State Farm's affiliate program: everything you need to know
State Farm has a lot going for it. It’s one of the biggest insurers in the country, and it consistently ranks among the top companies to work for. But as an affiliate program, does State Farm have what it takes to compete?
State Farm launched its affiliate program in January. Before now, its insurance agents were supplied by agents from another company. Now that State Farm has taken over, you might be wondering if this change will impact how you sell their policies.
Do you need to read anything new regarding commission structure or incentive programs? What about reporting requirements or any other guidelines? This article will give you all of the information you need to decide whether or not to partner with State Farm as an agent.
How State Farm’s affiliate program works
First, let’s take a look at how State Farm’s affiliate program works. Affiliate marketing is very similar to affiliate marketing in that both programs allow you to promote other people’s products or services and earn a commission for doing so.
Affiliates are not employees of the company whose products or services they promote — and this is very important to remember. Affiliates are not held to the same legal requirements and fiduciary standards as employees are. This means that if you have clients who have been harmed by the company whose products or services you promote, you will not be held liable.
Affiliate programs are also great for businesses that are just starting out, because affiliates can obtain and market products without having to store, ship, or manufacture anything.
Commissions and conditions
Here’s what you need to know about commissions: they’re 25% of the gross profit from policies you sell through your State Farm website. Gross profit is the amount you receive from an insurance company before any deductions are taken out.
Now that you’ve signed up with State Farm, you’ll get access to a quote-builder tool and an online policy management system where you can access your clients’ information and write new policies. You will also be assigned a dedicated State Farm account manager, with whom you can discuss any concerns or questions you have about the program.
For the most part, State Farm’s affiliate program has the same conditions as any other program. That means you’ll have to adhere to the same terms and conditions, meaning you’ll have to follow the program’s rules regarding promotion and interaction with your clients.
State Farm’s affiliate program requirements
State Farm requires you to have an E&O (errors and omissions) policy and a general liability policy in place before you can sign up for their affiliate program. This is common practice in the insurance industry. State Farm is taking an extra step by requiring affiliates to obtain policies, even though they are not legally required to do so.
Keep in mind that you will be responsible for paying the premiums for these policies out of your own pocket. State Farm will not reimburse you for the cost of these policies.
Another thing to note is that State Farm’s affiliate program is only open to residents of the United States. This is due to the fact that State Farm is licensed to operate only in the U.S.
Affiliates must not misrepresent State Farm, its products, or its affiliates. Misrepresenting any of these parties could result in the termination of your contract with State Farm. This means you cannot mislead your clients into buying policies they do not need. You also cannot promise things that State Farm cannot deliver.
Affiliates must not use misleading or deceptive language or images in any marketing efforts. This includes the language used to promote the affiliate program itself. Affiliates must not promise quick and easy money or wealth without any effort on the part of the policyholder.
Affiliates must not use State Farm’s trademarks or copyrighted information in any marketing or promotional materials. Affiliates must not post misleading reviews or testimonials online. Affiliates must not contact State Farm’s current or potential customers directly.
Affiliates must not use any information obtained from State Farm’s website or other media to contact State Farm’s customers or potential customers directly. Affiliates must not attempt to alter or modify their cookies, IP addresses, or any other digital information in an attempt to disguise their digital trail.
State Farm affiliates will have to complete a monthly affiliate report. The report should include the number of policies sold and the amount of gross profit generated.
Affiliates must also keep accurate records and receipts related to any commissions earned during the month. The information in these records should include the date the policy was sold, the name of the State Farm customer, the amount of commission earned, any expenses associated with the sale (such as advertising), and the date the policy was closed.
Affiliates must keep these records for at least three years, and they must be available for State Farm to review at any time.
Affiliating with State Farm is a great way to increase your monthly income. The company is huge, and its affiliates have access to a huge customer base. You will earn a 25% commission on all policies sold, and you don’t have to worry about stocking or shipping any products because State Farm takes care of that for you.
Affiliating with an insurance company has its own set of challenges, but it can be extremely lucrative if you do your research and understand the rules of the game.