This document describes our pan Partner Program which provides the partner with the opportunity for significant recurring revenue streams through a branded private label and access to more than 300 assessments from more than 50 publishers.

1. Introducing the pan Partner Program!
P3
pan Partner Program > >
The pan Partner Program (P3) is designed to help you:
• Expand your portfolio of client services
• Launch your online assessment business using pan’s “turnkey” platform and customer service support
• Build significant, and recurring, assessment revenue streams
• Generate additional assessment-related consulting revenue
pan Overview
pan is an objective, expert source and host of online tests and assessments.
pan provides online tests and assessments using a unique Web-based business model. pan acts as an objective, expert source and host of online testing
and assessments representing virtually all the major assessment publishers (more than 50).
pan is a TALX company.
pan is a subsidiary of TALX, a leading provider of electronic paperless solutions that enable HR and payroll departments to increase compliance, improve
efficiency, reduce administrative challenges and improve employee service. Equifax is the parent company of TALX.
pan takes the worry out of assessments.
pan sets high standards for the assessments included in its online catalog and only selects those that meet American Psychological Association and
EEOC guidelines for test development, validity, reliability, etc., and are among the “best-in-class” for their intended purpose. Our online testing platform is
state-of-the-art, highly secure and user friendly. Consequently, pan helps clients select the assessment(s) that best meet their selection and development
needs and provides a highly secure online environment. Our robust and flexible systems capabilities allow us to integrate with virtually any applicant
tracking system (ATS) and HRIS.
pan Continually Evaluates New Assessments and Selects
the “Best of Breed” for Inclusion in Our Online Catalog
Thousands of Assessments pan Selects the pan Online Assessment
Available in the Marketplace Best Assessments Catalog of Approximately
240 Instruments
pan offers a wide array of assessments to both business and government clients.
While typically test publishers only offer the assessments that they publish, pan offers approximately 240 assessments from all the major publishers
in our online catalog. Our clients include Progressive Insurance, Eli Lilly, Target, U.S. Food Service, Nestle, Circle K and United Airlines and US
government agencies including the Department of Homeland Security (Customs Service, Border Patrol, Transportation Security Administration) and
the US Postal Service. pan also Web-enables/hosts more than 700 proprietary tests and assessments for our private sector and government clients.
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2. pan Serves as a Central Assessment Distribution Channel
between Publishers and pan Clients
ASSESSMENT PUBLISHERS
50 +
Corporate Government
Clients Clients Partners
pan has an extensive test center network.
For clients who require a proctored test environment, pan offers a nationwide network of more than 600 test centers as well as mobile test center
capabilities. Test centers provide uncompromising security and consistent test delivery, the ability to quickly and efficiently screen large numbers of
applicants, the assessment of competencies before travel expenses are incurred and the provision of a professional process that reflects well on the
client organization.
pan provides complete technical and customer service support.
Our highly competent team of solutions managers, industrial/organizational psychologists, IT professionals and customer service reps provide complete
start-to-finish client support including job analysis, competency modeling, validation studies/EEOC reports, systems integration, and customized
assessment results reports.
pan Partner Program Overview
pan to Expand Marketplace Presence and Sales Through the pan Partner Program.
pan seeks consulting firms/HR service providers as partners in offering full-service online testing and assessment services to meet client selection
and development needs. We offer a mutually beneficial arrangement whereby (a) pan leverages partner’s marketplace presence and sales capabilities
and (b) partners leverage pan’s established technology platform, assessment capabilities and testing locations to expand the partner’s range of
services and increase billings.
pan Partner Value Proposition.
• Increased revenue stream - pan Partners will benefit from potentially significant, and recurring, revenue streams.
• Expanded portfolio of services - pan Partners will expand their range of products and services through the addition of pan’s comprehensive
assessment tools and related services, web-enabled hosting of client/partner’s proprietary assessments, test center network, assessment-
related human capital consulting, and Vita talent management system.
• Comprehensive pan support - pan provides comprehensive training and marketing materials to help its partners better market and sell assessments.
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3. How it Works
• Partner runs own online assessment business (the private label opportunity) - The partner engages in a Partner Agreement with pan that provides
the Partner with access to pan’s full range of assessments, assessment-related human capital consulting and technical support capabilities
while maintaining the Partner’s position as the “owner” of their client. In effect, pan partners with you in configuring your own branded private
label assessment service. pan will support you in selecting the appropriate mix of assessments, tests and surveys for inclusion on your pan
hosted website (including your own proprietary assessments). pan will then continue to provide you with periodic training and updates on
assessments and technical support. If need be, pan will also act as an expert subcontractor to the Partner providing technical consulting to
your client in areas such as job analysis, competency modeling, test validation, etc.
Your Web-site Includes Your Private Label, Powered By pan
Partner Web-site
Leader Executive Team
Building Assessments
Devlopement Coaching
Private Labels may be Cascaded Down Through Successive Layers
Private Label
Client 2 Client 3 Affiliate Partner
Client 1 Private Label Private Label Private Label
Client
Private Label
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4. Generating Multiple Sources of Revenue
The pan partner model is very flexible and allows the Partner to generate revenue through royalties, mark-ups, consulting fees, and referral fees.
• Royalties – generated by the total volume of assessment revenue (based on pan’s list price and excluding any partner mark-up) run through
your private label. It is assumed that the partner is intimately involved in all aspects of marketing, sales and follow-up.
Stepped Royalties Schedule
(Volume-driven, % of list price, paid monthly, based on pan’s fiscal year: January 1 – December 31)
<$50K $50K – 99K $100K – 199K $200 - 249K $250K
7% 8% 9% 10% 10%*
*When $250K level is reached, the 10% rate automatically carries over into the next year.
• Mark-ups – the Partner’s administrative fee, e.g. 10% or 15%, added to pan’s assessment product list price for assessments run through
your private label.
• Consulting Fees – client assessment projects often require up-front consulting. The Partner may choose to perform this consulting, or may
choose to take advantage of pan’s specialized assessment-related consulting capabilities and use pan as a subcontractor. In the latter case,
pan would invoice the Partner and the Partner would add their administrative fee and invoice the client.
• Referral Fees – There are two referral levels depending on the partner’s degree of involvement in making the sale. It is assumed that the
partner is not running the resultant assessments through a private label.
• Referral - The Partner may choose to simply make a referral and introduction to a client who has indicated potential interest in pan’s
services. Partner does not necessarily participate in sales calls or proposal generation. The referral fee would be 5% of the assessment revenue
generated for the first 12 months of the client contract.
• Solutions Partner Referral – The partner is actively involved in all aspects of marketing and sale to the client and follow-up. The referral fee
would be 8% of the assessment revenue for the client’s first contract year and 5% per contract year thereafter.
• Note - Referral fees are based on pan’s list price; the partner may not “mark-up” referral assessments.
• Fee Payment – Excluding consulting fees, all fees due to the Partner will be paid monthly.
pan Partner Program Features
Scenario Examples - pan’s Partner Program makes the process of tracking assessment volumes, invoicing, payment and reporting as simple
and transparent as possible. Depending on your preferences, we can shape our process to meet your needs. A sample of likely scenarios follows:
• Scenario 1 – Large Volume Private Label/Reseller: For a high volume operation, for example an HR or industry association with
many thousands of members or a consulting firm partner with a large retail company client, it is likely that members would pay for
assessments at the Partner’s private label site via corporate credit card. Partners may “mark-up” an assessment’s retail price to
cover their administration cost. pan tracks all purchases and credits the Partner’s account with the appropriate royalty fee per order.
Example w/Partner Mark-Up:
Partner Customer Payment
pan Price +10% Mark-Up = Purchase Price Mark-up + Royalty to Partner
$20.00 $2.00 $22.00 $2.00 + $2.00 (e.g., 10%) = $4.00
The possibilities - Let’s use the above example and further assume that this industry association has 10,000 members and 1,000 members purchase
just 100 assessments each for selection purposes (e.g., selecting restaurant servers, retail sales, etc.), that’s 100,000 assessments X $4.00 each =
$400,000 in royalties. On a much smaller scale, if a consulting firm pan Partner has a client company in retail with 35,000 employees and 30,000
of these are working at the store level and there is 50% annual turnover, then that client will hire approximately 15,000 people per year. Let’s also
assume that on average two candidates will be assessed for every hire. Again using a partner royalty plus mark-up of $4.00 per assessment, that
would be $4.00 X 30,000 = $120,000 in annual royalties.
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5. • Scenario 2 – Consulting Firm Pre-Orders and Pays for Assessments: Let’s assume an OD/training consulting firm uses its private label for
development-oriented activities such as team-building, coaching and training. Assuming this is a highly targeted activity involving a fairly predictable
number of people, the partner may want to directly order and pay for the assessments (minus their royalty; by credit card or through purchase
order) and then invoice the client for the assessment plus any administrative mark-up.
• Scenario 3 – Client Desires Targeted Selection Assessments for Key High Volume Positions: Assume the Partner has a client with a large
operating/call center population and the client would like to reduce turnover and increase customer service. In effect, the client wants to do
a much better job of matching candidates to these key jobs. The Partner hires pan as a subcontractor and pan’s Human Capital Consulting I/O
psychologists conduct the technical work of job analysis, competency modeling, selection of an assessment or assessment battery, fine-tuning
assessment factor weighting to maximize power as a selection tool, competency-based interview protocols, validation study and EEOC technical
report preparation, etc. pan bills the Partner, the Partner adds their administrative mark-up and then bills the client. The candidate selection
assessments would be run through the Partner’s private label and the partner would be credited as discussed in Scenario 1.
The possibilities – Let’s assume this client has 20,000 employees working in call center/operating center jobs and that there is 50% turnover
resulting in 10,000 hires per year with two candidates assessed per hire.
Again assuming royalties plus mark-up of $4.00 per assessment, that would be 20,000 assessments X $4.00 = $80,000. Now let’s factor in consulting.
Assume the Partner works closely with pan Human Capital Consulting on the technical work of job analysis, competency modeling, assessment
validation, and customized assessment scoring, etc. pan would invoice for technical subcontractor work, e.g., $25,000. The partner’s invoice to
their client would consist of the partner’s consulting fee plus pan’s consulting fee including the partner’s administrative fee mark-up
User Friendly Private Label Technology Platform
pan’s recently upgraded technology platform reflects our commitment to continuous improvement and ease of use for our clients and end-users. A
sampling of key features includes:
• Client/partner empowerment – provides greater flexibility and control in the look, feel, and use of your specific platform.
• Comprehensive reporting – provides complete overview and detailed reporting starting with individual assessment status up
through client and partner level aggregation and summaries of assessment status, inventory, and sales.
• Flexible pricing – includes pricing of assessment batteries (multiple tests/assessments), partner administrative fee mark-ups,
discounts, and free trial assessments.
• Custom assessment reports – assessment battery results can be combined into one custom report.
• Private label content – can easily be changed to meet your needs.
• Administrator’s console – configure your custom console to provide the information you need at a glance.
pan’s Secure Technology Platform
Data Warehouse
Firewall
Application Service Cluster
Reporting, Testing, etc.
Firewall
Web Server Cluster
pan Services Portal
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6. Next Steps to participation in the pan Partner Program
1. Have an initial discussion with Dr. Gerry Groe, Managing Director – Business Development to explore the possibilities.
Visit our Website www.panpowered.com; explore our online assessment catalog in detail - we will setup an account for you, no strings attached.
2. Further discussion with key members of the pan team.
3. Contract - review our simple, mutually beneficial contract.
4. Start-up training.
Gerald M. Groe, Ph.D.
ggroe@panpowered.com
317-814-8911
Gerry is Managing Director – Business Development for pan (Performance Assessment Network). His role is to help pan grow the corporate business
through a more consultative, solution oriented approach with a focus on building partnerships with HR-related service providers and named account
development.
He has more than twenty five years experience as a senior human resources executive including Vice President – Human Resources & Organization
Development for Denny’s, Senior Vice President – Human Resources for Catalina Marketing, Vice President – International Human Resources for
American Express, and Vice President - People Resources for Cigna. Earlier in his career, Gerry also held human resource positions with J.P. Morgan
Chase and Exxon.
Gerry had his own consulting practice for five years providing services in executive coaching, leadership development, assessment, business
strategy facilitation, and team building. In addition, he has taught leadership and organization development at the graduate level at the University of
Tennessee and the University of Tampa.
His education includes a B.A. in Psychology from Fairleigh Dickinson University and his M.Ph. and Ph.D. in Industrial/Organizational Psychology from
Columbia University.
Memberships include the American Psychological Association, APA Division 5 – Evaluation, Measurement & Statistics, the Society for Industrial/
Organizational Psychology, the Human Resource Planning Society, the Society for Human Resource Management, and the American Society for
Training and Development.
Among his publications, Gerry is the author of the book Was Your Boss Raised by Wolves? Surviving the Organizational Food Chain (2005; published
in three languages). He is also one of the authors of Leading into the Future, A Global Study of Leadership: 2005-2015 (AMA 2005) and The Ethical
Enterprise: A Global Study of Business Ethics 2005-2015 (AMA, 2005).
Finally, Gerry served in the U.S. Army as an infantry officer.
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