Building it BIG with Securities

Why the Time is Now  The company culture has recently changed  We now have all the tools in the toolbox  We now have the systems to duplicate  The math says it will become our biggest income source  It is right for the client

6 Ways We Get Paid  Initial Purchases  Subsequent Purchases  PAC (Automatic Draft)  12(b)1 fees – advisory fees  RVP Bonuses  Overrides (Base Shop and 6 Generations down!)

Average Client Life Insurance - $87 /month = $1,044 /year Investment - $43,000 Future average 401K rollover = $91,000 Future average Inheritance = $177,000 PAC = $667 /month

Investment Income Upfront time 6 – 8 hours Ongoing time = 4 calls + 1 yearly visit Initial Comp Life =$1,253 Investments =$1,133 Total =$2, year Residual Comp PAC = $4,467 12(b)-1 Fees$27,710 Rollover =$7,610 Total = $39,787 TOTAL COMPENSATION = $42,173

Create Your Own Pension Income for 1 client = $42,000 1 client a week for 50 weeks Total Compensation = $2,108,650 That’s $70,288 /year of income !!!

Assets Under Management AUM x 1.25% x Commission Rate Example: $7,500,000 AUM x 1.25% x 62% = $58,125 /Year or $4,844 /Month

Residual Income from AUM with the Rule of 72: 10/25/10$7.5 Million 10/25/16$15 Million 10/25/22$30 Million 10/25/28$60 Million 10/25/34$120 Million 10/25/40$240 Million 10/25/46$480 Million 10/25/52$960 Million

Next Generation Business  On 10/25/28 a Newborn is age 18 with $60 Million AUM = $465,000 / Year Cash  On 10/25/52 a Newborn is age 42 with $960 Million AUM = $7,440,000 / Year Cash

Top Clients List (46) top 2 pages of CAM 18 – 39% Recruits 15 – 33% Immediate Family Members of Recruits 5 – 11% Developed from Field Training Appts 8 – 17% Referrals

Keys to Building with Securities 1. Have a consistent simple philosophy 2. Teach concepts at the right time 3. Implement systems at the right time 4. Recruiting is Always the #1 Focus

Long-Term Income – District Leader Upfront time 30 – 40 hours Ongoing time = 3 – 4 hours / month 4 clients x $2386 = $9,544 Override per client = $1, Clients a year TOTAL COMPENSATION = $1,028,160

Long-Term Income – RVP Upfront time 30 – 40 hours Ongoing time = 1 hour / month $75,000/year x 35 years = TOTAL COMPENSATION $2,625,000