Become an Agent

Costs & Compensation

What does it cost?

As outlined in Frequently Asked Questions, investment amounts can vary greatly by market. Imagine all the variables between establishing your business in a major city versus a small community or between moving into existing office space or establishing a brand new office.

As an independent contractor agent, you are responsible for all business expenses but State Farm provides significant support to help manage those expenses:

  • Once you've been selected, you begin a paid internship with complete State Farm employee benefits.
  • Once appointed as a 12-Month Term Independent Contractor Agent (TICA), you receive a generous signing bonus; then an additional bonus at the beginning of your second year.
  • State Farm also provides furniture and equipment at a low monthly price, competitive-rate loans to assist with start-up costs, and computers, phones, and related tools at little or no cost.
  • Relocation benefits may also apply.

During the Selection Process, your State Farm recruiting contact will help guide you on specific cost considerations for the market area or areas you are interested in. Your current financial situation will be an important part of those discussions.

How does compensation work?

Compensation and benefits are among the reasons State Farm has such a high agent retention rate.

There are lots of ways State Farm agents earn compensation and qualify for travel and other incentives. Different products have different compensation structures, which your State Farm recruiting contact can outline for you in detail.

Your hard work, skills, and achievement may be rewarded through:

  • Auto and Fire insurance commissions, plus opportunities to earn variable and incentive compensation
  • Financial services commissions, plus the opportunity to earn other incentive compensation
  • A Life business development allowance (applicable for first year paid Life)
  • Premium Builder Payments (new market opportunities and certain assignments)
  • First-class trips in the United States, Canada, and worldwide
  • Company and industry recognition programs

To assist you with retirement:

  • State Farm offers an Annual Investment Payment Program. There is a five‐year vesting period (waived if you are a State Farm employee with 15 years or more of service). Active agents are eligible for 20 annual payments. Your State Farm recruiting contact can outline the program for you in detail.