Retail Agency Program (Build)
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Transcript of Retail Agency Program (Build)
RETAIL AGENCY PROGRAM
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RETAIL PROGRAM The Retail program is designed to attract capitalized entrepreneurs seeking a start-up opportunity that maximizes their ROI and provides the financial support to rapidly grow.
The Candidate�� Proven background in building and managing a business venture
�� The desire to build a business legacy to monetize or pass on
�� Decisions made with ROI and cash flow in mind
�� Values University of Farmers and best in class learning and development opportunities
Self-Motivation and Independence�� Effective time-management skills and self-reliance to accomplish goals
�� The ability to identify and focus on priorities
Communication Skills �� The ability to inspire as well as listen and learn from others
�� Leadership and people management skills
Performance �� The motivation to work hard and take risks to achieve financial success
�� Willing and able to make investments into business opportunity for future gain
�� The willingness to accept responsibility for personal success and failures
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The ProcessAssets
�� Minimum of $50,000 in seasoned investable assets
Licensing and Training�� Property and Casualty, Life and Health and Approved U4 required prior to agent appointment
�� Training Milestones and Assessments
Background Check�� Satisfactory results of background check
Business Plan�� Approval of 5-year business plan and cash flow projection
Branded Office Location�� Office location fully equipped and compliant with Farmers SMART Office standards
Agency Staff�� Minimum of 1 licensed and appointed agency staff member (with second licensed and appointed staff required within 6 months of appointment)
The Benefits Economic Interest
�� Contract Value according to the terms of the appointment agreement
Sale of Service and Commission Rights �� Immediate ability to sell service and commission rights
Office Start-up Bonus Program�� Up to $10,000 bonus for office startup expenses
Agency Lead Generation Bonus Program�� Up to $5,000 bonus for lead generation expenses
Annual New Business Premium Bonus�� 6% paid on rolling 12-month new business Agent Eligible Premium
�� Annual bonuses paid on Life and Commercial premiums subject to caps
Monthly New Business Premium Bonus�� Monthly bonus % paid on qualified new business premium
�� All agents start at Tier C bonus level for first quarter and then Tiers are determined by prior quarter performance
�� Monthly bonuses paid on Life and Commercial premiums subject to caps
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Why Become a Farmers Agency Owner?
Support As a Farmers agency owner, you will enjoy:
�� Support from a District Manager and/or business consultant invested in your success
�� Comprehensive training and business development support
�� Financial bonus opportunities
�� Lead generation & agency start-up cost support*
�� Loan options through Farmers Insurance Group Federal Credit Union
�� An option to participate in a deferred compensation plan
�� Benefits for you, your family and your staff
�� The ability to open multiple office locations
�� The ability to sell your service & commission rights
�� An opportunity to buy service & commission rights from another agent
*Applicable to certain programs only.
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Product Portfolio
Outstanding product suite that allows you to compete and succeed
Property & Casualty Insurance
LifeInsurance
FinancialProducts1
�� Auto
�� Home/Renters
�� Umbrella
�� Small Business:�– Commercial P&C
�– Business Auto
�– Workers’ Comp
�� Boat
�� Motorcycle
�� Motor Home
�� Mobile Home
�� 529 Plans
�� 401(k)s
�� Variable Annuities
�� IRAs
�� SEPs
�� Variable Universal Life
�� Mutual Funds with nationally recognized fund families
�� Term Life
�� Universal Life
�� Whole Life
�� Critical Illness Riders
�� AD&D
�� Disability Income Riders
�� Group Life
�� Fixed Annuities
1 Securities offered through Farmers Financial Solutions, LLC – Member FINRA & SIPC Note: All products and features may not be available in all states and may vary by state
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Business Development Support – Outplacement
Ability to refer business not eligible/acceptable to Farmers to Kraft Lake Insurance Agency, Inc.
Accessible through web portals, email, and toll free phone numbers.
ProfessionalLiability (E&O)
High ValueHomeowners
E&S Vacant Building/Land
…and more
Farm & Ranch
Contractor’s General Liability
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Financial Support – Start-up Bonuses
Up to
$10,000o�ce
start-up
bonus
Up to
$5,000lead
generationbonus
+
Incentive-based bonuses to help support your new business
�� Agency owners have the opportunity to receive up to $10,000 in their first year for expenses related to setting up and outfitting a new professional, Farmers-branded office*
�� Agency owners also have the opportunity to receive up to $5,000 in their first year for lead-generation expenses (Retail only)
You have the talent. We’ll provide the support.
*Applicable to certain programs only.
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Business Development Support – Sales Tools
Outstanding sales insights and management support tools
Lead Management enables you to:�� Manage your leads and cross-selling opportunities
�� Launch automated sequential marketing programs (SMP)
�� Write new business with access to a lead database
Sales Management provides you with:�� Real-time analytics for managing lead source
effectiveness and setting and tracking goals
�� Visibility into your sales pipeline
Financial Management gives you:�� The ability to analyze staff and
compensation strategies
�� Evaluations of investment opportunities with what-if scenarios
SIMS Examples
Visit www.BeAFarmersAgent.com
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Financial Support – Performance Bonuses
Retail Program
Financial support that rewards your performance�� Tiered bonus system based on cumulative, applicable policies in force or applicable gross folio
premium generated
�� Performance in the prior quarter determines the next quarter’s bonus tier (from Q2 onward; in Q1 all agents start on the same bonus tier)
�� Bonus tiers correspond to percentages that are applied to new business gross folio premium generated in the bonus period to calculate bonus amounts
�� Performance based bonuses are paid out monthly and agents receive an additional annual bonus for years one to three after appointment
�� Monthly and annual bonuses for commercial and life insurance are subject to capping
0
1,000
2,000
3,000
4,000Policies In Force (#)
Bonus tier
B
C
A
01,0002,0003,0004,0005,0006,000
Gross Folio Premium ($ tsd.)
Bonus tier
B
C
AOR
Note: Policies in force and gross folio premium requirements as well as bonus percentages shown areillustrative, subject to change and adjusted based on local market environment. Additionally, there are separaterequirements for P&C and Life.
Monthly New Business Agent Eligible Premium Bonus Percentage by Tier
Tier Q1 Q2 Q3 Q4 Y1 Q5 Q6 Q7 Q8 Y2 Q9 Q10 Q11 Q12 Y3
A 30.5% 34.8% 30.3% 26.3% 6% 24.9% 21.9% 19.3% 17.1% 6% 13.1% 11.4% 9.9% 8.6% 6%
B 30.5% 32.6% 28.4% 24.7% 6% 23.5% 20.7% 18.3% 16.1% 6% 12.3% 10.7% 9.3% 8.1% 6%
C 30.5% 30.5% 26.5% 23% 6% 22.1% 19.4% 17.2% 15.2% 6% 11.5% 10% 8.7% 7.6% 6%
Monthly Premium Bonus Caps
Year 1 Year 2 Year 3
LIFE
Monthly $1,400 $1,200 $1,000
Annual $3,000 $4,500 $6,000
COMMERCIAL
Monthly $3,500 $3,000 $2,500
Annual $7,500 $10,000 $12,500
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Business Development Support – Start-up
Access to agency start-up support services
LoanSupport
PayrollSupport
O�ceSupport
LicensingSupport
Access to discounted
licensing courses:
P&C, Life, Series 6/63
Access to discounted
o�ce furniture,
technology, branding,
and art
Access to discounted
payroll set up and
processing services
Loan support from Farmers
Insurance Group
Federal Credit Union
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Financial Support – Benefits
Access to Group Life and Comprehensive Medical plans for you, your family and your staff
Voluntary Hospital Plan
Dental
Vision Service Plan
Life/ AD&D, Supplemental AD&D
Critical Illness Insurance Plan
Long Term Disability
Enhanced Long Term Disability
Business Overhead Expense
Errors and Omissions
Fidelity Bond
Medical
Deferred Compensation Plan
Visit www.BeAFarmersAgent.com
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Other Support & Options
After hour call center
Cross border licensing
Satelliteo�ces
Agency Acquisition
Option
Ability for existing customers to make policy changes and make payments over the phone after normal agency hours
Dual agent appointment to enable writing business in other states, subject to approval
Ability to set up additional office locations to increase market penetration, subject to approval
Ability to purchase service and commission rights from another Farmers agent, subject to approval
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To Become a Farmers Agency Owner
�� Interviews
�� Background check
�� Available assets verification
�� Approved business plan & cash flow projection
�� Final candidate review
Agency Development
BaseTraining
Licensing
Recruiting
�� Property & Casualty insurance license
�� Life & Health insurance license
�� Comprehensive online & instructor-led training courses
�� Pass assessment tests
�� FFS approval of Form U4
�� Approved business plan
�� Office set up with applicable licensed staff requirements
Access to incentive-based financial bonuses�– Lead generation (Retail only)�– Office start-up bonuses in year one�– Monthly bonus up to three years (Retail and Acquisition)�– Annual financial bonuses for three years after appointment (Retail only)�– Additional bonuses available throughout your agency ownership
�� Securities licensed and FFS approved to sell to be obtained within twelve months after appointment
�� Ability to sell your service & commission rights
�� Opportunity to acquire additional service & commission rights
Visit www.BeAFarmersAgent.com
To schedule a time to meet please contact:
Michael de los Reyes
Agency Development Manager
Office of Michael Susee 8625 SW Cascade Ave., Suite 310
Beaverton, OR 97008 Phone: 503-546-1595 ext. 113