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Together We Are the Best

Together We Are the Best. We are National. We are the Best. Together, We are National Best. Understanding the Lifeline. 100. 0. 21. 29. 40. 50. 65. 85. 4 Ways we can Earn Income. Working Life. THE Lifeline. 100. 0. 21. 29. 40. 50. 65. 85. Canadians at Age 65.

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Together We Are the Best

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  1. Together We Are the Best We are National. We are the Best. Together, We are National Best.

  2. Understanding the Lifeline 100 0 21 29 40 50 65 85

  3. 4 Ways we can Earn Income

  4. Working Life THE Lifeline 100 0 21 29 40 50 65 85

  5. Canadians at Age 65 • Financially Independent • Financially Comfortable • 14 Still Working • 24 Dead • 53 Financially Dependent 1 8 14 53 24 9% Successful 91% Unsuccessful CPP $ 504* OAS$ 490* $ 994 / month * Sept 2010 Averages

  6. The MGA System • In the good old days Insurance Companies had an in house sales force • Managing General Agency • Built to house many agents • Manages office, negotiates contracts • Can usually negotiate higher contract • Get an override on their agents • May be Captive Agents or Independents • Associate General Agency • Built to house many agents under an MGA • May have direct contracts • May act like a subsidiary of the MGA • Independent Agent

  7. How do we get Paid? • Insurance Companies pay based on first year premium plus a bonus (negotiated) • They pay the MGA, AGA or the Independent Agent Example: FYC = First Year Commission FYC = 40% of Annual Premium plus Bonus = Negotiated % times FYC So... Suppose an MGA has a contract: FYC + 180

  8. How do we get Paid? • FYC + 180 Annual Premium = $1000.00 FYC = $400.00 ($1000.00 times 40%) Bonus = $720.00 ($400.00 times 180%) Total Paid to MGA $400.00 + $720.00 = $1,120.00

  9. Understanding the Insurance Agent’s Life Line New Agents FYC + Bonus

  10. The Builder’s Model • Advantages: • Team atmosphere, mentoring • Licensing programs • The headaches are taken care of for you • Challenges: • New people paid very little • If team members are struggling, they will leave • Have to build a large team to make a good income • You own your dreams, but not your business

  11. Where Does the Money Go?

  12. Understanding the Insurance Agent’s Life Line New Agents FYC + Bonus

  13. The Captive Agent Model • Advantages: • Mentoring, training • Marketing and administrative systems • Challenges: • Low contracts • Limited product selection - Are clients well-served? • Can you take your book with you?

  14. Where Does the Money Go?

  15. Understanding the Insurance Agent’s Life Line Producers New Agents FYC + Bonus

  16. The Independent Model • Advantages: • Work under an AGA/MGA • Better initial contract than other models • May own your book • Challenges: • You are working alone • Earning ceiling, how many clients can you effectively service? • High producer to maintain a high contract • Who wants to buy your book?

  17. Where Does the Money Go?

  18. Typical Business Owner

  19. Understanding the Insurance Agent’s Life Line Producers New Agents Agency Owners FYC + Bonus

  20. The Traditional AGA/MGA Model • Advantages: • You own the Agency • Better contract paid to your company • Can serve more clients, earn more • Challenges: • Cost of set up and running an agency • You own the headaches...administration, compliance, payroll, back office • As an MGA owner, who are you training?

  21. Do You TRULY Own Your Business? • Can you sell your business? • Can you take your business with you if you move to a new agency? • What happens if you no longer have a license? • If you become incapacitated what happens? • If you die, will your loved ones inherit your business? • Do you have the experience or resources to start your own agency? • How can you ensure your agents will stay with you if you are an AGA or MGA?

  22. There is No Substitute for TRUE Ownership • With NB, you own your business from day one and continue to own it throughout your career. • You can sell your book of business and your Agency • If for any reason you leave National Best, you are FREE to contact your clients and down-line agents • If you no longer have a license, your Incorporated Agency can continue to receive overrides and recurring revenue • Structured properly, your corporation can receive overrides and recurring revenue even after you die

  23. Do YOU Have a Plan to Successfully Retire One Day? • Every advisor will leave the business one day due to retirement, career change, disability or death. • Will it be possible to sell your book of business, after the fact? Who will buy it? For how much? • Can your spouse or children inherit your book of business? • Will your residual income continue for you or your loved ones? • What kind of legacy will you leave? • Will your clients be well served?

  24. National Best Succession Plan • Leverage your years of experience, increase your revenue, leave a legacy • Mentor other associates who can rework your book and expand your business • New associates participate in National Best Business Coaching Program • Clients will learn new strategies and product offerings by attending Financial Literacy Workshops • New agents will split revenue with you

  25. National Best Advantages National Best Ownership Program + National Best Succession Plan = A Powerful Combination for Financial Services Professionals

  26. National Best Agency Model • Three Generation Over-rides, Bonus Pools • Highest Contract = 6 Licenses • Best Compensation Model in the Industry • FYC + 160% Bonus Paid to the Field • New Agents Can Earn a Decent Living • No Exchange / Give Up • You Keep What you Build!

  27. Where Does the Money Go?

  28. National Best Independent Agent Model • New Agents start at FYC + 120% Bonus • We match existing contracts for Experienced Agents • 10% Residual Over-ride for referring new agents to the Network • Preserve Your Existing Brand • Transition to National Best Agency Model

  29. Which Model Works for You?

  30. Which Model Works for You? $11,598 $4,480 $3,520

  31. National Best Expansion Program • Refer clients to agents in other cities and receive 50% Compensation • Expand your agency to other cities and receive 50% Over-rides • Co-Leadership Program • Teammate moves to a new city • Teammate moves to a new team

  32. Best-In-Class Product Providers • Contracts with the top 26 insurance companies in Canada • Exclusive contracts for online insurance applications - clients pay with credit cards • Insure your client even if they’ve had cancer, heart attack or stroke • Membership benefits: scholarships, orphan benefits • Multi-policy discounts

  33. Strategic Alliances to Sponsor Licensing • Life and A&S • Mutual Funds • Exempt Market Products • RESPs

  34. Referrals to Specialists • Access to Industry Specialists to close business for you and earn referral commissions • Living Benefits Specialists (CI, DI, LTC) • Group Benefits / Health Trusts • Mortgage Referrals • Networking and Services for Business Owners • Travel Insurance Referrals • Pre-Paid Legal Services

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