456. Our Honest Take on the State Farm Changes (And Every Carrier Cutting Commissions)

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What's in this episode:
Michael and Courtney Weaver sit down for one of the most honest conversations on The Insurance Buzz yet. The commission cuts are real, the frustration is valid, and Michael Weaver and Courtney Weaver are not here to sugarcoat it. This episode breaks down what the State Farm changes - and every carrier cutting comp right now - actually mean, why the insurance industry has officially gone performance-based, and exactly how agents can make smart, strategic decisions instead of emotional ones.

[00:00] The one thing Michael and Courtney want every agent to hear right now
[01:00] Why it is okay to be angry, frustrated, and feel like you were lied to
[02:00] What Courtney Weaver says about not making decisions out of emotion
[03:00] Commission cuts are not new - what every carrier is actually signaling
[05:00] Should you stay or should you go? The honest framework for deciding
[07:00] If you stay, stay - if you go, go - why half-measures will cost you
[08:00] The insurance industry is now performance-based, period
[10:00] Business opportunity: what happens when 40 to 50% of agents leave
[12:00] Courtney Weaver on becoming the agent - and human - of the future
[14:00] Your skillset cannot be taxed, taken, or inflated - own it
[16:00] Permission to feel it, then move - what comes next is waiting for you
[19:00] Michael Weaver's final word: sit on it, create a plan, then send it

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Transcript

SPEAKER_01 0:00

I'm just here to be really honest that it sucks, but it's not the end. And don't let it be the end.

SPEAKER_00 0:08

This is the insurance buzz, and we are your host, Michael and Courtney Weaver. We coach insurance professionals, business owners, and people just like you every day on how to live a life and have a business you are excited about.

SPEAKER_01 0:23

Here on the insurance buzz, we share the wins, the losses, and everything in between that comes with being married business partners, training in the insurance space, and growing our business side by side. We also connect with other business owners and leaders making their mark in the world and hopefully inspire you to make yours.

SPEAKER_00 0:40

Hey, welcome to the insurance buzz. We are your host, Michael and Courtney Weaver. And on today's show, we are talking about the big news that State Farm just made and the changes that they made. And just going to talk transparently to you right now about those and just the industry and whole, truthfully, around the changes that every carrier is making right now across the board. And talking to you, our peers and agents that are in the situations to hopefully help you navigate the rough waters that you are currently in. So I want to start with just uh I can relate while I'm not in it anymore. If you are mad, if you are frustrated, if you are angry, if you felt like you were lied to, uh, all of these are feelings that you probably feel, and that is okay to feel that way. Um, I'm not here to uh be the roo-roo rah-rah drinking the Kool-Aid, telling you that everything's gonna be okay. Because if I remember back and I put myself in that situation, um, and if I found out that uh specifically one of the things that got taken away, the AIPP, I'd be very angry if I was you. Um, and so if you're feeling that right now, that's normal. And uh that's why we wanted to come on today to encourage you and number one, say it's okay. Uh hopefully you have a support group that you have turned to. Uh, hopefully you're talking with your peers. And most importantly, what I want to reiterate to you today is is while you are angry, while you are upset, while you are frustrated, and while you have every right to feel those emotions and those feelings, I would really, really encourage you not to make any decisions out of emotions currently and to try and really take some time, process, take a step back before just making any decisions moving forward for at least 30 to 60 days.

SPEAKER_01 2:52

Yeah. We um have had a lot of conversations and we didn't want to come on here and be Pinterest quotes and throw pillows and be like, when life gives you lemons, because it sucks. It absolutely sucks. And we have been in your seat. We understand what it feels like to have the rug pulled out from under you. Um, but we want to have an honest conversation around kind of where we're seeing the industry head and some things that you can do, some things to consider when you're navigating what comes next. So the this is coming off a lot of phone calls that we are getting. And so we want to have an honest conversation around kind of like our take and having all of these conversations with different carriers. Um, this is the commission cuts, is something that is not new, and we're seeing this happen across the board. And so I'm seeing a lot of posts and I'm seeing a lot of comments and phone calls and text messages. And the thing that I would encourage you to do, just like Michael, is to take a beat, is to really take a step back and reevaluate number one, is this something that you want to do anymore? Because I think that there is an opportunity everywhere. There are different carriers, different insurance opportunities that really can align to you and the goals and what you want out of your life and what you do really well, like how you have built your agency. But I would encourage you before you just jump ship to really evaluate what that fit looks like for you and is it still insurance? Because the thing that is easy to do is to see a shiny ball when you're given a turd, is to really look at something and be like, okay, well, there's an opportunity over here. It's better. I'm gonna paint like unicorns and rainbows on this opportunity. And I would say each opportunity is different, but not one of them is going to be easy. Um, that's collectively what we're seeing come across from all carriers. The big thing that we're noticing is the commission cuts are really trying to force out agents and producers, their teams, what that looks like that really aren't driving production. And we know that new business growth is the bloodline of all businesses, and we're seeing that being really a focus for carriers and what that looks like. So every carrier is gonna look different. Um, but we had a conversation about what this opportunity looks like if you are an agent and you are a state farm agent. I the thing that we're like seeing is when there is this force of you're either here or you're not here. The ones that jump ship, what happens to their book of business?

SPEAKER_00 5:50

Yep.

SPEAKER_01 5:50

Like what happens with that? Who gets that? And I'm not saying stay, and I'm not saying go. Here's what I am saying though there's an opportunity either way. There really is. And you might not see it yet, and you take as much time as you need to be mad, to scream, to cry, to feel like your whole world crumbled because it did. That's fair, and feelings are meant to be felt, and you need to feel them. Like you have to go through this because I know that it's not just your livelihood that changed, it's your family, it's your team, it's your future, it's your legacy. All of that just the ground just shifted underneath you. But what I will say is if you decide to go, do your research and go. Right? If you're gonna go and you're gonna move on and you're like, forget this, I'm gonna start something somewhere else, send it. Absolutely send it because I'm telling you, it's not going to be any easier over there wherever you decide to go. And if you decide to stay, then you have to stay. You have to be committed to what you're doing. Being bitter will not serve whatever it is that you are trying to create. You will literally have this taste in your mouth and you will not be able to shake it. And it will taint the dream that you are trying to build. So if you stay, there is opportunity. There is opportunity to expand. You will have bigger books of business, you'll have to grow in different ways, you'll have to have people that are trained in different ways, you'll have to adopt different systems and a whole new culture and a whole new way of doing things. But if you stay, stay.

SPEAKER_00 7:38

Yeah, it's um so let's look at this. So from across the board, carriers are cutting commissions, as Courtney said. They're cutting bonus plans, they're cutting variable comp. Um, but but just because just because an opportunity changes doesn't mean it's still not a great opportunity. Without a doubt, the insurance industry is becoming a performance-based opportunity. You either perform or you're not one of us. Like that's just how it is. Like if you can't perform and consistently and constantly perform, this is no longer a business that um 20 years ago, individuals were sold, hey, come in here, build a three to five million dollar book of business, you sit on it the rest of your career, you have an annuity. It's not that anymore. With time, commissions are going to go lower and lower, without a doubt. With time, carriers are going to implement AI and try to automate as many things as possible, which can be good and can also be tough. And so this is the thing is like you can be upset, you can be frustrated, you can be mad. And maybe some of you right now are like, I'm not any of those. I'm just ready to move on and get going with the opportunity. That's great too. Um personally, I would be a little frustrated myself. Uh, I'd feel like I was probably lied to. And I just want to know, want you to know for those of you that are out there feeling that way, these are normal, common feelings. Uh, we have been reached out to by a lot of your peers, and these are the feelings across the board. But when you look at this opportunity, and these are for all carriers, so let's brief let's just take the carrier we're talking about in this example. Okay, so they just made the changes. Uh, I don't know what percentage of agents are going to actually quit or retire or whatever, but there are rumors of 40 to 50 percent is what this agency force will decline by over the next two to three years. So when you look at that, uh when you look at that, customers have to go somewhere. So even though you just took a commission cut, you're eventually gonna get assigned to book a business that will make up for that commission cut. Now, I think commissions will actually start will actually get cut even more in the future. So just keep that in mind. And this is from every care carrier across the board. But these are the opportunities we're looking at. And Courtney actually hinted at something that no matter what opportunity, if you want to stay in the insurance industry, you're gonna have to send it. Like you are going to be pushed more than ever, you are going to be challenged more than ever. The expectations that are going to be set for you are going to be higher than ever. And so just because you are upset and you're like, I'm gonna go and I'm gonna start another agency with another company, please just keep in mind that the same expectations are going to be put on you. The same thing of getting commission cuts are going to happen. Every carrier across the board has taken contracts into their control. And so this is not to like insurance is an amazing opportunity. It's still what I believe one of the best, if not best, opportunities in the world to make really great money doing something very noble and you can make a ton of money doing it, you're gonna have to grow into the type of agent that the carrier wants you to be. And if you're willing to do that, you can thrive in this industry. Absolutely thrive. And at the same time, if you're like Michael, I just don't know if I want to send it, man. I don't know if I want to do that. There's gonna be other opportunities and other careers that are a great fit for you too. And so that's the thing. Like, if you're actually considering like changing, and this doesn't matter if you're a state farm agent or any agent out there, do your due diligence and really figure out like what do I want out of my life? What am I good at? What do I like to do? And then go find an opportunity or career that matches those qualities. But I don't think there's an easy button anywhere. Like every everything's hard, you just get to choose your hard.

SPEAKER_01 11:50

Yeah, and you you brought up that carriers are going to continue to expect more. It's not just carriers. This is we're seeing this across the entire workforce where we're seeing this shift, and that's why we're we're always super focused on making humans better, because what we're seeing is customers, employees, carriers, corporate, everyone wants the best of the best to be who they work with, who they work with, who they're a part of. Like they want the best. And so when you look at that, that's really where everyone's headed. That's really what we're focused on. I mean, in basic business says that the top 20% make up 80% of the revenue. So right now, every big company, even our company, we're looking at where are our most valuable resources and how do we double down on those? And so this is an invitation to really look at that and go, how do I grow? How do I move into not just the agent of the future, the human of the future, the entrepreneur of the future, the like somebody who's really profiting in the next not just a couple years, like 10 years down the road. And I think the biggest thing is where I'm seeing people be rewarded is acquiring skill sets, performing at like the most elite level and being adaptable. Like you have to be willing to understand that you are going to get kicked in the teeth. That's like all of us are getting kicked in the teeth in some way. You just get to just decide like what does that look like for you? You can be you can be hot right now, like mad.

SPEAKER_00 13:42

As you should be.

SPEAKER_01 13:43

You can be upset. I would literally lock myself in a room and have a moment if that happened to me. Um because it's it it's devastating to think that you have worked so hard to build something and then it's just gone. But I would encourage you that your skill sets and that the person that you are and what you have learned and the experiences that you have had, I want to remind you that can't be taken away. Nobody will ever be able to take that away. That is yours to keep. Nobody can tax it, they can't take it, it can't be inflated. That is yours. So, whatever that is, your competitive advantage. Again, I'm gonna hit on this, and we talk about this a lot when we're talking about marketing, we're talking about recruiting, we're talking about your agency and like how you're putting yourself out there. It's you. You are the magic. It's all you. So you get to take who you are, the badass that you are, and say, you know what? I'm gonna, I'm gonna cry, I'm gonna scream, I'm gonna punch a hole in the wall, whatever your thing is for as long as you need to. And then it's time to go, okay, now what? Because you will get back up and you will have opportunities everywhere, and you might not be able to see them right now, and that's okay. But know that if you are somebody of faith, and I know a lot of you that are watching and listening are when something closes, it is for you, whatever comes next. Whatever comes next has been waiting for you. It's been waiting for you to grow into it, it's been waiting for you to accept it, it's been waiting for a change. This might be the nudge that you needed to stay or go, to be like, I'm gonna actually, I'm gonna own this shit. Like this is who I am, or to say, you know what? Done, kicking rocks, I'm out, I'm moving on. That's okay either way, but you get to make that decision. And I all I want to remind you is that you, as a person, a producer, an agent, a CSR, a sales manager, whatever that is, that's just a title. That's those are great, but that doesn't change who you are and what you bring to the table in this career and in any other career. It doesn't change everything that you've learned that has made you a better human being, just in general. The amount of rejection that you can handle, the amount of emotions that you can handle, the ups and the downs. You are absolutely built for this if you want it. And again, I'm not here to like throw rah-rah. I'm just here to be really honest that it sucks, but it's not the end. And don't let it be the end. Let it be an opportunity to say, okay, what's next? What does that look like? I love this industry. I absolutely love this industry. I would have never picked it though. I would have never picked it. I'm telling you right now.

SPEAKER_00 16:43

This is a this is a I I roped, I roped her into this one.

SPEAKER_01 16:46

This this is an industry, but that uh that chose me. Right? Love chose it for me. But I I love the impact that it can make and the people, you, the people that get to show up and say what I do makes a difference, who I do it for makes a difference. Um, and you have a wonderful opportunity, it can be whatever you want it to be, and it might not be where you're at right now. It might be something that you're like, I would like to look at a different carrier, or I'd like to go independent, or I'd like to, I don't know, start a lawn care business. I don't know. That's that's your choice. But my only like urge to you is don't stay somewhere and be bitter. Don't staw and have this resentment when you have an option to change your reality, whether that's just your mindset or it's your actual position. Like be open to making the most of whatever is in front of you. Again, I preach this all the time, but these are the best years of our life. Do not spend them doing something with just a film over it, this like black cloud around you. It doesn't have to be like that. That's it.

SPEAKER_00 18:05

That's what we got for you.

SPEAKER_01 18:07

It sucks.

SPEAKER_00 18:07

It does suck.

SPEAKER_01 18:08

It absolutely sucks. You are our friends, you are our peers, we were one of you. Like this it sucks. And it's happening everywhere, and it's an invitation for us to go. I am going to really make the most of who I am and what I bring to the table, and wherever that's a fit is a fit for me. Like, yeah.

SPEAKER_00 18:38

The last thing I want to end with is, and I said this earlier in the conversation, just don't make any emotional decisions. Yeah. Sit on it, process it, create a plan. Because at the end of the day, no matter what you decide, the grass is always greener where you water it. Period. Every opportunity is a good one. You just have to maximize the opportunity. So, my only ask of you is sit in your feelings, feel it, process it, but please just do not make any emotional, irrational decisions until you have had a chance to actually process, create a plan, figure out what the future looks like. And then when you have that, go out and freaking send it, as Courtney said earlier. Send the shit out of it, crush it. Um but please know that we are thinking about y'all. We love you, we're friends with a lot of you, we work with a lot of you, and um, yeah, man. It's uh it is what it is. So again, just keep fighting the good fight. Do the thing that is the best interest of you and your family and your loved ones. Stay true to your mission, stay true to your core, and uh go out and as Courtney said, send it. So, other than that, guys, we appreciate you. We love you. Uh as always, time and attention is by far your most important asset. We appreciate you spending time with us today. Go out and make it great. Thanks for listening to this episode of the insurance buzz. If you enjoyed this episode and you'd like to help support the podcast, please share it with others, post about it on social media, and leave a rating and review. If you want to take your insurance agency to the next level and join our community, simply check out Weaver Sales Academy at www.weaversa.com. Again, that's www.weaversa.com, or visit the show notes on our new and current programs we have available exclusively for you. As always, time is the most valuable and important asset that we all have, and I appreciate you spending it with me. See you on the next episode.