Brian. I’m going to say, hey, Brian,
I’ve got a restaurant here. I’ve got some pictures
of the kitchen. Here’s the fire extinguisher. Here’s what the
outside looks like. Here’s a picture of the roof. We’re going to look at all
the different factors there to set the right
price for it and set the right coverage for it. If you’re someone
who likes to analyze risks– maybe some
sort of certified risk manager of some sort– that
could be a fun opportunity. The corporate support side–
that’s going to be sales manager– people who
like to manage and like to kind of oversee operations. That’s our territory
office down in Bellevue and down in Portland that kind
of oversee what we do here– just a lot of
management, really. There’s a ton of different
opportunities at that level. It’s just going to take mostly
management experience and that type of degree to get in there. Trainer consultants– that’s me. I don’t know. With me, I guess it was
just I had the experience as a salesperson. I was able to be pretty
successful in it. Typically, our
district managers– when they’re trying to hire
someone for my position, they want someone with a
background in selling insurance before they go into it. So they can speak a little bit
more intelligently about it. And then of course, recruiter–
that’s what Brittany does. Do you want to talk
about what you do on a daily basis for a second? BRITTANY SORLEY: Yeah, so, as
well as recruiting new agents and where we– new office or a
presence in an area, I do that, so the higher
level agent recruiting. I also do staff recruiting. So my day can look like talking
to high capitalized candidates to customer service
representative position, so that our current agents
who want to add to their team can focus on their sales
and their business. And they don’t have to
[? skip a beat ?] with trying to find the right person. So I can go through hundreds
of resumes, 20 something interviews, and then give
them two or three people that would really fit well. TY PECK: Yeah, so it’s a
very important position. Being a small
business owner, it’s obviously an awesome
support to have someone doing all the recruiting
for you, so you don’t have to sift through
resumes all day, looking for that next hire. But next on the list, there
are customer service and sales producers. Those are going to be the
employees within our agencies. That’s where I got my start. It’s going to be more entry
level, especially if you don’t have any experience. Pretty straightforward. You’re helping your customers
with policy changes. Or as a sales
producer, you’re going out marketing, networking,
and making some sales. Last but not least,
our marketers– they’re extremely important. It’s typically a
part time position. That’s going to be some
time spent on their phones, reaching out to local
business owners, homeowners, trying to get some quotes
going for our agents looking to grow their business. This is a key
position because some of our most successful
agents in the company have started off as
part time telemarketers. They really learn how to
grind and go hunt for business in that type of position. And they’re able to carry
that culture with them throughout their career
with their staff. So how to become a
Farmers Insurance agent? That’s kind of the
big question, right? I guess, just to start off,
a little bit of background on what’s historically not just
Farmers Insurance has done, but most of our
competitors out there. Traditionally, you bring
someone in typically with no experience. Help them obtain their
property, casualty, life, and disability licenses. So they get licensed. They just start grinding. They get a phone book and a
phone– start cold calling. They’re going door knocking. Think about way back in the
day when people were going out with the briefcases, trying
to sell you something or sell you a vacuum. That’s what this used to be. There’s been some
highly successful agents that have come out of this. But the majority probably failed
to maintain a long term career, especially as the world
is changing with less door knocking and less cold calling. Especially with do
not call regulations, it’s become less of a success– successful opportunities there. Starting the business
from scratch– I mean, obviously, you’re
looking at zero dollar income day one. You get out what
you put into it. And we’ll talk about
income a little bit later. But for a lot of people,
that’s intimidating to be able to come and say,
I’m not making any money until I start making sales. And who knows when
that’s going to be? [? In able to ?]
succeed you have to be really confident in
yourself to make that happen. Moving on down below
to retail acquisition, those are a couple of our
main opportunities now. Retail is basically our enhanced
traditional opportunities. So you’re starting from
scratch, but we really try to give a lot of
time ahead of time before starting of training. We’re really flexible
with the training. We want to make
sure we’re working with your timeline,
about 3 to 12 months typically there, working with
us at the district office or even remotely. We can do that, as well. We can be creative with it. You have the ability to
earn up to a $30,000 bonus on opening your agency. During that 3 to 12 months,
you can be making some sales. And we would set
some goals for you, just to get your feet with
the insurance industry and get to know Farmers. And once you open
your doors, month five is when we’ll be paying
out that $30,000 bonus. So the other thing is,
like I mentioned before, having a $0 income, that sounds
like a really tough road. So we really built a
monthly bonus structure designed to build a
sustainable revenue stream. So, basically, your
first year you’re able to basically earn a
300% bonus of any commissions you may be earning. And we’re going to touch on
income in a few slides here. So you get a better idea
of what that looks like. But it’s definitely
a much better option than traditionally
without that cash flow. And trying to build
your income that way was definitely a
hard task to do. Next, we have acquisition. This would be– let’s
say someone’s retiring. And we actually have an agent. He’s in his early 70s,
ready to retire and sell his book of business. And you can sit down
and negotiate with him and say, what’s a
purchase price here. I want to purchase
commission rights from you. So that’s definitely
an awesome opportunity to become a Farmers
Insurance agent. You own your business. You’re an independent
contractor. You own the commission rights. So, when you go to
retire, you can sell that to whoever you want. They’re always going to have
go through some background checks, some client stuff,
some training with us. But, at the end of
the day, you know you get to sell your
book of business. You have an asset at
the end of your life there, that you can
use for retirement. So some pros are there. You’re buying a well-known
established location. You have someone. Maybe he’s been
in business, she’s been in business,
for 30 plus years. You have people who already
know where the Farmers Insurance offices are in the
local community. You have an instant
revenue stream. They’ve already built a
book of business or clients. So you have people that
you know you’re getting paid commissions off of. You, typically, will
walk in with employees who know the business. And they know the clients. So you’ll have more of
a warm handoff there. You’ll, typically, walk in
to all the office furniture and electronics you need
to run the business. The only downside is
you’re going to start off your career with debt. But it’s a lot of
opportunities that make sense. A lot of times, it
pays for itself. It can be an awesome
opportunity there. So you see the little
star at the bottom says, capital requirement of
$50,000 to $70,000 to start, based on location. Right off the bat, that might
disqualify a lot of people, especially coming out of
school with student loans. Maybe you weren’t working. Maybe you were working off
of scholarships or something. But looking at
capital requirement can be intimidating. It’s not like a franchise
fee or anything. It’s just basically
saying, you’re ready to invest into a
business to help it grow. And we know not everyone
is in that position. And so we’ve developed another
opportunity called our Protégé program. This is another entry point
where you can really just come to us and say, hey, I
don’t have the capital required to start a business today. But insurance is something
I want to do long-term. Or, maybe, it’s something I
want to figure out for myself, if that’s what I want to do. So we’ll set 12-month
sales targets with you. That would mean we’ll waive
that capital requirement. We can say, you could come
in to be an agency owner day one with zero capital. I don’t typically
recommend trying to start a business with
zero money in the bank. But you can get
a line of credit. You can look into some business
loans to help it work that way. But it is an awesome
opportunity to get your feet wet in the
insurance industry, get to know Farmers
Insurance, really start building up your marketing
system, your marketing plans. So you kind of go into
it with some momentum. During this process, you’re
assigned a successful mentor agent. So we’re pretty
picky on who we’re selecting to be mentor agents. We want to make sure
they’re successful. We want to make sure that
their agencies are growing year over year and that they can
be someone who teaches you good things about the business. And what’s awesome is that
you get to sit side-by-side with them, while they
work with their clients, while they’re working
with their employees, to get a better sense of how
they manage their business day to day. You’re given extensive
insurance sales marketing and business
management training from us, as well. Again, it gives you the
ability to test the waters. If you’re a little bit unsure
if insurance is right for you, this is a great way
to come in and get paid entry-level wage, plus
commissions and bonuses and really figure out for
yourself– is this what I want to do with my career? Last, but not least, is
our Seed opportunity. I will just start
off by saying this is an uncommon opportunity. But it does happen. So, if and when an
agent is terminated, typically due to illegal
business practices or sudden death,
that agency is all of a sudden vacant
and available. These agencies are only given
to our Protégé graduates. So, if you’ve hit that
12-month sales target and we have an agent who just got fired
maybe for fraud or something– that’s not the best situation–
but that business is actually given to you for free. So there’s no business loan. You’re not walking in with debt. You get that instant
revenue stream. I’d say the hard
thing about that is you’re getting your
arms around the clients. You’re saying, hey, I’m
not a dishonest person. I’m not going to be
doing fraudulent things. I’m really trying to make
the customers believe in Farmers again. So it can be a tough road. But it’s an awesome
opportunity to be given the business for free. Again, those are only coming
out of the Protégé opportunity there. So, I guess, the big question
is, how do insurance agents make money. So that’s probably
the big question you’re all thinking to yourself. If I’m going to do this,
does it makes sense for me or my family to make my mortgage
payments, to pay the bills? Being an insurance agent
means you’re commission only. Now, that might
sound intimidating. But you get out what
you put into it. So, if you’re the type of person
who is confident in yourself, you’re a grinder, you like to
go out and hit the pavement and make local connections,
talk to the right people, and you’re a salesperson,
this would be good for you. Now, you don’t have to
[? go and choose a ?] used car salesmen. We like to be a little
bit more professional, be more of consultants. But, really, at
the end of the day, there’s unlimited
income potential. So we have an example here just
illustrating very basic numbers on residual income. So, if you’re thinking about
typically in a sales job,– let’s say you’re selling cars– you get a one-time commission
when you make that sale. Right? With insurance,
it’s not like that. You make a commission every
time that policy renews. So our example
shows January 2019. If I sold $1,000 in auto
insurance commissions, in six months, those
policies are going to renew. I will retain that
$1,000 in commissions. And let’s say I
sell another $1,000. So my income for
June was $2,000. Then I roll into the next
one, that $2,000 is now renewing six months later. And I’ve generated another
$1,000 in new business revenue. So we have some acronyms here,
new business, renewal, I’m just trying to save some
room on this slide here. But you see, over time, how
that residual income grows. So, even just after
three years, you can be sitting at $8,000 in
the month of June in 2022. Again, these are simple numbers. And I will say in
the perfect world, it would be great if you can
retain 100% of your customers. You’re not going to. People move. People die. People sell their cars. People will cancel policies
and go to a competitor. It’s just part of it. But I would say, on average,
you can retain 85% to 90% of those clients. So really think about
the residual income that comes with that. And we’re not just selling
auto insurance here. We’ve got homeowner’s insurance. We have business insurance,
life insurance, boat insurance. So, really, you’re looking
at multiple lines of business that you can target
on a daily basis to grow your income
much quicker. And, of course, there’s
other bonuses and promotion opportunities. We’re currently doing
a promotion right now for agents, who are
selling life insurance. We’re going to send
them on a trip to Mexico and have a little bit of
fun out there for a week, while we’re back here running
their business for them. It’s going to be a
pretty fun opportunity. But there’s a lot of cool bonus
and promotion opportunities there, as well. So, I guess, why Farmers? If you’re really
thinking about, OK, if I have all those
competitors out there,– we’ve got State
Farms, All States. You got the brokerage
side on the independent. Why Farmers? Why should you go to Farmers? Here’s some just stats here. Industry Leader, we’re one of
the country’s largest insurers of vehicles, homes,
and small businesses with approximately $20 billion
in annual written premium. We have about 13,000 exclusive
agents across the country. We serve over 10
million households and got about 19
million policies. And, like I mentioned before,
we offer a leading portfolio of multi-line
products and services. We really go in there and offer
someone auto, home insurance, umbrella insurance, boat
insurance, life insurance, and financial services. At the end of the
day, you could be selling 10 or 12 policies
for one household and having a lifelong
client right there. Again, we’re an award
winning claims department available 24 hours a
day, seven days a week, one of the best of
the best out there. There’s not very many
companies that are ahead of us in that category. We love taking care
of our clients. It’s a huge thing for us. And I mentioned University
of Farmers earlier. This is an awesome
opportunity, as well, to get trained at
our university. It’s been rated one of the
top training facilities in the corporate world. We love to really make sure
we’re over-preparing people for this opportunity. We want to make sure you’re
completely comfortable. You know the products. You know how to run a
business before you’re even jumping in with two
feet to the deep end. At a local level here
with our district office, we offer even more support. And, like I said,
we have Brittany who is calling
resumes, helping you hire customer service
representatives and sales representatives. You have me come out and bug
you a couple times a month at your office to talk about
some marketing and sales strategies to grow
your business. We’re going to look at
your profit and loss. We’re going to really make
sure that your business is running efficiently. You have our trainee
manager, Shannon. She’s been with Farmer’s
about 25 years now. And she’s an expert
on all things product. If you ever have a
question, if you ever have something go funky
on the system, call her. And she’s going
to fix it for you. She’s going to answer any
questions that you may have. And last, but not least, is Carl
Davis, our district manager. He, basically, is
the big picture guy. He’s going to come in and visit
with you on a regular basis, as well. And he’ll really give you
that motivation to keep going and really give you some
top level information and just keep you ahead
of the curve there. I guess, that’s about it. We’ll open it up
for questions now. It looks like we still just have
the one person here for love. The question is, if you do the
Protégé program and decide you don’t want to continue, do
you have to pay anything back? No, you do not. Great question. No, it’s a job. It’s a full time job. Like I said, since you’re
in Virginia, I’m not sure– we are in Washington. So unfortunately, unless
you’re in Washington, we wouldn’t be able to hire you. But I’m sure there’s a Farmers
district office out there somewhere. And they do these very
similar programs out there. So you do not pay anything back. It’s just a full-time
job, making sales. So let me just read
these questions again for the recording. Is there a draw in
commissions, like stipends? Or getting it all
out all at once? For example, a wage
given, does that go against future commissions? So the way that it works in
our district with the Protégé program is, you’re given
a base of $2,000 a month. That works in our area. And we’re in a
more rural market, outside the
metropolitan markets. But– $2,000 a month. And you’re given a large
portion of the commissions when you sell something. But it does not go
against your wage. So, typically, if I worked like
a car dealership for example, I’m either given my
commissions or my base pay, whichever is greater. That’s not the case with this. And we know it’s not a
great option for people. We like to have you increasing
your income through sales. We like to motivate
you in that way. So that $2,000 base
pay in our district is a guaranteed
amount and, then, the commissions and bonuses
on top of that, as well. BRITTANY SORLEY: And we’ll say
that all the commissions are uncapped too. Whether it’s the Protégé
opportunity or an agent, there is no cap on commissions
or production maximums at all. TY PECK: Yeah, you can go
and have a killer month. And we’re not going
to stop paying. Perfect. No more questions? Well, I think that
is everything. Thank you for stopping by. Thank you for attending. And thank you for watching.