Understanding and Maxing Out Primerica’s Powerful Compensation and Leadership Development

1. Understanding and Maxing Out Primerica’s Powerful Compensation and Leadership Development 1

2. Do You Want a High Quality of Life or a Impressive Title? • This presentation is for those people who want to earn at least $250,000-$500,000+ from overrides which is one way of building a passive income stream. • It is only for those who want to have a “high quality of life” defined as having time freedom and money. • It’s for those who want to “Live The Dream” and as importantly help others “Live The Dream” also. • It is not for those who want a large commissions created by being a long term personal producer. 2

3. The 5 Levels of Leadership Concept • Level 1. Position- The leader is appointed, and his only authority is his title. Position is Entry Level Leadership ( A JOB… BOSS ) • Level 2. Permission- Relationship based Leadership, where the followers and the leader truly “like” each other. Results are not the priority, fellowship is. ( They want to be a part of a Team ) • Level 3. Production- A leader who is now getting results by becoming a consistent personal producer. (Income} • Level 4. Reproduction/People Development- The leader has now reproduced himself, many of his people have been turned into producers (level 3 leaders) with the evidence of that being production going and staying up. • Overrides are impossible without reproductive leadership. • Level 5. Personhood-This Leader has been mentoring and reproducing other level 3 & 4 leaders for so long their reputation precedes them, people follow them because of who they are and what they have done. They transcend the organization and become “bigger than life”. 3

4. The Rep To RVP Concept • THE definition of Leadership: Leadership is the ability to obtain followers. • Key Premise: A level 3 leader (producer) does at least 8 presentations, 3 life sales, and 1 recruit each month. Is this to much to expect? • The Narain’s have been doing 30K personally for 15 years. • So a Producer would at least be doing 1 x 3K personally. • So if you follow that logic, a District Leader would be a few producers doing that, or 3 x 3K = 10K minimum. • So a Division would be 6 or more producers doing it, 6 x 3K=18K minimum. • A Regional Leader would be 10 or more people doing it, 10 x 3K=30K • A RVP would have 15+ producers doing it, 15 x 3K = 40-50K base shop • $20,000 to $25,000 PER MONTH 4

5. Key Distinction: • An RVP is a level 4 leader (reproductive)who has developed other level 3 leaders and even some level 4 leaders. 5

6. The Earned Promotions Concept • Each promotion someone gets is really a trade they make with their RVP. • What does that mean? • They trade more production and a more consistently productive team for a larger size contract. • Why is this important? • Because every promotion someone receives makes the override between them and the RVP smaller. • Here is an example… 6

7. $1,000 “No Growth” Example • Rep 25% - 95% = 70% x $1,000 = $700 override • SRep 35% - 95% = 60% x $1,000 = $600 override • Dist 50% - 95% = 45% x $1,000 = $450 override • Div 60% - 95% = 35% x $1,000 = $350 override • RL 70% - 95% = 25% x $1,000 = $250 override • SRL 80% - 95% = 15% x $1,000 = $150 override • Notice as the producers contract gets larger and larger the RVP override gets smaller and smaller. (Generational Creep) • Why is this aspect of our business important for everyone in our company to completely understand? • It’s this, RVP’s who promote people who have not yet built larger and most importantly consistent production will see their income go down, not up because smaller overrides on small production is the perfect recipe for a smaller income. 7

8. “Growth” Override Example • Rep 25% - 95% = 70% x $1,000 = $700 override • SRep 35% - 95% = 60% x $2,000 = $1,200 override • Dist 50% - 95% = 45% x $4,000 = $1,800 override • Div 60% - 95% = 35% x $8,000 = $2,800 override • RL 70% - 95% = 25% x $12,000 =$3,000 override • SRL 80% - 95% = 15% x $20,000 = $3,000 override • Notice as the override gets smaller the income is getting larger only because the production is getting larger. • The key to success here is to learn how to and then actually recruit, train, license and build level 3 and level 4 leaders. • (not level 1 or 2 level leaders) • In other words become a level 4 reproductive leader. 8

9. The Earned Promotions Concept • The fundamental reason someone earns the larger contract is only because they have built more consistent producers and production. • A smaller override on larger production is a wonderful thing, the objective, and the basis of a win/win relationship. • A smaller override on the same small production is a breakdown of the integrity of our system and is also a financial disaster. • With every promotion anyone earns, their productivity must go up and stay up, otherwise they have not “built” a productive business and therefore have not earned that promotion. • Doing a higher production number for 1 or 2 months to get a promotion and then have that production fall, means one has simply manufactured a promotion, or “pushed” for a promotion and not built more legitimate level 3 leaders and consistent production, nor become a level 4 reproductive leader. • RVP’s are studs and have become level 4 leaders. • Promotions come from having built level 3 leaders, not pushes. 9

10. Held Back? • No big and successful Regional Leader in a big base shop is being “held back”. • What they are doing is building a solid and acceptable replacement and multiple direct 3 & 4 level leaders from the start, building a strong foundation, predicated on a sound business philosophy based upon the mathematics of our compensation system. 10

11. The Replacement/Exchange Concept • The General Agent, Real Estate Broker, or any business’s fatal flaw is the last thing a broker wants is for the agent to become a competing broker. • Art Williams and his leadership team solved this flaw. How? • By replacing yourself in exchange for The RVP Contract • A minimum acceptable replacement is 1 or 2 legs that have averaged 15-20K a month for 90 days. • RVP’s receiving consistent, predictable, and solid replacements is what provides the high quality of life. • It’s what creates the perpetuatual BIG base shop, which is what everyone wants. 11

12. The Reciprocity Concept • The “Law of Reciprocity” (returning in the same way) says leaving a larger replacement would be better and leaving a smaller one would be worse for the new RVP. • You only give your replacement once but you then receive them for the rest of your career. • If you produce 2 RVP’s a year for the next 5 years = 10 new RVP’s and 10 replacements. • What type do you want to receive? • LEAVE BIG SO YOU CAN RECEIVE BIG 12

13. The How vs When Concept • Whether someone earns $2-3-$4,000 a month or $15- $20,000 a month their first year as an RVP has nothing to do with WHENthey become an RVP, it has everything to do with HOW they become an RVP. • The How is determined by number of Level 3 & 4 Leaders you have outside your replacement, why? • Because that’s the team you take with you as a new RVP, that’s what you have Built outside of your replacement. • Built is what you have average in the last 6 - 12 months. Built is not our best months production, it’s our average months production. • This is very important if you want a consistent, predictable production and a big 1st year Income. • Selling a successful 1st year track record is very helpful. 13

14. The Reproduction Concept • Reproduction- To Duplicate, To Copy, A Replica, meaning a thing is made to closely resemble, or is an exact or very close imitation of the original thing. This is VERY important because • You don’t reproduce what you want, you reproduce what you are. (maybe even 50%) • The philosophy “you reap what you sow”, “cause and effect”, “what goes around, eventually comes around”, really does exist. • If those laws are true in principle, if you become an RVP the “right “ way you will produce RVP’s the “right” way. You will have set the precedent, the guide, a pattern, a model, an example, a standard, and a “for instance” that if you do it this way, it will always be done this way. • KEY: If everyone did what you did, how would it look? • Is becoming an RVP wrong & then expecting your people to do it right, a wise strategy? • So become an RVP the right way, you only do it once. Then you will have created a winning track record and a legacy that you will be proud to talk about forever. • Do it wrong, and you will want to avoid the subject forever. • By doing it right, one sets up their entire career for success by setting the right example for others to follow. Just like a fast start, being license quickly, and a big first month does. • Changing ones title doesn‘t all of a sudden turn someone into a level 4 reproductive leader, because that is a learned leadership skill, not a title. • Do it wrong and you will have created a scenario of generational creep on steroids. 14

15. Generational Creep ConceptTo Earn $10,000 in Overrides • 1st Gen RVP- 14.5% • 2nd Gen RVP- 5.5% • 3rd Gen RVP- 4.5% • 4th Gen RVP- 1.5% • 5th Gen RVP- 0.5% • 6th Gen RVP- 0.5% • $70,000 in Premium • $190,000 in Premium • $225,000 in Premium • $700,000 in Premium • $2,000,000 in Premium • $2,000,000 in Premium 15

16. The Prototype $30,000+ Base Shop • A $30,000 BASESHOP is only 10 people doing 2 presentations a week, which is 8 presentations, 3 transactions, 1 recruit a month. (8-3-1=$1,000/mo) • Or 5 people doing 4 presentations a week, 5 people doing 8-3-1 twice a month. • This is completely doable for anyone. • How many people need what we do and how many people need extra income? 16

17. The RVP to SNSD Concept • So an SVP is 3 RVP’S (& The SVP’S Base) doing 40-50K= 150-200K Premium= $500,000 Income • NSD is 6 RVP’S (& The NSD’S Base) doing 40-50K= 250-400K, Premium= $750,000 Income • SNSD is 9 RVP’S (& The SNSD”S Base) doing 40-50K= 400-500K Premium= $1,000,000 Income • Primerica is a Meritocracy, a system where you promote yourself by growing your number of direct producers and production. 17

18. An Undeniable Truth • All Good Things Go To Those Who Build A Big Base Shop and Strong First Generation RVP’s 18

19. RVP (95%) Base Shop Overriding Direct Divisions (60%) at 70% QBI 19

20. RVP & SVP Builders’ Bonuses 20

21. SVP(with a 10K base) Comp with 3 RVP’s 21

22. Reality vs. Delusion • Small production numbers never equal big income numbers. • Small percentages on small production equals a small income. • Big percentages on big production equals a big income. • So building Producers and Production is the name of this game and big production is the only way to a big income. • Tell us, in what business do low standards and low production equal a large, secure, and dream income? • A good rule of thumb is to dominate at the your State level (unless your state is pitiful) and at least be top 10 nationally before taking your next promotion because big Districts become big Divisions and big Divisions become big Regional's and so on. 22

23. A Winners Rules Of The Game • It is impossible to build successful and attractive RVP’s out of a small below 30K base shop. • It takes at least a 50K base to build money making RVP’s (not RVP’s in title alone) and a prosperous, healthy, and excited hierarchy. • We do not promote to motivate, appease, pacify, or to retain people, we only promote ambitious, growing, and motivated people. • Because it’s not having the RVP title, its being a level 4 leader, an RVP with a 30K+ base shop that is the solution to ones income challenges. • It’s not any title, it’s a particular level of productivity coming from level 3 & 4 level leaders that leads to a large, secure and consistent income. • It’s not how many RVP’s you have, it’s how many 30K+ RVP’s you build. • So, instead of focusing on title, focus on becoming a level 4 leader, a developer level 3 leaders, then and only then will you attain all of the titles. • It is not how do I get to RVP, instead it’s how do I get our the trainee to become a level 3 and 4 leader. That’s the right thought process. • The last thing we want is a bunch of sad faced offices. • We want happy, successful, productive, and thriving organizations. 23

24. The Main Issue & Chief Principle When was the last time you recruited, trained, and licensed someone who became a new direct level 3 leader? Who are they, what have done and most importantly what are they doing? 24

25. This is a Base & 1st Generation Business • When you build a $30,000 + Base Shop • Build 3 1st generation RVP”s who do the same (120K thru 1st) • You’ll earn about $41,000 a month. • Not including Securities, P&C, LTC, PLPP, Debt Watchers, which should be another 5-10K a month which is a $50,000 per month override income which is called… • Living The Flipping Dream Baby 25

26. SVP 1st Gen Comp (3 RVP’s) 26

27. SVP 2nd Gen Comp on 3 RVP’s 27