By Paul R. Grimes – CFP, CLU, ChFC Vice-President, Sales, Ontario By Paul R. Grimes – CFP, CLU, ChFC Vice-President, Sales, Ontario

AGENDA 1. The Process of Change; 7 Factors to Contemplate 2. 8 Things to Consider in the 21 st Century 3. Conditions for Distribution Going Forward 4. Focus and Conclusion

THE PROCESS OF CHANGE 1. The Distribution Process 2. The Value Process 3. The Products Process 4. The Buying Process 5. The Selling Process 6. The Fulfillment Process 7. End Results Affecting the Advisor

1. THE DISTRIBUTION PROCESS THE MULTIPLIER EFFECT Multiple Channels Multiple Players Multiple New Entrants Multiple Regulatory Bodies

2. THE VALUE PROCESS THE VALUE ADDED EFFECT Value Rated Companies Value Added Value Perception

3. THE PRODUCTS PROCESS The Demographics Effect Switch in Finances to Retirement Transfer of Wealth Building Wealth and Saving Taxes

4. THE BUYING PROCESS Education of the General Public Consumer Likely to be Sold,not Buy In Your Face Advertising Interest, Banks, Brokerage

5. THE SELLING PROCESS Biggest Affect Going Forward Contracting and Licensing with Affect Change Further Legislation Knowledge of the Skill or Profession See 8 Things to Consider; To Take this Important Step

6. THE FULFILLMENT PROCESS The Emotional High with the Sale The Emotional Low with the Purchase A Different Level of Fulfillment

7. END RESULTS There is an Effect on All Levels of the Distribution Solution Will Dramatically Affect the Industry QUESTION: Are you still selling yourself the way you did 5 years, 10 years or 20 years ago? If so will you be effective going forward?

8 Things to Consider in 21 st Century Distribution 1. Consolidation or Implosion - Buy and Sell Off - Sales Force Valued at Zero - Distribution is King

2. Shift in Selling Product to Selling Advice - Education will rule the day - The Facts Of Life

3. Transformation from Industry Catering the advisor to industry, catering the consumer.

4. Last Generation of Manually Assembled and Serviced Insurance Practice

5. The Established Producer has come full circle.

6. Need for Clarity in Measuring Distribution Performance Persistency Mortality Investments Distribution Efficiency

7. Customer Sweet Spot - 2 factors High Tech Customer (New) Under Age 40 High Touch Customer (Old) Over Age 40

Values Driven Relationship Connected Comfort Seeking Trust People

High Tech Customer (New) Under Age 40 Self-directed Electronically connected Commodity seeking Trust information

Problem Today is We Are Merging New and Old. When Intimacy Partners with Technology. Customer still wants - Integrated solutions from single source - Life long relationships institutionalized - Fast to get in, fast to get out

8. Broker Dealer is the best Platform for now. Must become an Educated Financial Advisor

Conditions for the Educated Advisor going forward: ↑ More need than ever ↑ More funds than ever ↑ More products than ever ↑ More interest than ever ↑ More confidence than ever ↑ More options than ever ↓ Fewer qualified advisors than ever

FOCUS We all need to focus on the fact that face to face relationship is based on the things you can take from each other that you cannot get anywhere else.

Conclusion: Changing Environment Make sure you move with the times “Swift car company” Danger of being good at things that no longer work Danger of being good at things that do not yet work SHIFT GEARS AT THE RIGHT TIME!

SOMETIMES YOU NEED TO POOL RESOURCES!!! SILK TO NYLON W.W. II COST AND LACK OF SILK SCIENTISTS FROM NEW YORK AND LONDON CREATE A NEW FABRIC FOR PARACHUTES; NYLON!!! NECESSITY MADE THEM THINK OUTSIDE THE BOX GOING FORWARD YOU MUST DO THE SAME WITH YOUR PRACTICE

And Good Luck Going Forward