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BUSINESS EXPANSION PRESENTATION

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1 BUSINESS EXPANSION PRESENTATION

2 Primerica refers to Primerica and its affiliated companies.
Started in 1977 Listed on the New York Stock Exchange (PRI) The largest independent financial services marketing organization in North America Insures more than 4.3 million lives More than 2 million clients maintain investment accounts with us Primerica refers to Primerica and its affiliated companies.

3 The Answer for Families in North America Is… Primerica
Mission Statement Help Families Earn More Income and Become Properly Protected, Debt Free and Financially Independent Properly Protected: We are the largest life insurance sales force in North America. Financially Independent: PFS Investments We are the largest Mutual Fund licensed sales force in the United States. Debt Free: Primerica offers solutions that help Main Street families get out of debt faster and save thousands in interest payments. Speaker Notes: The first thing we share with people is that we have a system in place - a system to properly protect your assets. We own one of the largest protectors of individual life insurance in the United States called Primerica Life Insurance Co. We offer solutions to teach people about debt resolution, and the opportunity to become financially independent. The average person is constantly challenged because they make this and spend this much more. So by learning how to reduce debt, lowering your expenses and lowering your debt, you could and should be able to increase your savings. Primerica and PFS Investments are affiliate companies. 3

4 We Are A One-Stop Financial Supermarket
With Home Delivery! Auto & Home Insurance Referral Program Long Term Care Life Insurance Annuities1,3 Quotes from such companies as: Safeco and Progressive 401(k) Plans1,3 Debt Solutions1,6 Referrals by Primerica Client Services, Inc. to Mutual Funds3,5 Primerica DebtWatchers™ 1,2 Offered by Primerica Client Services, Inc. through contractual agreement with Legal Protection Managed Accounts1,4 1 Not all products/services available in all states or provinces. A representative's ability to market products from the companies listed is subject to state and federal licensing and/or certification requirements. 2 Not available to residents of Washington, D.C. 3 In the United States, securities are offered by PFS Investments Inc. (PFSI), 1 Primerica Parkway, Duluth, Georgia I. 4 PFS Investments Inc. (PFSI) is an SEC Registered Investment Adviser doing business as Primerica Advisors. PFSI is a member of FINRA and SIPC. Lockwood Advisors, Inc. (Lockwood) is an SEC Registered Investment Adviser and an affiliate of Pershing LLC, each subsidiaries of The Bank of New York Mellon Corporation (BNY Mellon). Pershing LLC, member FINRA, NYSE, SIPC. SEC registration neither implies nor asserts the SEC or any state securities authority has approved or endorsed PFSI or Lockwood or the contents of this disclosure. ln addition, SEC registration does not carry any official imprimatur or indication PFSI or Lockwood have attained a particular level of skill or ability. Neither Lockwood or BNY Mellon is affiliated with Primerica. 5 In Canada, mutual funds are offered by PFSL Investments Canada Ltd., mutual fund dealer, Segregated funds are offered by Primerica Life Insurance Company of Canada. See notes page for important company affiliations and other disclosures. 6 Neither PCS nor its representatives offer or provide services such as credit repair or improvement, debt or credit counseling, debt settlement or other similar services.

5 The Rule of 72… Sometimes called the Bankers Rule
Divide your interest rate into 72 to find the approximate number of years it takes for money to double! 72 ÷ % = years to double How do you win a game if you don’t know the rules? Do banks or insurance companies have any incentive to teach us this rule? Who would benefit from learning this rule? Shouldn’t we have learned this rule in school? Speaker Notes: One of the concepts that we share with people is how to get your money working for you so it doesn’t work against you. Most of us in this room, have never heard of the Rule of 72. The Rule of 72 is a banking principle and it talks about how money compounds. It’s a principle that’s constant, and it works. How many times have you walked into a bank and seen compound interest tables, rates of return, compounded monthly and you’re not quite sure what that really means. You just want to know, if you’re going to invest one dollar, how long does it take to double to $2? If you’re going to put $100 in a savings account, how long does it take to double to $200? Well, the better the rate of return or the better interest, the faster your money grows. But most people don’t realize how fast. So this is just a principle that says, you take whatever interest rate you’re getting on your money, divide it into 72 and you’ll see how many years it takes your money to double. So if you’re getting 3% on your money, 3 goes into 72, 24 times. That means if you took one dollar and you invested one dollar, 24 years later it would become $2. So here’s an example of a $10,000 investment. If you took $10,000, 24 years later it doubles to $20,000 but at 6% it would take only 12 years to double to $40,000. So if you just changed your interest rate from 3% to 6%, look what happens. Six goes into 72, 12 times, that means every 12 years your money doubles. Your money actually quadruples, in 24 years. One of the things that we find is, most people have money sitting in insurance policies, savings accounts at 3% or less, yet their credit card bills are 12% and 14% or higher in some situations. So this Rule of 72 can work for you or work against you. This is just a concept but for example, if you were able to get a 12% return, and 12% is not guaranteed, that same $10,000, at 12% now would double every 6 years. That’s a $2.5 million difference. So the message we’re sharing with you right now is how to use a financial game plan, so you or anyone can grow their net worth and become financially independent. To win the money game you must know the rules. Do banks and insurance companies have any incentives to teach us this? Who would benefit from learning this? Everybody you and I know. Money works 24/7, snow days, holidays, it doesn’t take cigarette breaks. The only way we share this business is by introducing it to our family and friends. When you show people how to save money versus spending money, you actually have more places to go and more people to see than your time allows. Without introducing us to family and friends, how would they learn the “Rule of 72?” This table serves as a demonstration of how the Rule of 72 concept works from a mathematical standpoint. It is not intended to represent an investment. The chart uses constant rates of return, unlike actual investments which will fluctuate in value. It does not include fees or taxes, which would lower performance. It is unlikely that an investment would grow 10% or more on a consistent basis, given current market conditions. 5

6 MAKE THE RIGHT CHOICE FOR YOUR FAMILY
CASH VALUE LIFE INSURANCE Life Insurance & Investments bundled together Yields a lower rate of return on investment portion (4-7%) You must borrow & pay interest to access your cash value (5-8%) Upon death, your family receives your face amount of coverage, but not your cash value, in most cases BUY TERM & INVEST THE DIFFERENCE Life Insurance & Investments are separate Market rate of return on Investment (10% average) Do not have to borrow or pay interest to access your Investments Upon death, your family receives the face amount of your term insurance plus your Investments

7 Separate Your Insurance and Savings
Does your auto insurance have a savings program? Does your health insurance have a savings program? Does your homeowner’s insurance have a savings program? Why should your life insurance have a savings program? We teach people how to separate their insurance and their savings. Life Insurance Savings Speaker Notes: The question you need to ask yourself is, does your auto insurance have a savings program? If not, then why should your life insurance? Does your homeowners insurance? So why should your life insurance? We teach people how to take their insurance and their investments and separate the two. If you want an investment, go directly through an investment firm; don’t go through your insurance policy to make an investment. 7

8 SUZE ORMAN “I strongly believe that term is the best insurance for the vast majority of people, and it literally costs a fraction of other forms of life insurance.” The Road to Wealth: A Comprehensive Guide to Your Money

9 Buy Term and Invest the Difference
Cash Value Insurance Before Primerica Changed to Primerica’s Term John $75,000 $300,000 Mary $75,000 $300,000 Children $ 10,000 Total Protection $150,000 $610,000 Monthly Premium $114 $77 Difference = $37/month! Four times the coverage for $37 LESS per month! Invest the Difference $37 monthly savings invested at 10% for 32 years=$103,900 at age 67 “Cash value life insurance is one of the worst financial products available.” DaveRamsey.com, “The Truth About Life Insurance, October 25, 2010 “Term insurance is pure protection, like fire insurance or auto insurance. Its sole function is to support your family if you die. You can buy large amounts of coverage for most amounts of money-and big policies are what your spouse and children need.” , Making the Most of Your Money Now , Jane Bryant Quinn

10 The Theory of Decreasing Responsibility
How Life Works Today 1. Young children 2. High debt 3. House mortgage Loss of income would be devastating At Retirement 1. Grown children 2. Lower debt 3. Mortgage paid Retirement income needed Speaker Notes: The theory of decreasing responsibility is really what we do. We educate people on how to own insurance during their peak responsibility period. In the early years you need a lot of coverage. Why? Because when you’re younger, it’s more likely you’ll have high debt, young children and a house mortgage. A loss of income at this point would be devastating. It’s your peak responsibility period. As you get older, towards retirement, your children are grown, maybe you’ve retired, your debt is lowered, your mortgage is paid, what you need is to have savings and investments. Our focus is for you to have the proper amount of protection, it during your peak responsibility periods. We actually show people how to get out of insurance when they don’t need it anymore and put that money towards investments. What life insurance company do you know of that teaches people how to eliminate the need for life insurance? 10

11 PRIMERICA OFFERS SOLUTIONS
Primerica Legal Protection Primerica DebtWatchers™ Offered by Primerica Client Services, Inc. through contractual agreement with Primerica Secure Auto & Home Do you have a current Will? Do you know your debt freedom date? Homeowners insurance is an important way to protect what is most likely your most valued possession, your home. Do you have any Traffic Violations or Motor Vehicle related incidents? Do you know your FICO®* Score? Do you have adequate protection for your possessions? Have you ever needed an Attorney to draft a letter or make a call on your behalf? Do you feel you have control of your credit score? Will you be able to replace your possessions due to fire or theft? Have you ever had to hire an Attorney and pay the contingency fee? Has anyone tried to steal your identity? How would you know? Do you have enough protection for your automobile?

12 Increasing Your Income College/Other Goals & Dreams

13 People Don’t Plan to Fail, They Fail to Plan
The Problem: Traditional financial institutions sell you products. They don’t provide you with a total solution. The Solution: A Financial Needs Analysis. A customized, confidential and complimentary program that helps you achieve your goals and dreams. A Financial GPS It helps you find answers to important questions. Speaker Notes: People don’t plan to fail, they fail to plan. That’s an old cliché, but the reason it’s a cliché is it still holds true. The problem is traditional financial institutions sell you products; they don’t provide a total solution. So let’s just say this was you, right? Suppose a person does business with a lot of different people. They have a mortgage or first mortgage or second mortgage or they pay rent; credit cards, anywhere from 1 to 15. If you don’t have the money, you charge! Suppose they have one or two different bank accounts. Then they’ve got life insurance. They’ve got individual life insurance, life insurance at work and so the problem or the challenge is, this person does business with 15 or 20 different people. The challenge is, people may have a retirement plan at work, but the person at work doesn’t know what their mortgage looks like, doesn’t know what their individual finances look like. The person who does their insurance at work maybe doesn’t know what they have saved in the bank. Primerica teaches people how to get those arrows all working together, utilizing the concepts that we share. So the solution right now is a Financial Needs Analysis. We actually put together a financial roadmap. Yet, when you ask people what’s their financial goal, like what age do you want to retire, many people say today! You may ask how much money should you put away for your kid’s education? A lot. Well, you don’t go to college with a lot. It’s got to be a specific amount. So the solution right here is actually putting together a financial GPS and that’s what we do for people. We take Wall Street concepts and we put together an individual Financial Needs Analysis. It’s like a financial thumbprint. You could live next door to a person that makes about the same amount of money, but your game plan might look a little bit different. Before we do business with somebody, we put together a financial blueprint, an FNA. 13

14

15 District Leader: Part-Time
Personal: 2 Model FNAs per month = $2,471 Total cash for the month: $3,628 and override 3 people on your team doing 5 model FNAs per month $1,157 Speaker Notes: So pretend this is you and you were licensed and did two personal FNAs. As a District Leader, you do two model FNAs, personally, that’s a potential $2400 for two FNAs. Sometimes you’ll do insurance, sometimes, if you’re licensed, investments, and sometimes you’ll do debt resolution. It depends on the client. Most of the clients we sit down with in our market are married, own a home, have kids, they are over 25, they do business in a bunch of different areas with us, through that Financial Needs Analysis. So this is just a concept. But two FNAs could potentially bring you $2,400 a month. The 2 personal model FNAs assume: 1 Auto referral ($55), 1 Primerica DebtWatchersTM subscription ($48), 1 Primerica Legal Protection Program subscription ($80), 1 life sale ($600,000 face amount, Custom Advantage 30-year policy, issue ages 26-45, and QBI of 70%), 1 IRA ($20,000 rollover plus $300/month contributions, with a 4.31% dealer reallowance). The 5 team model FNAs assume only the 1 Auto, 1 PLPP and 1 life sale. Assumes team of Sr Reps. See important endnotes on last page. From January 1 through December 31, 2013, Primerica paid a total of $536,506,140 in compensation to its sales force, at an average of $5,614 per life licensed representative. In Canada, part-time is not available in all jurisdictions. Where it is available, it is subject to certain restrictions. 15

16 Regional Leader: Second Career
Personal: 3 Model FNAs per month Equals: $4,863 If your team does: 6 Model FNAs in one month Equals: $2,316 Total cash for the month: $7,179 Speaker Notes: What if you had a few people working with you? If this was you by yourself, two things happen. You max out or burn out. This is like being self-employed. But if we taught you how to build a business, and you needed more people to help you serve more clients, what would you have to do? You’d have to recruit some more people to work with you. In Primerica we help you recruit people which in effect, creates leverage. How much work did the person do that invited you here this evening? Nothing. If you came onboard with us and you invited somebody to an orientation or to meet with one of the leaders and we were to recruit them, we were to train them and the company was to pay them, and you were to override them, how many people would you invite? The answer is, as many as you could. It’s not a trick question. Well, That’s why a lot of people come to our meetings. For example, if your team did five FNAs that would be $3,600 in business and $1,100 in overrides, plus your personal business. When someone you override helps a client, you get paid. That means the better you do, the better your team does, and, in the long run, the better we do. We have an interest in seeing you succeed – not fail. Take a look at the Regional Leader. This is our top, part-time sales force designation. Even if you love and enjoy what you do you may just want to make extra income. You don’t ever have to quit your job, you could work part-time and become a Regional Leader. This is an increase in income, but it’s also an increase in outcome. If you personally do three FNAs, you could potentially make $4,800 a month by helping people out. That’s great part-time income. A Regional Leader might have 8, 10, 12 or 15 or 20 people on their team. So between your team, that’s six FNAs. Sometimes you’ll have people that are part-time; sometimes you’ll have people that are full-time. The greatest thing about Primerica is you can put a little or a lot of time and effort into the business. That’s a potential cash flow of $7,000 a month. If you were making more money part-time than you’re making full-time, would you consider a career change? Once you reach $50,000 to $80,000 a year in income, would you consider making a career change? The personal and team model FNAs assume: 1 Auto referral ($55), 1 Primerica DebtWatchersTM subscription ($48), 1 Primerica Legal Protection Program subscription ($80), 1 life sale ($600,000 face amount, Custom Advantage 30-year policy, issue ages 26-45, and QBI of 70%), 1 IRA ($20,000 rollover plus $300/mo. contributions, with a 4.31% dealer reallowance). Assumes team of District Leaders. See important endnotes on last page. From January 1 through December 31, 2013, Primerica paid a total of $536,506,140 in compensation to its sales force, at an average of $5,614 per life licensed representative. 16

17 Primerica’s Business Model Broker = Regional Vice President (RVP)
RVPs Max Out their Compensation: Commission = Advances and Earns Overrides Monthly Bonuses Residual Income (12-b1 fees) Stock opportunities Ownership As an RVP (12 clients/month) = $100,000+/year RVP Assumes each client has purchased: 1 Auto referral ($55), 1 Primerica DebtWatchersTM subscription ($48), 1 Primerica Legal Protection Program subscription ($80), 1 life sale ($600,000 face amount, Custom Advantage 30-year policy, issue ages 26-45, and QBI of 70%), 1 IRA ($20,000 rollover plus $300/mo contributions, with a 4.31% dealer reallowance). See important endnotes on last page. The Ownership Program is subject to terms, conditions and applicable regulatory requirements. Please see POL for the Ownership Program documents and policies, which control in all respects. Agent 50% 4 clients Speaker Notes: What we do is we take people on board part-time, like agents, we call them Representatives or Reps, and we teach them how to become brokers, which are Regional Vice Presidents. So which would you rather be, an agent or a broker? You’ve got to be an agent first to learn the process. As an RVP, Regional Vice President, you max out your compensation. As an RVP you get full commissions, advances and you earn overrides. An override is the income you receive from the effort of other people making money. We don’t get paid to recruit somebody we get paid to recruit people that become successful, which means we’re in it with you. As a Regional Vice President, you have potential to get monthly bonuses, potentially thousands of dollars a month in monthly bonuses as well as residual income in the form of 12b-1 fees. When you become a Regional Vice President, you max out your compensation in areas like investments in the securities business where you get residual income. As the market and your assets continue to grow, your income and residual income continue to grow. You have opportunities to purchase stock, but you also have opportunities for stock grants. As a Regional Vice President you have stock opportunities. Agent 50% 4 clients Agent 50% 2 clients Agent 50% 1 client Agent 50% 1 client Which would you rather be — an agent or an RVP? 17

18 The Ultimate Goal: Building Distribution You’re an SVP! You
RVP earning $100,000/year You Assumes 12 clients in the RVP base shop and each downline RVP team, and each client has purchased: 1 Auto referral ($55), 1 Primerica DebtWatchersTM subscription ($48), 1 Primerica Legal Protection Program subscription ($80), 1 life sale ($600,000 face amount, Custom Advantage 30-year policy, issue ages 26-45, and QBI of 70%), 1 IRA ($20,000 rollover plus $300/mo contributions, with a 4.31% dealer reallowance). See important endnotes on last page. The Ownership Program is subject to terms, conditions and applicable regulatory requirements. Please see POL for the Ownership Program documents and policies, which control in all respects. RVP earning $100,000/ year RVP earning $100,000/year Speaker Notes: So when you invite somebody down, you recruit them, you train them and help them get licensed. When they get paid, you override them. Every time they get paid, you get paid. Kind of like a broker and agent. Which would you rather be, an agent or a Regional Vice President? We teach people how to become Regional Vice Presidents. That’s our focus, that’s why you’re here tonight. People want to run a base shop for one reason, to develop outlets and develop Regional Vice Presidents. The key to our distribution system is distribution and distribution in our business is people. So this is what happens. You get paid based on what you do and what you create. You create leverage. You create more hours in your day. So as Regional Vice President, every time you promote a Regional Vice President and they make $100,000 a year, you have the potential to make $50, $70, $80,000 plus in overrides. If this is you and you have three Regional Vice Presidents direct to you, then you become what’s called a Senior Vice President. A Senior Vice President has the potential to earn $300,000 a year. Your Income: $300,000+ per year Earn income from all of your RVPs. Qualify for Ownership. Develop and promote as many RVPs as you want! 18

19 BASED ON WHAT I’VE SHARED WITH YOU, WHAT DID YOU LIKE THE MOST?
THE FINANCIAL PLAN THE BUSINESS PLAN A LITTLE BIT OF BOTH

20 What would keep you from getting started Right Now?
Getting Started Now Fill out your Independent Business Application (IBA) - $99 Value Includes: State Registration & Exam Fee* Background Check Fingerprint Fee (Paid For) PFSU (Licensing School) Testing Fee (Reimbursable)____________ Total (approximate): $600 *Total fees may vary for each state 2. Online Support System (POL) - $25/mo. Cell Phone Discount $100-$250/yr. Your own Website and Business Reports $600 Access to live & on demand video training $400 Qualify: Securities license paid for $600 Financial Analysis Morningstar Software $4,000 Total: $5,700 Earn While You Learn Qualify for $300 Bonus 3 Recruits & 3 Training Sales - 30 Days Pass Life Exam – 90 Days 4. Keys to Success Submit your IBA with $99 Attend Weekly Training Meetings Get Life-Licensed Introduce Your Trainer To 12 Families in first 60 days What would keep you from getting started Right Now?

21 LET’S GET STARTED COMPLETE AN INDEPENDENT BUSINESS APPLICATION
FNA DATA COLLECTION ATTEND OUR FINANCIAL STRATEGIES SEMINAR


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