Grow your business withFundsAtWork A unique opportunity togain insights into growingyour group portfolio
35 20 25 30 40 45 50 55 60 65 Momentum view Multiply FlexiCovers • needs • financial • sophistication • income Wealth annuity Myriad Health Wealth Retirement annuity age Employee benefits 20 30 40 50 60
“Why was I able to write 81% of my retail business in 2009 from my FundsAtWork book?” - Mark Daniel
Challenges financial planners share Easily sell business once the opportunity to present exists Generating new opportunities – leads Always have capacity to take on more business One thing leading to the next... All this can be achieved while building up a recurring book and it is easier than you think!
How to generate business from business When approaching an individual for the first time Medical via wage bill – Financial Officer? When approaching an entity New scheme, at no cost – reality Existing scheme Normal leads: retirement, resignations, new employees et cetera but also... Service Level Agreement Statements, one on ones, legally required to see client! No client exist who don’t want to talk about his / her pension and this is the real lead!
Financial planning for employees? Everything is on the FundsAtWork statement Get 30 new appointments a month coming your way automatically
Other benefits Easy appointments, not a new expense Ring fence clients Captured market – new appointments, staff turnover % A FundsAtWork client is a client for life
transparency value for money ease of use flexibility
Jenny Mc Guinn example:“Show me the MONEY!!! Ok – I’ll show you the money, but you’ll have to go get it!!” The title is “Show me the money ,and not give me the money!”
Example • Boost your business income by approximately R700 000 over a two year period; • Assumption:1000 x Pension/Provident fund members over two years; • This is 20 x 50 new members over the period or a mixture of fund size; • Average Myriad premium (CAO) R700-00 p.m. • Retaliation potential: 5% of client base will exercise CAO; 10% of client base will preserve on withdrawal; Average scheme API R500k per scheme.
Legislated commission scales • 5% average for first R500k applications = R25000 x 10 (on first year) = R250 000over next two years = 50 x 8400 = R420 000; • Conversion of 100 x R 10 000 preservation = R25 000; • R 250 000 + R 420 000 + R 25 000 R 695 000
What are the opportunities • Compulsory !!!! • 30 000 smme’s / 3500 000 members do not have funds; • We have definitely five years to revisit the way we do business (10+ years for stepped implementation) • Target market – ex (financial sector); • Ring fence clients; • Top-up - a must
Exiting opportunities • We address a “need” and not a “want”; • Professionalising the industry; • Holistic financial planning- This is indeed client centric! • Should not fear regulation- they reinforce the need for professional advice; • Examinations-truly professional; • Market changes - Just the way the world is moving.
Exiting/cont • “Solution to most problems lies in simplicity” • Approach everything from this angle! • Concentrate on value based advise/sales; • The intermediary has a big role to play in the future and is therefore key (KING) going forward.