Ea Opportunity Overview
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Ea Opportunity Overview

on

  • 622 views

 

Statistics

Views

Total Views
622
Views on SlideShare
620
Embed Views
2

Actions

Likes
0
Downloads
1
Comments
0

2 Embeds 2

http://www.slideshare.net 1
https://www.linkedin.com 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Ea Opportunity Overview Presentation Transcript

  • 1. Choose your own direction Building a business as an Allstate Exclusive Agent R27434
  • 2. Building a Business As an Allstate Exclusive Agent The following overview highlights the R3001 start-up agency opportunity.* Agency owners are independent contractors and are not employees of Allstate. The information in this overview is for the 2008 R3001 start-up agency opportunity. All information, including bonus, revenue, compensation, and education information is subject to change. See the 2008 R3001 Exclusive Agency Agreement, the Exclusive Agency Independent Contractor Manual, the Exclusive Agency Independent Contractor Reference Guide, the Supplement for the R3001 Agreement, and the Allstate Agency Standards for full details. These documents will be available on January 1, 2008. * Excludes New York and New Jersey 2
  • 3. Join an Industry Leader ENJOY THE BENEFITS OF WORKING WITH ALLSTATE Allstate provides you with support that is among the best in the industry High brand-name recognition A comprehensive education program for new agents Unlimited money-making potential Ownership of the economic interest in the book of business your agency writes Agency Technology Allowance for Agency Choice Technology (ACT) In-house claims organization with 24 x 7 service A targeted direct-mailing program with hundreds of Allstate-approved marketing materials designed to help you generate revenue for your agency An exciting awards and recognition program that rewards you for achieving business objectives established by Allstate Support from Allstate’s field distribution leadership group Potential to own multiple locations 3
  • 4. Getting Started WHAT YOU NEED TO SUCCEED AT ALLSTATE Requirements Available start-up capital to meet cash flow market requirement P&C and Life/Health licenses NASD Series 6 license (and Series 63 license if required by state law), which will need to be obtained within a certain time after agency appointment Characteristics Proven track record of success Self-motivated Goal and success-oriented Willing to take risks Able to hire, develop, and manage staff Possess an entrepreneurial spirit Driven to succeed and make a lot of money 4
  • 5. Navigating Your Business Options DECIDE HOW TO RUN YOUR BUSINESS Develop your business plan Research market demographics Conduct cash flow review Find your location Assist with identifying office location and get field distribution leadership approval Negotiate your lease Establish office set-up 5
  • 6. Becoming an Exclusive Agent BENEFITS OF REPRESENTING ALLSTATE Support from an industry leader Access to education, 24-hour customer service and dynamic recognition programs Attractive compensation package WAYS TO EARN REVENUE Property and Casualty (P&C) commissions Allstate Financial commissions Education Bonus Agency Establishment Bonus Agency Development Bonus I Agency Development Bonus II Agency Performance Profile Agency Bonus 6
  • 7. Property and Casualty Commissions P&C COMMISSIONS SCALE * Excludes state exceptions 7
  • 8. Allstate Financial Opportunity TWO WAYS TO EARN ALLSTATE FINANCIAL REVENUE Write life and financial products on your own (“Solo” business) Partner with an Exclusive Financial Specialist (“Shared” business) Allstate Financial enhanced commission scales are based on your productivity – the more you write, the higher the commission scale 8
  • 9. Comprehensive Education Program ALLSTATE-PROVIDED EDUCATION TO HELP YOU GET AHEAD Sign the Education Agreement Complete a regionally-delivered education program on Allstate’s products and processes – includes a mentoring program, if available Receive Education Bonus Successfully complete education program $3,000 payable in first month of R3001 Agreement 9
  • 10. Allstate Support BRANDED RETAIL ENVIRONMENT (BRE)* BRE: Allows agents to provide a consistent branded look to their agencies via furniture, light fixtures, etc. Agents participating in BRE program will receive a $3,000 bonus YELLOW PAGES AND CO-OP Yellow Pages: First year of advertising in the Yellow Pages will be paid by Allstate (approximately $2,500) Co-op: Agent receives up to 50% reimbursement for company-approved advertising expenses per year (approximately $4,500) * This work is still in progress 10
  • 11. Allstate Support, Continued EXECUTIVE ADVANTAGE* GIVE YOUR AGENCY AN EDGE Agencies earn a cash value based on agency performance and agency size Funds used for goods and services aimed at fueling profitable growth Agencies can use these funds at the Executive Advantage Web page to buy goods and services that can help: Brand My Agency Grow My Agency Manage My Agency Agency Choice Technology (ACT)* ACT: Provides you flexibility to lease/purchase technology (within Allstate’s specifications) that meets your unique needs You select the technology vendor for installation and support; you may use Verizon, for example, or any vendor of your choice Agency Technology Allowance can assist with the cost of your ACT * This work is still in progress 11
  • 12. Tier Structure USE OF TIERS Four tiers based on P&C performance in relation to your cash flow Tier 1: at least 225% of your baseline cash flow Tier 2: 150% to 224% of your baseline cash flow Tier 3: 90% to 149% of your baseline cash flow Tier 4: <90% of your baseline cash flow Tiers are determined monthly 12
  • 13. Agency Establishment Bonus AGENCY ESTABLISHMENT BONUS Bonus payout is based on your tier Your tier will be based on your cumulative production in months 1 – 3 relative to your baseline cash flow for months 1 – 3 Tier 1: $10,000 Tier 2: $7,500 Tier 3: $5,000 Tier 4: $0 Agency Establishment Bonus will be paid in month 4 13
  • 14. Validation Requirements Validation Requirements Two production requirements (one for Property & Casualty – P&C, and one for Allstate Financial – AF) need to be achieved within the first 6 months of agency affiliation The P&C requirement is derived from your baseline cash flow – The P&C requirement is 90% of the baseline cash flow (Tier 3 level) The Allstate Financial requirement is $5,000 or more in Allstate Financial production credit Additional validation will occur at 12 months All validation requirements are conditions of the agency relationship. Failure to meet the validation requirements will lead to termination of the Agency Agreement. 14
  • 15. Agency Development Bonus I Agency Development Bonus I (ADB I) ADB I is eligible to be received/paid in months 2 – 37* Based on your tier determined by your current month’s production, a bonus rate will be applied to your current month’s net new P&C written premium, and a bonus will be paid in the following month See next slide for bonus rates by tier and month * ADB I will also be paid in months 38-49 for any month you achieve Tier 1 status during months 37-48; ADB I will also be paid in months 38-43 for any month you achieve Tier 2 status during months 37-42 15
  • 16. Agency Development Bonus I, Continued AGENCY DEVELOPMENT BONUS I (ADB I) SCHEDULE 16
  • 17. Agency Development Bonus II Agency Development Bonus II (ADB II) ADB II is eligible to be received/paid in months 2 – 37* Based on your tier determined by your current month’s production, a dollar amount will be applied to your current month’s P&C net Policy in Force (PIF) growth over prior month, and a bonus will be paid in the following month See next slide for dollar amounts by tier and year * ADB II will also be paid in months 38-49 for any month you achieve Tier 1 status during months 37-48; ADB II will also be paid in months 38-43 for any month you achieve Tier 2 status during months 37-42 17
  • 18. Agency Development Bonus II, Continued AGENCY DEVELOPMENT BONUS II (ADB II) SCHEDULE 18
  • 19. Agency Performance Profile Agency Bonus AGENCY PERFORMANCE PROFILE AGENCY BONUS Agency Bonus for agents with 36 months or less of affiliation is determined by agency performance on the Agency Performance Profile measurement system Calculated as a % of total P&C written premium Annual bonus, with the bonus period running from January through December of calendar year Bonus is paid after the end of the calendar year Agency Performance Profile measurement system for agents with 36 months or less of affiliation who are eligible for Start-up Agency incentive compensation is built on three independent measurement categories: Retention Policy growth over cash flow policy growth goal Allstate Financial production credit 19
  • 20. Revenue Summary for New Exclusive Agents 20
  • 21. Receive Support from Allstate TO HELP YOU MEET BUSINESS OBJECTIVES, YOU’LL HAVE SUPPORT FROM FIELD DISTRIBUTION LEADERS Support from a New Agency Consultant (NAC) for the first 18 months Ongoing support from field distribution leaders, including scheduled Agency Status Reviews at certain months 21
  • 22. Awards and Recognition AS AN EXCLUSIVE AGENT, YOU’LL HAVE THE OPPORTUNITY TO QUALIFY FOR ALLSTATE’S EXCITING AWARDS AND RECOGNITION EVENTS Regional Champions Conference Overnight event with spouse or guest Chairman’s Conference Company-wide conference trip with spouse or guest Chairman’s Inner Circle Add-on trip to Chairman’s Conference with spouse or guest Leaders Forum Business meeting for top agencies to network, share a wealth of ideas and learn from the “best of the best” Short-term/local promotions may be available throughout the year 22
  • 23. This overview is confidential and proprietary information which is the exclusive property of Allstate Insurance Company and its affiliates, and subsidiaries, including Allstate Life Insurance Company (the “Company”), and may not be disclosed to third parties, other than outside advisors or as required by law, without first having obtained written permission from Allstate Insurance Company. Securities offered through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member NASD, SIPC. Main Office: 2920 South 84th Street, Lincoln, NE 68506. 877-525-5727. Commission and bonus amounts are subject to change. Allstate is an Equal Opportunity Company. For more information, contact Allstate toll-free at 877-258-9012, or visit allstateagent.com. ©2007 Allstate Insurance Company. allstate.com R27434