EF Fall 07.indd - National Association of Professional Allstate ...

ExclusivefocusFall 2007An Official Publication of the National Association of Professional Allstate Agents, Inc.IN THIS ISSUEWill Your Agency Sink or Swim?Staying Afloat in Turbulent WatersTroubling Newsfor Allstate Agents in CanadaCaptive vs. Independent...Is the Grass Greener?Exciting New Health InsuranceOptions for MembersLearning Best Practicesfrom Other Allstate AgenciesHow to Start a Breakfast or Lunch Group in your AreaPlus, More About Technology Solutions for Allstate AgenciesA Magazine for Allstate Agency Owners and Allstate Personal Financial RepresentativesA Magazine for Allstate Agency Owners and Allstate Personal Financial Representatives

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AAs you read through this issue of Exclusivefocusmagazine you will read severalcomments from agents and vendorswho attended NAPAA’s 17th annualBusiness Conference in Las Vegas. Byall measures, it was a resounding success.Over the years we have had some excellentconferences, but this one ranks asone of the best ever. And, this year conferencespeakers didn’t let us down. Everyone of them offered valuable tips andinformation on a variety of topics. I enjoyedevery speaker, but being the politicalanimal that I am, my personal favoritewas the president-elect of the NationalAssociation of Insurance Commissioners(NAIC) and current insurance commissionerfrom Kansas, Sandy Praeger. I ampersonally grateful for the time she spentwith our group. It is important to makeconnections with those who regulate ourindustry. Your association is working tokeep those lines of communication openThere are many reasons why we hostannual conferences each year. First, itgives our members an opportunity toobserve their professional agent associationin action, as well as interact withNAPAA board members. Plus, it givesthem an opportunity to meet past presidentsand founders of our organization.Second, NAPAA believes that it is importantfor agents to stay informed notonly about matters concerning Allstateand the insurance industry, but aboutbusiness in general. Third, NAPAA believesthat it is very important for agentsto gather together to share informationand discuss common issues.Years ago it was common for agencymanagers, now called MDLs, to hostdistrict meetings and life “walk-ins.” Forthose of you who have never been to oneof these functions, it was a time when allthe agents in a market would convene fora training session or, in the case of a walkin,a business and social gathering wherepresident’s letterWe Can Always Do BetterBY DALE REVELS, NAPAA PRESIDENTagents would hand deliver life apps and thedistrict manager would furnish beer andpizza. These were times when agents couldcommiserate and share war stories. Somehow,that feeling of family has long sincedisappeared. NAPAA believes in preservingthis tradition of agents congregatingtogether. We believe it is both beneficialand healthy. In this issue of Exclusivefocusyou will see how my friend Steve Marcus,an agent in Florida, has developed verysuccessful monthly agent meetings.One of the other great success storiesof the conference was your association’sability to reach out to new sponsors andvendors. As you are aware, agencies willwhat’s insidesoon be responsible for technology expenses.While the NRG’s base and transitioncomponents will help agencieswith immediate technology expenses, webelieve that agencies will be weaned fromcorporate subsidies upon replacing theexisting technologies in their agencies.The third NRG component is based onachieving RFG goals. This permanentcomponent provides an added incentivefor agents who reach their RFG objectives.As difficult as it is to meet RFGgoals year after year, many agencies willwind up paying for most, if not all, oftheir technology expenses.Your association is working diligentlyWill Your Agency Sink or Swim? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Sowing Seeds for the Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Captive vs. Independent... Is the Grass Really Greener?. . . . . . . . . . . . . . . . . . . . 16Industry Leading Healthcare Solutions for NAPAA Members . . . . . . . . . . . . . . . 18Finding the Right MEDIA for the Best Response. . . . . . . . . . . . . . . . . . . . . . . . . . . 20Putting Together an Idea Sharing Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Technology Solutions for Allstate Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26The Canadian Experiment: a Precursor for U.S. Agencies? . . . . . . . . . . . . . . . . . 30A Small Business Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32NAPAA Conference Quips & Quotes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Increase Your Revenues with Third Party Referrals. . . . . . . . . . . . . . . . . . . . . . . . 38DSL – Reliable, Cost-Effective Connectivity for Your Agency . . . . . . . . . . . . . . . . 42Stepping Stones to Purchasing an Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44Anatomy of a Toner Cartridge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Another Brick in the Wall: What NAPAA Does For You . . . . . . . . . . . . . . . . . . . . . 48Managed Services: The Next Frontier of Technology for Business. . . . . . . . . . . 50Protect Your Electronic Customer Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52When Your Callers are On Hold, Your Business Shouldn’t Be. . . . . . . . . . . . . . . . 54How to Successfully Brand Your Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Six Keys to a Winning Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58NAPAA Marketplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614 — Exclusivefocus Fall 2007

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to find quality vendors who offer affordablesolutions for the products andservices agents will need in the comingmonths. As you will see in this issue ofExclusivefocus, we have asked several ofthese vendors to write articles that canhelp you understand some of the issuesyou’ll soon face on the technology front.I hope you will find this informationhelpful and timely.In addition to helping agents locatesolutions for the pending technologytransition, we have also been looking forways for agency owners to earn additionalincome. We are seeking income opportunitiesthat can be worked part-time,have no quotas and don’t jeopardize youragency agreement. We are announcingour first such opportunity in this issue ofExclusivefocus.In the spring issue of ExclusivefocusI wrote that I was disappointed withAllstate’s national advertising. If you recall,some company ads at the time weredevoid of agent references and encouragedconsumers to call an 800 number.This was a vexing and demoralizing issuefor many agents. But now, basedon the new commercials I’ve seen, it isclear that Allstate has had a change ofheart. The Magic 8-Ball® commercial isa home run for agency owners especiallywhen the ad proclaims “These days, youneed more than just an insurance agent.You need an Allstate agent.” This is goodnews for agency owners. The company isnow advertising its fantastic agency forceon television and in print. NAPAA occasionallygets a bad rap for not being positive,so today I am publicly thanking Mr.Wilson and his team for doing the rightthing for the agents and the company.It is up to us to make the most of thisnew advertising by focusing on the productsand services that make the most sensefor our customers. While our auto productmay not always be the least expensive optionfor consumers, we do offer some benefitsthat others don’t. And, since it doesn’tappear that the company intends on gettinginto a price war any time soon, it seems tome that if we want to continue our careersselling Allstate, we need to learn to sellthe unique features of our products. YourChoice Auto is an excellent example of afeature-driven product. Selling on pricealone will not do it anymore.Based on what I’ve read lately, it appearsthat Allstate is focused on longterm customer relationships. This is goodfor both the agent and the company.Allstate’s job is to build better productsthat can help us retain more customers.Our job is to educate prospects and customersabout policy features, options andbenefits. If we do our job properly, thisprocess can help attract some new customersand keep existing customers fromshopping. From my perspective, I don’twant insurance to be a commodity thatis traded every time rates change. Everytime a customer switches policies, guesswhat? I’ve got to replace the account ormy income suffers. We must get awayfrom selling price alone or we’ll alwaysbe dealing with the retention problem.Finally, this is my fourth year as presidentof your association. I am happy toreport that NAPAA is in good financialhealth and we are growing our membership.Exclusivefocus magazine is the onlymagazine in the world specifically writtenfor Allstate agents by Allstate agents.We send out more than 14,000 copies viaU.S. mail four times a year. Membershipin NAPAA is less than a dollar a day. Ifyou are not a member, I ask for your support.Please join us today or contributeto our legal and legislative Action Fund.If you are a member, I want you to knowthat your support is greatly appreciated.Thank you and good selling.Dale RevelsExclusivefocusNational Association ofProfessional Allstate Agents, Inc.P.O. Box 7666Gulfport, MS 39506-7666Phone Toll Free (877) 627-2248Toll Free Fax (866) 627-2232Web Site www.napaausa.orgEmail HQ@napaausa.orgNAPAAJim FishExecutive EditorP.O. Box 7666Gulfport, MS 39506Phone (877) 269-3474 • Fax (866) 627-2232Exclusivefocus@napaausa.orgExclusivefocus and DirectExpress are officialpublications of NAPAA - The National Associationof Professional Allstate Agents, Inc. No part of thispublication may be reproduced without prior writtenpermission of the publisher. It is the policy of thispublication to reflect the professional thoughts and attitudesof our members and to advance the professionalismof the insurance industry to the ultimate benefitof the insuring public.The views expressed by NAPAA, or any of itspositions relative to its activities and those of itsmembers’ actions on behalf of this organization, areexpressly those of NAPAA, and do not reflect the viewsor the opinions of Allstate Insurance Company, or anyof its affiliates.Letters to the Editor: All letters must include anaddress and a daytime and evening phone number. Wereserve the right to edit letters for clarity and space.This issue of Exclusivefocus magazine may containarticles of interest submitted to NAPAA by outsideauthors. NAPAA is not responsible for the opinions, adviceor accuracy of any information provided therein.NAPAA’s Mission StatementNAPAA is dedicated to the success of AllstateExclusive Agency Owners and to advancethe independence and entrepreneurial spirit ofour members.NAPAA’s GoalsOur goals are subject to alteration, influencedby a constantly changing environment and theneeds and wishes of our members.NAPAA encourages its members to activelyparticipate in the process of defining and refiningour Mission, Goals and Positions.Our General Goals:• To provide an organization specifically tailoredto benefit Allstate Exclusive Agents• Monitor legislative and legal issues pertinentto Agents and their clients• Maintain an Action Fund to support issuesbeneficial to agents and clients• Provide reliable communications on all issuesthat affect Agents and the ability to call uponour members to act• Provide Agents with a distinct voice on issuesthat affect them, continually exploring optionsand solutions• Make tools and resources available formembers in an effort to increase agency valueand success.For more informtion, please visitwww.napaausa.org6 — Exclusivefocus Fall 2007

www.NAPAAUSA.org

I want to congratulate you all on afine, fine magazine in the last issue of theExclusivefocus. Like I tell other agents, itpays to join your own agent’s association.The future of Allstate’s NGR programcan be influenced by NAPAA’s input. Ifagents think that the inkjet program wasbad, wait until the technology piece isrolled out countrywide.Again, great magazine, keep up thegreat work!I would like to express my sincere appreciationto NAPAA’s management andboard of directors for, once again, providinga memorable convention agenda andprogram. I have been attending theseconventions off and on since 1992 andfound the 2007 convention to be one ofthe most valuable and informative.After 35 years with the company, Iletters to NAPAAsometimes feel that I’ve seen and heardit all. Membership in NAPAA provesits value to me time and time again. Wereceive valuable information allowingus to plan for the future of our agenciesrather than have knee jerk reactions tomanagement decisions. We share honest,genuine, common experiences andsolutions for successfully growing ouragencies and planning for careers afterAllstate.It is gratifying to know that NAPAA’smanagement team has developed relationshipswith many vendors who willinglydiscount their products and servicesfor NAPAA members. These discountsmore than pay for membership dues andcan help agencies operate more cost effectivelyby trimming overhead expenses.I enjoyed hearing the President-Electof the NAIC and look forward to herpositive approach to industry and consumerconcerns. My hats off to you for agreat convention!George AdamsI read with interest your commentaryon the introduction of Alliance and thereplacement of Alstar. Prior to purchasingmy agency two years ago, I worked inthe software industry for 20 years in salesand sales management, and I understanda few things about business and transactionprocessing applications.First, Alstar is not going away. Thismainframe OLTP system is too importantto Allstate’s business model to replacethis core piece of technology. Most Fortune500 companies still utilize this technologyto process millions of transactionsdaily. Nothing is more reliable and securethan the mainframe for large corporationsto run their business. Second, Allianceis a Web interface to Alstar. In addition,there is a lot of middleware technologythat Alliance connects to gather data fromdisparate systems that presents a unifiedview to the user. Alliance is not anotherOLTP system to run Allstate’s business.The browser environment for users willcover up a host of sins under the coversthat the Allstate IT department will managebehind the scenes.While Alliance is a significant improvementfor the user community, youcan still see all the Alstar commands underneathyour keystroke operations. Theintegration of the credit report and LISand MVR is, of course, a big help andtime saver, especially for training newagents and staff.Finally, in my prior life I spent manyyears selling to the financial servicesindustry, specifically in the New Yorkregion. The accounts that I covered implementedmy company’s Internet technologiesto modernize these front endsystems as early as 1999. These includeAIG and Prudential to name companiesin the insurance space. So let’s give Allstatecredit for rolling out Alliance, abouta half a decade late.8 — Exclusivefocus Fall 2007

Hi Jim,Thank you again for sending me thefiles. I would like to take you up on youroffer to further assist me. First of all, comingacross NAPAA website has been thebest thing that I’ve done in the last eightmonths. I’ve been researching Allstate andState Farm for about eight months now.I’ve met with countless Allstate, StateFarm and Farmers agents. Also, I’ve spentmany hours with MDLs and AFEs (StateFarm). Even after spending so much timewith them, as well as doing my own research,I feel as though I haven’t mademuch progress. Since MDLs and AFEsare in the business of recruiting, I takewhat they tell me with caution – especiallyafter the negative comments I’ve readabout them in many articles and on messageboards. Agents they refer me to seemto be political and reserved. I can’t helpbut think these agents were personallyselected for a reason. I question whetherthey have my best interest in mind. Almostany question I ask is followed by“Well, that depends on you.” The answersare very general at best. I’m finding outthat few to none like to talk about the badside of being an agent for their company.I don’t know how they’re expecting me tomake good business decisions and draftup a strong business plan if I don’t understandboth the good and the bad side ofthis business and the company. I feel likeI’m going in a circle.Long story short, I have nowhere elseto turn for direct answers. After reviewingthe NAPAA website, I believe inwhat your organization is trying to accomplish.I would like to know if you oranyone in your organization can help meanswer some of the questions I’ve beendying to know for the last 8 months.I’ve decided to pursue my career withAllstate over State Farm because I feellike Allstate has a better contract basedletters to NAPAAon the research that I’ve done. However,after reading the articles you sent me, I’mnot so sure anymore. I would greatly appreciateany assistance you can offer me.Editor’s Note: Headquarters staff spenthours with the author of this letter. The articleswe sent him were “Memoirs of a ScratchAgency Owner”, “Jack’s Story”, “The Rest ofthe Story” and “It begins with the Interview,”all of which were published by Exclusivefocusin the past year. Last we knew, the authorwas still trying to make a decision.I receive your emails and, althoughI believe a group representing agents iswarranted, I feel that this one is a negativecampaign.Any thought to trying and work withcorporate to get some gains for the agents?Editor’s reply:Thanks for your question. First, I shouldsay that NAPAA would like nothing morethan to work with the company on issues affectingagents. In fact, NAPAA has offeredto work together with Allstate on several occasionsover the years. When I was NAPAApresident, I stood before Ed Liddy at an Allstateshareholders meeting and beseeched himto begin a dialog with us. In addition, I hadmany positive relationships with many insenior management. My latest offer to workwith management was written in the spring2007 issue of Exclusivefocus magazine whenI wrote: “Since reducing agent turnover isa goal that NAPAA shares with Allstate,we invite Mr. Wilson to meet with us. Wewill be truthful, insightful and professional.We won’t be timid, shy or intimidated. Mr.Wilson, if you’re reading this, please give us acall us at 877-269-3474. Let’s talk.” Unfortunately,this offer, like all of our other overtures,has apparently fallen on deaf ears.Again, thank you for writing. We valueyour input.Do you guys actually work for corporatenow, or does it just seem that way? Usedto be we could get some real news fromNAPAA instead of just cheerleading.Please stop sending me these emails.If you ever do decide to actually becomeadvocates, a voice for the agency forceagain, please let me know.Sincerely,A prior NAPAA memberEditor’s Reply:I wanted to let you know that we have receivedyou email requesting that you be takenoff our mailing list. I am sorry you have decidedNAPAA is no longer an agent advocate.I would like to point out that in recent yearswe supported both the anti-credit scoring initiativein your state as well as the Duke Metzcase. We are currently active legislatively inFlorida and Texas. Our legislation in Texas(HB1047) is a bill that, if enacted, will givecaptive agents the same termination protectionsthat independent agents now enjoy. Idon’t know what your definition of advocacyis, but I would say these measures are definitelyadvocating for the agent. What wouldyou recommend we do and how would yousuggest we pay for it?Agents tend to think that NAPAAneeds to do this or do that. The reality isthat it takes money and membership, notfair weather fans. If every Allstate agentwas a member, we would have the moneyto accomplish much more. The FL lawsuit,which we lost, cost us over $700,000. We areonly now beginning to dig out from underthat one. I contributed over $3,000 to helpfinance that lawsuit… how much did youcontribute? I have been a NAPAA memberfor 14 years… how long were you a member?I lost my agency for speaking out andyou still have yours.I guess what I am saying is that if youwant NAPAA to change, then get involvedFall 2007 Exclusivefocus — 9

and stay involved. Come up with some ideasand solutions and present them to us. Contraryto what you think, NAPAA has notgone soft. We will be here when the next majorcrisis comes along and, suddenly, the fairweather fans will pile onboard. NAPAA hasfought the fight ever since we were foundedin 1990. Our tactics may have changed overthe years, but we are still totally committedto the Allstate agent.I wish you well, my friend. I will see to itthat you are removed from all our mailing lists.Most of us have heard of or read“Bigger, Better, Broader.” This year’sNAPAA conference was Bigger, Better,and Broader.Our NAPAA motto, “Your Successis Our Business” was put in play at thisyear’s conference. The attendees’ lengthsof Allstate service ranged from new tomore than 40 years. Every Allstate agencyowner I met was highly professional.The conference sponsors and vendorsprovided needed information and offeredproducts that the Allstate agency ownerof the future will need, from health insuranceto IT support.As independent contractors, havingaccess to a nationwide networking association,has high value. Those sponsorsat our conference went above and beyondthe call to take the time to explainand help our attendees. Many were at theCEO level of their companies.NAPAA’s leadership hit a grand slamwith the conference speakers. Our executivedirector, Jim Fish, went to anotherlevel getting that agenda put together.Our association manager, Nancy Fish,made the event effortless for those of usin attendance.Under Dale Revel’s leadership, aspresident of our association, NAPAAis reaching another level of value to ourmembership. NAPAA’s officers and directorshave dedicated the time it takesletters to NAPAAto help make a difference. Each of themare professionals who care for others bygiving something back to a cause that isnear and dear to their hearts. I’m thankfuland proud to call each a friend.In over 30 years of the insurance practicegame, and countless meetings andconferences, I have never enjoyed or gottenas much information from all thoseother events as I did from this NAPAAconference.The past has been great. Even withthe ups and downs life throws us. Helpingmake a difference only lets us knowthe best is yet to come.Johnny LeighDear Jim and Nancy,Just some random thoughts.Tom Wilson says that we are lookingfor High Value Lifetime customers, buthe does not define who they are. How dowe get them? I called my sales leader andhe told me to go door to door and makephone calls. Not very effective. Customerswant competitive rates!Agencies in my state are losing PIF atan alarming rate. Managers won’t discusspricing, except to say that we are where wewant to be. Even senior agents are afraidto speak up. They do not want to get attentionor be called negative. Remember,they can fire you for any reason.Our phone doesn’t ring very much.Most families with two cars can save around$1,200 per year with many companies.We are having seminar training onYCA again because agents do not get it.Customers get it; it is the price. Customerchoice auto is for lower price.The New Roads for Growth initiativemeans that agents will pay more fortechnology and support.I feel like a serf in pre-revolutionaryFrance. The monarch, Louis XIV,said “L’État c’est Moi,” which means, “Iam the State.” He raised taxes again andagain to support his lifestyle. If anyonecomplained, well, he could execute them.When we were urged to get our securitieslicense, there wasn’t a quota. Thenthere was one and now it is doubled.I am looking for the silver lining andtrying to stay positive.As one of the founders of NAPAA,I have attended most of the association’sannual conventions. The first was held in1990 at the Aladdin hotel. It fell on hardtimes and was demolished a few yearslater. A reason for its demise was its inabilityto meet needs of a changing market.Not so for NAPAA. Your associationhas also gone through tumultuous timesbut it has survived. It has reconstituteditself, and is now in a better position tomeet the needs of its members in thechallenges they face.In the early years NNOAC (NAPAA’sformer name) focused upon educatingmembers about problems confrontingthem and the role of Allstate in thoseproblems. Our duty at that time was toprovide irrefutable evidence that times hadchanged, and that their role in the company’sfuture was no different from that ofany other corporate asset. Possessed of adeep sense of loyalty and a belief that Allstatewould never do anything contraryto their best interests, the information wedisseminated was not what agents wantedto learn despite its factual underpinnings.For the majority of agents in the early1990s, financial survival was their overridingissue. Learning how to be a successfulentrepreneur was a major task.No less important was understandingcorporate slogans, such as “Invest in YourBusiness,” when stripped of corporatespin, meant agents were being compelledto pay for tasks once the administrativeand financial responsibility of Allstate.Today, the lines of demarcation aremore clear. You pay for everything, except10 — Exclusivefocus Fall 2007

for the computer and its related expenses,and it will not be long before this too willpass. Perhaps the biggest difference is thatthe majority of experienced agents havebecome realistic as a result of their experiences,more knowledgeable about how tocope with the challenges they are facing,and better at planning for their future.Then, many believed we could changecorporate culture. A decade and a halflater the culture remains the same. Onlyits methodology has changed, and thevalue that agents bring to the table is stillunappreciated, seen primarily as an expenseitem to be targeted for reductionwhenever and wherever possible.Once we were employees whosemarketing talents helped fill Allstate’scoffers and made it a household name.As agents prospered, so too did Allstate.Things changed abruptly in 1984when our incomes became a target forcorporate expense reductions. Then in2000, agent-employees were outsourced.Agents were morphed into so-called IndependentContractor status, resulting inthe elimination of their benefit programsbut not granted the independence associatedwith a true independent contractor.From Allstate’s vantage point, it was likehaving its cake and eating it too.Enough history, now on to the future.For those of you who missed thisyear’s convention, you missed one of thevery best I have ever attended. There wasmore information provided by speakersand vendors that is of immediate relevanceand value to agents today then youcan possibly imagine. And, the surfacewas only scratched due to time limitations.For example, guest speaker AndrewSherman spoke for about an hour,but if he had spoken for an entire day, wewould have asked for more.My hat is off to Jim and Nancy Fishwho put this convention together. Of allthe NAPAA executive directors and associationmanagers who have come before,none have matched their abilities to recognizewhat agents need in order to succeedletters to NAPAAin today’s environment, and none of themhave worked as hard to make that informationavailable to the agency force. Betterthan most, they understand a corporateculture that has shown itself to be indifferentto the needs of agents. They recognizethe continuing assault upon agent incomeand independence, and even the potentialthat the agents’ role in the company’s systemof product distribution may be at risk,We Offer Structured Sale AnnuitiesSelling your Agency? Don’t forget about Taxes. Normally, if you sell youragency, property or other appreciating asset for a profit, you pay Capital GainsTax on the entire gain the year you sell it. There is an alternative that mayallow you to defer your gains, avoid Alternative Minimum Tax (AMT) and haveyour gross sale proceeds invested.If you are interested in:• Tax-deferred growth• Guaranteed Income stream that is not subject to the ups and downs of abusiness or market conditions• Investing gross proceeds rather than net proceeds and receive asignificantly better outcome over taking cash and absorbing the hit ofpaying Capital Gains in same year• Total flexibility in design of payment streamsno matter the size of an agency.NAPAA is indeed in “Good Hands”with Jim and Nancy. But they cannotdo it by themselves. The best thing eachmember can do to help their associationis to recruit one new member this yearand bring them to our 2008 convention.By helping us to help you, your futurewill be bright.Dick LarkinIMPORTANTTAX INFORMATION• Not being subject to the time constraints of a 1031 Exchange and not beingforced back into real estateStructure Your Deal to Meet Your Goals andObjectives on Your Time Frame!!!* This product is not designed to avoid tax penaltiesContactMajestic Settlement Consultants, LLC(866) 413-2700 • info@majesticsc.comFall 2007 Exclusivefocus — 11

featureWill Your AgencySink or Swim?New Opportunitiesfor Allstate AgenciesBY JIM FISH, EXECUTIVE DIRECTORIn many parts of the country, Allstateagents are facing mighty big problems.Shrinking markets, soaring E&O premiums,uncompetitive pricing, increasingagent technology expenses and Northbrook’sunflinching resolve to stay out of theprice cutting game are causing some agentsto rethink their future as agency owners.In this age of sliced and diced pricingtiers for auto and property insurance,it has become increasingly more difficultfor agents to identify specific market segmentswhere Allstate has a price advantage.The problem is that nobody can accuratelypredict who will qualify for thebest tier until the PQB information isavailable. Many agents have resorted tobuying pre-qualified leads, such as Internetleads, hoping it will help zero in on that“sweet spot” where the Allstate product ismost competitive. While these leads haveproven to be pretty good, there are somedisadvantages. First, the leads are usuallyshared with agents from other companiesand, as most agents have discovered, mostof the choice zip codes are already takenby other Allstate agents. Recognizing thepotential of Internet leads early on, someAllstate agents have essentially corneredthe market in their state by buying upall available Zip codes from the top tierInternet lead companies like NetQuote.Agents who work Internet leads claimthat the agent who contacts the prospectfirst has the best chance to write the business.For Allstate agents, this is especiallytrue. As the first contact, you can extol themerits of YCA and the Allstate brand. Ifthe competition calls first, you could have12 — Exclusivefocus Fall 2007

problems because, chances are, your ratewon’t be the lowest.Most agents understand that valueselling only goes so far. How much overthe competition is the Allstate brandworth? $100, $250, $500? The answerdepends on the perception of your customer.While many prospects are interestedonly in price, there are definitelysome who are willing to pay more to gofirst class. These are the folks who wanthonest answers, fair treatment, dependableservice and minimal hassles. Whenyou do luck out and come across desirableprospects like this, the sale is notnecessarily a slam dunk because there areother factors that can influence the buyingdecision. One of these factors is theconsumer’s perception of Allstate andthe insurance industry as a whole. As anexample, more than two years after thefact, consumers are still being bombardedwith news stories about Katrina. And,as you know from reading these stories,they are rarely kind to our industry.Thankfully for us, it has been State Farmthat has taken most of the heat.Allstate agents are now faced witheven more hurdles as they pursue newcustomers. Selling brand value will becomeever more difficult as other majorinsurers, such as Geico, State Farm andAIG aggressively cut prices to lure yourcustomers away. This trend will be furtherexacerbated by Allstate’s stance oncutting rates. According to CEO TomWilson, Allstate is not about to participatein any price wars. In July he warnedthat the future could be “bumpier on newbusiness, but it will also be more stableon the long term.” Not joining the ratecutting party is a strategy certain to leadto a loss of new and renewal income forAllstate agents, many of whom have alreadylost their Allstate property markets.In addition, these same agents willsoon have increased technology expensesand some will lose their Allstate grouphealth insurance. For the agents trappedin this situation, one has to ask “howmuch more can they take?”It is clear that Allstate is undergoingtremendous changes. It is a corporate entitythat must make changes in order tosuccessfully compete amid intense competition.Many of Allstate’s decisions willaffect the way you do business and howyou run your agency. As we move forward,it is clear that the umbilical cord ofcompany support is being severed. In thefuture, only top performing agencies willreceive bonuses or subsidies. Allstate willprovide products for you to sell, but beyondthat you’ll be totally on your own.That is the essence of the new reality inyour relationship with Allstate. You willbe expected to find your own way in thisworld. Thankfully, your association, asyou will see throughout this magazine, isdedicated to finding ways to help agenciesthrough rough times.Selling in uncompetitive markets isnot easy, but not impossible. Unless ratesin a market are consistently much higherthan the competition, most establishedagencies can live through a few years ofhigher than average premiums. Smalleragencies have a more difficult time stayingafloat. Newer scratch agents areparticularly at risk. Many of them comeaboard with inflated expectations and areeasily discouraged by a lack of results.Then, desperation sets in as they seetheir life savings dwindle down to nothingand they have little to show for it.Some MDLs, in their zeal to hire moreagents, unwittingly set these agents upfor failure by allowing them to start anagency significantly undercapitalized.When you are in an uncompetitivemarket, the best approach to writing newbusiness and maintaining existing businessis to manage both sides proactively.On the renewal side, consider overhaulingyour customer contact program byfocusing on important policy features,the value your agency adds and, of course,the ease of doing business with Allstate.Many customers will truly appreciate youcaring enough to contact them. It maystop them from shopping when they receivetheir renewal bill. And, even if theydo, they will think twice about switchingto an agent unknown to them and whosecustomer service is untested.On the new business side, concentrateon learning all you can about the productsyou sell. What features are uniqueto your products and how are they betterthan the competition’s? This strategy is atough sell for prospects looking for thelowest price. Where it is most effectiveis with those consumers who appreciatedealing with a knowledgeable professional.They want an agent that really knowswhat he’s doing. Your Choice Auto is anexample of a product that lends itself toselling policy features and options. Yoursuccess, however, will still largely dependon the rates in your area. If your priceis excessively and consistently high, youmight want to consider shifting your focusto your renewal book in order to preserveas many accounts as possible.Developing and perfecting a YCAsales presentation touting the virtues ofthe product is not something every agentfeels comfortable doing. Let’s face it, inorder to sell the benefits of YCA, lifeinsurance or anything else, you have tobelieve in the product itself. If you don’tbelieve in what you’re selling, your prospectsand customers can usually sense it.With YCA, there are a lot of agents outthere who simply don’t believe the optionalfeatures are worth the money.Whatever path you take to write morebusiness during uncompetitive times,your efforts will yield some results. Thequestion agents in these markets shouldbe asking is “What is my return on thetime, money, staffing and effort it takesto write each policy?” In other words, is itworth your efforts to continue poundingaway day and night to write a few apps?That being said, if P&C rates in yourarea too high, it may be time to thinkabout getting involved in a secondarybusiness that won’t interfere with the operationof your agency. There are manybusiness opportunities available that canwork in tandem with your insurancebusiness. NAPAA has identified threesuch businesses and is looking for more.We want agencies to thrive even whenlocal market conditions make it tough toFall 2007 Exclusivefocus — 13

Smaller agencieshave a more difficult timestaying afloat.sell insurance.NAPAA has only started to scratchthe surface of these secondary businesses.What we are looking for are bonafide business opportunities that involveminimal paperwork and don’t requireadditional office space. We started bylooking at three such opportunities and,of the three, we are recommending oneof them at this time. The other two arestill under consideration. Our first recommendationis International CardEstablishment (866-423-2491 ext 571).“ICE” is in the payment processing industry.Nearly any business that acceptscredit cards is a prospect. When one ofyour referrals signs up with ICE you getpaid. Better yet, you’ll also receive anongoing stream of residual payments aslong as your referrals continue to processcredit card payments through them. Youwill find my letter of recommendation inthis issue of Exclusivefocus magazine.The other opportunities we are lookingat as possible secondary businessopportunities for Allstate agents are aPay-As-You-Go payroll processing andWorker’s Compensation plan for businessesand a travel business that wouldallow agents to start an online travelagency for an initial investment of lessthan $500.National CMServices (877-292-7460), the Pay-As-You-Go plan, is anotherreferral business. Like the ICEopportunity, agents simply refer theirbusiness acquaintances to NationalCMServices and they are paid on newand renewal gross payroll volume. So,once again, as long as your referral continuesto process with the Pay-As-YouGo plan, you will receive residual payments,just like your insurance renewals.The travel business is especially intriguingto me personally. I may decideto sign up just for the travel perks and thepotential tax advantages. For now, I havedubbed this opportunity “OYOTA” untilI’ve had a chance to investigate it further.With all the personal contacts agents andtheir staffs have, this opportunity seemslike a no-brainer. After all, who doesn’tlike to travel?Change is not something new for Allstateagents. Just when you think thingsare going well, something or someonecomes along and kicks over the anthill.This year it means more out of pocketexpenses for technology and E&O coverage,finding affordable health insuranceand learning how to sell policies ina tough environment. Next year it willbe something new and different. Howyou adapt to these new realities will determineif you will sink or swim. Startinga secondary business can increasecash flow and reduce stress. Think of asecondary business as a means of adaptingto the circumstances over which youhave no control. While some may argueto the contrary, Allstate classifies you asa self employed, independent contractor.As such, this status allows you some entrepreneurialfreedom and the ability tocontrol your own destiny. When Allstateis competitive and going great guns, asecondary business is unnecessary, butwhen it pulls in its horns, pulls out ofmarkets and shifts more expenses to you,then it may be time to consider a supplementalsource of income.When all’s said and done and the dusthas cleared, NAPAA wants your agencyto be one of those still standing.14 — Exclusivefocus Fall 2007

featureSowing Seeds for the FutureBY JOHNNY LEIGH, NAPAA BOARD MEMBERLet me begin by saying that Allstateagency owners have a pretty good dealgoing. Despite some of the more obviousdrawbacks of being a captive agent, Allstateagents enjoy more brand recognition andhigher book of business values than otherinsurance agencies. While independentagencies have to build their own identities,becoming an Allstate agency offers newagents instant name recognition. Imagineopening an independent agency fromscratch and trying to attract new prospects,especially when your portfolio of carriersdoesn’t include any nationally recognizedcompanies. There is no doubt that it can bedone, but it would take a lot of painstakingwork to turn your agency into a familiarhousehold brand.As newer Allstate agencies hone theirsales and marketing skills, however, it is awise move for the agency to build its owndistinct name recognition, outside of theAllstate brand. This process is called“sowing seeds for the future.”Let’s face it; Allstate has been in astate of flux for the past several years asit tries to position itself for the future.Many of the changes introduced in thepast seven years have been detrimental tothe average agent. To be sure, there willbe many more in the future.Smart business owners keep their optionsopen, looking for new and more rewardingyet less stressful opportunities.Thinking within the Allstate box couldlimit your businesses success. Buildingyour own brand can be accomplishedsimultaneously as you build your Allstateagency. Since co-op dollars are slimpickins these days, why not advertise the“Joe Smith Agency” instead of Allstate?By doing so, you are building your ownbrand that will give you a leg up if youshould ever open an independent agencyor another business.As an independent contractor workingon commissions, your income potential islimited only by the amount of product youare able to sell. If you are in a market whereauto and property is a tough sell, the Allstatealternative is to sell more life and financial. Idon’t know about you, but I was always partialto selling P&C. Life was not my forte.The great thing about being an independentcontractor is that you can own other businesses.When times are slow in the P&Cbusiness, why not consider a side businessin which you and your staff can participate?If you work it right, your earning potentialwill increase dramatically. There are a greatmany Allstate agents who operate otherbusinesses. These businesses include real estate,restaurants and mortgage companies.The key to financial success is diversification.It is true for investments and it istrue in business. Financial advisors cautioninvestors not to invest too much in anyone stock. Entrepreneurs who have theability to branch out into other businessesshould also avoid putting all their eggsin one basket. Getting involved in otherbusinesses should not scare you. Once youunderstand the business and how it works,you can hire someone to run it for you,similar to what many agents do with theirAllstate agencies. Remember, entrepreneursare the brains, not the brawn.This past June, I attended the NAPAAbusiness conference. There were more thana dozen vendors offering products and servicesof value for Allstate agents. A few ofthem were offering some very promisingincome opportunities for Allstate agents.The beauty of these opportunities is thatthey are not meant to detract from yourAllstate business, but to enhance it. Youwill find more information about these opportunitieselsewhere in this magazine.Allstate agency owners own the rightsto their agency’s economic value. Notonly can an agent build a good cash flowbut grow the agency’s economic value atthe same time. As an entrepreneur, youcan turn the vast majority of the day today functions of your agency over to yourstaff as you look for ways to write moreP&C business and meet your ExpectedResults. But, in reality, this does not haveto be a full time job. By properly trainingyour staff and then empowering them,your involvement can be minimal, as itshould be. Once you get to that point,you’ll have a lot of time on your hands.But instead of heading to the golf courseor to the lake, why not start another businessthat can make you richer quicker.Growing your Allstate business and thengrowing a side business or two is a winwinfor you and for Allstate.Working the system has its rewards.Fighting the system is not productive. Asa lone agent, you will not change Allstateor its system. Attempting to change thesystem is better left up to your agent association.NAPAA advocates for agencyowner rights through legislation andother means, but its primary goal is toensure your success as an Allstate agent.NAPAA’s motto is “Your Success isOur Business.” Just what does this mean?First, it’s important that we understandthe meaning of success. To most, it involvesat least some degree of financialindependence, but others may place family,church or community above businessachievements. In other words, there is noright or wrong definition of success. Successis the achievement of an individual’sgoals in life. NAPAA wants to help agentsachieve success in business and in life. Formost agents, financial independence rankspretty high on the ladder of success.Let NAPAA help you learn how towork within the system to make the systemwork for you. Many of our NAPAA membersand leadership have done just that.Take advantage of NAPAA as a valuableresource by joining today. Call HQ todayat 877-627-2248. The call is free. Or, fillout our membership form in this NAPAApublication and fax it to NAPAA.Fall 2007 Exclusivefocus — 15

featureIs the Grass Really Greeneron the Other Side?Insurance agents are constantly facedwith the dilemma of whether or not it isbetter to become an independent agentor a captive agent. Indeed, there aresome major differences between thesetwo agent types. If all you had to do iscompare Miriam Webster’s definitions ofthe words “captive” and “independent”it would be easy to define yourself andyour business. Webster defines the word“captive” as being “kept within bounds:confined, held under control of anotherbut having the appearance of independence;being taken and held or under thecontrol of others or as a prisoner.” Theword “independent” as defined by Websteris “not subject to control by others:self-governing, not affiliated with a largercontrolling unit.” Now, if it were thatsimple, it would make for an easy choicebetween the two options.Naturally, one of the reasons for becomingan independent agent is to workin an environment free of the control ofothers. Once the decision is made, however,some agents are surprised by howindependent they really are. They soonrealize that, more often than not, theyare truly on their own. While they enjoythe freedom making their own businessdecisions, independent agents do notreceive the support and assistance suchas training, marketing, business support,name recognition, economies of scale,and other amenities that are often providedby some captive carriers. In addition,it is important to note that independentagents are still at the mercy of thecarriers with whom they hold contracts.These contracts can generally be terminatedat any time without cause. A largepercentage of captive agents think that,by going independent, they’ll have accessto dozens of carriers. This is simply notthe case, especially for scratch agencies.This is because the carriers require premiumcommitments.While the grass looks greener forcaptives looking over at the independentside, there are some definite advantagesto the captive side that should not beoverlooked. In most instances, captivesenjoy tremendous brand recognition andnational advertising campaigns. Consumersrecognize brand names such asAllstate and State Farm and when theydo think about shopping for insurance,these are the names that come to mindfirst. Captive agents also have access tofree national marketing and advertisingmaterials. In addition, some companieshave marketing specialists who can assistwith more specific local campaigns.There is also something to be said aboutthe ease of doing business when you’re acaptive agent. Instead of a dozen or moresets of underwriting rules and guidelinesthat independent agents need to be familiarwith, captives operate off a singleset. Captives also usually enjoy the luxuriesof computer support, peer groupsand extensive training for both new andseasoned agents.On the other hand, captives have ahost of special problems that cannot beignored. Agents representing only onecarrier are at the mercy of the companythey represent. As an example, whenAllstate discontinued earthquake coverageand pulled out of property marketsfrom coast to coast, agents were severelyaffected by the loss of new business andrenewal defections. To its credit, thecompany has made efforts to find othercarriers to fill the void, but agent commissionsare significantly lower and thedecision to abandon markets has rankledconsumers and regulators.In the final analysis, agents, regulatorsand consumers will come to realize thatinsurance is a business and businessesmust act in their own best interests tosurvive. The bottom line is that agents,both captive and independent, are simplypawns in the game of insurance. The differenceis that agents on the independentside typically have other carriers to providethe necessary coverage.Other disadvantages of the captivesystem include the fact that agents areonly able to offer one menu of products.If a prospect doesn’t qualify or hasspecial needs, there is usually nothinga captive can do except walk the business,usually to an independent agent.Depending on the company and localmarkets, captive agents can lose up to90% of the prospects who contact themfor insurance. It’s a fact that many captiveagents have developed relationshipswith independent agents who helpplace the business that the captive can’twrite. In spite of their dismal closingratio, many aggressive captive agentsspend thousands of advertising dollarsto generate more quotes, which meanssending a ton more referrals to their independentagent brethren. Sounds likea good advertising plan if you’re an independentagent!16 — Exclusivefocus Fall 2007

Major reasons why agents don’t closedeals are price, product availability, policyand/or coverage limitations, underwritingrestrictions, lack of underwritingexceptions and an inadequate, unenthusiasticor unprofessional presentation ofpolicy benefits by agents or staff members.While price is the biggest reasonfor not buying, it is possible for agents toovercome small price differences by proactivelytouting the benefits of the policy,the agency and the company. Whateverthe reason is for your prospects not buying,it’s a lost income opportunity.Commission disparity is anotherhuge difference between captives andindependents. Some captive carriers onlypay 10% new and renewal commissionson auto and property policies. And, anycompany-approved brokered businesscan pay even less. Commissions on theindependent side range between 12%and 20%, depending on the contract.Captive agents do not own theirbooks of business, but most captive carriersoffer some form of compensationfor a terminating agent’s years of service.Allstate allows agents to sell their “economicinterest.” While Allstate agentshave no ownership in the policies or intheir renewals, they are still able to selltheir book back to the company or toa company approved buyer. In addition,an Allstate agent cannot “roll” the bookof business to another company. Anindependent agent, on the other hand,owns the policy renewals of his bookand can roll the book to another carrierif necessary.In some regions of the country, Allstatebooks command a higher sales pricethan do the books of independent agencies.Company name recognition andhigher retention ratios are two of themajor reasons for this. Allstate agentswho sell their books back to Allstate,however, are not given any credit for retentionor the company name. Therefore,agents living in desirable areas should doeverything possible to avoid selling backto the company in order to get the bestprice for their book.Lastly, captive carriers understandthat they have the upper hand over theiragents. These companies have also figuredout that once an agent is hired andbegins investing in his agency, they canbegin to play the “Gotcha” game. In otherwords, it becomes more and more difficultfor an agent to quit because he hasso much invested in his agency. So, whenpresented with a substantial increase inlife quotas, the agent has no choice butto meet them or risk losing his investment.Independent agents, on the otherhand, don’t have anyone telling them tosell specific lines of business, such as life,health or financial products and services.Successful independents have a wide arrayof carriers who want to do businesswith them. The advantage in this situationis that the independent agent is theone who chooses the carriers that arebest suited for his agency.In the end, the individual agent is theone who must decide which opportunitypresents the best possibilities for successin the world of insurance. In either case,it is both a lucrative and rewarding vocation.Whether you are considering a careerin the insurance business or simplywant to make a change, the most importantquestions you can ask are “how canI best serve my customers?” and “whichroad will give me the most freedom, satisfaction,peace of mind and success?”Article submitted by The Woodlands FinancialGroup, The Woodlands, TX. Phone(877)-466-1115.SELLING OUT?GO INDEPENDENT!TWFG OFFERS YOU:50+ Personal Markets20+ Commercial Markets50+ Life & Health MarketsHighly Competitive CommissionsIncentive & Profit SharingProven Track RecordAgency SystemsE&O CoverageThe Decision is simple.Contact us today to find out how we can help you start your own independent agency!1201 Lake Woodlands Dr. Suite 4020The Woodlands, TX 77380877-466-1115 / www.twfg.netAgent.info@twfg.netGrowth & expansion capitol—agency acquisitions—debt restructuringFall 2007 Exclusivefocus — 17

association benefitsIndustry Leading Healthcare Solutionsfor NAPAA MembersNAPAA is proud to announce that ithas partnered with Plan Service Providersand Empyrean Benefit Solutions to providemembers with the NAPAA/AAFDHealth Benefits Program. After monthsof exhausting deliberation, negotiationsand research, NAPAA is finally able tooffer an affordable national healthcarebenefits program that integrates product,service and technology to Members Only.The benefits program:• is available in all 50 states;• offers innovative health care coverageat a variety of price points for individualsand groups; and• includes consumer driven healthcare options via HSA qualified healthplans and tax-advantaged Health SavingsAccounts (HSA).The new program will offer NAPAAmembers and their staff more choices foraffordable health care. Members can enrollin these services online and by telephone.By offering members and their employeesa wide range of choices, includinghigh deductible health plans (that worktogether with HSAs), and access to healthinformation resources such as HealthGrades, members can gain more controlover their own healthcare spending andmake better healthcare decisions.What is a Health Savings Accountand how does it work?After selecting a high deductible HSAqualified health plan, agents and theiremployees may be eligible to establish atax-advantaged HSA. An HSA is likea savings plan for medical expenses. It’ssimilar to a 401(k) plan or an IRA—withthe advantage that you can choose whetherto use the funds now or let them accumulatefor the future. Either way, contributions,earnings and withdrawals foreligible health care expenses are generallytax free. Your savings grow year after yearand can be used to pay for eligible healthcare expenses now, or in the future.Remember, in order to open an HSA,you must first be enrolled in a qualifiedHSA Health PlanAdditional Benefit SolutionsAre Also AvailableHealthcare choice has been rated asthe #1 employee issue. Healthcare is avery personal matter, and to meet thatneed we have built a robust portfolio ofbenefits from highly rated carriers nationwide.In addition to HSA plans, ourplans range from traditional PPO majormedical plans, defined benefit indemnityplans, dental, vision, term life, and more.EnrollmentThe enrollment process is easy, flexible,confidential and responsive.With this program, you have access to18 — Exclusivefocus Fall 2007

our integrated, secure platform that deliversyou the freedom to choose the benefitprograms that best meet your needs,while understanding their costs.The platform uses the “shopping cart”feature so that members can choose theplans that suit their needs, even if theplans are offered by different insurancecompanies, and enroll in all of them atthe same time.Enrolling is easy – simply call theNAPAA Customer Service Center at(866) 915-1849 or enroll online via theinternet at www.empyreanbenefits.com/healthportal/napaa.Member AssistanceSometimes questions, problems or issuesmay occur with your coverage. Ourapproach is to provide you with an “Advocate”to help and assist you to resolvethese issues that you may encounter withyour health plan. Again, this is donethrough our Customer Service Center. Inmost cases, the CSR will contact the planwith you to document and sort out the issues.You will never be left alone to handleproblems you may encounter, and we willmanage this with you to conclusion.The Customer Service Center is basedin the USA and staffed by experiencedcustomer service personnel. Our qualifiedrepresentatives are trained to assistmembers in a variety of ways includingsearching for physicians, hospitals, dentistsand prescription drug prices, conductingonline enrollments or answeringany other questions you may have.Customer Service Representatives areavailable from 8:30am – 5:00 pm CentralStandard Time, Monday-Friday. Internetaccess is available 24/7.Value-Added Wellness ProgramsOnce a member is enrolled, thereare a number of online tools and physicianservices that can help members stayhealthy and keep the money in theirHSA growing in value for later use orfor retirement.Not only do we want to help NAPAAmembers improve their health, we wantthem to get the most out of their healthcareprogram. We do this through education,care management and prevention.There are many wellness incentiveprograms available that encourage andreward healthier lifestyle choices.To improve your health takes morethan good intentions; it takes proventools and resources to make informedhealthcare decisions. That’s why theNAPAA Health Program provides itsmembers with access to comprehensiveeducational resources, including onlinehealth and wellness information.Help is One Step AwaySimply call the NAPAA CustomerService Center at 1-866-915-1849 or enrollonline via the Internet at www.empyreanbenefits.com/healthportal/napaa.NAPAA/AAFDCall1-866-915-1849napaa1-866-915-1849Powered by:Available for Individuals and GroupsPresented by:P S PPlan Service Providers, LLCEndorsed by:Fall 2007 Exclusivefocus — 19

marketingFinding the RightMEDIAf o r t h e B e s t R e s p o n s e :A Direct Marketing Overview for Insurance AgentsBY TINA MORGANIIt’s something every startup agencyowner learns very quickly – navigatingthe twists and turns of marketing youragency is tricky. Even seasoned veteranscan get confused about the pros and consof direct marketing methods and howthey stack up against each other.In this article, we’ll explore the powerof direct marketing and blast throughsome of the myths surrounding differentmarketing channels to help you select theright media to win more customers andincrease your BOB (book of business.)Where does direct marketingget its strength?Direct marketing is targeted, trackable,measurable, cost effective and hasincredible staying power. As a marketingtechnique, it is considered an indispensablepart of successful media campaignsand a commanding stand-alone strategy.What are the defining characteristicsof direct marketing?• Precise targeting and market segmentation.Your message gets in front ofthose consumers most likely to respondto your offer.• Research and testing. There aremany reliable and nationally recognizedresearch services available to assist youin obtaining census, demographic andpsychographic data before you start yourChannelDirect MailYellow PagesCable TVRadioNewspapersAdvantagesTargeted, trackable results,space to add benefits details,many options for visual appeal,consumers can spendtime with ads, shared mail isaffordable.Widespread consumerawareness, used as a referencetool, consumers canspend time with ads.Visual appeal, wide reach,targeted, affluent audience.Targeted, affordable production,large and portablemedium, short lead time,impactful.Visual appeal, space forbenefit details, trackable,short lead time, consumerscan spend time with ads.DisadvantagesConsumer acceptance canbe spotty; but when they readdirect mail, they tend to readfrom mailers they know andtrust, mailing costs for individualpieces are increasingdue to rising postal rates.No flexibility for seasonalvariations or “specials,” adclutter, out of date publication,too many books confuseconsumers, costly.Small audience for individualchannels, high TV commercialproduction costs (low cost,low quality commercials arenot effective), difficult forconsumers to respond, subjectto DVR time-shifting and adskipping.Low reach due to fragmentedaudience, difficult for consumersto respond, subject tostation surfing to skip ads.Steadily decreasing penetration,ad clutter, no separation,people browse more than theyread, can be costly.20 — Exclusivefocus Fall 2007

campaign to ensure you are hitting thoseconsumers who fit your profile.• Quick consumer response time.You can typically expect a responsequickly (minutes, hours and days) dependingon the media selected. You canfacilitate this process by creating a senseof urgency such as an expiration date onspecial offers.• Benefit oriented advertising.What makes your agency different fromothers? What do you offer that othersmight not? Direct marketing is a versatileway for you to clearly tell the consumerwhy they should come to you forall their insurance needs.• Results measurement. With directmarketing, it’s easy to tell if youradvertising is working. By providing theconsumer with a method of responding(such as a business reply postcard, a coupon,an e-mail address, a Web site or aphone number,) you can quickly determineif your message is getting results.Apples or oranges?Because the objective of direct marketingincludes generating immediate sales, in-creasing customer retention, and relationshipbuilding, selecting the right direct marketingchannel is the key to success. However, justlike insurance plans, comparing advertisingmedia isn’t always easy. Every channel hasits advantages and disadvantages as you’llsee in the snapshot, located on page 20, ofthe top direct marketing channels.Marketing myths versus factsThere are some common misperceptionsabout direct mail, many of thembased on personal feelings. It’s safe to assumepretty much all of us grumble fromtime to time about “too much advertising.”But, in reality, we also pay attentionto it. If a consumer is interested inpurchasing an insurance policy, he or shewill look for opportunities to gain informationand insight to help them maketheir buying decision.Myth#1Consumers don’t wantdirect mail.FACT: Actually, most people considermail to be an important part oftheir life according to studies doneby the United States Postal Service®.When direct marketing provides an answerto a problem or offers a solution toa need, consumers are inclined to findit useful.Myth #2Consumers don’t read their mail.FACT: A recent study* revealedthese top three things Americans saythey “always or usually” do with envelopescontaining marketing, advertisingor promotional material they receive bymail:• 66 percent open the envelope ifthey think the contents might be interesting.• 61 percent open it if they thinkthe contents will be of personal interestto them.• 59 percent open it if they can clearlyidentify the purpose/sender from theenvelope.Myth #3People don’t pay attentionto their mail.FACT: Au contraire! When it comesGrow your Book of Business Every Month with Valpak ®• 75% of Allstate autoand homeowners/renters insuranceconsumers usecoupons.• Valpak ® 90%consumer awarenessis #1 in the shareddirect mail industry.• Nearly 40 yearsexperience buildingbusinesses like yours.Valpak ® Matches the Allstate AudienceAllstate Auto AllstateInsurance Homeowners/Renters Valpak ®Customers Insurance Customers ConsumersHH Income $35K+ 78% 80% 76%HH Income $50K+ 58% 61% 62%Age 18-49 61% 59% 60%Age 25-54 58% 58% 58%HH w/Children 42% 40% 28%Contact your local Valpak ® business consultant at 1-800-669-1778and get started growing your agency BOB today!Sources: Scarborough Multi-Market, 2006, Release 2; Claritas, Inc. 2000 Census with current year projections.Fall 2007 Exclusivefocus — 21

to direct marketing, the EMAF studyalso showed that 75 percent of Americanssay they are most likely to pay attentionto “direct mail sent to my home.”Reach and FrequencyReach and frequency play an incrediblyimportant role in capturing consumers’attention – in other words, your marketingmessage must be in the right placeat the right time. Why?When you’re in the market for a new vehicleand you just happen to receive a generousdiscount offer from a nearby dealer inthe mail, wouldn’t you look at it? After all,it’s in your mailbox, you didn’t have to doanything special to get it, you can read it atyour convenience, and then you can stickit on your fridge, put it in your wallet orpurse, or pass it on to your spouse.The same principle applies to using directmail to market your agency. You know peopledon’t buy insurance policies every day or everymonth. So, keeping your agency in frontof your target audience, gives you an edgeover your competition when these consumersdecide it’s time to shop for insurance.Targeting the Right AudienceLet’s face it: No matter how good youroffer, or your media, it’s all for nothing ifthe right people don’t see it. That’s why theold “hit and miss” approach to advertisingdoesn’t work and is a money-waster. Youhave to get your message in front of thoseconsumers most likely to respond to youroffer. This group of people is your “targetaudience.” You’ll have the best resultsby selecting a media that uses data-basedmarket segmentation to reach the consumerswho best meet your criteria. Targetingby geographics, demographics, consumerbehavior, and consumer expenditures willensure that you reach your exact audience.The Bottom LineWhile direct mail has distinct advantagesover some other types of mediain the war to win more customersand increase your BOB, its power mustbe harnessed and used correctly to beeffective. It’s important to understandthe advantages and disadvantages ofeach direct marketing channel and howit can help you achieve your businessgoals. Enlisting the help of an experiencedbusiness consultant is also a goodway to find the direct mail channel thatworks best for growing your agency.Article submitted by Tina Morgan, Valpak®Communications Specialist*“Because It’s Personal: A Study of ConsumerUse and Preference for Envelopes,” releasedby the Envelope Manufacturers AssociationFoundation (EMAF) 2006.Technology, Support andLead Generation Vendors WantedNAPAA is looking for national, regional and local vendors that can help agents prepare for the pending New Roadsfor Growth technology transition. Specifically, we are seeking companies that offer reliable and affordable products andservices to Allstate agents. Please email vendor contact information to Executivedirector@napaausa.org or call Jim Fishat 877.269.3476.Secondary Business Options WantedKnow of any appropriate secondary business opportunities for Allstate agents? We are looking for sideline businessesthat don’t require a significant investment or additional office space, but still allow agents and/or staff to earn substantial additionalincome. Please email contact information to Executivedirector@napaausa.org or call Jim Fish at 877.269.3476.22 — Exclusivefocus Fall 2007

Looking for Allstate finance assistance?Brooke Credit Corporation can help.For over 10 years, Brooke Credit Corporation has provided lending services toinsurance professionals for agency expansion, acquisitions and debt refinancing.We have a unique understanding of insurance agencies, enabling us to offerfavorable repayment terms and lower down payments.Brooke credit has funded over $68,000,000 in financing for Allstate agents and their agencies.We are actively seeking additional financing opportunities and offer competitive lending options.• 90% - 100% financing available• Minimum loan amount of $250,000• Repayment terms of 5 - 15 years800.642.1872 x19210950 Grandview Dr | Overland Park, KS 66210NAPAA@BrookeCredit.comSummer 2007www.BrookeCredit.comExclusivefocus 23

featurePutting Together an Idea Sharing GroupBY STEVEN M. MARCUS, LUTCFWWhen we first came up with the ideato get a group of Allstate agents togetherto share ideas on how we run our offices,prospect for clients, cross-sell products,and all other things necessary to be anAllstate agency owner, we started with agroup of five agents whose offices werein close proximity. Starting out this waymade it easy because we all knew andtrusted each other. We decided that theeasiest way to meet on a regular monthlybasis was to meet over lunch, since we allhad to eat lunch anyway. We all lookedat the time away from our offices as awelcome break. Getting away from youroffice for a couple hours a month helpskeep your sanity.When we met for those first meetings,we openly shared what we were doing inour offices and compared notes. Initially,the original emphasis of our group was toincrease the financial production of ouragencies. At the time, if you sold a certainlevel, you doubled your agency bonus.After a few meetings, the scope of ourconversations expanded to include a hostof other agency related business topics.The purpose of the group evolved intosharing ways to help each other becomemore successful in our individual agencies.We discussed what steps we tookto hire our staff and how we paid them.We talked about the various processes weused to track the work of our staff andhow we could best utilize that informationto develop incentive bonuses, createnew work flow processes and maximizecross selling opportunities.As time went on, various membersof the group asked if they could inviteadditional people to join our group. Asadditional members joined our group,they introduced fresh perspectives andpresented new ideas for ways to run ouroffices and for producing new business.As word about our club got out, manyof the best agents in the area sought usout. We had members join who were thetop agents in our area for life insurance,auto insurance, business insurance, etc.This made the group even more invitingto other Allstate agents in our area.It was truly amazing how word spreadabout our lunch group and how desirableit was to join.Aside from the business knowledgeacquired at our meetings, perhaps themost significant other benefit has beenthe opportunity to meet and developlasting friendships with fellow Allstateagents. Our meetings help break downthe walls that separate agents from communicatingand fraternizing with eachother. Back in the day, the companyheld regular meetings where agents gotto know each other. Since the demiseof regular company meetings, there hasbeen no impetus for agents to get togetheras a group. Until an agent, or a groupof agents, takes the initiative to start alunch or breakfast group in your area, itwill not happen. It is sad to say, but manyagents do not know most of the otheragents in their markets.As our group grew larger, we had tofind bigger and better places to meet. Inorder to have a proper meeting for a largegroup, it is essential that the meeting environmentbe conducive to the size andneeds of the group. It is crucial, for example,that distractions, such as noise, bekept to a minimum. Members should beable to speak without shouting and hearwithout straining.We have found that the ideal meetingplace for a larger group is either a countryclub which can give you a private area, or24 — Exclusivefocus Fall 2007

a restaurant that has private rooms. Youcan also hold your meetings at a hotelthat has private rooms and is willing toserve you off of the hotel’s regular restaurantmenu. With larger groups, to keepit simple, we divide the total bill by thenumber of attendees and add a respectabletip so that the restaurant, countryclub or other facility will remember usand go out of their way to set up privateareas for us for future meetings.Our group has progressed to thepoint where we now have guest speakersor sponsors at many of our meetings.There are times when the guest speakeris also a sponsor. Meeting sponsors canhelp defray costs by providing the meetingroom, if there is a charge, or by payingfor lunch. When we do not have aguest speaker or a sponsor, we usuallyallow the attendees an opportunity tointroduce themselves. They tell thegroup where their office is located, andhow long they have been with Allstate.Then they have a chance to discuss whatthey are currently doing, trying to door getting ready to do in order to growtheir agencies. They can also bring upquestions that they want the group todiscuss, such as “How do you go abouthiring new staff?” or “What is the bestway to pay your staff?” or “How muchare the rest of you paying your staff?” or“What media gets the best results foradvertising?” or “Do the sample quotemailers work well?” This has become agreat forum for discussing everythingAllstate.In order to get everyone to open up, wedo not encourage managers to attend themeetings. However, since we have nothingto hide, any manager who would like toattend is welcome and is treated the sameas everyone else in the room. Sometimes,this can be an asset to the group because amanager can relay ideas that have workedfor agents in their markets. In addition,they often have more insight into otherthings that may be going on with Allstateor they may know some tricks that canmake our jobs easier. This added input, ofcourse, benefits everyone.Because our group has now grown to85 members, we send out an email meetingannouncement three to four weeksahead of time. The email asks membersif they plan to attend the meeting. Then,three to four days before the meeting, Ihave two of my staff members call everymember who has not responded and findout if they plan to attend. This is importantbecause the meeting facility needsan accurate head count so it can set upenough tables and chairs for the meeting.Guest speakers and sponsors can addan important element to your meetings.Our group has utilized a variety of themsince we started out. Following are someof the kinds of speakers or sponsors, ora combination thereof, who are generallyopen to participating:• Fund Representatives: We havehad as guest speakers/sponsors, representativesfrom the various different fundsthat we represent through our variableproducts. They can give you a great insightinto their products and give you salestools that will help entice your clients intotalking with your life specialist. We haveall found that the more you know about aproduct, and the competing products, theeasier it is to make sales.• Representatives from ApprovedCompanies: We have had as guest speakers/sponsors,representatives from HealthPlan Services, an Allstate approved companylocated in our area. We are licensedwith them to sell individual and grouphealth products. This is an importantproduct if you intend to sell the AllstateWorkplace Division (AWD) SHOPpolicies. We have also had representativesfrom AWD as guest speakers/sponsors todiscuss the SHOP policies, the accidentpolicies and the cancer policies.• Politicians: Our guest speakershave also included state senators andstate representatives. We have also hadour state legal counsel / lobbyist speak toour group. In short, once the group getslarger, it is easy to have quality speakerscome and talk to the group.• Others: In addition to the listabove, there are plenty of other vendorsor sponsors who would like to get infront of a group of Allstate agents. Allstateapproved vendors, for example, canhelp your group understand some of theirprocesses and the reasons for them. Wehave had glass companies, body shops,water mitigation companies, windstormmitigation inspection companies, medicalinspection companies and many,many more.I have found that the main key tolaunching, maintaining and growingyour group is based on how interestingyou make your meetings. It is also importantto make one person responsible fortaking meeting notes. The notes shouldthen be typed up and distributed to allof the members in your group, whetherthey attended the meeting or not. Thisbrings added value to your meetings. It isalso especially helpful when group membersdiscuss things they are doing in theiragencies. There are many instances whenthese notes and any supporting documentsneed to be seen in order for thewhole group to understand the conceptsbeing discussed. In addition, it is veryimportant that you send out those documentsin a timely fashion to everyone inthe group.Lastly, to make your group work,you’ll need some responsible group leaders.You should have a primary leaderand, depending on the size of your group,one or more back up leaders to assist incoordinating your meetings and to act asa stand-in should the primary leader beunavailable. The responsibilities of thisgroup include securing meeting locations,moving the meeting location fromtime to time in order to make travel tothe meetings fair for everyone, emailingor sending out meeting notices, andmaking follow up calls to members whodon’t respond. Most importantly, theseindividuals must be able to MC themeetings, keep them flowing smoothlyand prevent them from turning into abitch sessions.There is obviously more I could tellyou about our group, but if you take theinformation I have presented in this article,you should be able to start a group ofyour own. I can tell you this, once you getstarted, you’ll be amazed at the results. Believeit or not, agents are hungry for newideas and fellowship. Give it a try… you’llwonder why you didn’t do it sooner.If you are interested in starting a lunch orbreakfast group and would like to speak tome for assistance, you can reach me at (954)755-1177, at StevenMarcus@Allstate.com,or at StevenMarcus@StevenMMarcus.com.Fall 2007 Exclusivefocus — 25

technologyExclusive Interviewwith Mr. Al L. State,Super Secret Insurance AgentExclusivefocus has recently received numerousquestions regarding the upcomingchange of Technology support from Allstate.We were fortunate to receive wordfrom one of our secret agents regardinghow they solved this dilemma. We wereable to catch up with him long enough toobtain the following interview.Exclusivefocus magazine: Thank youfor agreeing to do this exclusive interviewwith me today, Mr. State.AS: Call me by my secret agent designation;24-7.EFM: Interesting code name.AS: Well, since I am available for myclients 24 hours a day, 7 days a week…EFM: …I see…AS: …like all great Allstate agents.EFM: Uh huh. Well, that’s all well andgood, Mr. 24-7, but let’s get to the reasonyou contacted us.AS: I have knowledge that as of January2008, IT support from Allstate corporatewill no longer be available. Thiswill mean that all other agents, like me,will have to fend for themselves whenit comes to managing and maintainingtheir office computers and laptops.EFM: That could spell the end of lifeas we know it!AS: No, not necessarily. There’s hope.I have a solution, a plan, a strategy, ameans to an end, a way out, a salvation,a …EFM: I get it. You have a way to dealwith the upcoming situation.AS: That’s what I said.EFM: I agreed with you.AS: You did?EFM: So, what is it?AS: What’s what?EFM: Your answer.AS: My answer?EFM: To your question…AS: I asked a question?EFM: About the change.AS: I don’t need change. I only use acredit card.EFM: You’re not a very good secretagent, are you?AS: Not really. But I am a really goodAllstate agent.EFM: So, what do we do about the lossof IT support come January?AS: Ah yes, I have a solution, a plan, astrategy, a means to an end, a way out, asalvation, a …EFM: We’ve gone down this path before.What do we do?AS: I have determined through myextensive network of contacts, there isa force out there that’s dedicated to thepreservation of good, the fight againstevil, vigilant at all times, always therewhen needed, all seeing, all knowing…EFM: Some kind of…superheroes?AS: To me, they are.EFM: Who are these guys?AS: They call themselves the MSPs!EFM: The MSPs?AS: Yes, the MSPs.EFM: Who are the MSPs?AS: They are the Managed ServicesProviders.EFM: What do they do?AS: They act as your IT departmentwithout you having to hire one.EFM: Will they take care of desktopsand laptops?AS: Sure, and a whole lot more.26 — Exclusivefocus Fall 2007

EFM: Like what?AS: They can and will support yournetwork; no matter how large or small.This includes all of your PCs, laptops, internetconnections, and servers, whatever.EFM: What falls under the whatever?AS: Whatever is part of your businesswhen it comes to IT needs.EFM: Like getting rid of the computerviruses?AS: Now that agents must fend forthemselves, making sure that the properprotection is in place against viruses,spyware, all types of malware, Trojans, iscritical. MSPs build a defensive perimeteraround your network environmentthat protects you even when you aresleeping.EFM: Like Allstate, protecting yourhome, auto and everything else that isprecious?AS: In a way. Good MSPs providepro-active support providing remediesbefore something fails.EFM: How do they do that?AS: By placing software probes or“agents” on key devices to view what ishappening on your network.EFM: Sounds intrusive.AS: Not at all. The only things thatcan be “seen” are how optimally theserver, switches, etc. are working. Nevercan what you are doing be viewed. Thebenefit of monitoring performance isthat before anything starts to go wrong,a technician is dispatched on-site or remotelyto fix the problem before you areever aware that it ever existed.EFM: Wow!AS: Think of it as an MSP’s X-ray vision.EFM: Interesting.AS: And when there is a problem thatneeds someone on-site, they are therequickly.EFM: Like the power of super speed!AS: Exactly.EFM: What other super powers dothey have?AS: You know that they don’t reallyhave super powers, just like I am not reallya super secret agent.EFM: I had a vague idea.AS: But, they are super dedicatedto ensuring that you have the tools youneed to operate and build your business.Good MSPs are not simply service providers;they also act as a strategic partnerin your agency. After all, they realize thatit benefits everyone when agents can dothe things to grow their businesses withouthaving to worry if the underlying infrastructureis there when they need it.EFM: Like all Allstate agents look toensure that the right policies and coverageis in place to protect our clients?AS: Now you got it! My relationshipwith my customers is more than justwriting a policy and walking away. I getinvited to birthday parties, weddings andunfortunately life’s misfortunes.EFM: I get it. Just like you, MSPs areactively involved in the good times andthe bad. You hope the bad things don’thappen but, like everything that is inevitable,the test comes when a server fails,IT connectivity is lost, or a computer justdoes not work anymore.AS: Good MSPs anticipate the inevitableand have a process in place to minimizethe disruption in business, becausewe all know that time is money.EFM: That begs me to ask, what if theserver crashes or the computer dies? DoI lose the data I have stored; the pictures,files, correspondence, and the things thatare important to me?AS: Well, my MSP provides me witha backup solution for the things that Ican’t afford to lose.EFM: Really. Tell me more.AS: Happy to. My MSP offers off-sitebackup via the internet. Every night, myimportant data is transmitted to a secureremote facility where I don’t have to worryif something happens at my office.EFM: Over the internet? Is that safe?Can’t some unscrupulous super villainsintercept and use the information fortheir own nefarious schemes?AS: You’re really getting into this superhero shtick, aren’t you? The answer toyour question is that it can’t happen andhere’s why. Before the data is transmitted,it is encrypted on your computer orserver; wherever the data is stored. It isthen compressed and transmitted. Whenit gets the backup server at the securelocation, it stays encrypted. When youneed the data back, for whatever reason,it travels back to you still fully encrypted.Only with the encryption key, whichonly you; the owner of the data have, canyou turn it back to its original state. Soyou better not lose that key!EFM: Did you say “kryptonite key”?Fall 2007 Exclusivefocus — 27

That sounds so Lex Luther…AS: Will you stop with the super herostuff? I said “encryption key”EFM: Whatever. Anyway, it soundspretty safe. Is that the only way to backup my data and is it the best way?AS: Great question! Your MSP willdiscuss the options available to you andwhich of them make the most sense foryour particular needs. The option yourMSP recommends will be based uponhow you do business, how much data youstore, and what makes the most sensefrom a business standpoint. Remember,good MSPs are there to work with you,not for you.EFM: What’s the difference?AS: When an MSP works with you,they are looking for the options that willbest fit your growth strategies and youroverall needs, not where they can make aprofit from you.EFM: MSPs are looking to makemoney?AS: Sure. They are a business like anyother. Maybe, now is the time to talkabout how MSP operate.EFM: I’m listening.AS: An MSP is a different businessmodel than a typical IT services company.Have you ever found that sometimesit takes a long time to get things resolved,or one problem is fixed and another onearises? Or the technician gets called awayin the middle of your project…EFM: What about being told that itwill take three hours to fix something,but it takes two or three times longer andnow you have to find the extra money tocover the work?AS: Or, how about living with a problembecause you don’t want to pay for thetime it takes to fix it?EFM: …so you wait for more problemsto arise to justify a service call?AS: Exactly. Many MSPs live up totheir name; Managed Services Provider,with the emphasis on managed.EFM: Meaning?AS: Before the relationship begins,your MSP contact sits down with youand takes inventory of what you have,the current state of your environment,and your short and long term plans. Aftergathering this information, a price isdetermined to support your agency’s individualneeds.EFM: Where is the managed part?AS: I’m getting to that. In my case, myMSP set a monthly price and doesn’t deviatefrom that no matter what happens.I like that because I can budget my ITcosts for the year. By keeping my systemstuned and operating at peak efficiencies,I am less likely to need an emergencyservice call. I call it preventative maintenance.I do it with my car and my health,so why not do it with my office technology?And, let’s face it, when your systemis down you lose money and so does yourMSP. Basically, nobody wins when youexperience a preventable emergency.EFM: So you get less support?AS: Quite the contrary. I have a muchhigher level of support than I ever expected.My MSP performs preventativemaintenance, keeps spyware off my computers,and fixes things in a timely manner;usually on the first visit. The mostimportant thing is that I have somethingI never truly had before.EFM: And that is?AS: Peace of mind. Same thing we offerour clients.EFM: Is that all I need to know?AS: There’s more. Since the onus is onmy MSP to support me no matter howmany hours it takes, they operate withgreater efficiency and I, in turn, have lessof a need to call them. But, when I doneed them, I don’t have to worry abouthow big or small the task is. It’s all thesame in importance. Because I don’t haveto live with the small problems, I findthat our office is more productive than ithas ever been. I can offer better supportto my clients, and can add additional clientswithout needing to increase staff.EFM: Is this the way all MSPs offertheir services?AS: MSPs offer their services in a varietyof ways, depending on their businessmodel. Some offer blocks of hoursthat you pay for in advance and use asnecessary. Some offer a price for basicsupport plus the cost of special projectsas needed. Some offer a guess of howmany hours of support will be used overthe course of a year, with money beingpaid or refunded for additional or unusedhours at the culmination of the year.EFM: That’s confusing.AS: Not really. The MSP that you decideupon will help you feel comfortablewith how things work. In my case, myMSP provides an “all you can eat” flat fee28 — Exclusivefocus Fall 2007

delivery of service. I like that because Iam relocating my office in the near futureand the one thing I don’t have to worryabout is the cost of labor for the ITportion of the move. As my “IT department”,it is all included in my monthlyfee with no additional costs. In addition,they are also helping me choose an Internetprovider, phones and service and ourcopier lease plan.EFM: So MSPs make things less confusing?AS: Look, my business is to build myAllstate agency and not be in the IT business.Allstate corporate was allowing meto do that, but now I have to find supportfrom a difference source, and I have.EFM: Apparently.AS: The other great thing is that I’llbe able to buy that Blackberry I had myeye on. I couldn’t justify buying it beforebecause the company wouldn’t allow meto sync with my computer. Well brother,this coming January I am going to havemy MSP set it up for me and then supportit for me.EFM: Is there anything that your MSPwon’t do for you?AS: The real question is what do theynot do?EFM: Okay, what don’t they do?AS: The best ones don’t sell hardwareor software.EFM: Why is that?AS: Positioning themselves as a trustedpartner, they want me to feel that ifthey recommend hardware upgrades orchanges, it is because I need it for mybusiness goals, not because they canmake some extra money.EFM: So, they won’t sell you things?AS: They tell me what I need and thespecifications. It’s my option to source itmyself or ask them to provide it to me.EFM: Fascinating.AS: Just as I want my clients to makeeducated decisions, so does my MSP.EFM: I’m glad that you contacted mefor this interview. It didn’t go as I expectedfrom someone with a code name like 24-7, but I feel like I’ve learned a lot. I knowthe readers of Exclusivefocus will too.AS: It was my pleasure. As part of thefamily of agents, I felt it was my responsibilityto share what I know.EFM: With only a short time beforethe change, Allstate agents need to preparethemselves and start looking for solutionsthat will make the transition assmooth as possible.AS: No time like the present.EFM: Al, I mean Agent 24-7, can youshare with me who you chose to be yourManaged Services Provider?AS: I’d be happy to tell you, but youreally need to find the best fit for yourbusiness. My MSP is my solution, myplan, my strategy, my means to an end,my way out, my salvation, and who arejust really good folks who are responsiveto my needs.EFM: Any final words?AS: I forgot to mention that thanksto my MSP, I can VPN (Virtual PrivateNetwork) into my office to work frommost anywhere as long as I have an internetconnection. I can seem to be at the officeeven if I am in a tropical destination.EFM: Is that your final thought?AS: It will have to be. I have a supersecret rendezvous with one of my contacts.EFM: It can’t be very super secret ifyou told me.✓ ✓ ✓ ✓ ✓ AS: I didn’t tell you who it’s with.EFM: I didn’t ask.AS: I’m not going to tell you.EFM: You told me all the things thatI needed to know. Finding IT support ismy goal, not who you’re meeting. In factI don’t care who you are meeting.AS: “Mr. Big” won’t like to hear thatyou don’t care…..Darn, I just told you. Iguess I’m not very good at being a supersecret agent. Maybe I’ll just stick to beingthe best Allstate agent I can be.EFM: You stick with that.EFM: In conclusion, if you have anyconcerns about choosing the right ITcompany to support you, don’t hesitate totalk to several and ask questions. Don’ttry to force a square peg into a roundhole. Look for a company that puts yourbest interests first.Article submitted by The Mentis Group, aManaged Service Provider, based in Dallas,Texas. Our team of professionals offers over75 years combined experience. We have a senseof humor and love our work. For more informationcall 214-393-6814 or visit www.mentis-group.com. One Call, One Solution.DO YOU HAVEENOUGH COVERAGE?Mentis Group✓ ✓ ✓ ✓ ✓ Peace of mind for Allstate agentsanywhere in the South WestBE A SUPER AGENT!Mentis GroupFall 2007 Exclusivefocus — 29

featureThe Canadian Experiment:a Precursor for U.S. Agencies?BY JIM FISHIIn an astonishing move that hasshaken, rattled and roiled its agents inCanada, Allstate Insurance Company ofCanada has announced a bold initiativethat strips agents of their renewal booksof business and closes 256 agent locationsthroughout Canada. The company’s planis to consolidate these locations and replacethem with what it calls “AllstateInsurance Agency” offices.The new offices will all have the samelook and will be strategically locatedin areas of high visibility. According tosources familiar with the plan, the companyintends to open 103 such locations.While the details of this initiativeare sketchy, it appears that the companyhopes to staff each of these offices withbetween three and five producers, mostof whom will be recruited from its poolof displaced agents. On the P&C side,each producer will have a specializedrole within the agency. Each agency willbe staffed with one or more “BusinessDevelopment Agents”, a “RelationshipDevelopment Agent” and a “CustomerCare Agent.”Business Development Agents will beresponsible to develop centers of influencefor new business generation, handleincoming quote calls and work leads andreferrals. Relationship DevelopmentAgents will be charged with expandingexisting relationships by working priorquotes and obtaining life and P&C referrals.And, finally, Customer Care Agentswill work the agency’s renewal book tostrengthen and enhance customer relationshipsand look for cross selling or upselling opportunities.When the company made its announcementin July, agents were stunned.The magnitude of the change, for some,was too much to digest in one day. Otherssimply could not believe what theyheard. But, as the disturbing details beganto sink in, they began to feel betrayed bythe company and grew angry over the lossof their renewal commissions. Agent moralehas hit “rock bottom,” lamented oneagent. “I have built my customer base formore than 20 years and now they’re takingit all away from me,” he added. But, whilethe company’s move is highly unpopularamongst many, if not most agents, thereare some who have taken a more pragmaticapproach. “This is the hand we’vebeen dealt. It’s time for us to decide to stayor to go, because there is no in-between,”said one such agent.Under the new program, agentshoused in the new Allstate InsuranceAgency offices will become part of thatagency’s “team.” While the bulk of agentcompensation is expected to come fromnew business writings, agents will alsohave an opportunity to earn quarterlybonus dollars if their team reaches certainobjectives. The bonus measurementwill include factors like loss ratio, retention,profitability and new business production.As one agent put it, “You betterpray that you don’t have any slackers onyour team because no matter how hardyou work, you’ll never make the bonus.”Policy renewals in Canada will mostlikely be divided by Postal Codes, the Canadianequivalent of U.S. Zip Codes, andthen assigned to the nearest Allstate InsuranceAgency office. Our understandingof these accounts is that they will notpay renewal compensation to individualproducers, are not available for capture30 — Exclusivefocus Fall 2007

y individual producers, but are availablefor cross sale opportunities. The only rewardfor servicing these policies appearsto be in the quarterly bonus calculationdescribed in the preceding paragraph. It isbelieved that the company may disregardthe relationships established by the originalagent of record and assign the policiesto the most convenient location for thecustomer. “It’s probably for the best sincewe won’t have an ownership interest in theaccount anymore,” said one agent.If there is a silver lining, it is the company’soffer to provide a base salary fortwo years beginning September 1, 2007.The salary is based on each agent’s 2006average earnings. As we understand it,agents can earn more than the base salaryonce their monthly new businessproduction exceeds the guarantee. Accordingto one agent, however, there isa caveat; “In order to qualify for the salary,you have to produce 70% of the unitaverage.” That means that if the unit’saverage P&C premium is $50,000 permonth per agent, an agent would haveto produce $35,000 in P&C premiumseach month in order to receive the guaranteedsalary. As of this writing, we donot know if the salary would be proratedif the 70% requirement is not met.Once the two year time period expires,the guarantee disappears and the agentwill only be compensated for new businessproduction plus any shared bonusesthe office team achieves.The agent population in Canadanumbers less than 500. If Allstate everwanted to test market a totally new concept,Canada is the place to try it out.The downside is minimal, but the upsidecould have a huge affect on Allstate’sbusiness model here in the U.S.It’s no secret that the company continuesto re-evaluate its distributionchannels. A successful launch in Canadacould cause the company to try the sameor a similar model here. Should the Canadianmodel ever come to pass in theU.S., there would be no market for agentsto sell their books, so the company wouldlikely buy back agents’ books of businessfor TPP (Termination Payment Provision).The company is currently paying1.5X for TPP eligible policies. Thisamount is guaranteed in agent contractssigned before November of 1999. Insubsequent contracts, the TPP languagewas removed from the contract and isnow part of the “Supplement.” Anyonewho signed an agent agreement afterNovember 1999 should be concernedbecause the TPP can be changed at willor, worse yet, eliminated altogether.Let’s say the company did changethe TPP formula from 1.5X to 1X, whatwould that mean on a million dollar bookof TPP eligible policies? Under the currentformula of 1.5X, the company would paythe agent $150,000. Under the 1X formula,however, the agent would only receive$100,000. That’s a pretty big difference.While it is unlikely that the companywill introduce the Canadian model here inthe U.S. anytime soon or totally eliminatethe TPP, these possibilities do exist. Likeother companies, Allstate will explore allpossibilities that can add to its bottomline. That is the nature of business. Theagent distribution channel is simply anoption on a table full of options. Whenthe company finally figures out a betterand cheaper way to deliver products andservices to its customers—and it will—therole of the agent will diminish. It is thenthat the company will lower commissionsand/or change contracts.We don’t know how the Canadianexperiment will play out, but we believethe change has already caused significantangst and stress for agents there. In additionto the psychological trauma, there isa good possibility that they could sustainsubstantial economic losses, once the salaryguarantee runs its course.NAPAA supports Allstate agentswherever they are. We will follow thesituation in Canada as it unfolds in thecoming months. Meanwhile, we ask thatAllstate agents everywhere join us in extendingour empathy and best wishes toour Canadian brethren.Specializing in serving Insurance Agenciesand Small Businesses nationwideWe offer many solutions that allow you to save money on yourtelecomm bill. By working with us, many small agency ownershave increased their bottom line profits by simply reducing theirmonthly telecomm expenses.On average, our customers have seen a savings of 8-15% on their monthly phone bills,depending on their current plan and features.• One Allstate agency owner has received a savings of over $1,200 + annually!The Best Part About Our Program is there is no change whatsoever in your service withyour current provider, no downtime and you KEEP ALL your phone numbers. A seamlesstransition - nothing for you to do - to make this happenWe Can and Will Save you Money for the following services:Voice (including Local, Toll free and Long Distance)Wireless (voice and data)Internet / Data Circuits (DSL, Cable, T1)For a free consultation, please e-mail or call Jeff Kaplan at732-668-8676, jeff.kaplan@btagllc.comAsk us about our referral program.Fall 2007 Exclusivefocus — 31

marketingA Small Business PerspectiveBY DEAN HORGER CLU CHFC CLTCGENWORTH FINANCIAL’S LONG TERM CARE INSURANCE DIVISIONWhat if a business owner could offera highly desirable benefit to an employeethat was selective, available to spouses,did not increase the employee’s taxableincome, let the employee receive futurebenefits tax free yet still allowed the businessowner to deduct most, if not all, ofthe contributions? A dream come true?Believe it or not, there is such a productavailable and it is a hot commodity thesedays. What is it? It’s called long termcare insurance.In this day and age, many families,especially those with aging parents, understandthe need for long term care insurance,but keep putting off the decisionto buy because of the expense. There areways, however, that an employer can helpfill this need and look like a hero whileproviding an important benefit thathelps retain key employees and possiblyget a tax break at the same time.2007 Eligible Long Term Care Insurance PremiumsAge-Based Deduction LimitsAgeLet’s look at some of theparameters:• Selectivity: A business owner canchoose a class of employees for inclusionin such a plan (including the owner-employee)provided there is a rational basisfor including some and excluding others.• Spouse Coverage: The owner mayinclude employees’ spouses within the plan(including his or her own). This is very differentfrom the way other executive benefitplans generally work, such as 162 bonusplans with life insurance or non-qualifieddeferred compensation plans.• Deductibility: Depending on theform of business entity, the businessowner may deduct premiums paid for anon-owner employee and spouse, andmay also be able to deduct all or someof the premiums paid for the employeeowner’sand spouse’s premium.Let’s take a closer look at deductibility.Individuals who itemize deductionscan add their eligible premium toany unreimbursed medical expenses. Ifthe combined total exceeds 7.5% of theiradjusted gross income, the amount overthat threshold can be considered for a deduction.“Eligible premium” is the lesserof actual premiums paid or the age-basedlimits indicated in the chart above. Veryfew individuals qualify for this deduction.A sole proprietor can purchase longterm care insurance on himself and hisspouse, and deduct the premium or theeligible Age Based Limit whichever isless. Keep in mind that the sole proprietordoesn’t have to consider the 7.5% ofadjusted gross income requirement.Here is an example: Kathy is the soleproprietor of a gift shop and is marriedto John. Both of them are age 55. Thepremium for their long term care coverageis $2,800. Generally speaking andassuming she itemizes, Kathy could deducta total of $2,220, or $1,110 each forherself and John.In any of the pass-through business entityforms such as Partnerships, S-Corporations(assuming more than 2% owner),and LLCs (assuming the LLC is taxedas a partnership), the entity could pay forAmount Deductible*40 or under $29041 through 50 $55051 through 60 $1,11061 through 70 $2,95071 and above $3,680*IRC Sec. 213(d)(10)(A). Rev. Proc. 2006-53, 2006-481.R.B.1those premiums and consider it a businessexpense. The premium expense wouldpass to the owner as income, and then theowner could deduct up to the Age BasedLimits on the individual tax return.If you have a non-owner employee,the business entity can pay and deduct thelong term care insurance premiums for apolicy owned by the employee and also fora policy owned by his or her spouse. Thepremium is not considered taxable incometo the employee or the spouse, nor is thebenefit taxable when paid to the insuredat time of claim reimbursement.In a C-Corporation, if a stockholderemployee is actively at work in the business,the corporation can pay the premiumsfor the stockholder employee andspouse, and deduct the premium coststo boot. Additionally, the premium paidby the C-corporation is not consideredincome to the stockholder employee.As with all tax qualified long term careinsurance policies, benefits paid in theform of reimbursement are not taxable.In terms of selectivity, spousal availabilityand deductibility, long term careinsurance is one of the few executive benefitsthat is a win-win for each party. Plus,the employee owns these individual poli-32 — Exclusivefocus Fall 2007

[ ]Long term care is recognized as a criticalchallenge. Small businesses that offer to paytheir employees’ long term care insurancepremiums may be able to more easily attractand retain the most qualified people.cies, hence they are portable. If they leavethe company, the policy goes with them.Long term care insurance is one areathat many executives and planners haveoverlooked in their retirement strategy. Along term care event has the potential ofdestroying a family’s accumulated wealthor a business owner’s company. With somuch at stake, why wouldn’t a businessowner transfer some of that risk to an insurancecarrier especially since it can bedone using tax-advantaged dollars?For agents and EFSs, marketing longterm care insurance to businesses can belucrative and rewarding. To get started,the first thing you or your EFS shoulddo is say to your prospect: “We’ve donesome planning for your retirement. However,there is one thing we haven’t talkedabout and I feel I need to ask: If you hada chronic disability, a long term care eventtoday, how would you pay for it?” Typicallythe answer is, “I don’t know” or, “frommy retirement portfolio.” In either case,your response should be the same: “I wasafraid you might say that. Let’s take a lookat some strategies that can help you protectyour retirement portfolio. As a businessowner, you can generally do this withtax-advantaged dollars.”Many long term care carriers offer amulti-life discount. Think of the businessmarket in two segments:• an employer pay-all executive onlyprogram• a voluntary plan for all employeesThe executive only plans are very attractive,as they enhance their benefitsprogram. Plus, you have the opportunityto deal with one decision maker and walkaway with significant premiums andmultiple applications all at one time.Concentrate on the executive employerpay-all program first, and then ifthe business elects to offer coverage toother employees you can present the voluntaryprogram as a viable option.Choosing the right long term care policyfor your clients is important. Agents shouldlook for a company with strong financials, ahistory of claims paying ability and a trackrecord in the long term care insurance arena.Agents should also consider a program thatwould give the employer plan flexibility andthe biggest bang for their buck. In essence,be sure they receive all applicable discountsincluding a preferred health discount.Long term care is recognized as a criticalchallenge. Small businesses that offerto pay their employees’ long term careinsurance premiums may be able to moreeasily attract and retain the most qualifiedpeople. It gives business owners theopportunity, particularly in a closely heldcompany, to cover themselves as well.It may help them to focus on their jobswithout anxiety, which can help maintainthe ongoing prosperity of the company.The NAPAA Forum…Where Agency Owners Meet OnlineAre you asking questions, but not getting straight answers?Are you having problems, but can’t seem to find solutions?•Does your MDL avoid your questions or is he unable to help you?If so, our experienced Forum participants can probably assist you.To join the Forum, go to www.napaausa.org and sign up today!Non-members...Join the NAPAA Forum for just $49.99 per year!34 — Exclusivefocus Fall 2007

Looks like a job for AMS 360.Free your agency.Is your agency drowning in paperwork and inefficient processes? If so, set youragency free with AMS 360 ® . By streamlining your entire agency, you canfocus on what matters – servicing customers and growing your business.AMS 360 is an innovative agency management system that truly sets you up forlong-term success. Call 800.444.4813 or visit www.freeyouragency.com/napaa.© 2007 Vertafore, Inc. All rights reserved.

Conference photos of theNAPAA board, employees andsome friendsConference quips & quotesfrom agent attendeesGood pals. Board membersJim Cirillo (L) and Johnny LeighThe 2007-2008 NAPAA Board of Directors and a few friends“The vendors were fabulous. I am extremelyhappy with the prizes and winning the 7Day Cruise (for two). Need I say more?”“I thought the speakers were good. I especiallyliked Rich Bernstein, the ActionCoach. I liked his strategy for success.He was very positive and professional.”“You all do a fantastic job with NAPAAand the conference was great. I went to aconference around 10-12 years ago, andthis was better. I will be back next year.”“I think this Conference is a must forthose agents that want to be informed. Itwas my first Conference but I definitelyplan to attend next year. My perceptionwas that most of what would be coveredwas what was wrong with Allstate.I found that everyone was very positiveand it exceeded my expectations in justabout every way.”“Carol and I were made to feel very welcomeat our first meeting and, if I have thechoice of attending NAPAA next year oran Allstate meeting, I will take NAPAA.We met a lot of really great people andhope a list of attendee’s names, addresses,etc. will be forth coming.”“The hotel was an excellent value, myroom was fine for a business meeting andI recommend it for future meetings.”“I thought all the speakers met or exceededmy expectations. I found theEFS from Oklahoma City, the BusinessCoach and the Attorney from Detroit allhad very valuable information to share.There was a lot of information to takehome and use in my agency.”“I was delighted to be among pro-activepeers who value the entrepreneurial spiritof the independent but exclusive contractwith Allstate. The conference was a motivationfor me to improve my business success.Hope to encourage other friends toshare my passion to join and get involved.”“The golf outing was super, even thoughI played poorly. I cared less about theprizes, but the outing broke the ice for meto meet some of the sponsors and agentsfrom across the country. After playinggolf, I sort of felt a camaraderie that drewme closer to the people who were there.”“Rich Bernstein was very interesting.Not only am I going to read his book,but I’m going to challenge him to sparkthe stagnate growth in my agency.”“To those who did not attend, this wasone of the best meetings I have attendedin 26 years in this industry. You misseda great learning experience. I have onlybeen with Allstate a short time but I havefound more help, more support and morefriends at NAPAA than anywhere else.Start now to plan to attend next year!!!”“It was a great conference. I thoroughlyenjoyed it and plan to continue my membership.Jim Cirillo, was a great MC. Heis everything. I would like to get moreinvolved with this organization. It wasvery informative and added great valueto my job.”“P.S. My wife just told me to tell you thehotel was very, very nice. Next time shegoes to Vegas that is where she is staying.”And, nowa word fromour sponsors...“Thank you so much for the great accommodationsand set up at The Tuscany!I was very excited about the event!36 — Exclusivefocus Fall 2007

Hmmm... what could they be chatting about? From L to RSharon Alexander, Sharon Cirillo, Cheryl English,NeBrazy Adams and Jessica BeamerArt Krause (L) and Jim Fish deep in conversationAll smiles. Ron Jay (L) and Jim CirilloThe board of directors’ dinner at Bradley Ogden’s courtesy of Art Krause andCapital Intelligence AssociatesI do want to let you know I would beinterested in continuing sponsorships atyour events!”Ron Stricklin, ACNS“I would personally never stay there (atthe hotel) again. The blow dryer blewup in my hand, the iron didn’t work, theice machine was empty, and a half-nakedwoman was passed out on the floor byour room…”Kinzie Visser, ICE“I can’t say it enough times, the pleasurewas all ours. Quite a few great businessopportunities came out of last week. However,and equally important (at least to me),is the amount of awesome people I metand being able to share stories and spendtime with everybody. Finding out that JimCirillo is from Rochester and he came fromthe same neighborhood as my parents wasreally great. On the business side, so far Ihave signed up 2 agents and have about5 others who will be signing up with methroughout this month. Yesterday I signedup an agent who knew about the conferenceand assured me he would be therenext year. We are in the process of gettinghim signed up for this month too.”Tom Mistretta, E-chx“We greatly enjoyed the convention, aswell as felt that it was very productive. Itwas also nice to place a name with a facewith you and Nancy. As we discussed,now that this burden is off of your shoulders,you now have to get right to workon the next Exclusivefocus.”Paul Rosen, E-chx“Very pleased with the conference and wellworth our time and expense. I would recommendthe conference to other vendorsand we may, in fact, have other productsof interest to Allstate agents by next year.We would like to hear what Allstate agentsthought of the conference, in particular, thevendor showcase. If they had comments regardinghealth care benefits, even better.”Jim Ludwig, Plan Service Providers“Golf was great, hotel was good. You maywant to try an east coast/west coast locationevery other year. Thanks for allowing us toparticipate. Count on us for next year.”Frank Strangis, Valpak“I want to thank you for inviting Steveand myself to your conference. I thoughtyou and your team did on outstandingjob putting it on. I am thrilled that wewere able to take part in it.”Bryan German, Expetec,“That was by far the best conferenceI have attended in 6 plus years. Nancyand you did a great job all the wayaround. You guys really made Jeremyand I feel welcomed and everyone wasa lot of fun.”Jeffrey Kearns, National CMServices“We appreciate the opportunity to attend,display and host the reception atthis year’s convention. I am excited andencouraged by the growing attendance,and I am already looking forward to nextyear. Kudos to you and Nancy for the exceptionaljob you have done.”Tom Sanders, Capital Resources, LLCFall 2007 Exclusivefocus — 37

featureIncrease Your Revenueswith Third Party ReferralsAs we all know, the greatest assets youhave in business is your personal relationshipwith your customers, other business ownersand key suppliers. You work hard to nurturethese relationships in the hope that they willrefer their friends, relatives, acquaintancesand clients to you for insurance.Unfortunately, the opportunity toprofit from your hard work is limitedby underwriting guidelines, IS scoring,and product availability. Captive agents,in particular, are frustrated because theytalk to hundreds of people a year thatthey can’t help for a variety of reasons. Itmay be the price of the product, the availabilityof coverage or some other reason.Whatever the cause, the fact is that captiveshave to walk a lot of business.This dilemma has prompted entrepreneurialagents to find other ways toincrease revenues. Many of these agentshave discovered the advantages of offeringthird party goods and services to theirbusiness contacts and key suppliers. Thesebusiness owners know and trust youenough to refer business to you, so theyare the ideal prospects for you to approachwith third party products and services.In addition, by providing them with solutionsthat can help them in their businesses,they are even more likely to referbusiness back to you. In essence, it is awin-win opportunity for both parties.Welcome to the exciting and lucrativeworld of paid referrals. Imagine beingable to make money by simply introducingyour business contacts and key suppliers tothird party services that can help them savemoney. In this article we will introduce twothird party opportunities that can help youbeef up your bottom line. It is possible thatmany of your business contacts will be goodcandidates for both of these vendors.The first of these vendors is recommendedby NAPAA. The name of thecompany is International Card Establishment,or “ICE”. Among other things,they offer credit/debit card payment processingservices and proprietary gift andloyalty programs to merchants. Potentialprospects for their products and servicesinclude any business that accepts creditscards. Think of the possibilities! And,since the processing fees ICE charges areamong the lowest in the industry, evenbusinesses that currently use anothercredit card processor are good prospects.Many agents have discovered theadvantages of offering third partygoods and services.The ICE referral program works greatfor restaurants, sundry shops, boutiques,grocery stores, car washes, salons, dentists,doctors, accounting or CPA firmsand even business to business sales. Ifyour customer does or should accept creditcards, a referral program makes sensefor them. A few exceptions are businessesthat accept upfront deposits such as travelagencies, interior designers, contractorsand certain types of online retailers.If you are like most agents, your contactsinclude business owners and otherindividuals who wield tremendous influenceover the decisions that are made inthe companies where they work. These arecenters of influence that can get you in thedoor. Any business that does or should acceptcredit cards is a perfect candidate foryou to refer to ICE. In most instances, theprospects you refer will save immediate andidentifiable money by using ICE. Plus, thegift and rewards programs will not onlyimprove their cash flow, but are a provenmethod to increasing sales and profits.The best part is there is no sellingrequired. You simply set up a warm referralappointment and submit copies ofprocessing statements to ICE. A qualifiedand courteous professional will thenmake the presentation to your referral.Assuming your prospect decides to signup for the merchant services, you willearn a referral fee plus an ongoing streamof monthly residual payments for as longas the client processes with ICE.The second vendor may offer even agreater market to sell its products andservices. The name of the company is NationalCMServices. Nearly all businesseshave payroll needs, right? These companiesalso need Workers Compensation,right? National CMServices offers bothpayroll services and Workers Compensationthrough its Pay-As-You-Go plan.And, since both new and renewal commissionsare based on gross payroll, sellingthe product does not even require aninsurance license, according to NationalCMServices CEO, Jeffrey Kearns.As stated earlier, just about any ICEprospect will also be a prospect for NationalCMServices, so it may make senseto do both. In addition, the processes aresimilar. All you do is make the referral.The referral is then contacted by the appropriatecompany and, when it is sold,you start making money. Both companiespay commissions on recurring business,similar to renewal commissions inthe insurance business. Sounds like awin-win proposition, doesn’t it?To reach International Card Establishment,call Kinzie Visser at 866-423-2491ext 571. To reach National CMServices,call Jeffrey Kearns at 877-292-746038 — Exclusivefocus Fall 2007

NAPAA AnouncementDear Agency Owners:As Allstate agents begin to cope with higher costs of doing business, reduced co-op dollars and,in many instances, limited property markets, NAPAA is seeking ways to assist agents by exploringnew ways for agents to increase agency efficiencies and generate greater cash flow. In most markets,Allstate has offered agents access to an Expanded Market program, but agents are still on thelosing end of the equation because commissions are lower and multi-line customers are defecting.This loss of revenue, plus the prospect of soon having to pay for agent owned technology, equals asignificant loss of revenue for affected Allstate agency owners.Making sure that you can keep the doors to your agency open for business is important to NAPAA.We want to help agencies to thrive and flourish in spite of these new economic impediments. NAPAAis committed to helping agencies find supplemental sources of revenue that can help replace lostincome or pay for increased agency expenses.Today, we are pleased to announce one such opportunity. International Card Establishment, Inc.,or “ICE”, headquartered in Los Angeles, has been in the payment processing industry for over sixyears. They are an acquirer for First Data Corporation, the world’s premier payment processor. ICEcompliments the First Data platform by guaranteeing the lowest rate of credit card transaction feesand by providing industry leading customer service and support. In addition, ICE has a proprietarygift and loyalty program that it administers for thousands of large and small companies throughoutthe country.ICE, in conjunction with NAPAA, has developed a referral program specifically for Allstate agentsthat can substantially increase your income while you continue to operate your Allstate agency. Asagency owners, you, your staff and your family members all have contacts with business owners.Retail businesses, in particular, are ideal referral prospects for the ICE gift and reward program.The ICE opportunity is a win-win for Allstate agents. First, by referring your business contacts toICE you’ll earn extra income and, at the same time, do your fellow business owners a favor by savingthem money in credit card transaction fees. Plus, you’ll probably also write some insurance policiesin the process!There are no fees or quotas and the paperwork is minimal. ICE understands that your primarybusiness is Allstate, so you have the freedom to work at your own pace and on your own terms. Inaddition, ICE realizes the value of your reputation and relationships. They will treat your referrals thesame way you treat your customers; with kind attention and support while offering them real savingsin payment processing services.We proudly recommend ICE and their referral program.Sincerely,Jim FishJim FishExecutive DirectorNational Association of Professional Allstate Agents, Inc.For more information, please contact Kinzie Visser at 866-423-2491 ext 571.40 — Exclusivefocus Fall 2007

Fall 2007 Exclusivefocus — 41

technologyDSL – Reliable, Cost-EffectiveConnectivity for Your AgencyBY CHARLIE BOGART, PRESIDENT REALCOM SOLUTIONSThe challenge for companies with remoteoffice locations has traditionally beenthe balancing act of bandwidth versus cost.For many years most multi-location companieshad two options for linking their remoteoffice users with corporate offices.One was T1 service. T1 is reliable andprovided ample bandwidth to meet mostenterprise applications. However, T1 servicecan become cost prohibitive when beingdeployed to hundreds of locations. The secondoption was dial-up. Dial-up was usedmostly to send batched information duringdown times when there was little or no activity,usually at night. Dial-up is very costeffective, but as anyone who has ever used itwith their PC can tell you, it is very SLOW.In spite of this, as long as the applicationswere simple and weren’t needed in real-time,dial-up was an adequate solution.Today’s remote office employeeutilizes an array of sophisticated applicationspulling critical informationin real-time from a centralized serverenvironment. These applications maybe utilized over a private WAN (widearea-network)linking the remote officeto corporate or accessed via the Internet.Web-based applications may be housedat a corporate data site or pulled froma third party ASP (Application ServiceProvider). Either way, reliable highspeedInternet connectivity is critical todoing business in today’s remote officeenvironment.In the late 1980s, phone companiesbegan offering a new technology to residentialusers called DSL (Digital SubscriberLine). DSL provides high-speedInternet access over existing copper telephonelines. No special wires are necessary;just the plain old phone lines thatare already out there. DSL is provided inthree common configurationsADSL (Basic DSL)This is the basic DSL offering and utilizesexisting phone lines. ADSL supportsdata rates of from 1.5 to 3 Mbps when receivingdata (known as the downstream rate)and from 16 to 640 Kbps when sending data(known as the upstream rate). Speed is usuallyrepresented as download / upload.SDSL (Symmetrical DigitalSubscriber Line)SDSL is a symmetrical service, whichmeans that information travels upstreamand downstream at the same rate. It wasdesigned for applications requiring highspeeds in both directions. SDSL speeds beginat 192 Kbps and go as high as 3 Mbps.SDSL is well suited for business applicationsbecause of its symmetrical nature.IDSL (ISDN DSL)IDSL is essentially used to provideDSL service to customers who do notqualify for SDSL or ADSL, but whostill want high-bandwidth service anddon’t want to pay per minute charges foran ISDN line. IDSL is capable of reachingcustomers who are up to 30,000 feetaway from the telephone company’s centraloffice. IDSL operates at a symmetricalspeed of 128 Kbps.DSL provided much higher bandwidthoptions than traditional dial-upand was quickly embraced by residentialusers. It did not take long forbusinesses to begin looking at DSL asa cost effective method of providingremote offices with affordable highspeedconnectivity to the internet andfor corporate applications. Before long,telecommunication providers were offeringbusiness class DSL service tomeet the exploding demand from businesslarge and small.Today DSL is used by thousands ofcompanies for reliable, secure, cost effectiveaccess to their remote offices world-wide.What are the benefits of DSL?• Fast Access• Always On• Inexpensive42 — Exclusivefocus Fall 2007

How does DSL compareto Dial-Up?• DSL offers much higher speedsthan a dial-up connection.• There is no need to dial-up to theInternet with DSL. It is an “always-on”dedicated connection.• DSL makes it easier to connectmultiple computers to one high-speedline within an office environment.Normally, for the same high bandwidthaccess, a business will pay significantlymore every month for a T1 line than itwould for DSL.• Additionally, installation of a T1line is generally far more expensive thaninstallation and setup of DSL services.Charlie Bogart is the President of RealComSolutions, a vendor-neutral, client-advocatetelecom consulting company.Charlie has over twenty years experiencein the telecom industry. RealCom Solutionsis an Authorized Value Added Resellerof ACNS.How does DSL compareto Cable modems?• Cable networks are shared, whichmeans that as more people on segmentget online, the slower your connectionbecomes.• A shared network is less securethan DSL. It is easier for neighboringcable users to intercept data from anotheruser’s computer.• Upstream speed on a cable modemis not as high making them less desirablefor business applications.SERVING NAPAA AND THE AGENTS OF ALLSTATE SINCE 2000DIRK A. BEAMER, ATTORNEYRECIPIENT OF THENAPAA PRESIDENTʼS AWARDFOR EXEMPLARYANDUNSELFISH DEDICATIONTO THE AGENTS OF ALLSTATEHow does DSL compareto a T-1 line?• The decision between DSL andT1 service usually comes down to price.WRIGHTPENNING.COMPh: (248) 477-6300Fx: (248) 477-7749dbeamer@wrightpenning.com206 E. Rusk StreetRockwall, TX 75087866-715-ACNS (2267)YOUR AGENCY TECHNOLOGYSERVICES PARTNERProviding Total Solutionfrom troubleshooting to resolution• Telephone system support• Data network system support• New system design and implementations• Trade-in programs for your old equipment• Equipment Rental Programs/Lease Financing• Maintenance programs including advance replacement• Bundled Long Distance, High Speed Internet and Unified messagingWe Specialize in Support and Sales for Allstate AgentsWe are staffed by professionals with over 50 years experience servicingAllstate remote locations and agency officesASK ABOUT OUR ONE CALL SERVICEFall 2007 Exclusivefocus — 43

usinessStepping Stones to Purchasing an AgencyBY PAUL CLARKEIf you’ve decided that the life of anAllstate agent is the life for you, someadvance planning will help you proceedwith a more informed perspective.Whether you are an existing Allstateagent or a new agent, you’re taking a bigstep when you decide to acquire an Allstatebook of business. Not all agenciesare created equal, so it’s critical to choosethe one that best matches your specificcircumstances and vision for your future.Answers to the following questions willserve as stepping stones to your goal ofbecoming an exclusive agent positionedfor success and prosperity:1. What is the book of business worthto me?2. How will I pay for the book ofbusiness?3. Which purchase opportunity isbest?What is the book businessworth to me?Determine the value of a book ofbusiness. Market value isn’t the only requisitemethod for valuation. Every bookdoes not have the same value to everybuyer. You will need to determine howmuch a particular book is worth to you.Example: A small agency with 800policies may appeal to an existing agentlooking to merge because its purchasewill grow the existing agency withoutsignificantly increasing overhead. In thissituation, the agency owner is ‘padding’his income by merging a small book.However, a book of this size is unlikelyto provide more than $20-25K in annualsalary for a first time purchaser — not aviable choice for someone looking for anagency to serve as his or her main sourceof personal income.Now that we have determined that everyonehas a unique perspective when itcomes to the value of a book of business,let’s look at the primary factors that playa key role in the decision-making processwhen making an offer to purchase.Be reasonable when setting your personalsalary. If you have already establisheda career in the insurance businessand are accustomed to living on $80,000a year, don’t expect to suddenly cut backand be able to survive on an annual salaryof $50,000. This kind of drastic lifestylechange is very difficult and probablyunrealistic, be practical about how muchyou will need to live on. The revenuethat remains after you take out overheadexpenses and your salary is what will beavailable to service your debt. Once youhave established what your salary requirementsare, you can begin to determinethe size of book you should buy.Perform an accurate cash flow analysis.An agency produces a stream of renewalincome that must be managed. Toarrive at the true net of the business, youwill need an accurate cash flow analysis.From the seller’s annual commission income,you must have enough cash flowto cover your true overhead expenses,such as rent, utilities and staffing, theloan payment and, of course, your personalsalary. When reviewing the seller’shistorical operating results, it will be necessaryto adjust customary expenses, suchas meals, travel, depreciation, and makenon-customary adjustments, such as subtractingout wages paid to family memberswho do not work in the agency.It is also a good idea to build in a cashflow cushion as your agency will certainlyexperience fluctuations in the amount ofrenewal commissions received. Plus, it isimportant that you understand that theagency you have purchased may not receivean achievement bonus. Borrowing alarge sum of money on a break-even cashflow basis is a very dubious proposition.Determine the price you can affordto pay. Now that you have completed acash flow analysis, factored in a realisticwage for yourself and have included thetrue overhead expenses of the business,you can determine what price you canafford to pay for the book. If the annualnet amount available to service debt is$100,000, you certainly cannot afford a$10,000 monthly loan payment. Talk tolenders who are knowledgeable about Allstateagency financing. If you know youcan get 10-year financing at 9.5%, you canback into a reasonable purchase price.How will I pay for the book?Put yourself in a favorable positionbefore applying for financing. Lendersare impressed by agents who know theirbusiness and are confident about the successof their upcoming acquisition. Beprepared to talk to your lender about thestrong points of your pending transaction.It will also be helpful to presentyourself as a desirable financing candidate.In order to do so:• Check your account history to ensurethat your credit record is as clean aspossible.• Reduce your credit card exposureas much as possible.• Be prepared to provide a detailedexplanation of any delinquencies appearingon your credit report.• Prepare a detailed résumé highlightingyour successes.Find the right lender. The successof your business will depend in part onthe quality of the financing you receive.Look for a seasoned lender that possessesa thorough understanding of theAllstate business and has experiencefunding agency acquisition loans. Selecta lender who can accommodate your financingneeds, and provide a uniquelyqualified management team and highlyexperienced professional staff who arecommitted to helping you succeed bothin the short term and the long run.44 — Exclusivefocus Fall 2007

Additionally, the loan should have afixed interest rate with simple interest andno hidden fees. Securing a lender who canprovide an appropriate loan term is also anecessity during this time of rising bookprices, as books will not cash flow on a5 or 6-year loan term. It’s important tohave your accountant or financial advisorreview your financing offer to ensure thatyou are getting a fair deal.Examine the criteria your lender willconsider when approving a transaction.When you talk with your lender aboutthe rates and terms that are available, youshould know what factors will affect theirdecision. According to industry standards,a good candidate for financing has:• two years of experience in licensedinsurance sales or other significant businessexperience• a credit rating of 650 or higher• a personal financial statementshowing that you maintain a minimalcredit card balance and are current on alltaxes and other loan payments.Take time to outline the specifics ofyour deal.• What is your intended purchaseprice?• Do you plan to put any moneydown?• Do you intend to retain all of thestaff?• Will you be making any changes?• What do you intend to do to ensurea successful transition?After you’ve made your case for loanapproval and supplied the necessary documents,you can anticipate timely feedbackfrom your lender about what they will financetoward your purchase of an agency.Which purchase opportunityis best?Be ready to make an honest appraisalof yourself and the purchase opportunityyou are considering. From a personalperspective, what load can you bearto take on? Remember, you are lookingto improve your quality of life and investin your future. If you are required to takeon multiple locations or a satellite agency,the practical logistics of management maypresent a formidable physical and mentalstrain. Be sure to think realistically aboutyour own temperament and the work thatwill be required to operate your businesssuccessfully. Make sure you will be wellcompensated for your efforts. The lastthing anyone wants to do is work harderfor less money. A win-win situation for allparties involved should be the goal.In your search for the right agency, youare almost certain to find abundant purchaseopportunities. Some of them willappear to be bargains, and you will findreason to reject others. Taking the timefor honest, thorough self-assessment andgathering pertinent information will helpyou sort out the possibilities and establisha clear path to a successful acquisition.This article certainly has onlyscratched the surface of the variables thatcome into play when looking to purchasean Allstate agency. Other factors suchas location, loss ratio, and retention areall very important when buying a book.My goal is to simply give you several keyfactors to consider when evaluating apurchase opportunity, and the importantperspective that all books are not createdequal for all individuals.Paul Clarke is Chief Operating Officer atProfessional Practice Capital. You can reachPaul or his staff at 800.456.2779 or visitthem on the web at www.ppcloan.com.PROFESSIONAL PRACTICE CAPITALFinancing your professional futureFall 2007 Exclusivefocus — 45

technologyAnatomy of aToner CartridgeBY PROFESSOR GADGET (A.K.A EMIL K. KALIL, PH.D.)You’re in the office supply store lookingfor toner for your laser printer. It’s adaunting task because there are over 30feet of toner cartridge boxes stacked onshelves along the aisle. You finally locateyour printer model only to find thereare four brands of toner for your printer.Which one should you choose? Then youspot it and say “Aha, the Original EquipmentManufacturer (OEM) cartridge!”You grab the box and head for the checkoutcounter. As you get closer, you look atthe price marked on the box. “This can’tbe right!” you exclaim. You stop in yourtracks, do an about face and head backto the aisle from whence you came. Sureenough, the price tag was not an error.Bummer. As you gingerly place the cartridgeback on top of the stack, you beginto wonder why this particular stack is somuch taller than the rest. You rationalizethat the OEM cartridge must certainlybe the biggest seller because the storecarries such a big inventory. As you’reabout to turn and walk away, you glanceat the other brands of toner cartridges.“Hmmm… these cost less than theOEM cartridge”, you astutely observe.Now, feeling more like Sherlock Holmesthan Inspector Clouseau, you begin toinvestigate the reasons for the substantialprice difference. After eliminatingeverything else, you brilliantly deducethat the only real difference is that thenon-OEM brands are remanufactured.Once again, you employ your great powersof deduction and conclude that, withthe high price of the OEM cartridges, itis time to try one of the remanufacturedbrands. You buy it; you try it and exclaim“I don’t see any difference!”Relieved that he made the rightchoice, the newly minted Sherlock Holmeswas so satisfied, he told all his friendsand family about his discovery and theyalso became avid believers and devotedusers of remanufactured cartridges. Themoral of this story is that you can savemoney and still get good products. Withquality remanufactured cartridges, you’renot paying a premium for the brandname printed on the box.The remanufacturing process startswith a used OEM cartridge that is takenapart or split open. Reputable companiesalways start with a shell that has only beenused once. The shell is cleaned and rebuiltwith new or used components. One of themost important components is the photosensitivedrum, or the OPC drum, whichis the short name for Organo Photo Conductor.You can usually see the OPC as ashinny green or blue cylinder. The OPCis activated by a laser beam to transfertoner to the paper. OPC drums, however,wear out because of the abrasive nature ofthe toner, wiper blades and paper dust. Aworn OPC drum leaves you with fuzzy orstreaked printouts. High end remanufacturerswill use a new OPC drum; the lowerend companies may reuse the existingOPC drum. Other parts replaced duringremanufacturing are the wiper blades andtransfer rollers.The assembled cartridge is filled withtoner specific for that particular modelof laser printer. The finer the size of thetoner particles, the sharper and darkerthe printouts become. The output resolutioncontinues to escalate as the tonerparticle size decreases. The first laserprinters were 300 dpi (dots per inch);most printers today are 600 or 1200 dpi.Remanufacturers try to fill the cartridgewith extra toner for a higher page yield.Rhinotek Computer Products, acompany recently approved by NAPAAas a quality supplier of ink and tonerproducts, goes one step further by testingevery cartridge. After the pull seal is installed,a small amount of toner is loadedto run some test prints.The manufacturing process can becontrolled by the Internal Organizationfor Standardization, or ISO. These standards,if marked on the toner box, letsyou distinguish between garage shop operatorsand high quality manufacturers.Rhinotek is dedicated to quality sowe have a dedicated Quality Control labthat tests one to two percent of our laserand inkjet cartridges to insure quality,long life and flawless printouts. Remanufacturedcartridges can be equivalent orbetter than the OEM. Don’t be afraidto give one a try… after all, our friendSherlock did.Professor Gadget can be reached atekalil@rhinotek.com.46 — Exclusivefocus Fall 2007

Napaa Ad July 2007 7/26/07 3:05 PM Page 1RHINOTEKProviding Premium Imaging Supplies for Over 26 Years!Rhinotek is a preferred NAPAA provider for ink and tonerGreat Savings - Group Buying Prices -Price Includes Ground ShippingGuaranteed Quality - 30 Day Net TermsTBest of all we help the environmentRhino NAPAABrand Rhino # PRINTER OEM Price Prices SavingsLexmark QL-T520 Optra T520 $373.00 $140.77 62%Brother QB-HL460 TN 460 $74.49 $43.00 42%HP QH-1320 1320 Laser $130.99 $82.60 37%HP QH-4250 4250 Laser $223.99 $153.00 32%We provide our customers with value every step of the way• A vast selection of 6500 compatible and OEM imaging supplies• Over 26 years as an industry leader of premium inkjet and laser toner cartridges• High-quality output, vivid colors and exceptional yields• Compelling price to performance value• A knowledgeable sales team focused on your growth through savingsRhinotek Computer Products, Inc.2301 E. Del Amo Blvd., Carson, CA 90220 (800)-695-7446www.rhinotek.com/napaa.htmRhino GreenDoing our part torecycle the worldFall 2007 Exclusivefocus — 47

association benefitsAnother Brick in the WallBY JUDY OST, NAPAA SECRETARYYour association leadership meetsevery month to discuss the relevant issuesfacing Allstate agents. Most monthswe meet by teleconference, but we alsohold face-to-face meetings three or fourtimes per year in various parts of thecountry. When we have our face-to-facemeetings, we usually host an open communicationsmeeting with local Allstateagents to update them on current topicsand trends and to hear the concerns oflocal agents. We also try to meet oneon-onewith individual agents after themeeting and end up making new friendsin every city we visit. Membership isnot required to attend our meetings, sofrequently we have a large group of nonmembersin attendance.After having held scores of meetingsover the past 17 years, we always anticipatea large showing of non-members andlook forward to meeting them. Even ourNational Business Conference draws manynon-members. Some come out of curiosity,some to hear more about our views, someto learn our take on current Allstate initiativesand some come to learn more aboutbecoming successful Allstate agents. Onceattending one of our meetings, they usuallywalk away with a whole different perceptionof NAPAA. Our meetings usuallydispel any notions that our association is a“good ole’ boys club,” that our leaders areradical, or that NAPAA is not an advocatefor Allstate agents.So I’ve been thinking... We are veryfortunate to have an organization of volunteerswho do their best to bring agentstogether and help them compare notes,become friends and share ideas. We takevery seriously our motto “Your success isour business”. Of course, no organizationcan be all things to all people, but hereare some of the things we offer:• We connect agents with supplierswho can help them save money andstreamline their work processes.• We produce a magazine that allowsagents to share their knowledge with othersthroughout the country. We use themagazine to offer ideas and inspiration.• We publish a weekly newsletterthat provides a compilation of recentAllstate and industry news to help youstay on top of your game.• We invite comments and feedbackin all our publications in the form of lettersto the editor.We offer a Website with an agent forumwhere you can connect with agentsall over the country. If you have not visitedthe Website lately, you are in for apleasant surprise. It has been updatedand modernized and is full of informationyou can use.• We organize our annual businessconferences at affordable hotels in greatdestinations. The conferences allow youto network with a wide selection of agentsand advisors. Conference attendees comeaway with lots of good ideas they can putto use, as well as the memory of having agood time over all.• We hire lobbyists as needed wheninsurance issues are on a legislative agendaat the state level.• We collaborate with other agentassociations on legislative issues whennecessary.• We have an excellent attorney onretainer to help solve some of our morecomplex issues.• We are relentless in our pursuit ofaffordable medical and disability incomeinsurance for our members.• We are seeking new and innovativeways to help agents increase revenues byfinding profitable, yet part-time “secondarybusinesses” that aren’t in conflict withtheir agencies.Sure, every agent may not needNAPAA. But thousands of agents do. In[ ]I am personallyconvinced that it isessential that agentsband together.fact, as I write this today there is much tobe concerned about. For many, the prospectsof earning the RFG bonus or makingExpected Results are not realistic thisyear. And, since it never seems to get anyeasier, the outlook for the next few yearslooks bleak, as well. Disillusioned byincreasing expectations, fewer productsto sell and uncompetitive auto markets,many agency owners simply aren’t havingfun any more. I am personally convincedthat it is essential that agents band together,especially newer agents who48 — Exclusivefocus Fall 2007

need guidance and advice. This group ofagents is particularly vulnerable to shiftingcorporate strategies and changingmarkets. NAPAA can help provide thetools, knowledge and inspiration it willtake to make it over the rough spots.Contrary to what you may have heard,NAPAA is not a clique of radicals. Ourboard of directors is elected by the membership.Our leaders are simply currentand former Allstate agents who are deeplypassionate about making NAPAA betterand providing more services, guidanceand tools to help our members be moresuccessful. Naturally, when a group puts somuch time and effort into a mutual causelike NAPAA, individual group membersare bound to become friends. This is agood thing and makes for harmony on theboard. Our volunteers believe so stronglyin NAPAA that they are willing to giveup considerable time and money to servethe organization. A large part of what wedo is seek and explore solutions to problemsfaced by the agency force. Standingtogether in solidarity accomplishes muchmore than one person can alone.Clearly, NAPAA cannot solve all theproblems that member agencies face.What we can do is impart valuable informationto you and help you though toughtimes by empathizing with you and makingall of our resources available to you.NAPAA, a non-profit organization,depends on membership dues and ActionFund donations for most of its expenses.For 17 years, it has been built brick bybrick as a labor of love by scores of agentswho have sacrificed time and money tofulfill the noble vision they all shared.A portion of our revenues come from advertisers,carefully chosen for their relevanceto your business. Our advertisers make thismagazine and our other publications possible.We urge you support the advertiserswho support your agent association.Just so you know, your association’sexpenses include the same types of expensesas your agency, such as telephone,staffing, equipment and high speed connectivity.Additional expenses includethe following costs:• Graphic production, printing andpublishing of Exclusivefocus magazine• Research, publishing and deliveryof NAPAA newsletters• Lobbyist expenses• Legal Fees• Insurance• Conferences, agent meetings,board meetings• Travel expense• Etc.So, as you can see, we have a lot ofbricks to maintain while we try to buildon our foundation. Member dues are lessthan a dollar a day. The dues have remainedstatic for several years and thereare no plans to increase them.I ask you, isn’t it worth a dollar a dayto become part of the only organizationthat fully supports Allstate agencies?Isn’t it worth a dollar a day to get valuableadvice when you need help? Isn’t itworth a dollar a day to know that yourassociation will challenge your contractprovider if and when necessary?I hope you agree. A membership applicationis included in this magazine. Pleasehelp us put another brick in the wall.Fall 2007 Exclusivefocus — 49

technologyManaged ServicesThe next frontier of technology for businessIn 513 BC, Heraclitus observedthat, “There is nothing permanent exceptchange.” One has to marvel how such asimple statement made over 2500 yearsago has as much, if not more of, an effecton our everyday lives today as it did backthen. What was certainly not predictedby Heraclitus, or even wildly predicted asrecently as the beginning of the previouscentury was the speed of change.As Allstate Corporate makes thechange from fully supporting your technologyto giving you complete autonomyover your technology, you are faced withmany important decisions. Do I handlethis myself? Do I hire someone? Do Icontract it out? For the first question, youmust ask yourself, is that an effective useof your or your staff ’s time? What wouldyou say to a prospective client that tellsyou “no thanks, I insure myself ”? The secondquestion usually does not apply to asmall office. Generally speaking, an officeshould be to the size of 50-100 employeesbefore on-site IT staff makes fiscal sense.For the third, let’s take a look at how theInformation Technology (IT) industryhas changed its delivery of service in orderto provide you a better product that ischeaper and more efficient. If the serviceprovider you are interviewing has not embracedthese changes, you probably shouldkeep looking for another service providerthat does.Let’s start with the traditional Timeand Material (T&M), sometimes referredto as “Break Fix”. It is simply that- you run your machine until it breaks,which usually happens at the most criticaltime. You call a technician to comeon-site, they schedule an appointmentwith you (possible several days out), andthe technician shows up and repairs thedamaged PC. All the while, you and yourstaff sit around - waiting. You are notable to bring revenue through the dooror build your business. You receive thebill from the technician and it’s almost asmuch as you paid for the computer lastyear! This is purely a reactionary stancethat ultimately ends up costing you moretime (the loss of staff productivity) andmoney (the cost of the repair, no revenuegenerated) in the long run.So, you pay the bill and vow to yourself“I am NOT going to let that happen tomy equipment again! You call the ownerof the computer repair shop or the technicianwho just finished getting you backup and running and ask “how do I preventthis from happening again?” Theyrespond with “we need to set you up ona preventative maintenance contract.” Yousay “Okay, great! What does that mean?”The technician responds by saying “wehave a program in place to project thenumber of hours per month it will taketo maintain and support your computersystem. By prepaying for those hours forthe year, we will discount our rates andcome out monthly to tune up your systemto ensure it is running properly. Also, ifyour computer stops working unexpectedlybetween our monthly maintenancevisits, you can call us and we will be onsitewithin 5 hours to fix the problem andget you back up and running. This is all atno additional cost to you because you haveprepaid for this service.” You say “Wonderful.Sign me up.”Okay, so now you seem to have solvedyour hardware problems, but what aboutthe other problems you hear about suchas adware, spyware, viruses and securityupdates? Let’s say that you’re a fewmonths into your preventative maintenancecontract and everything seems tobe going fine. The technician comes outevery month, works his magic and leavesuntil the next month. But, while they areon-site, you and your staff are not able towork…. Since your system is down you50 — Exclusivefocus Fall 2007

can’t write new business or even intelligentlyanswer customer inquiries! And,what about the 29 days of the month thetech isn’t at your office? Every once in awhile you hear about viruses that takedown entire companies. What happensif your system gets infected by a virusthe day after their visit? Will you be unprotecteduntil they come back out again29 days later to update your anti-virussoftware? The answer is yes, becauseuntil someone comes out to update yourcomputers, you are exposed. Once again,you will have to have a technician makean on-site visit with another five hour responsetime. Once the technician arrives,it may be several more hours to get yoursystem up and running, depending onthe problem. Sure, the cost of the technician’svisit is covered, but what about thetime and money it has cost your agencyin lost revenues?There is a better way -Managed Services:A managed service provider (MSP)is a company that manages informationtechnology services remotely. MostMSPs provide the following services ona monthly basis:• 24X7 monitoring of your computers,servers and your entire network• Updating your computers and serverswith critical security patches• Virus and spyware definitions• Backing up of your vital businessinformation• Help desk assistance with questionsyou may have about your hardwareor softwareManaged Service Providers offerseveral different price structures. Themost common is a flat monthly fee.They monitor your IT infrastructureand resolve any issues that arise withinit. This allows you an option to haveyour IT needs taken care of instead ofpaying for an on-site staff or waitinguntil an issue arises.Managed Service Providers utilizesoftware to manage your businessescomputing needs. These remote tools allowthe MSP to virtually manage a company’sentire network operations offsitewithout ever having to step foot into thecompany. This allows you to focus onwhat you do best and keep your IT expensesat a minimum. This remote solutionis not an end all to every issue thatmay come up. There may be a need for atechnician to come on-site from time totime. Generally, the only time this wouldoccur is when there is a physical failure ofa piece of equipment and that piece hasto be replaced. The on-site visit, however,will only be scheduled after all remotesupport options are exhausted.As Allstate corporate pulls back ontheir support, it is now up to you to makethe decisions about whom and how youare going to maintain and support youroffice’s technology. If you choose to haveit done “in house”, make sure you keepan eye on the real cost of having yoursupport staff troubleshoot and maintainyour office technology. Remember, youhired them to help you make money inthe insurance business, not to manageand maintain your agency’s lifeblood.If you choose to have someone do itfor you, you can find plenty of local ITproviders in the Yellow Pages or online.When you are interviewing a provider,there are three important questions youneed to ask:1. Do you provide Remote ManagedServices? If not, how are you going tosupport my office while keeping the officeinterruption and my costs to a minimum?2. If you provide Managed Services,what hours of coverage does your SupportDesk provide? (They should bemonitoring you 24X7 to address yourneeds in real time)3. What are your escalation procedures?If I have an issue, how are you goingto handle it to get me back up andrunning as quickly as possible?A quality Managed Services Provider’sprimary goal is simply this, to becomeyour trusted advisor. When it comes toyour office’s IT, their focus should be onleveraging technology to maximize efficienciesand minimize costs. Keep thatin mind as you move forward with revolutionarychanges you, your agency andyour staff are about to go through in thenext several months.Bryan German is the operations managerof Expetec Technology Services a remoteManaged Services Provider franchise. Ifyou have questions regarding this article orwould like additional information, pleasecontact Bryan at bgerman@expetec.com or888-297-2292 Ext. 3016Technology made easy!See how effortless it is to fully utilize the power of your technology.Expetec Technology Services is ready to help Allstate agents with:(see article in this publication)business goalsContact us for the Expetecprovider in your area.Our Experts. Your Technology.Locations throughout U.S. and Canada.Fall 2007 Exclusivefocus — 51

technologyProtect Your ElectronicCustomer InformationBY ROBERT MILLERIt is late Friday afternoon you areworking on a quote for a customer. Asyou click away at the keyboard, insertingthe customer’s information, your systemfreezes without warning. “Not now,” youmutter. Alas, it’s too late. All of your attemptsto unfreeze your system go unnoticed.Then reality sets in, you have avirus. “How could this happen?’ is the firstthought that comes to mind. After all,you only use the Internet for work, don’tdownload any files and only open e-mailfrom people you know. As these thoughtsflash through you mind, you cry out in despair“What did I do to deserve this? I’vebeen so careful.” Startled, your office staffturns your way only to see you with yourhead buried in your hands, mumbling obscenitiesunder your breath.The fact is, there are over 100,000different viruses circulating on the Internet.It is just a matter of time before oneinfects your system. As a business owneryou are faced with many expenses, frompayroll, to advertising. Unfortunately,one of the most overlooked and forgottenexpense is computer security. In thisday in age, there are viruses and hackersthat can bring computer networks totheir knees. It is best to be proactive andstop an attack before it happens. WithoutAlstar support you, as a business owner,will have to take on the responsibility ofprotecting your office computers.Protecting your computer from Virusesand Spyware. A virus is a programthat can copy itself and infect a computerwithout permission or knowledge of theuser. Viruses can damage programs, deletefiles and even format computer harddrives. To prevent virus attacks, a goodantivirus program is recommended. Afirst-rate antivirus program will warn youif a file has a virus and clean or quarantinethat file. It is also recommended youconsider an antivirus program that willcheck e-mails. Even if the e-mail senderis known, there is still a chance that e-mail could contain a virus.As important as it is to have an antivirusprogram, it is also important to havethat program up to date. Antivirus manufacturersfind new virus threats everyday. In order to protect your computers52 — Exclusivefocus Fall 2007

form these threats, your antivirus programneeds to be up to date with the latestvirus definitions. Most antivirus programshave a schedule feature that willdownload these updates automatically. Ifthe program you are using does not, youneed to update it manually. Make surethat you update your antivirus programat least once a week.If a virus is found on your system,follow the instructions of your antivirusprogram carefully. Some viruses will requirea little more effort to remove, butmost will be removed with little effort byyour antivirus program.Spyware, unlike a virus, is not sentout to destroy your system, but rather togather information about you and yourcomputer. A spyware program can installitself without the knowledge of the user,collect information about that user andsend it back to the creator. Not only canthese programs cause identity theft, butthey can also slow down the computer.Some anti-spyware programs can bepurchased separately, but most good antivirusprograms will also protect againstthese threats.Stopping Computer Hackers. Unlikethe movies, computer hackers are notthe good guys trying to infiltrate the evilgovernment computer system. Computerhackers are people on the Internet tryingto connect to your computer to stealyour information, delete files and crashit. The way a computer hacker accessesyou computer is through your Internetconnection. The best way to secure thatconnection is with a hardware firewall.A hardware firewall is a piece of hardwarelocated between your high speedInternet connection and your networkcomputers. Most firewalls are incorporatedinto the routers that connect yourlocal network to the Internet. If installedproperly, firewalls do not require maintenanceand will work without the user’sknowledge. Some firewalls can even scanfor viruses on files and e-mails whendownloaded.Wireless security is also important.A firewall can stop people from hackingyour computer on the Internet side, butif you do not have a secure wireless connection,they can connect on your localnetwork side. To stop these unwantedwireless connections, it is important touse wireless security encryptions. Thelatest in security encryption is the WPA2802.11i standard, which was developedby the WiFi Alliance, a group of wirelessproduct manufactures. When usedwith a 64 character key, the WAP2 encryptionwill stop any wireless hackersfrom attacking to your wireless network.In addition to using WAP2 encryptionfor your wireless network, some wirelessrouters can be set up to allow only connectionsfrom programmed MAC addresses,a twelve character identificationnumber set by the manufacturer. Settingup your wireless router with these twosecurity features will assure you that yourwireless network is safe.Windows Security. Updates foryour Windows operating system are notonly helpful for fixing problems withthe program, but are also responsiblefor fixing security holes in the Windowsoperating system. As hackers get moreadvanced they find more ways to connectto your computer. Microsoft hasteams of people securing its productsdaily and, just as it is important to updateyour antivirus program, it is equallyimportant to update your Windows operatingsystem. Microsoft offers automaticupdate programs in its WindowsXP and Vista operating system. It alsoallows an automatic update program tobe installed in its Widows 2000 operatingsystem. Another way to keep MicrosoftWindows secure is to run thelatest version of Internet Explorer 7.Microsoft has enhanced the securityfeatures in the latest version of InternetExplorer and is continually updatingthat security.Most of all, don’t forget to use securepasswords. Children and pet names areeasy to remember but they do not offerthe protection that a long multi characterpassword will provide. Also, make sureyour computer does not boot directly tothe desktop, but prompts you instead foryour multi-character password.Work with the professionals. Thebest advice is to find a reputable companythat can setup your network and provideyou with the computer security that youneed. Stay away from the electronic chainstores that claim to be computer experts.If possible, ask your business customersor other Allstate agents who they recommend.Remember, the best insurance foryour computers is stopping an attack beforeit happens.Robert L. Miller, Networking Specialist,Holland Computers Inc. Authorized AllstateService Provider, providing technology solutionsfor over 18 years. For more informationcall Robert Miller 1-800-656-2561 ext 144or e-mail him at rmiller@hollandcomputers.com Check us out on the WEB at www.hollandcomputers.comFall 2007 Exclusivefocus — 53

usinessWhen Your Callers are On Hold,Your Business Shouldn’t BeBY AMY CLARKIn today’s advertising-driven society,consumers are inundated with remindersof all the new products and servicesthey need, and businesses are constantlyat risk of having their advertising strategiestrumped by the mega advertising giants.Insurance agencies, one of the mostadvertising-active business sectors, are inneed of innovative marketing plans thataim to more effectively reach their targetaudiences. Television, radio and print adsare designed to drive consumers to call,but what happens when they do call andare immediately put on hold?Enter “on-hold” messaging. With thisoption, an Allstate agency can play customizedsales and marketing messagesfor callers on hold, dramatically improvingcustomer loyalty and sales potential.Since the introduction of the first consumercell phone models in the late 1980s,the average amount of time a person spendson the phone has increased exponentially,making telephone “on-hold” marketingone of the most effective means of connectingwith consumers. A 2005 surveyconducted by news organization CNNsuggests that the average person spends60 hours per year on hold, and the averageU.S. executive reportedly spends 17 minutesper day on hold. A similar AT&Tstudy suggests that more than 70 percentof business calls are placed on hold for anaverage of 45 to 60 seconds per call.Numerous studies have also been conductedanalyzing callers’ behavior whenthey are put on hold. About 90 percentof callers who hear silence while on holdhang up within the first 40 seconds, and30 percent of callers who hang up nevercall back. With music, callers tend to stayon the line an additional 30 seconds, butwhen callers listen to a prerecorded humanvoice while on hold, they are apt tostay connected nearly three minutes beforehanging up.Many agents have tried to addressthe “on-hold” issue by playing broadcastradio. However, playing music on holdrequires the payment of expensive musicroyalties, and agents who neglect payingthese royalties face hefty federal fines.Additionally, playing the radio createsthe risk that a caller will hear offensivedisc jockey language or song lyrics, orworse yet, an ad for GEICO.Savvy agents recognize that there’s amore productive way to handle on-holdtime than with music alone. Allstatehas pre-approved an array of “standard”marketing messages covering all businesslines and promoting the Allstate brand.These messages must be obtained fromone of Allstate’s pre-approved vendors.One such vendor, Applied Media TechnologiesCorporation (AMTC), makesthe standard messages, along with customizedagency messages, available asa library via the Web, allowing agentsto choose which messages they want toplay at any time. When a new messagebecomes available, such as messages promotinga new Allstate product or tyingin with a national marketing campaign,agents can obtain it by simply loggingin and downloading it. No CDs or tapesnecessary, and at no extra cost.While Allstate-branded messages arevery affective, NAPAA encourages agenciesto begin to brand themselves in orderto establish a local identity of their own.According to NAPAA Executive Director,Jim Fish, one of the first steps to creatingyour own identity in your community is tostart with your existing customers. Sincethe majority of insurance transactions aredone over the telephone, it would seemlogical to answer the phone by saying,“Good afternoon, Joe Smith Agency.This is Joe, may I help you?” After hearingthis greeting time and again, customerswill begin to think “Joe Smith” whenthey talk about insurance. Differentiatingyour agency from other Allstate agencieswill give you a distinct advantage. Whensomeone asks your customer who their insuranceis with and if they are happy withthe service, they will say “I’m with the JoeSmith Agency. He’s the best!” instead of“I’m with Allstate and they’re great.” If allthe listener hears is “Joe Smith”, chancesare he will call Joe Smith. On the otherhand, if all the listener hears is “Allstate”,who will he call, the 800 number or anotherAllstate agent?This same branding technique canalso be used with on-hold messaging.Customized prerecorded messages canpromote and reinforce the agency nameor an agent’s individual name. Morename repetition equals more name recognition.It is important to understand,however, that if an agent chooses this option,any reference to Allstate should be54 — Exclusivefocus Fall 2007

eliminated. Agencies should understandthat advertising of any kind that refers tothe Allstate brand must be approved inadvance by Allstate. Creating on-holdmessages can be a challenge, but a professionalon-hold messaging vendor hasthe expertise to help an agent developthe customized messages needed to buildindividual brand awareness.What should custom messages convey?This is limited only by the imagination.Don’t be afraid to be creative andentertaining – make the caller really enjoywhat he or she is hearing. These messagescan include such things as serviceofferings, hours of operation, communityinvolvement, etc. Those agents looking tobegin self-branding can also opt for variousgenres of music, in order to portraya particular theme, mood or to celebratea holiday. Multiple languages and specialaccents may also be chosen.On-hold messaging systems are notnew, but early devices were very unreliable.The first devices consisted of anendless-loop cassette playing on a simpletape player, requiring constant maintenanceand suffering from frequent qualityand breakdown problems. If even thesmallest change was needed, the entiremessage had to be re-recorded. CDbasedplayers, introduced in the 1990s,are also common, but they suffer fromthe same issues.The newest generation of playershas reinvented this marketing venue invarious ways. Memory cards are used, sothere aren’t any mechanical parts to breakdown or wear out. New messages aredownloaded via the Web within minutesof production, saving time and shippingcosts. Messages are produced as individualspots and can be retained for reuse.For example, message alterations can bequickly and easily made to the originaldigital recording, and holiday messagescan be created and re-used each year.“Allstate agents should never have tosign a contract for on-hold messages, norshould they have to pay perpetual monthlyfees for services they never use,” said TomCoppola, a sales director with AMTC.“The best type of on-hold messagingvendor is the one-stop shop, providingthe equipment, service and message productionon a pay-as-you-go basis, with nocontract or fixed monthly charge.”Telephone on-hold messaging is aconcept every agent should be taking advantageof to both retain callers and delivereffective marketing. Advancementsin technology have made on-hold solutionseasier to use and more affordablethan ever before.YOU ARE THEIRYour Clients Hold You in High Esteem…They Value Your Guidance and Opinions…They Count on You and Follow Your Advice …When Your Customers Transfer Out of State,Continue to be Their Hero…CALL THE NAPAA AGENT TO AGENT HOTLINE:877.627.2248We help locate experienced Allstate Agentsfor customers transferring from state to stateRequests by email should be sent to HQ@napaausa.orgFall 2007 Exclusivefocus — 55

usiness tipsHow to SuccessfullyBrand Your AgencyBY BOB CORRYAs an Allstate agency owner, youhave some important choices to make interms of how you want to market youragency. Should you rely on the nationaladvertising and recognition of the “GoodHands” brand, or follow NAPAA’s leadand create your own brand awareness?Establishing your own brand and/orname recognition is akin to making yourown way in this world and is a smart,long term approach for your survival asa business owner. Even if you always stayin the insurance business, you might notalways represent Allstate. After all, justlook at what recently happened to theAllstate agents in Canada. Do you thinkthey might be motivated to start a businessthey can call their own?Either way you should always investin your own success. Your market share isnever static and whether it grows largeror shrinks is completely up to you. Thefollowing is an explanation of the theoriesand practices of creating a brandand how this can be accomplished in astraight forward and effective manner.In the mid-seventies, Al Ries and JackTrout wrote a series of articles for AdvertisingAge Magazine that heralded a new erain advertising. These articles made suchan impact that they were assembled andpublished as a book titled “Positioning-TheBattle for Your Mind.” The concept of positioninghas three factors: 1) you must positionyourself by addressing people’s “wantsand needs.” People need insurance and theywant the best policy and service for themoney. 2) Whatever you say about yourselfbetter be credible. Avis’s “We’re #2, we tryharder” campaign perfectly captured thisstrategy. 3) The quality of your messagemust be high enough to evoke a responsefrom the market place. You must get theaesthetics* in place. Amateurs should notbe allowed to experiment with your image.Someone once said that perception is 98%of reality. I think it might even be higher.To people, what they choose to think aboutyou IS reality. But you, with your advertisingdollars, can take that choice away andcreate the kind of perception that you wantthem to have. You must ask for people’sbusiness with professionalism while tellingthem about the “points of difference” yourbusiness offers.Step one in becoming a brand is logo.Think of the Golden Arches or the blueoval with the Ford script. Does anyone reallyneed to read the name of these businessesanymore when they see the shapeand color of those world famous logos?Your logo says a lot about you. Try cleanand bold. The same goes for your printadvertising. Short, sweet and to the pointwith consistent elements of aestheticallypleasing style. Keep the amount of copyto a minimum to avoid clutter, otherwisepeople will pass your ad by.It has been said that Coca Cola wouldgo out of business within six months ifthey stopped advertising. People do notneed this product…but they want thisproduct. That’s because the advertisingcreates the desire. “It’s the Real Thing”was a slogan that, without saying anythingnegative about the competition,made Coke the pinnacle of soft drinks inthe minds of the consumers. This is the basisfor all the “lifestyle advertising” that manycompanies run, and this approach bringsup a critical goal that advertising must addressif it is to be really successful.Advertising must tell people whoyou are, why you are better or differentthan the competition, and what is in itfor them to come see you rather that theother guy. More importantly, however,your advertising should create an emotionalresponse where people not onlyknow who you are, but they also have afeeling for who you are. If you can createan emotional attachment between yourbusiness and the market place you will nolonger be just a choice, you will be THEbrand name of your market segment and,as such, will have the power to influencechoice. Think about it…is there reallyanything better about a Rolex than a Timex?If anything, the Timex keeps bettertime, but oh, what a feeling (rememberToyota) when you put that puppy on!On the cover of the book, “Positioning…”by Ries and Trout is a subtitle,“How to be seen and heard in the overcrowdedmarketplace.” The authors said inthe book that we live in an over communicatedsociety (Remember, this was the1970s!) and that, as consumers, we havelearned to filter out commercial messagesso as not to be overwhelmed. How then,as an advertiser, are you going to get yourmessage out there in a way that will be received,remembered and acted on? Withtime compression, we are all constantlytaking quick snap shots of our worldaround us. The best that an advertiser, ora politician for that matter, can hope foris just a quick opening to exploit. Politicianscall it a “sound bite” and they hopethey can craft a short statement of whatmakes them a better choice to play on thesix o’clock news. In advertising we call ita “positioning statement” and more oftenthan not it is set to music.Commercial jingles were developedto set up a circuit in people’s heads togive the advertiser “top of mind awareness”.“If you’ve got the time, we’ve gotthe beer.” “Plop, plop, fizz, fizz…” “Whowears short shorts?” “Have it your way!”“Chow! Chow! Chow!” Everyone lovesmusic. And everyone can remember a56 — Exclusivefocus Fall 2007

product, sometimes for decades, fromthe song that made it a household name.It is said that even the annoying songsdo wonders for the companies that usethem. I say that a beautiful or funny songcan carry your message the longest eighteeninches in the world. That is the distancebetween your head and your heart.For a consumer, this is the difference betweenknowing about some company intown or having a warm feeling about yourbusiness when they hear your name.Finally, as an advertiser you must rememberwhy people turn on the television, radioor computer to some degree. It is the samereason why people pick up a newspaper ora magazine. Oh sure, they can give you lotsof reasons why…but if you ask them for aone word reason it will be “entertainment”.Make them laugh or touch their heart. Byusing aesthetics, you can accomplish eithergoal. And when you do you are on your wayto long term business success.* Aesthetics- The realm above logic wherebeauty resides. This is where art and music arecreated and where emotion supersedes thought.In advertising it is where people choose you basedon a feeling that has been created in them.Bob Corry can be contacted atMTIStudios@hotmail.com,(503) 292-1895or www.MTIStudios.net.Advertising indexACNS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43Action Coach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Back CoverAMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35AMTC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55Break Through Advisory Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31BCC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23CIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Front CoverCapital Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3E-chx . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49Empyrean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19Expetec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51Genworth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33Holland Computer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53ICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39Majestic Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Mentis Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29Oakstreet Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Paychex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Back CoverPPC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45Rhinotek. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47Smart Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Back CoverSprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7TWFG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17Valpak . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21Wright Penning/Dirk Beamer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43NAPAA Board of Directors 2007-2008ADMINISTRATIVE OFFICESJim Fish, Executive DirectorP. O. Box 7666Gulfport, MS 39506Ph # 877-269-3474ExecutiveDirector@napaausa.orgNancy Fish, Association ManagerP.O. Box 7666Gulfport, MS 39506Ph #877-627-2248Fax #866-627-2232hq@napaausa.orgPlease email HeadQuarters@napaausa.org to contact our officers and directors.Include the name in the subject line.OFFICERSDale RevelsPresidentKissimmee, FLRichard LarkinExecutive Vice PresidentFernandina Beach, FLCheryl EnglishTreasurerValrico, FLJudith OstSecretaryBattle Ground, WADIRECTORSGeorge Adams, Bessemer, ALRoslynne Ross, Annapolis, MDJim Cirillo, Sarasota, FLJohnny Leigh, Amarillo, TXRon Jay, Yukon, OKIsmael Melendez, Jr.,Federal Way, WAFrank Resta, Wake Forest, NCFall 2007 Exclusivefocus — 57

featureSix Keys to a Winning TeamThe Coach’s W.I.F.L.E.BY LEE HUFFMAN, YOUR BUSINESS COACHI am writing this article between twogreat conferences. The first was yourNAPAA conference in Las Vegas, NVand the second is the ActionCOACHGlobal conference in Dublin, Ireland.Staying on top of your game is importantin any business, including coaching.Conferences allow you to network withyour peers, exchange ideas and learnnew and better ways to run your business.If that weren’t enough, conferencescan help you make more money… lotsmore money. Last year I attended a companyconference in Fiji. It was filled withgood advice on how to increase revenues.When I got home, I applied what I hadlearned and increased my bottom line by$25,000 last year.By now, you have probably guessedthat I am a huge fan of business conferences.Of course, it’s not all about themoney. It’s also about the friends andfellow coaches from all around the worldthat I get to exchange ideas with, and thelearning that comes from the speakers,and the learning that comes from justraising a pint of ale (or Guinness) withsomeone who has been in the businessfor 10 years.But, what was the NAPAA conferenceall about? Quite honestly, I saw alot of the same thing. I witnessed a seriesof good speakers who shared importanttechniques and information with the Allstatersin attendance. I watched Allstateagents networking and sharing ideasduring the breaks and on the golf course.As one of the vendors at the conference,I met many Allstate agents and observedthem interact with other vendors. TheNAPAA conference was educational, informativeand entertaining.If you did not make the NAPAAconference this year, be sure to invest thetime and money next year. If you go withthe right attitude, you will build somegreat relationships, learn a lot from thefront of the room, and learn even more atdinner, lunch, and breaks.That’s What I Feel Like Expressing...TogetherEveryoneAchievesMoreYou know something? Allstate agentsand Exclusive Financial Specialists arenot all that different from other businessowners.At a high level, there are three main areasof concern: Time, Team and Money.“We will put an American on the moonby the end of the decade.”John F. Kennedy, 1961First, let’s talk about T.E.A.M.On the first day of the NAPAA conference,around thirty of us climbed aboarda bus at 5:45 am and headed out to StallionMountain golf course. We were playingin foursomes. Our group included me,another vendor, an EFS from Oklahomaand a lovely young lady from the Midwest.Only the other vendor and the EFSknew their handicaps, which were 26 and6 respectively. The other two handicapswere listed as “terrible”.Boy, did Jason, the EFS, draw theshort stick that morning...As expected, Jason played a greatgame in spite of his extra handicaps...but, guess what? In the end, our teamlogged the lowest score of the day.Could Jason have done this by himself?Probably, but we were playingagainst other foursomes, so this was ateam effort not an individual effort. Eventhough Jason was our best player, someof the shots made by the rest us contributedto our victory.So, what makes a wining team? And,is it different in golf than in business?Actually, not really.Six Keysto a Winning TeamThere are six keys to building a winningteam...58 — Exclusivefocus Fall 2007

Key 1:Strong LeadershipThe first key to a winning team isStrong Leadership. Leadership is abouttwo things... Passion and Responsibility.In the western world, we typically hirepeople based on two different things: experienceand education. If you look at hiringpractices in other parts of the world,you will find that they equate experienceto “body” and education to “mind.”Non-westerners tend to look at thewhole person rather than just a fewparts. For illustration purposes, let’s usea sixteen cylinder engine as an example.In the non-western world experience, orbody, would count as three cylinders andeducation, or mind, would also count asthree cylinders. They would assign anotherfive cylinders each for “heart” and“spirit.” They look at us and wonder howwe can hire people based on six insteadof sixteen cylinders.Education and experience, or bodyand mind, may make for a good manager.But, good managers don’t alwaysmake good leaders. If we add heart andspirit to body and mind, then we have agreat leader.Question: Do you have the heart and thespirit, also known as the desire and passion,that it takes to lead your agency to achieveits highest potential? Or, do you just havethe body and mind to be a good manager?Interestingly, people with heart andspirit will naturally grow into the bodyand mind needed for the job. It takes alot more work to rekindle the heart andspirit, even if the body and mind are ingreat shape.Key 2:Common GoalThe second key is to have a commongoal that everyone shares. This goal, alsocalled “vision,” needs to enroll and inspireeveryone to pull together and drivein the same direction.Most of us are old enough to rememberthe race to the moon, but, if not, youprobably read about it in school. In 1961,John F. Kennedy gave the team at theNational Aeronautics and Space Administration,NASA, the following vision...“We will put an American on themoon by the end of the decade.”And then he announced it to the world.This vision for NASA and the UnitedStates launched us back into the spacerace more than ever before. It both enrolledand inspired everyone at NASAwhich, in turn, enrolled and inspiredmany others to be supportive.In a previous issue of Exclusivefocus,we talked about setting S.M.A.R.T.goals. How did Kennedy’s vision forNASA stand up to this test?Was his vision:Specific? You bet!Measurable? Yes.Achievable? We’ll come back to thisone.Results Oriented? YesTime Focused? Absolutely!Yes, we did achieve the goal of puttinga man on the moon by the end of thedecade. But, there were several people inHouston who modified the goal to makeit more meaningful and enrolling tothem. These were the Apollo Astronautswho wanted to go to the moon. Their visionread as follows...“We will put an American on themoon [and bring them home again] bythe end of the decade.”Now, everyone is enrolled in the vision...The nice thing about a vision statementis that it should be a huge stretchgoal. We did not have the technology togo to the moon and bring someone backin 1961. But, by setting the vision, theteam worked out the details, and thetechnology was created.Question: Do you have a vision foryour agency that enrolls and inspires everyoneon your team?If not, create one. If you can’t seemto create it on your own, start an ideasharing lunch or breakfast group of fellowAllstate agents, such as the one describedby Steven Marcus in this issueof Exclusivefocus. A group of agents likethis offers lots of experience and goodadvice.If you still need help, talk to a businesscoach. A good business coach can bean invaluable asset to your business.Key 3:Rules of the GameIn any game, there must be rules. It istrue in Monopoly as well as the game ofbusiness. If people know the rules theywill perform better.Business rules come in several forms.There are standards that are set by Allstateand by the other services providersyou interact with in your business. Youshould also have a set of written standardsfor your agency. Your staff shouldnot have to rely on unwritten rules or“tribal knowledge.”The important thing to do whenestablishing your set of rules is to basethem on the culture of your particularagency and on sound values and principles.The final product should establishthe ground rules for everyone in yourorganization.For some guidance, you may want toread “The HP Way” or “Good to Great”[ ]Your staff shouldnot have to rely onunwritten rules or“tribal knowledge.”to find good examples of a solid culturebased on sound values and/or principles.Or, if you wish, go to www.actioncoach.com, click on [About Us] and select [14Points of Culture]. This culture statementhas been used as the basis for over 25,000private businesses around the world.Key 4:Action PlanThe action plan should include “Whodoes what by when?” and it takes manyforms.Fall 2007 Exclusivefocus — 59

You should set one, three and fiveyear goals, and then reduce them into90 day plans. That’s a thirteen week planthat includes key goals and action items.By breaking your long term goals downinto short term goals, your goals will notappear to so overwhelming. Instead ofthinking about how you plan to achieve$20,000 in annual AF production, you’llfocus instead on $5,000. Many Allstateagents and EFSs have improved their resultsusing this technique.Every person in your agency shouldalso have a documented Positional Contractor Agreement. Have staff memberswrite their own about their job in youragency. Then, you can review them andsee where they need help in understandingtheir jobs better. Who knows, theymight surprise you and show you whatthey are really doing on a daily basis...Last, but not least, you need a solidProcedure or Operations Manual foryour staff. This manual or manualsshould be living documents that containall the pertinent information necessaryto run your agency.Everything needs to be flow-chartedand documented: from how to open upthe office in the morning, to how to performa quarterly review with a client, tohow to answer the phones, to how toclose down the offices at night, etc.There are a several huge side benefitsthat comes form investing time to documentall of your systems. When you aredone, at least three things happen:1. You don’t go to your team member,Joey, and say, “You’ve messed up again.Why can’t you get this right?” Instead,when something goes wrong, you goto Joey and say, “Joey, my boy, there issomething wrong with our system here.Let’s look at it together and see whereit broke down!” Sure, Joey may havemessed up following the system. But,now you are working as a team to solvethe problem and if the problem is thetraining system, you can fix it withoutmaking Joey feel bad or getting upsetyourself.2. The second hidden benefit is thatthe manuals start to manage the teamand you get more free time. That’s right!You get more free time because the manualmanages for you.3. You start attracting great peoplebecause your agency becomes known asa great place to work. Expectations arewell documented, teamwork is encouragedat all levels in the organization, andeveryone starts having fun and tellingtheir friends about your office.Remember, this is a marathon, not asprint. You won’t create a perfect teamin a few months, or even in a couple ofyears. It takes time to get it all done sothat you can have a profitable agencythat works without you. But, it can bedone...Key 5:Support Risk TakingWithin the set rules of the game,encourage the team to take risks. If therules and boundaries are well communicated,everyone will stay within them.When you support risk taking, yourstaff is free to take new approaches togetting business, to retaining clients,and to increasing lines of sales into currentclients.KAIZEN is a Japanese term for“Continuous and Never-Ending Improvement.”By supporting risk taking,KAIZEN can be accelerated and youcan retire sooner. Delegate to the teamand support risk taking within the rulesof the game and KAIZEN will occur.Most companies go through periodsof growth followed by plateaus, or a levelingoff. Because growth periods are oftenthe result of innovations brought aboutby risk taking, encouraging risk takingtends to reduce your time on the plateauand increase time spent in the growthmode. This will keep you growing at afaster pace and moving ever closer tothe successful business that runs withoutyou, the owner.Key 6:100% Inclusion and InvolvementSynergy is found when the result isgreater than the sum of the parts. It iswhere 1 + 1 = 3, 4, 5 or more. Synergyoccurs when everyone is included andinvolved in the business.At HCA, Hospital Corporation ofAmerica, they have a sign on the wallthat says that their mission is to provideevery patient with the best health programsand environments possible.When Steven Covey, author of FirstThings First and Six Habits of Highly EffectivePeople, visited one of their hospitals,he asked the janitor what he didat HCA. The janitor’s response was, “Ihelp keep our patients healthy by maintaininga clean and healthy environmentfor their stay.”That janitor was both included andinvolved in helping HCA achieve theirmission and vision.I wonder, if we asked each of your staffmembers what the vision of your agencywas and how they helped contribute tothat vision on a daily basis, what wouldthey say?TEAM: Together EveryoneAchieves More.If your team were more effective,would you feel better about your businessand your life?For more information on buildinga rock solid team, read Instant Team byBradley J. Sugars. You can pick one up atBarnes and Noble or order them onlineat Amazon.com.Time for a BusinessHealth Check?To see how your business is doing, goto www.actioncoach.com/cornerstone fora free Business Health Check or a BusinessDiagnostic Test.Also, watch for a free seminar called“Billionaire in Training” featuring BradSugars. The seminar will held throughoutthe US and Canada this fall. Please feelfree to contact me for more information.How Do I Get My Own QuestionsAnswered by the Coach?To ask a business question,just go to www.regonline.com/ask4allstate.This web survey has beenset up especially for Allstateagency owners tosubmit questions directlyto me.60 — Exclusivefocus Fall 2007

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleCALIFORNIANo HollywoodTracy HightTracyJHight@allstate.com818-755-9336Asking Price: $229,000PIF: 839 Premium: $1,063,000Number Of Staff: 0Agent READY TO SELL, Priceslashed by $100,000. 40 plus yearagent, same location since 1998.Stable client base with 88.86% retention,and loss ratio under 50%.Excellent opportunity to purchaseunder 750 policies to qualify for enhancednew agency commissions.Great office located on 5th floorwith beautiful view of the valley.Located in the Hollywood Noho district,office has room for staff andonly $799 per month rent on 1 yearassumable lease. Agency grossed$124,000 last year. This book isready to be worked. Priced to sell.DowneyArt CordovaA071407@allstate.com562-716-8542Asking Price: Upon requestPIF: 1384 Premium: $1,410,000Number Of Staff: 2Number Of Licensed Staff: 120 yr established agency, qualitynumbers for loss and retention ratios,low rent, great location 1/4 of amile from a mall, convenient accessvia 2 freeways within a 1/2 mile anda major interstate freeway one mileaway, surrounded by businesses,retail shops and professional officebuildings. Turn key operation for anAllstate qualified buyer, or for anyagent desiring to relocate to California.Depending on your licensingstate you may be able to just transferyour licenses to California withoutan exam (check with your licensingstate for additional information.)PetalumaJohn FeerickJohnFeerick@allstate.com707-763-2238Asking Price: $540,000PIF: 1700 Premium: $1,800,000Number Of Licensed Staff: 2Great location in Petaluma, California,22+years at same location,Turn-key, Agent retiring after 38+years in the insurance field, staffwill stay, great opportunity to startyour insurance business. Pleasefeel free to contact me at (707) 217-3158 cell. Thank you for looking.CONNECTICUTOrangeJohn McKenziejfmckenzie@hotmail.com203-605-9031Asking Price: NegotiablePIF: 1790 Premium: $1,580,000Number Of Licensed Staff: 119 years in business. 12mm lossratio = 39%, renewal ratio = 90%.Low office expense. Currently partneredwith a 21 year veteran EFSAgent. Great income opportunity.Modern office building with on siteretail. Price Negotiable, call for details.John McKenzie 203-605-9031.FLORIDAPensacolaLamar Deanlamardean@allstate.com850-572-6589Asking Price: $775,000PIF: 1655 Premium: $1,891,645Number Of Licensed Staff: 5Price includes additional 400 brokeringpolicies with premium ofabout 750,000. Call for more details.Ask for Lamar DeanPompano BeachLarry SilvermanLSilverman@allstate.com954-971-4770Asking Price: $560,000PIF: 1,700 Premium: $2,100,000.Number Of Staff: 2Number Of Licensed Staff: 121 year Allstate agent, ANNUALCOMMISSION FOR 2006, $226,000.35% loss ratio, preferred auto retention91.26%. Only 32 A.I. autos and65,000 in commercial. High potentialfor cross sales and financials. 1,200Allstate - 500 affiliate policies.Port Saint LucieJohn G Gaffneya023838@allstate.com772-828-0008Asking Price: $1,600,000PIF: 4185 Total Allstate & AffiliatesPremium: $5,679,846 GWPAllstate & AffiliatesNumber Of Licensed Staff: 42 excellent locations in St Luciecounty. One of the fastest growingareas in Florida. Honor Ring winnerin 2006. High 5 figure AgencyAchievement Bonus in 2006. Excellentopportunity.Orlando Kissimmee.Confidential ListingPhone inquiries only407-443-6673Asking Price: $810,000PIF: 1700 Premium: $2,360,000Number Of Licensed Staff: 220 Year agent located in centralFL area experiencing explosivegrowth. Owner of building whereoffice is located, possible sale orlease. GREAT INVESTMENT.Palm BayRichard Youngermrrgy@earthlink.net321-591-2225Asking Price: $2,500,000PIF: 4500 Premium: $5,600,000Number Of Staff: 4Number Of Licensed Staff: 2Turn key. Fast growing area. Lessthan 1% of Auto is AI.HAWAIILahainaMichael Damatomichaeldamato@allstate.com808-661-3542Asking Price: $235,000PIF: 1153 Premium: $1,003,257Number of Staff: 2Number Of Licensed Staff: 1Own your piece of PARADISE !!!Don’t miss out on one of the fastestgrowing Allstate agencies. Scratchagency entering third year has continuedthe new business success.Located in very desirable downtownLahaina, the beautiful 5 room officeis turn-key and tastefully furnished…just bring your coffee mug. Agent willassist in transition timeline as neededby buyer. Book has over $25,000in Production Credit. Talented EFS atthe ready to help you. Opportunityincludes an (optional) separate onebedroom apartment only 20 stepsto work. Allstate TPP is $140,000.Please call Michael 9AM-11AMAloha time at 808-661-3542. Reportsshared with Approved Buyers only.ILLINOISBuffalo GroveSandy Joungsandyjoung@allstate.com847-537-3355Asking Price: $580,000PIF: 1550 Premium: $1,780,000Number Of Staff: 2Number Of Licensed Staff: 1Priced for quick sale ! Allstate’shome state -very competitive rate.Very solid book of business. Samelocation for over 20 yrs.MAINEAugustaKimberley I MichaudMichaudAgency@aol.com207-626-0001Asking Price: $246,000PIF: 1669 Premium: $1,452,032Number Of Licensed Staff: 120 year agency in Augusta, Me.Growth area with many new businessesmoving into the area. 12 mmtotal casualty loss ratio 22.10. 36 mm25.12. Retention total casualty 88.41.Fall 2007 Exclusivefocus — 61

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleMICHIGANClinton TownshipConfidentialPhone only please586-868-6000Asking Price: $700,000PIF: 1721 Premium: $2,165,000Number of Licensed Staff: 241 year old agency in growing area.Stable client base with 89.63% retentionand loss ratio under 34%!TroyJ D DavisA063415@ALLSTATE.COM248-524-4878Asking Price: $300,000PIF: 744 Premium: $1,151,031Number Of Licensed Staff: 128 Year agent, Same location 20years. Stable client base with 83.90retention and under 50% loss ratio.Excellent opportunity to purchaseunder 750 policies to qualify for enhancednew agency commissions.Furnished office 650 SQ. Rent 515per month. No utilities, month tomonth. Agency grossed $121,744last year. Ready to sell.Farmington HillsJoe Hager - Retired AllstateAgenttheinsurancestore@sbcglobal.net248-994-8800Asking Price: $475,000PIF: 950 Premium: $1,400,000Number Of Licensed Staff: 2This is an Independent Agency.Agency has been operating for 6years at a good Farmington Hills location.Agency has direct appointmentswith Citizens, Progressive,AIG, Mercury, GMAC, Bristol West,Victoria General Preferred, Travelersand Fidelity National. Ideal forAllstate family member wanting anindependent agency.MONTANAMissoulaNicole SchreckendgustSchreck@allstate.com406-728-6336Asking Price: $475,000PIF: 1216 Premium: $1,227,514Number Of Licensed Staff: 1Information Based off 09/06 CSRP.NORTH CAROLINAFayettevilleJim CaisonJimCaison@Allstate.com910-867-0931Asking Price: NegotiablePIF: 715 Premium: $622,747Number Of Licensed Staff: 1Agency has approximately 715policies. Buyers of agencies withless than 750 policies may qualifyfor Agency Development Program(enhanced commissions). Currentretention is 83.21, current loss ratiois 38.97.TarboroJanie Robbinsa076628@allstate.com252-823-8701Asking Price: NegotiablePIF: 689 Premium: $663,974Number Of Staff: 1Number Of Licensed Staff: 036 Mo Loss Ratio 45.60%. Retention87.63. Not a coastal agent. Norestrictions on homeowners. Turnkeyoperation. Will qualify for newhire bonus. Will assist in smoothtransition.OKLAHOMATulsaTom Towrytomtowry@allstate.com918-749-1300Asking Price: $430,000PIF: 1,400 Premium: $1,663,000Number Of Licensed Staff: 1Total PIF 1,400 and annual premiumsof $1,663,000... Last 3 yearsavg agent compensation in excessof $177,000. Tremendous immediatereturn of investment. Tremendouspenetration of preferred business.Total ‘preferred’ automobile policies640 of 670 equals 97% “preferred”business! Leased office space 820sq ft (7 years same location). Experiencedoffice mgr with 10 plusyears in insurance. Ready to sell andpriced to sell!!! Asking $430,000based on Turn Key options..PENNSYLVANIAPittsburghBob ShanahanPhone only please412-448-8253Asking Price: Upon RequestPIF: 2009 Premium: $1,919,000Number Of Staff: 3Number Of Licensed Staff: 218 yr well established agency in thesame community. Great locationnext to a major shopping center- Brentwood Towne Square. Retentionratio 91% - 36mm loss ratio37%. No email or office phone callsplease. Serious inquiries only - call(412) 448-8253.LancasterWilliam S. Shovershover541@verizon.net717--951-7497Asking Price: $350,000PIF: 1200 Premium: $1,065,000Number Of Staff: 2Number Of Licensed Staff: 1Loss ratio .56 ... had been at low 40for past 5 years and had large homeownerclaims this year ... 750k line10 ... 260k line 70 ... 55k spec auto... 25 year agent 89.65 persistency... located in heart of LancasterCounty, PATEXASKilgoreAsk for Shelleymudgie@aol.com903-985-1251Asking Price: NegotiablePIF: 838 Premium: $1,091,000Number Of Staff: 2Number Of Licensed Staff: 1Only 2 agencies in Kilgore TX, andthis one is for sale. 20 year agentwith excellent retention and lowloss ratio. No Property restrictionsin this area. Great second locationfor agent in coastal areas not writingproperty. Book could be split for750 PIF to qualify for new agent EnhancedCommissions. Asking priceincludes book of non Allstate Policies.Don’t miss this one, will notbe on the market long.GarlandMike Broderickmikebroderick@allstate.com972-303-0774Asking Price: NegotiablePIF - 1171 Premium - $1,124,856Number Of Licensed Staff: 2Retention good. Low loss ratio.Low overhead for Dallas area. 9years at present location.WASHINGTONSeattleApex Insurance and FinancialServicesTranThai@allstate.com206-725-1887Asking Price: $70,000PIF: 285 Premium: $297,168Number Of Licensed Staff: 1Agency located in heavy trafficstrip mall with major banks andsuper markets within one blockradius. Allstate office design (walldesign with Allstate logo) ready toupgrade to meet current Retail Officestandard. Huge potential withlight rail completion by the end ofthe year ... and VERY FAVORABLELEASE TERM.62 — Exclusivefocus Fall 2007

“With Smart Choice, it’sabout more than agencysurvival – it’s about agencysuccess. Quality markets,expertise, advice, education,technology and support areall part of the winningSmart Choice formula.I benefit from the largestnetwork of independentagencies in the country –while getting thepersonalized one-on-oneattention I need to growmy agency. And the bestpart? I get all this and stillown my own agency!”Fall 2007 Exclusivefocus — 63

“Coaching is an invaluable resource that everybusiness owner should utilize.”- Pam Prengaman, Allstate Agent