A manager tells a rep their PIP is "just a formality"

Published: Wed, 06/24/26

Updated: Fri, 06/26/26

June 24, 2026

TOGETHER WITH

Welcome back to this week’s newsletter. Isn’t it funny how sales seem to come in waves? One minute, nobody will call you back, the next, everyone wants to move forward (at a discount, of course). If only there was some way to bottle that second feeling and sell it online… new business idea? Anyway—let’s get into this week’s Quota!

NUMBER OF THE WEEK

Sales professionals spend 21% of their working day writing emails.

Source: HubSpot

SALES ROUNDUP

Here’s what’s happening in the sales world this week:

A pest-control company in South Bend, Indiana is in hot water after a handful of residents complained to the local news station that the company’s door-to-door salespeople refused to leave even after being asked more than once. However, according to the spokesperson with the City of South Bend, the company, Greenix Pest Control, has applied for 15 peddler’s licenses and has received a positive recommendation each time. Licenses can be revoked if the business violates the regulations. You can read more about it here.
Online car seller Carvana is now offering test drives, though they’re still cutting out the car salesperson. The company just rolled out test drives of new cars at its Chrysler-Dodge-Jeep-Ram store in Texas, one of two Stellantis dealerships it purchased in 2025 (the other one is in Arizona). The new Test Drive Center offers hands-on experience with potential purchases without any interference from salespeople or pressure to negotiate a deal on the spot, according to Carvana. Staff are onsite to answer questions and shuffle cars only. You can read more about it here.

FEATURE

State Farm’s AI Shake-Up Has 19,000 Sales Agents Asking What Comes Next

For more than a century, State Farm built its business the old-fashioned way: local agents selling insurance to people they knew.

Now, that model is changing.

According to reporting by The Wall Street Journal, State Farm recently unveiled a sweeping plan that will require its 19,000 agents to operate under new contracts beginning in 2028. The changes include new sales targets, revised compensation plans, reduced benefits, and a greater emphasis on artificial intelligence.

The announcement came during a company convention in Las Vegas attended by thousands of agents. After concerts, entertainment, and appearances from company executives, State Farm CEO Jon Farney delivered the news that many agents weren't expecting: the company believes it must adapt to a rapidly changing insurance market.

A major reason is competition.

Earlier this year, Progressive surpassed State Farm as the nation's largest personal auto insurer, ending a run at the top that stretched back to World War II. Progressive has grown in part by embracing technology and direct-to-consumer sales. More than half of its personal auto policies are sold without agents involved.

State Farm, by contrast, has long relied on one of the largest field sales organizations in America.

The company believes customer expectations are changing. Consumers increasingly want faster quotes, digital experiences, and self-service options. Artificial intelligence is expected to play a larger role in making those experiences possible.

According to the Journal, State Farm is introducing AI-powered tools that can summarize customer information, identify potential coverage gaps, and recommend products. The company is also testing AI assistants that help customers report auto claims.

But the technology rollout is only part of what has agents concerned.

The new contracts reportedly eliminate certain benefits that many agents viewed as valuable parts of their long-term compensation. Deferred compensation programs are being discontinued, health-related benefits are being reduced, and commission structures are changing. Agents who fail to meet certain sales targets for multiple years could see lower commission rates.

Some agents told the Journal they expect meaningful reductions in income. Others worry they may need to cut staff, consolidate offices, or leave the business altogether.

The reaction has been intense.

Private Facebook groups, Reddit discussions, and agent forums quickly filled with criticism after details of the plan emerged. Some agents described feeling blindsided. Others viewed the changes as a betrayal of the company's long-standing commitment to its field force.

At the same time, not every agent opposes the move.

Some acknowledge that the insurance business is becoming more digital and that State Farm needs to evolve to remain competitive. Insurance carriers face growing pressure from rising claims costs, inflation, severe weather losses, and customer demands for lower prices and faster service.

In many ways, State Farm's situation reflects a broader trend happening across sales.

For decades, companies built competitive advantages through large sales organizations and personal relationships. Today, many are looking at AI as a way to lower costs, improve efficiency, and automate routine interactions.

The challenge is figuring out where technology ends and human selling begins.

State Farm insists that personal relationships will remain central to its future strategy. But as The Wall Street Journal's reporting makes clear, many agents are wondering whether the future they're being offered looks very different from the one they signed up for.

The debate unfolding inside State Farm may end up being a preview of conversations happening across sales organizations everywhere.

TOGETHER WITH I HOPE THIS EMAIL FINDS YOU NEVER

I Hope This Email Finds You Never is what you get when someone finally writes about work without the corporate BS.

4.2 stars on Amazon and packed with the real advice you need:

• How long you can milk being "new" before someone expects you to actually work
• The art of fake apologies that preserve your honor
• Strategic camera angles for maximum Zoom intimidation
• Kitchen politics and why eating someone's yogurt is literally a crime
• Calendar management that includes adequate crying time
• Writing your resignation letter when you've been resigned since day one

From Orientation (aka The Descent) to Working Remotely (wink wink) to Coworkers (your fellow inmates), this book covers everything you need to survive the modern workplace.

Warning: This book will not make you successful. But it might keep you sane.

BUY NOW

MEME OF THE WEEK

Source: Instagram -- Crushing_quota

QUIZ

What percentage of tech giant Oracle’s employees are designated as sales?

A. 24%
B. 16%
C. 97%
D. 9%

SALES FAILS

Each week, we bring you the most cringe-worthy sales moments from across the web. To submit your sales fail story for consideration, click here. (Don't worry, you'll remain completely anonymous).

I’m a mortgage loan officer. Several years ago, a past customer referred someone they knew who was looking to do a refinance on their house. I was pumped as referrals are usually the best leads you can get in this business.

At first, everything seemed fine. Then the calls started. The woman called multiple times a day. If I didn't answer immediately, I'd get a text. Then another. Then an email asking if I'd seen the text. Every document request turned into a 20-minute conversation. The closer we got to closing, the more suspicious the guy became. One afternoon, underwriting asked for some additional paperwork. She completely lost it.

She accused me of hiding things from her, changing the terms of the loan, and intentionally delaying the process. No amount of explaining would get her to calm down.

The next day, I got a call from a local police officer. Apparently, she'd contacted the police department to report me for fraud because her mortgage wasn't moving as quickly as she thought it should and the paperwork we asked for seemed “suspicious.” The officer was professional about it, but it was obvious within minutes that there was no crime involved—just an extremely unhappy borrower. Of course, the deal never closed.

A few weeks later, the customer who referred her called me to apologize. She must’ve told him something went wrong with the deal. It's still the only lead I've ever worked that ended with a conversation with law enforcement.

Anonymous

GRAPH OF THE WEEK

Source: LinkedIn Poll -- June 2026

WORTH A PEEK

What percentage of salespeople are realistically averaging $500k+ a year? If you listen to the influencers, it’s probably about 80%? This question was posted to Reddit recently, with over 130 responses, many of them hilarious. Check out the conversation here.

ASK THE QUOTA

Want to submit a question and be featured in our advice column? Click here. (Don't worry, you'll remain completely anonymous).

Dear Quota Team,

I've been at my company for four years and have always been around quota. Last week my manager told me I'm being put on a Performance Improvement Plan. He said not to panic and called it "mostly a formality" because HR requires it. But everyone I've talked to says a PIP is basically the beginning of the end. Is there such a thing as a harmless PIP, or should I start looking for another job?

Concerned in Location Withheld

----

Dear Concerned,

The good news is that your manager didn't fire you. The bad news is that the company felt strongly enough about your performance to create a formal paper trail.

Don't waste energy debating what the PIP "really means." Assume it's real. Hit every target on it. Document everything. Be professional.

At the same time, there's nothing wrong with exploring other opportunities. Best-case scenario, you beat the PIP and stay. Worst-case scenario, you've already started preparing. Good luck!

Quiz answer: D. 9% of Oracle’s employees are designated as sales (you can see the source article here)

How did you like today's story?

Today's email was written by Ken Kupchik and Steve Rado.

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