Transcript No Slide Title

World Financial Group, Inc.:
Who We Are
At World Financial Group, Inc.
(WFG or World Financial Group) –
a financial services marketing company –
you have the opportunity to:
• Be in business for yourself but not by yourself.
• Represent hundreds of companies, not just
one to the consumer.
• Learn from a
leadership team
with vast experience
in the financial
services industry.
2
World Financial Group, Inc.:
Who We Are
Made up of thousands of associates in the
United States and Canada.
• Helps middle income families and people
from all walks of life move toward financial
independence.
• Has an exclusive broker-dealer,
World Group Securities, Inc.
Among the Top 1%
of broker-dealers in
the United States
based on number
of registered
representatives.*
3
* As of May 2007.
WFG –
An AEGON Company
Who is AEGON?
• AEGON N.V. is one of
the world’s leading life
insurance and pension groups, and a provider
of investment products.
• AEGON N.V.’s major operations are in the United
States, the Netherlands and the United Kingdom.
In addition, it is present in a number of other
countries, including Canada, Hungary, Slovakia,
Spain and Taiwan.
• AEGON N.V. was ranked one of the world’s top
companies in 2008 by Forbes in its annual
ranking of the world’s biggest and most powerful
public companies.*
4
* The Forbes Global 2000 is a comprehensive list of the world’s biggest and most powerful companies based on a composite measure of sales, profits,
assets and market value. Published April 12, 2008 on Forbes.com.
What is
WFG?
Some traditional marketing approaches:
• Retail Marketing:
Draws people into location.
• Direct Marketing:
Try to cold sell to people
you don’t know.
5
What is
WFG?
WFG is a marketing company using
relationship marketing principles.
• Relationship Marketing:
Work with a system and warm market that refers you to
other potential clients and/or associates.
6
What Makes
WFG Unique?
• A proven, duplicable business system
• Serving the under-served middle class
• Training provided free of charge or at low cost
• Leadership and promotions based on merit
• In the business of building people and
helping families
7
Why is WFG
a Great Business Opportunity?
• WFG’s business
model/system works.
• Innovative target market
• Minimal advertising
and initial overhead
expenses
• Twin-career approach
• AEGON
8
What We Do
What we do
What
We Do
The WFG Mission:
• To help families achieve
financial independence.
How WFG Achieves
its Mission:
• Challenging people to
change their habits
of spending and
save/invest more.
10
Following the
Script of Life
If we track the life of average educated people,
the financial script often goes like this:
The child goes to school, graduates, finds a job and soon has
some money to spend. The young adult now can afford to rent an
apartment, buy a TV set, new clothes, some furniture and, of course,
a car. And now the bills begin to come in.
One day, the adult meets someone special, sparks fly, they fall
in love and get married. For a while, life is blissful because two can
live as cheaply as one. They now have two incomes, only one rent
to pay, and they can afford to set a few dollars aside to buy the
dream of all young couples, their own home.
They find their dream home, pull the money from savings and
use it for a down payment on the house, and they now have a
mortgage. Because they have a new house, they need new
furnishings, so they find a furniture store that advertises those
magic words, “No money down, easy monthly payments.”
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From The CASHFLOW Quadrant, Robert T. Kiyosaki and Sharon Lechter, April 2000.
Following the
Script of Life (continued…)
Life is wonderful, and they throw a party to have all their
friends over to see their new house, new car, new furniture and new
toys. They are now deeply in debt for the rest of their lives. Then,
the first child arrives.
The average, well-educated, hard-working couple, after dropping the child off at nursery school, must now put their nose to the
grindstone and go to work. They become trapped by the need for
job security simply because, on average, they are less than three
months away from financial bankruptcy.
months
From these people, you often hear,
“I can’t afford to quit. I have bills to pay,”
or a modification from a song from Snow
White and the Seven Dwarfs, “I owe, I owe,
so it’s off to work I go.”
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From The CASHFLOW Quadrant, Robert T. Kiyosaki and Sharon Lechter, April 2000.
A Fact of Life:
How We Spend Our Money Matters
Most People:
•
•
•
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Have no plans for
achieving goals
Don’t understand
how money works
Earn low rates
of return
•
Pay too much tax
•
Work for somebody else
•
Live paycheck to paycheck
•
Spend, not save their money
•
Live on the edge
•
Are caught in a
high-interest debt trap
•
Retire in poverty
Not Enough People:
•
Plan for the future
•
Put their money to
work for them
•
Consult a financial professional about their money
•
Save on taxes
•
Own their own businesses
•
Live a comfortable lifestyle
•
Save their money
•
Have an emergency fund
•
Live debt-free
•
Live their dreams
Developing a
Financial Strategy
Developing a consistent, long-term financial
strategy is important.
Here are three financial concepts WFG uses to
help people move from dreaming to doing™:
• The Law of Building Equity
• The Rule of 72
• Dollar Cost Averaging
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The
Law of Building Equity
A concept that theorizes a person’s
responsibilities generally decrease and
wealth generally increases over time.
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Rule of 72:
How Compound Interest Works
Objective:
To help determine how many years it would take to
double initial savings or investments, dividing 72 by
the interest rate.
Goal:
To outpace inflation and reduce taxation.
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Dollar Cost
Averaging
Objective:
A strategy to
systematically
purchase shares
of a securities
product to help
offset investment
risk in a
fluctuating
market.
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* The investor outcome is a hypothetical example for illustrative purposes only and does not reflect the actual investment in any product. Therefore, the outcome does
not reflect risks, expenses or charges associated with any actual investment.
Historical Performance of
Investment Markets
Stock, Bonds, Bills and Inflation
Summary Statistics 1926–2007
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©2008 Morningstar, Inc. All rights reserved. Used with permission.Note: This chart does not reflect past or future performance of any specific product (Data Jan.1,1926-Dec.31, 2007). Hypothetical value of $1 invested
at the beginning of 1926. This chart is for illustrative purposes only and is not indicative of any investment. The data assumes reinvestment of all income and does not account for taxes or transaction costs. The
average return represents a compound annual return. Government bonds and Treasury bills are guaranteed by the full faith and credit of the United States government as to the timely payment of principal and interest.
Bonds in a portfolio are typically intended to provide income and/or diversification. U.S. government bonds may be exempt from state taxes and income is taxed as ordinary income in the year received. With
government bonds, the investor is a creditor of the government. Stocks are not guaranteed and have been more volatile than the other asset classes. Large company stocks provide ownership in corporations that
intend to provide growth and/or current income. Small company stocks provide ownership in corporations that intend to seek high levels of growth. Small stocks are more volatile than large stocks and are subject to
significant price fluctuations, business risks, and are thinly traded. Capital gains and dividends received may be taxed in the year received. Underlying data is from the Stocks, Bonds, Bills, and Inflation® (SBBI®)
Yearbook, by Roger G. Ibbotson and Rex Sinquefield updated annually. An investment cannot be made directly in an index. Past performance is no guarantee of future results.
Source: In this example, small stocks are represented by the fifth capitalization quintile of stocks on the New York Stock Exchange (NYSE) for 1926-1981 and the performance of the Dimensional Fund Advisors, Inc.
(DFA) U.S. Micro Cap Portfolio thereafter; large stocks are represented by the Standard & Poor’s (S&P) 500®, which is an unmanaged group of securities and considered to be representative of the stock market in
general; government bonds are represented by the 20-year U.S. government bond, Treasury bills by the 30-day U.S. Treasury bill and inflation by the Consumer Price Index.
Historical Performance of
Investment Markets After Taxes
Stock, Bonds, Bills and Inflation After Taxes
Summary Statistics 1926–2007
19
©2008 Morningstar, Inc. All rights reserved. Used with permission.Note: This chart does not reflect past or future performance of any specific product (Data Jan.1,1926-Dec.31, 2007). Hypothetical value of $1 invested
at the beginning of 1926. This chart is for illustrative purposes only and is not indicative of any investment. The data assumes reinvestment of all income and does not account for taxes or transaction costs. The
average return represents a compound annual return. Government bonds and Treasury bills are guaranteed by the full faith and credit of the United States government as to the timely payment of principal and interest.
Bonds in a portfolio are typically intended to provide income and/or diversification. U.S. government bonds may be exempt from state taxes and income is taxed as ordinary income in the year received. With
government bonds, the investor is a creditor of the government. Stocks are not guaranteed and have been more volatile than the other asset classes. Large company stocks provide ownership in corporations that
intend to provide growth and/or current income. Small company stocks provide ownership in corporations that intend to seek high levels of growth. Small stocks are more volatile than large stocks and are subject to
significant price fluctuations, business risks, and are thinly traded. Capital gains and dividends received may be taxed in the year received. Underlying data is from the Stocks, Bonds, Bills, and Inflation® (SBBI®)
Yearbook, by Roger G. Ibbotson and Rex Sinquefield updated annually. An investment cannot be made directly in an index. Past performance is no guarantee of future results.
Source: In this example, small stocks are represented by the fifth capitalization quintile of stocks on the New York Stock Exchange (NYSE) for 1926-1981 and the performance of the Dimensional Fund Advisors, Inc.
(DFA) U.S. Micro Cap Portfolio thereafter; large stocks are represented by the Standard & Poor’s (S&P) 500®, which is an unmanaged group of securities and considered to be representative of the stock market in
general; government bonds are represented by the 20-year U.S. government bond, Treasury bills by the 30-day U.S. Treasury bill and inflation by the Consumer Price Index.
Investment
Fundamentals
Apply the Rules
for Investing:
• Invest consistently.
• Diversify/spread
out the risk in your
portfolio.
• Invest long term.
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HOW WE DO IT
The
Business Format System
“To build a big team,
you need to have
a system.”
22
The
Business Pipeline
2
1
23
Make Contact
• Schedule
appointments
• Unscheduled
drop-bys
4
Corporate
Overview
• Disturb &
Intrigue
6
3 Invitation or 5
Prospecting/
Referrals
• Your 100 name list
• Top 25 list from
associates
• 10 referrals from
each client
Presentation
• Schedule
appointments
• Unscheduled
drop-bys
AMA
7
Associate
Field
Training
Program
8
9
Sales
10
QMD
Licensed &
Interview
Registered
• Membership Associates
agreement
• Top 25 Prospect List
• Personal financial review
• Top three invited to next meeting
11 Lifestyle
Cash
Flow
The
Business Pipeline
Fundamentals of the System:
• Target Market List
• Associate
Training
• Big Events
24
Field
What is
a Prospect List?
According to
The Business Format
System training manual,
the Prospect List is a list
of people who may or
may not join you. The
Prospect List is where it
all begins. The secret of
a jumpstart lies in the
Prospect List.
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The Psychology Behind
The Prospect List
When developing a Prospect List,
focus your attention on:
• Gaining spousal support.
• Meeting with clients and
spouses in their home,
instead of the office.
• Gathering as many names
as possible, of at least
100 people to start, then
qualify the Top 25 prospects.
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Qualifying Your
Prospect List
1. 25+ years old
2. Married
3. Dependent children
4. Homeowner
5. Solid business/career background
6. $40,000+ household income
7. Dissatisfied with their
current situation
8. Entrepreneurial minded
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Fast Start
with Associate Field Training
Field Training helps get a new associate off
to a fast start and spurs duplication. When a
new associate is trained properly, that person
will duplicate what you do.
Field Training helps new associates become:
• Field friendly from the outset
• Knowledgeable about the WFG
Opportunity immediately
• Confident about field work once they
are licensed and registered
• Ready to produce by learning and observing
presentations during the Field Training Program*
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“BFS Builder”
The Business Pipeline Builder
Mindset Behind the Business Pipeline
• Recruiting Mentality
Prospecting
• Builder’s Mindset
Business Pipeline
• Meeting Mentality
Director of Motivation
• Leading by Example
Manage Activities/
Focus on Results
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How to Get
Licensed
First Priority:
• Submit insurance licensing paperwork and U4
• Take insurance licensing and securities
registration exams while building
your team.
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What it Means to be a
“BFS Builder”
Purpose: To make a difference for families.
Goal: To have a Builder’s mindset.
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The “BFS”
Mindset & Training
• Ultimate Goal:
Become the leader
of thousands
• Be part of a winning
team by building
bigger together
• The bigger you are
the more coachable
you should be
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The “BFS”
Builder
Last but not least, to become a BFS Builder,
you need:
• An excellent grasp and understanding
of The Business Pipeline.
2
1
34
Make Contact
• Schedule
appointments
• Unscheduled
drop-bys
3
Prospecting/
Referrals
• Your 100 name list
• Top 25 list from
associates
• 10 referrals from
each client
4
Corporate
Overview
• Disturb &
Intrigue
5
Invitation or
Presentation
• Schedule
appointments
• Unscheduled
drop-bys
6
AMA
7
Associate
Field
Training
Program
8
9
Sales
10
QMD
Licensed &
Interview
Registered
• Membership Associates
agreement
• Top 25 Prospect List
• Personal financial review
• Top three invited to next meeting
11
Cash
Flow
Lifestyle
WFG
Compensation
The following example shows how helping one family results in $1,968 of commission paid to the
field.1,2 For this example, the commission amount is based on an average Indexed Universal Life
(IUL) insurance policy3 sale to a 40-year-old male who is contributing $200 per month to the IUL.
Associate4,5
(Helps four families per month)
Qualified Marketing Director4,5
(Helps four families per month)
Per Month
Per Year
$2,755
$33,060
$5,116
$61,392
1 Opportunities to build other income may be achieved by qualifying for additional compensation and by qualifying for bonus pools.
2 Commission amount may vary based on product type and size of purchase.
3 Please be aware that insurance products are sold by prospectuses, which contain more information about the product’s fees,
charges and limitations. Be certain to perform a thorough review of the entire prospectus. Historical performance does not
guarantee future investment results.
4
This is a hypothetical scenario for illustrative purposes only. There is no assurance that these results
can or will be achieved. Income is earned from sales of World Financial Group authorized products and
services. No income is earned for recruiting. See the current World Financial Group Field Manual for
compensation percentages on all diversified product lines. All compensation plans subject to change.
Promotional criteria/designations are determined and offered by or through World Financial Group.
Personal percentages earned on products may vary based on promotional level with WFG. As of Jan, 1,
2007, WFG Associate contract level of 35%, Qualified Marketing Director contract level of 65%, Qualified
Marketing Director override level of 30%.
5 Associates of World Financial Group are independent contractors, regardless of field title/designation.
35
WFG
Compensation
The following example shows how helping one family results in $1,968 of commission paid to the
field.1,2 For this example, the commission amount is based on an average Indexed Universal Life
(IUL) insurance policy3 sale to a 40-year-old male who is contributing $200 per month to the IUL.
Qualified Marketing Director with a five-person team4,5,6
Per Month
Per Year
Only Qualified Marketing Director’s team members5
(Helps four families per month)
$11,808
$141,696
Qualified Marketing Director and each team member5
(Helps four families per month)
$16,924
$203,088
1 Opportunities to build other income may be achieved by qualifying for additional compensation and by qualifying for bonus pools.
2 Commission amount may vary based on product type and size of purchase.
3 Please be aware that insurance products are sold by prospectuses, which contain more information about the product’s fees, charges and limitations. Be
certain to perform a thorough review of the entire prospectus. Historical performance does not guarantee future investment results.
4 This is a hypothetical scenario for illustrative purposes only. There is no assurance that these results can or will be
achieved. Income is earned from sales of World Financial Group authorized products and services. No income is earned
for recruiting. See the current World Financial Group Field Manual for compensation percentages on all diversified
product lines. All compensation plans subject to change. Promotional criteria/designations are determined and offered by
or through World Financial Group. Personal percentages earned on products may vary based on promotional level with
WFG. As of Jan, 1, 2007, WFG Associate contract level of 35%, Qualified Marketing Director contract level of 65%,
Qualified Marketing Director override level of 30%.
5 Associates of World Financial Group are independent contractors, regardless of field title/designation.
6 Example assumes all Qualified Marketing Director痴 team members are at the Associate level.
* Many people have experienced different levels of success with World Financial Group. However, individual member experiences may vary. This statement is
not intended to, nor does it, represent that any current member's individual results are representative of what all participants achieve when following the World
Financial Group system.
36
The Next
Big Event
The WFG environment allows
ordinary people to achieve
extraordinary things.
37
In order to qualify for participation in contests, and to receive prizes and awards, an individual must be in good standing with World Financial Group and its affiliated
companies.Many people have experienced various levels of success with World Financial Group. However, individual member experiences may vary. This
statement is not intended to nor does it represent that any current member’s. individual results are representative of what all participants achieve when following the
World Financial Group system.
Next
Steps
2. Get Ready for Next
Business Format School
1. Submit Licensing Paperwork and
Qualify for Next Big Training Event
38
In order to qualify for participation in contests, and to receive prizes and awards,
an individual must be in good standing with World Financial Group and its
affiliated companies.
Many people have experienced various levels of success with World Financial
Group. However, individual member experiences may vary. This statement is
not intended to nor does it represent that any current member’s individual
results are representative of what all participants achieve when following the
World Financial Group system.
World Financial Group, Inc. (WFG) is a financial services marketing company
whose affiliates offer life insurance and a broad array of financial products and
services.
Securities are offered through World Group Securities, Inc. (WGS), Member
FINRA/SIPC.
Insurance products are offered through World Financial Group Insurance
Agency, Inc. (WFGIA) or its subsidiaries.
WFG, WGS, WFGIA are affiliated companies.
Headquarters:
11315
Johns
Creek
Parkway,
Duluth,
GA
30097-1517,
PO Box 100035, Duluth, GA 30096-9403.
Phone: 770.453.9300. WorldFinancialGroup.com
©2008 World Financial Group, Inc.
0889-1m/8.08