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How Much Do State Farm Agents Make?

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As an independent contractor, a State Farm agent's compensation salary can vary, depending on several factors, including the expenses the agent must assume. Fortunately, State Farm has established a generous program for defraying some of the costs, and the company rewards contractors with bonuses.

Base Salary

According to a May 2014 Payscale Inc. chart, the median annual compensation for State Farm sales agents is $30,051 a year. However, as you build your client base over the years, compensation increases. Agents with five to nine years of experience average $36,531 a year. Agents with 10 to 19 years experience average $52,462. Agents with 20 years or more of experience average $57,900 annually.

Selling Yourself is Step One

To qualify as a State Farm agent, you first must go through a screening that includes answering a targeted questionnaire, the Sales & Leadership Career Profile (SLCP), which the company uses to measure your likelihood for success. Then you must pass an assessment process. If you fail either of these qualifiers, you must wait 12 months before you can reapply. If you must pass, you must participate in several more evaluation processes, including a background review and interview. You also must submit a business proposal for company approval. If accepted, you will train with company as a paid intern for six to nine months. As an agent, you'll earn money in the form of commissions on insurance and financial service products. The amount of the commission will depend on which products you sell.


Agents must bear office expenses and most other costs associated with the doing business. State Farm does provide low-cost loans to cover start-up costs, and you can obtain furniture and equipment from the company for a relatively low monthly rate. The company will compensate you for certain relocation costs. The company supports agents with a Customer Response Center, an Insurance Support Center, and other professional resources.


The company will pay you a bonus when you first earn the rank of Term Independent Contractor Agent (TICA). You'll receive a second bonus if you're still working with the company 12 months later. Even though they are independent contractors, State Farm agents receive up to 10 paid vacation days a year. The company also offers a retirement program with a five-year vesting period.

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