This document provides an overview of opportunities and requirements for becoming an Allstate Exclusive Agent. It discusses the benefits of working with Allstate such as brand recognition, education programs, and support services. It outlines options for starting a new agency or purchasing an existing book of business. The document also covers topics like commissions, resources for growth, and awards programs for high-performing agents.

1. Choose your own direction
Building a business as an Allstate Exclusive Agent
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2. Building a Business As an
Building a Business As an
Allstate Exclusive Agent
The following overview highlights the R3001 Agency opportunity.* Agency owners
are independent contractors and are not employees of Allstate. Multiple factors
are independent contractors and are not employees of Allstate. Multiple factors
contribute to the success of an Allstate Agency. As such, individual results will vary.
All information, including bonus, revenue, compensation, and education information
is subject to change.
See the 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.
details
* Excludes New Jersey
2

3. Allstate – Our Shared Vision
Our Purpose
We are the Good Hands: We help people realize their hopes and dreams through
We are the Good Hands: We help people realize their hopes and dreams through
products and services designed to protect them from life’s uncertainties and to
prepare them for the future.
Strategic Vision
To reinvent protection and retirement for the consumer.
Our Values
Honesty, caring and integrity
Inclusive diversity
I l i di i
Engagement
Accountability
Superior performance
Superior performance
Corporate Goal
We will grow the value of our company for our customers, our associates, our
shareholders, our communities and society.
shareholders our communities and society
3

4. Join an Industry Leader
ENJOY THE BENEFITS OF WORKING WITH ALLSTATE
Allstate provides you with support that is among the best in the industry
p y pp g y
High brand‐name recognition
A comprehensive education program
Unlimited money making potential
Unlimited money‐making potential
Ownership of the economic interest in the book of business your agency writes
Customer Information Center (CIC) provides after hours support for your agency
One of the largest teams of centralized claims professionals in the country with 24 x 7
One of the largest teams of centralized claims professionals in the country with 24 x 7
support
Marketing materials designed to help you generate revenue for your agency
A customizable company website to help drive clients to you
A customizable company website to help drive clients to you
An exciting awards and recognition program that rewards you for achieving business
objectives established by Allstate
Support from Allstate s field sales leadership group
Support from Allstate’s field sales leadership group
Potential to own multiple locations
4

5. Getting Started
WHAT YOU NEED TO SUCCEED AT ALLSTATE
Requirements
Available start‐up capital to meet cash flow market requirement (minimum $50,000)
A il bl i l h fl k i ( i i $50 000)
P&C and Life/Health licenses
Financial Industry Regulatory Authority (FINRA) 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
Networks proactively
et o s p oact e y
Projects persuasive and professional presence
Makes quality decisions
Drives for results and profitability
Focuses on relationship building
Focuses on relationship building
Supports the Allstate vision and purpose
Creates strategic business solutions
Adapts to changing conditions
Works effectively
Works effectively
Leads and motivates staff
5

6. Navigating Your Business Options
DECIDE HOW TO RUN YOUR BUSINESS
With the option of purchasing an existing Allstate Agency, you have the advantage of
buying a business that s already up and running. There are different bonus and incentive
buying a business that’s already up and running There are different bonus and incentive
opportunities available depending on whether the agency has less than 750
policies/$800,000 premium or more than 750 policies/$800,000 premium.
Becoming an Allstate
Exclusive Agent…
Starting a
Purchasing an
new agency
agency from an
from scratch
existing Allstate
g
Exclusive Agent
Less than 750
L th More than 750
M th
policies/$800,000 policies/$800,000
6

7. Evaluating Your Business Options
CONSIDERATIONS AS YOU EVALUATE THE OPPORTUNITY TO BUY AN
EXISTING ALLSTATE AGENCY
What is the business environment?
What are the financial results of the agency?
Is the agency an efficiently operated business?
Do I have sufficient liquid capital to invest in growing the business?
Will I be able to secure financing if needed to purchase the book of business?
Will agency staff be retained after the purchase?
What is the value of the agency?
Wh i h l f h ?
What staffing issues exist?
Will the existing location be maintained after the agency purchase?
What factors may affect the retention of customers in the book of business?
Wh t f t ff t th t ti f t i th b k f b i ?
What legal issues should be considered?
What is the market opportunity to grow the business?
Will you retain the existing technology after purchasing?
Will you retain the existing technology after purchasing?
7

8. OTHER BUSINESS CONSIDERATIONS
DECIDE HOW TO RUN YOUR BUSINESS
Understand your location options
Maintain existing location
Establish a new location
Relocate an existing agency
Branding your agency
Develop your business plan
Operating
Staffing
Business Processes
Marketing
Demographics
Lead Generation
Advertising
Financial
Cash Flow Projections
Cash Flow Projections
Production goals and expenses
8

9. Branding Your Business
YOUR AGENCY’S IMAGE
First impressions count and that goes for your office space as well. The Allstate
Branded Retail Environment (BRE) ensures that, as customers drive by or walk up
( )
and enter your agency, they’ll feel confident that they’ve come to the right place
for their insurance needs. The look helps promote a positive customer experience
and create a positive, inviting work environment.
and create a positive, inviting work environment.
To view all options and pricing, please visit the BRE Website at
www.brandyouragency.com
9

10. Education and Support
ALLSTATE PROVIDES EDUCATION TO HELP YOU GET AHEAD
Allstate provides an education program on Allstate’s products, recommended
sales techniques and processes
sales techniques and processes
Program is approximately 5 weeks
Education is conducted regionally and at Allstate’s National Sales Education Center
(NSEC)
Program includes Auto, Property, Financial and Run the Business track which is
P i l d A t P t Fi i l d R th B i t k hi h i
designed to help with the set up and operational side of your agency
Once you have Successfully completed the Education Program, you will receive
a $3,000 bonus payable in first month of the R3001 Agreement
ONGOING CONSULTATIVE SUPPORT FROM A FIELD SALES LEADER
Sales and marketing processes
Results review
R l i
Ongoing education
Business results consultation
10

11. Commissions Structure
P&C COMMISSIONS SCALE
Commission Amount by Line* New % Subsequent
renewal %
Auto, Standard 10 10
Motorcycle 10 10
Off road Vehicle 10 10
Auto, Non‐Standard 8 8
Personal Property 10 10
Boat 10 10
Landlord Package
g 10 10
Manufactured Home 10 10
Personal Umbrella Policy 10 10
Condo and Renters 10 10
Commercial, Nonfleet 10 10
Commercial Casualty ‐ Fleet 10 10
Commercial Casualty – all Other
First $2,500
First $2 500 20 10
Over $2,500 12 10
* Excludes state exceptions
11

12. Allstate Financial Opportunity
ALLSTATE LIFE AND FINANCIAL PRODUCTS
Our extensive portfolio includes term and permanent life, annuities and variable
products
Allstate offers the opportunity to write Life and Financial Products by either:
Partnering with an Exclusive Financial Specialist (EFS)*, a specialist in life, savings and
financial products ( Shared Business)
financial products (“Shared” Business).
Write life and financial products on your own (“Solo” business)
Ability to earn credit towards production goals, bonuses and awards
Allstate Financial enhanced commission scales are based on your productivity – the
more you write, the higher the commission scale
*known as Financial Specialists in NY
12

13. Resources for Growth – Established Agencies
RESOURCES FOR GROWTH IS DESIGNED TO REWARD AGENCIES THAT
ACHIEVE BALANCED PERFORMANCE
Agency performance is measured on five key business objectives: Retention, Acquisition, Profitability, Allstate
Financial Production Credit and Agency Loyalty Index
Agency results are matched to goals established for each measurement category and points are earned
based on those results (based on 10.5 point scale)
Retention results are based on Standard Auto Retention %
i l b d S d d i %
Acquisition results are based on a combination of Personal Auto New Issued Items and Emerging Business New Issued
Items
Profitability results are the better of total casualty 12MM or 24MM adjusted paid loss ratio
Allstate Financial Production Credit results are based on total YTD Production Credit (reduction for not meeting
Expected Results)
Agency Loyalty Index results are based on the annual Agency Loyalty Index score
Points are distributed across six Resources for Growth tiers
Platinum (7.5 – 10.5 points)
Gold (6.0 – 7.4 points)
G ld (6 0 7 4 i t )
Silver (5.5 – 5.9 points)
Bronze (2.5 – 5.4 points)
Standard (0.1 – 2.4 points)
( p
Base (0 points or less))
Resources for Growth tiers will be used across multiple programs including the Agency Bonus, Awards and
Recognition, Expected Results, and qualification for other business opportunities
13 *Start-up agencies have a different measurement – see page 25

14. Benefits For High Performance
GROWING A PROFITABLE AGENCY WITH HIGH LEVELS OF CUSTOMER LOYALTY
AND SATISFACTION
Executive Advantage
Brings together additional resources that can help brand, grow and manage your
business.
Centralizes many resources agencies use today to market and manage their businesses
into one Intranet‐based Gateway site called the Executive Advantage Resource Center
Premier Service Agency
High value web leads from www.Allstate.com
Priority placement on the Agency Locator
PSA Logo placed on the agency website
Executive Advantage boost
Customer Focused Acquisition
Customer Focused Acquisition
Enables small/medium‐sized agencies to purchase economic interest in a small book of
business and consolidate it with their existing book
Designed to help high‐performing trajectory agencies achieve scale towards the ideal
agency model by providing inorganic growth opportunities
d lb idi i i h ii
14

15. Awards and Recognition
AS AN EXCLUSIVE AGENT, YOU’LL HAVE THE OPPORTUNITY TO QUALIFY FOR
ALLSTATE’S EXCITING AWARDS AND RECOGNITION EVENTS
Regional Honor Ring Banquet
Hosted by the FVP and AFVP ‐ Additional details will be shared with you by your region
President’s Conference
Company‐wide conference trip with spouse or guest
Company wide conference trip 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 agency owners 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
15

16. Key Events Review
Step 1 Step 2 Step 3 Step 4
Program Review
P R i Program Requirements
P R i Agency Sale Process
A S l P Final Steps
Fi l S
• After buyer has identified • Take the Agent Selection • Negotiate and finalize the • Complete the Education
an agency for sale and Questionnaire (ASQ) terms of the sale with the Program
started preliminary sale • Pass the background seller • Complete the assignment
discussions, buyer should
discussions buyer should screening • Make financing
Make financing of commissions paperwork
of commissions paperwork
meet with a Field Sales • Find an agency location arrangements, if necessary if applicable
Leader (FSL). FSL will and get approval from FSL • Make arrangements for • Provide the region with
provide an overview of the furniture, equipment, and proof of Errors and
EA Program and buyer • Complete the capital
requirements worksheet
requirements worksheet supplies, if necessary
pp , y Omissions insurance and
requirements Worker’s Compensation
• Review the EA Agreement • Complete a business plan
insurance, as well as direct
and Supplement, EA • Obtain licenses and sign deposit forms
Manual and Reference the Letter of Understanding
Guide g
for securities licensing
• Review the Cash Flow • After successfully
Models completing the previous
steps, buyer and seller will
receive preliminary
approval to continue with
l h
the sale process
16

17. Start‐Up Agencies – Additional Incentives
INCENTIVES FOR START‐UP AGENCIES
• Agency Establishment Bonus
Agency Establishment Bonus
• Agency Development Bonus I
• Agency Development Bonus II
• Agency Performance Profile Agency Bonus
f fl
• Branded Retail Environment
• Agency Choice Technology (ACT) Allowance
17

18. Tier Structure for Incentive Compensation
USE OF TIERS
Four tiers based on P&C performance in relation to your cash flow
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
18

19. Agency Establishment Bonus
AGENCY ESTABLISHMENT BONUS
Bonus payout is based on your tier
p y y
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
Ti 1 $10 000
Tier 2: $7,500
Tier 3: $5,000
Tier 4: $0
Tier 4: $0
Agency Establishment Bonus will be paid in month 4 of affiliation
19

20. Validation Requirements
VALIDATION REQUIREMENTS
Two production requirements (one for Property & Casualty P&C, and one for
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 minimum P&C requirement is 90% of the baseline cash flow (Tier 3 level)
The minimum 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 month 12 of affiliation
dd l ld ll h f ff l
The minimum P&C requirement is 90% of the baseline cash flow (Tier 3 level)
All validation requirements are conditions of the agency owner relationship. Failure
All validation requirements are conditions of the agency owner relationship. Failure
to meet the validation requirements will lead to termination of the Agency
Agreement.
20

21. Agency Development Bonus I
AGENCY DEVELOPMENT BONUS I (ADB I)
ADB I is eligible to be earned in production months 1 ‐ 36*
g p
ADB I is eligible to be received/paid in months 2 – 37* of affiliation
Based on your tier for a given month, a bonus rate (see next slide) will be applied
to your current month’s net new P&C written premium to determine a bonus
See next slide for bonus rates by tier and month
S lid f b b i d h
* 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
21

22. Agency Development Bonus I, Continued
AGENCY DEVELOPMENT BONUS I (ADB I) SCHEDULE
22

23. Agency Development Bonus II
AGENCY DEVELOPMENT BONUS II (ADB II)
ADB II is eligible to be earned in production months 2 ‐ 37*
ADB II is eligible to be received/paid in months 4 – 39* of affiliation
Based on your performance tier for a given month, a dollar amount (see next
slide) will be applied to your current month s P&C Policy in Force (PIF) Used for
slide) will be applied to your current month’s P&C Policy in Force (PIF) Used for
Bonus figure – special rules apply when this figure is negative
See next slide for dollar amounts by tier and month
* ADB II will also be paid in months 40-51 of affiliation for any month that Tier 1 status is achieved in production months 38 -49: ADB II
will also be paid in months 40 – 45 of affiliation for any month that tier 2 is achieved in production months 38 - 43
23

24. Agency Development Bonus II, Continued
AGENCY DEVELOPMENT BONUS II (ADB II) SCHEDULE
24

25. Resources for Growth – Start‐up Agencies
RESOURCES FOR GROWTH IS DESIGNED TO REWARD AGENCIES THAT
ACHIEVE BALANCED PERFORMANCE
Agency performance is measured on four key business objectives: Retention, Acquisition, Allstate Financial
Production Credit and Agency Loyalty Index
Agency results are matched to goals established for each measurement category and points are earned
based on those results (based on 10.5 point scale)
Retention results are based on Standard Auto Retention %
Acquisition results are based on a combination of Personal Auto New Issued Items and Emerging Business New Issued
Items
Allstate Financial Production Credit results are based on total YTD Production Credit (reduction for not meeting
p
Expected Results))
Agency Loyalty Index results are based on the annual Agency Loyalty Index score
Points are distributed across six Resources for Growth tiers
Platinum (7.5 – 10.5 points)
Gold (6.0 – 7.4 points)
Silver (5.5 – 5.9 points)
Bronze (2.5 – 5.4 points)
Standard (0.1 – 2.4 points)
Base (0 points or less)
Resources for Growth tiers will be used across multiple programs including the Agency Bonus, Awards and
Resources for Growth tiers will be used across multiple programs including the Agency Bonus Awards and
Recognition, Expected Results, and qualification for other business opportunities
25

26. Agency Performance Profile Agency Bonus
AGENCY PERFORMANCE PROFILE AGENCY BONUS
Agency Bonus for agency owners with 36 months or less of affiliation is
determined by 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
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 agency owners with 36
Agency Performance Profile measurement system for agency owners 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 and Emerging Business new issued
items
Allstate Financial production credit
26

27. Allstate Support
YELLOW PAGES AND CO‐OP
Yellow Pages: First year of advertising in the Yellow Pages will be paid by Allstate
(approximately $2,500) only when placed through Berry Network
Co‐op: Receive up to 50% reimbursement for company‐approved advertising
Receive up to 50% reimbursement for company‐approved advertising
expenses per year (up to $4,500 for first‐year Start‐up Agencies); actual Co‐op
allowance may vary by agent
* In the states of Illinois, Alaska, and Hawaii, the non-cash award is valued at a different amount
27

28. Allstate Support, Continued
BRANDED RETAIL ENVIRONMENT (BRE)
Design your office to leverage the strength of the Allstate brand and to help
enhance your customer’s experience
Includes furniture, lighting, signage, sales displays and choice of either a beacon
sign or reception desk
In order to receive a $3,300* non‐cash award, you must participate in the BRE
In order to receive a $3 300* non cash award you must participate in the BRE
Welcome Suite Plus Package program
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 any
You select the technology vendor for installation and support; you may use any
vendor of your choice.
28

29. Receive Support from Allstate
TO HELP YOU MEET BUSINESS OBJECTIVES, YOU’LL HAVE SUPPORT FROM A
FIELD SALES LEADER
Sales and marketing processes
Results review
Ongoing education
Ongoing education
Business Results Consultation
29

30. 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).
g ( )
Registered Broker‐Dealer. Member FINRA, 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.
©2010 Allstate Insurance Company. allstate.com
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