Association Leadership Conferences Executive Vice President, David V. Dellinger July 13, 2011 – Sacramento July 14, 2011 – Seal Beach 1 NAIFA-California

2 Background: Understanding the inherent conflict of how to link “Bottom Line” Member Benefits vs. Advocacy, in a way that makes recruiting almost fool proof and guaranteed.

1. “ABC Analysis”: 1.How many members on average attend your general meetings? (loyalists/activists) (Buy in large, are they the same members?) 2.How many are “Checkbook” Members? (Safe as loyalists who aren’t still involved) 3.How many are “Members at Risk”? (What do we really know about them?) Total Members 3 A. (__________) B. (__________) C. (__________) (__________) What are you doing to enhance the results for the Column “C” “at risk” members to renew? How many total members? (___________) NAIFA-California

“Membership Value Proposition” 2.The important need to understand and market NAIFA’s “brand” of our four “practice specialties” (Bottom line benefits to your pocketbook) 1.Life Insurance, D.I., Annuities, LTC 2.Employee Benefits, Health Insurance 3.Multi-Line: State Farm, Farmers, Allstate, Nationwide (1/3 of our members in NAIFA and NAIFA-California are multi-line agents) 4.Financial planning/advising, fee based planning, securities, investments, mutual funds, estate planning, etc. (1999 name change) *A show of hands on how many practice specialties you fall into... 4 NAIFA-California

“Membership Value Proposition” 3.Let’s explore the importance of understanding our other peer associations and NAIFA’s unique role in truly having no real “competition”! * Big I (IBAWEST)* PIA* CAHU * FPA* Agents Alliance* NAHU * Independent Agents* WIAA* Others The Key Question... What is it that is uniquely different about NAIFA vs. any of these other agent/advisor organizations? 5 NAIFA-California

“Membership Value Proposition” 4.As a reminder... of the four practice specialties, (“Profit Centers”) how many were you in? More importantly... how many are our average members in? Sacramento, California 24/7 Washington D.C. 24/7 Virtually all Insurance and Financial services products are being lobbied in all four practice specialty areas. “Our Unique Value Proposition”... Our members can never outgrow NAIFA, as long as their career takes them into at least two profit centers, which is a huge advantage because of our lobbying which protects all four practice specialties. Other associations cannot make that claim... 6 NAIFA-California

7 “Membership Value Proposition” 5.Now: The “key question” that is customized to each local, and you must know your correct number! * General meeting schedule (September – June = 10)  General meeting keynote address __________  Table Topics __________  C.E. Offerings __________  Advisor Expo’s/Sales Congresses, etc. __________  Brown Bag Lunches __________  Others __________ Total Potential “Live” Offerings of value:__________? What’s your number? NAIFA-California

8 “Membership Value Proposition” 6.The concept of dues being an investment vs. an expense!!! Marketing Class 101 says... Financially, we’ve been marketing NAIFA with the least effective result! NAIFA’s Current Retention % __________? vs. 91% __________? What are your annual dues __________? What is your #? $_________/Daily $_________/Monthly What’s a $ucce $$ ful $ale $ idea really worth? NAIFA-California

9 “Membership Value Proposition” 7.Two other historical numbers that are good for you to know and understand by way of background / /4 (or 1-1/2 out of the 2) NAIFA-California

10 “Membership Value Proposition” 8.So... What have we learned... And what else do we need to know...  It takes on average “7 years” for the typical agent to feel that he/she has “survived”, when they finally understand the value of advocacy, and when it will truly be appreciated as a long-term “investment” in their career.  “Long-term”, job one at NAIFA is advocacy, and it will ultimately keep our members until they retire/die. (Column B – “Checkbook Members”)  Short-term, and especially with the newer and younger members, (Gen X and Y...) they want immediate “bottom-line” benefits to their pocketbooks to make them more successful as salespeople. $$$/Value/$$$/Value NAIFA-California

11 “Membership Value Proposition” 9.We know that we need to “WOW” our members with “value added” transferrable sales ideas only _________ times yearly... How Many? NAIFA-California

12 “Membership Value Proposition” 10.If we know our “local’s number” __________, and if our new member attends a fair portion of those “live opportunities for wanted value”, is it really possible for them not to receive 3/4 sales ideas, averaging at least $ each, that wouldn’t far exceed the cost (investment) of their NAIFA dues? __________ Let’s review again for “reinforcement” … NAIFA-California

13 “Membership Value Proposition” 11.Ultimately... If you “show up” and in a sense... “demand your money back”, NAIFA dues are not an expense, they are a “money back guaranteed return” on your investment! As Woody Allen has so aptly said... 90% of life... is just showing up! NAIFA-California

14 “Membership Value Proposition” Finally... Three Questions for “Everybody” 1.Does this “Membership Marketing” Value Proposition make sense to you, and can you customize it to your local and use it? ________________________ 2.If yes... What are the only two ways this value proposition can fail? 1.______________________________ 2.______________________________ 3.Final Q and A.... NAIFA-California