Pros
Agent Compensation is truly uncapped - the harder you work and the more business (and the higher volume you write in ALL lines of business) you write - the more you will make. There is an opportunity to earn a SIGNIFICANT Scorecard Bonus each year. The general public is very familiar with the company, so new agents will have instant credibility and brand name recognition. If you can be a high performer you will be rewarded with trips around the world (Ambassador travel program).
Kontras
Summary: For the RIGHT PERSON the Agent opportunity can be everything they would want it to be - but I observed in myself and many other agents that it takes an extraordinary amount of focus, organization, time management, and teamwork, along with the ability to continually invest heavily in your business to be a consistent high producing agent. Details: The AA05 Contact is a GROWTH-BASED compensation plan. SF will guarantee you a base level of P&C commissions, but an additional 3% has to earned / validated every year. This can be extremely challenging based on the market your office is in; or if there any restrictions SF has placed regarding underwriting or rates in your area. Additionally - life events such as the births of children, impaired health or deaths of loved ones, divorce, etc may require time away from the office and may take your 100% attention off of growing the business - which may mean that you will earn less next year than you did this year. The AA05 contract is genius from SF's point of view (because of variable comp you can never relax and be content with your existing book of business), but when it works against you as an agent it can be extremely frustrating! As a side note - I had significant work / life balance issues as an agent. I became divorced during my time in agency, and when I ultimately won full custody of my daughter I ended up resigning from SF Agency a few years later as I found it extremely difficult to be fully vested in growing my agency, and meet my own standards of being a successful father. ALSO - if you are considering becoming an agent, DO YOUR HOMEWORK in regards to average premiums in any particular market area, as premiums can VARY WIDELY from state to state, and even within the same state. If I had my size book of business in SC or WV, instead of NC (where my agency was located) - my annual gross compensation would have likely been $50,000 or more higher! Not everyone wants to live in WV, but the difference in premiums (how commissions are derived) can be significant. Lastly, as an agent you will constantly be dealing with employees - hiring them, training them, firing them, etc. I would say that staffing issues are a universal challenge for most State Farm agents that want / need to perform at a fairly high level. Just know that on the front end!