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

Together We Are the Best

We are National. We are the Best.

Together, We are National Best.

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Understanding the Lifeline

21

4 Ways we can Earn Income

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THE Lifeline

21

Working Life

Canadians at Age 65

1 8

14

24

53

CPP $ 504*

OAS $ 490*

$ 994 / month

* Sept 2010 Averages

9% Successful

91% Unsuccessful

1 Financially Independent

8 Financially Comfortable

14 Still Working

24 Dead

53 Financially Dependent

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

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 AgentExample:FYC = First Year Commission FYC = 40% of Annual PremiumplusBonus = Negotiated % times FYCSo... Suppose an MGA has a contract: FYC + 180

How do we get Paid?

• FYC + 180Annual Premium = $1000.00FYC = $400.00 ($1000.00 times 40%)Bonus = $720.00 ($400.00 times 180%)Total Paid to MGA$400.00 + $720.00 = $1,120.00

Understanding the Insurance Agent’s Life Line

FYC + Bonus

New Agents

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

Where Does the Money Go?

Understanding the Insurance Agent’s Life Line

FYC + Bonus

New Agents

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?

Where Does the Money Go?

Understanding the Insurance Agent’s Life Line

FYC + Bonus

New Agents

Producers

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?

Where Does the Money Go?

Typical Business Owner

Understanding the Insurance Agent’s Life Line

FYC + Bonus

New Agents

Producers

Agency Owners

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?

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?

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

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?

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

National Best Advantages

National Best Ownership Program +

National Best Succession Plan =

A Powerful Combination for Financial Services Professionals

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!

Where Does the Money Go?

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

Which Model Works for You?

Which Model Works for You?

$3,520

$11,598

$4,480

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

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

Strategic Alliances to Sponsor Licensing

• Life and A&S• Mutual Funds• Exempt Market Products• RESPs

• 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

Referrals to Specialists