3Hegemon Group International All information contained in this presentation is intended for general education and information use only and is not intended as a solicitation for buying or selling securities or other investment products, insurance products or any non-licensed products.The material in this presentation is not intended to give advice on tax planning, investments, real estate, legal, accounting, estate planning, or financial planning but rather to provide education and information about a possible business opportunity with Hegemon Group International.As with any business opportunity, the HGI Business Opportunity may take time, effort and money which may or may not provide any financial returns.Assumptions are made in several hypothetical examples to help explain the concepts and are for illustrative purposes only and should in no way be construed as any type of guarantee. Past performance is also not a guarantee of future results.
4Overview Hubert Humphrey Story Simple Beginnings Joined A.L. Williams Railroad Conductor for 17 Yrs - $20k/YrJoined A.L. WilliamsCreated Leadership Format System50,000+ on teamHelped Recruit 1.5M PeopleEarned $33,700,000 over 14 yearsBecame Leader of the DecadeFounded World Marketing AllianceApprox. 500k Recruits5M Transactions with $1B in Associate CompensationSold to One of the Largest Financial Companies in the World.
5History of Revolutionary Crusades A.L. Williams: “Buy Term and Invest the Difference”WMA: “VUL & VA – Tax Adv. Life – Invest Adv Mutual Funds”HGI: “Crusade of Crusades – Circle of Safety”77,000,000Baby BoomersAges 20-34Low Cost – High Coverage“Die Too Soon”1,500,000 Recruits#1 Term Insurance Sales#1 Mutual Fund Sales77,000,000Baby BoomersAges 34-49Accumulation & Tax Benefits“Wealth Accumulation”430,000 Recruits#1 Variable Universal Life Sales#1 Variable Annuity Sales“Live too Long”82,000,000MillennialsAges 20-34Low Cost – High Coverage64,000,000Generation XAges 34-49Accumulation & Tax Benefits77,000,000Baby BoomersAges 50-64Wealth Recovery / Acceleration40,000,000SeniorsAges 65+Retirement Income
6Introduction HGI Mission HGI Vision HGI System To create more financially independent families than any other business in history.HGI VisionTo lead the consumer empowerment revolution.HGI SystemThe Leadership Format System (LFS) will allow us to achieve our Vision and Mission.
7The Greatest Economic Story of All Time! OverviewThe Greatest Economic Story of All Time!Millions of People moving Trillions of Dollars.77 million baby boomers control 70% of the nation’s wealth.The greatest Inter-Generational Wealth Transfer in HistoryApprox. 56 Trillion Dollars will move over next yrsApprox. 2 out of 3 baby boomer’s do not have a solid financial plan.HGI is positioned to take advantage of this unique moment in history.
8Financial Services Industry OverviewFinancial Services IndustryOne of the largest industries in the world.$63 Trillion DollarsEmploys over 7.6 million peopleProducts are applicable to EVERYONE!
9Disruption of an Industry OverviewDisruption of an IndustryEvery once in a while, a NEW IDEA is introduced to an OLD INDUSTRY which completely changes the way that industry does business.Steve Jobs – AppleRay Kroc – McDonaldsSam Walton – WalmartHoward Schultz – StarbucksHubert Humphrey – Financial ServicesA.L. WilliamsWorld Marketing AllianceHegemon Group International
10Opportunity of a Lifetime Perfect Storm = Perfect Business Opportunity Misery Index at All-Time HighHigh UnemploymentCost of Living on the RiseReal Estate ValuesSavings and Retirement Plans DecimatedUncertainty of Social Security / Health CarePeople are fearful of market volatility and are looking for financial solutions to help manage their money and ensure a more stable financial future.Families are looking for Alternate Sources of IncomeProtect and Grow AssetsMoving from Accumulation to Income Distribution52 Trillion $ of transfer66% worried about outliving moneyPerfect Storm = Perfect Business Opportunity
11Opportunity of a Lifetime Where else can you turn a$300 sale into a $2,000 in 7-10 days?Incredible Flagship Products.Indexed Universal Life (IUL)Indexed Annuities72-96 Hour Underwriting$250k Simplified Issue Underwriting on IUL$400k Simplified Issue Underwriting on Term112% Payout through the HGI Compensation Plan.
12Evolution of the Revolution Accelerated Benefit Riders (ABRs) HistoryEvolution of the RevolutionFirst…Buy Term and Invest The Difference!Next…Universal Life!!Then…Variable Universal Life!!!NOW…Indexed Universal Life!!!!With Great NewAccelerated Benefit Riders (ABRs)Takes care of multiple needs…term on ul chassie, premiums never go up, wealth accumulation, estate planning for boomers & seniors, arb’s“Swiss Army Knife Of Life Insurance”TermWealth AccumulationEstate PlanningLiving Benefit Riders (ABRs)Product features, rider options and availability may vary by state. Please consult with a financial representative regarding features and availability in your state
13Two Fold Product Approach Provides Opportunity for EVERYONE! Product StrategyTwo Fold Product Approach Provides Opportunity for EVERYONE!Licensed ProductsHGI has leveraged its history, experience, and relationships to secure lucrative agreements with well known and respected companies in the financial services industry.Non-Licensed ProductsHGI also provides an opportunity for non-licensed associates to earn income by representing a select group of products while working on their licensing requirements.
14Insurance and Annuities Licensed Product MixInsurance and AnnuitiesFounded in 1906One of First to offer IUL and IAA- (Excellent) Rating by A.M. BestEstablished in 1840Licensed in 44 States plus D.C.A- (Excellent) Rating by A.M. BestFounded in 1886Privately Owned by Sammons Financial GroupA+ (Superior) Rating by A.M. BestFounded in 1948Simplified ProductsA- (Excellent) Rating by A.M. BestFounded in 1810Simplified ProductsA- (Excellent) Rating by A.M. Best…Plus Great Carriers LikeAGLA, American General, American Equity, and many others…
15Insurance and Annuities New York Carriers – IUL w/living benefits Licensed Product MixInsurance and AnnuitiesNew York Carriers – IUL w/living benefits
16Licensed Product Mix Broker-Dealer Services &Registered Investment Advisory Services* Innovation Partners, LLCStill need Innovation Partners disclaimer on this page.* Innovation Partners, LLC. is a member of the Securities Investor Protection Corporation (SIPC) and the Financial Industry Regulatory Authority, Inc. (FINRA)For Advisor and Broker Dealer Use Only. Not intended to create public interest in the sales of insurance products or securities.
19Infinity Compensation Plan GreatestCompensation PlanIn History!112% Super Builder ContractInfinity Compensation Plan
20Infinity Compensation Plan The HGI Infinity Compensation Plan Offers:Largest Contracts in the Industry for Producers and BuildersRMD Base Shop Contract – 80%Executive Contracts up to 85%Fast Start BonusesBuilder’s Generational Overrides (6 Gen RMDs)All-Company Override Pools (4)Single Dip, Double Dip, Triple Dip, and/or Quadruple DipSenior Executive Positions (3)* Equity Share Credit ProgramOpportunity to Participate in company valuation events that may occur in future* Equity Share Credit Program is not a security. It is not ownership in the company. There is no Guarantee there will be a valuation event.
21Infinity Compensation Plan The HGI Infinity Compensation Plan Offers:112% Payout to Grid on Annualized Target Premium on Flagship Carrier ProductsRenewals, Recurring, and Trail Commissions paid through HGI GridLimited Breakage back to companyFull commissions paid out through HGI Grid!Culture of Recognition and AchievementCrossover Equivalency Credit to Industry Veterans and Team Building VeteransReimbursement for Education and Field Training Expenses to New Associates upon licensing.* Only on specific flagship products from flagship carriers…does not apply to all products in HGI portfolio.
22Infinity Compensation Plan * BASE SHOPPromotionLevelsPersonal ContractQualifications**AdvanceSchedule***All-Company Override PoolsTraining Associate(TA)ScholarshipBasic - $1,000Adv - $2,000+ Fast Start BonusComplete HGI Scholarship/Obtain LicensesMinimum 3 Field Training SalesMinimum 3 Direct RecruitsAssociate(A)40%3 Field Training Sales3 Direct Recruits7,500 BV in rolling 3 months/AV Applies65% Adv on Issue35% As EarnedField Associate(FA)50%6 Direct Recruits25,000 BV in rolling 3 months/AV AppliesSenior Associate(SA)60%9 Direct Recruits50,000 BV in rolling 3 months/AV AppliesMarketing Director(MD)70%12 Direct Recruits100,000 BV in rolling 3 months/AV AppliesRegional Marketing Director(RMD)80%20 Direct Recruits200,000 BV in rolling 3 months/AV applies0.25%50k Base Shop BVAV Applies* See General Qualification Requirements** See back office for Advance Schedule on other carriers. Note, Advance Commissions may be adjusted based on quality of business and persistency performance.*** All-Company Override Pools will become active on January 1, No more than 25% payout to any one qualifier.
23Infinity Compensation Plan * SENIOR EXECUTIVE LEVELSPromotionLevelsPersonal ContractQualifications**AdvanceSchedule***All-Company Override PoolsExec. Field Chairman(EFC)82%+ Fast Start Bonus6 Direct RMDs900,000 BV in RMD Base through Infinityin rolling 3 months/AV Applies65% Adv on Issue35% As Earned1.50%50k Base Shop BVAV AppliesSenior Exec. Field Chairman(SEFC)84%9 Direct RMDs1,200,000 BV in RMD Base through Infinityin rolling 3 months / AV Applies1.25%CEO Marketing Director(CEO MD)85%15 Direct RMDs (or) 2 Qualified SEFCs2,000,000 BV in RMD Base through Infinity0.25%Fast Start Bonus:Associates earn a $50 Fast Start Bonus for each new personal recruit that joins HGI as a Global IBE ($125 + $29.95/mo)Note: Must be Global IBE to QualifyAdjusted Volume (AV) means no more than one-third of your BV can come from one leg.* See General Qualification Requirements** See back office for Advance Schedule on other carriers. Note, Advance Commissions may be adjusted based on quality of business and persistency performance.*** All-Company Override Pools will become active on January 1, No more than 25% payout to any one qualifier.
24Infinity Compensation Plan *BUILDERS GENERATIONAL OVERIDES(RMD Level and Up)Generational LevelsOverride1st Generation RMD Base Shop10.00%2nd Generation RMD Base Shop5.00%3rd Generation RMD Base Shop4.00%4th Generation RMD Base Shop3.00%5th Generation RMD Base Shop1.00%6th Generation RMD Base Shop0.75%TOTAL GENERATIONAL PAYOUT23.75%* See General Qualification Requirements
25Infinity Compensation Plan *EQUITY SHARE CREDIT PROGRAM(RMD Level and Up)Equity Share Credits are awarded based on individual earnings in each calendar year$50,000 in earnings = 25,000 Equity Share Credits ($1 = ½ Equity Share Credit)$100,000 in earnings = 100,000 Equity Share Credits ($1 = 1 Equity Share Credit)All Equity Share Credits are CumulativePayouts will be allocated based on a pro-rata shares if and when there is a Defining Event*EQUITY SHARE EXAMPLE – FOR ILLUSTRATION ONLYPeriodYour CreditsExample of Company CreditsYear 1100,000Year 2200,000Year 3400,000Cumulative700,0006,000,000** If a Defining Event occurred at the end of Year 3, your % of ESC Pool would be 11.66% applied pro-rata against total value assigned by company to the Pool.Note: Equity Share Credit Program is not a security. Not ownership in the company. No Guarantee there will be a defining valuation event.* See General Qualification Requirements** Example of a “Defining Event would be an IPO, Merger, or Sale of Company.
26Infinity Compensation Plan COMPENSATION PLAN SUMMARYCategoriesPayoutPersonal Contracts & Spread85.00%All-Company Override Pools3.25%Generational Overrides23.75%Total Compensation Payout112.00%* General QualificationsMust be in good standing with the companyMust be a Global IBE ($125 + $29.95/mo)Must hit all promotion standard qualificationsMust hit applicable minimum base shop BV requirementsMust maintain quality of business and persistency standards
27Infinity Compensation Plan Example of how our pay differs from Industry:$3,000 Gross Target Commission to the FieldExecutive 85% = $2,550All Company Override 3.25% = $98 on each sale into poolGenerational 23.75% = $712Total HGI 112% = $3,360
28Leadership Format System Leveraging the Power Of the SystemOver 2,500,000 RecruitsApprox. 15,000,000 SalesApprox. 4,000 $100k Ring EarnersApprox. 500 $1 Mil Ring EarnersHelped Launch Two (2) Separate Billion Dollar CompaniesOver $2B in Field PayoutsTwice #1 in Industry SalesYou Run the SYSTEM, and the SYSTEM Runs your Business!
29Leadership Format System The Rapid Relentless Repetitionof these Six Simple Recruiting Stepscan lead to the building of aGiant Distribution Team.
30Leadership Format System The Continuous Opening of OutletsVolume Production Through the Outlets1The Follow-Up Process(Complete Filters 1-4 within first hours)Prospecting1Leader – Controls prospecting list development and paints a picture of how the team will be built.Stay After the Meeting22Get a Decision KitThe Approach/Contact3Leader – Controls the point of contact Leader – Helps start Field Training”the play”Set a Get Started Interview34Keep Appointment & Sign UpThe PresentationLeader – Runs the Business Opportunity Presentation, “BOP”MoZone converts the prospects56Develop a Prospect List.Set Goals/Create Business Plan8Match-Up with Field Builder to Complete 3 Field Training Sales to Qualify for PromotionThe Start-Up Process(Complete Filters 5-8 within first hours)7Financial Needs Analysis (FNA)Internal Consumption Sale4The Follow-UpLeader – Guides new Associate through Speed Filters 1-45The Start-UpLeader – Gets new Associate off to a Fast Start by completing Speed Filters 5-86DuplicationLeader – guides new Associate through the entire LFS Success Cycle over and over
31Leadership Format System The Hardest Part of our Business is toKeep It Simple!154362111162626262535353534444
32Leadership Format System POWER OF ONE RECRUIT1 Recruit = 4 SalesInternal ConsumptionField Training/Match Up4 SalesRecruitField Training/Match UpField Training/Match Up1 Recruit = 4 Sales = $5,000 Compensation1 Recruit = 4 Sales = 10,000 BV Points
33Leadership Format System Four Elements to Success
34World Class Awards & Recognition Building a Culture Of GreatnessMastering MotivationOngoing Contests to Create ExcitementCompete for Chances to Visit the World on Exotic TripsChase Incentives and PromotionsEarn Cash Prizes and Special AwardsWear HGI Super Bowl Style RingsPublic Recognition at Regional and National Events