Association Leadership ConferencesExecutive Vice President, David V. Dellinger

July 13, 2011 – SacramentoJuly 14, 2011 – Seal Beach

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NAIFA-California2

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

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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”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 . . .

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““Membership Value Proposition”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?

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““Membership Value Proposition”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 . . .

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““Membership Value Proposition”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

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““Membership Value Proposition”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 . . . 76.5% __________? vs. 91% __________?

What are your annual dues __________?

What is your #? $_________/Daily $_________/Monthly

What’s a $ucce$$ful $ale$ idea really worth?

NAIFA-California

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““Membership Value Proposition”Membership Value Proposition”

7. Two other historical numbers that are good for you to know and understand by way of background . . .

1. 8/10

2. 3 /4 (or 1-1/2 out of the 2)

NAIFA-California

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““Membership Value Proposition”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.

$$$/Value/$$$/ValueNAIFA-California

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““Membership Value Proposition”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

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““Membership Value Proposition”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 $200.00 each, that

wouldn’t far exceed the cost (investment) of

their NAIFA dues? __________

Let’s review again for “reinforcement” …

NAIFA-California

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““Membership Value Proposition”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

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““Membership Value Proposition”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