Business Building Workshop

1. Business Building Workshop • Purpose • What is it? • Who is involved? • Who should attend? • Responsibilities • How does it work? • Who does what? • Timeline • Planning criteria • CE credit • How is that arranged?

2. The Business Building Workshop Transamerica Retirement Services And CBH Pensions Brian Dannemann, Transamerica Retirement Services Peter Marriott, CBH Pensions

3. Today’s Agenda CHAPTER 1 – Business Building for Keeps CHAPTER 2 – Vision of Your 401(k) Business CHAPTER 3 – The 401(k) Value Proposition CHAPTER 4 – Identify Your Target Client/Prospect CHAPTER 5 – Where’s the Client? CHAPTER 6 – Creative Prospecting CHAPTER 7 – Prospect Tracking CHAPTER 8 – The Approach CHAPTER 9 – Communicating Your Value CHAPTER 10 – Creating Accountability

4. Business Building For Keeps Objective: • Introduction to the workshop and some basic Concepts Workbook Page 3

5. Business Building For Keeps RSU – Retirement Services University • Successful brokers have a clearly defined “Value Proposition” • Successful brokers develop “Strategic Partnerships” Workbook Page 3

6. Workshop Goals • Develop a basic vision • Create your value proposition • Identify your target prospect • Figure out where to find clients • Establish your approach • Learn to deliver your value proposition • Learn how to keep track of your prospects • And finally – Learn to Close Business! Workbook Page 3

7. Collaborative Effort! • This is a Workshop • Participation is Key • As is Willingness to Share • Organizing Our Activities Workbook Page 4

8. The Big Rocks • The 3 most important workbook pages: • Page 49 • Page 50 • Page 53 • Recording your immediately Actionable Items Workbook Page 3

9. Business Building for Keeps Your Transamerica Consultants and CBH Pensions are your life line. Workbook Page 3

10. 401(k) Vision Objective: • Build a basic Vision for your 401(k) Business Workbook Page 5

11. 401(k) Is About “Current Opportunity” 401(k) Asset Projections $ Billions Source: Cerulli Associates

12. 401(k) Is About “Future Opportunity” 401(k) Assets By Age Source: Cerulli Associates

13. 401(k) Is About “Control” What is the opportunity? • Using Simple Math in the year 2012 • > 60+ crowd controls $553,860,000,000 • > 50+ crowd controls $1,596,420,000,000 • > 40+ crowd controls $2,638,980,000,000 • The Majority of which will be repositioned!

14. 401(k) Is About “Access” What do these people have in common? C CFO CEO Fiduciaries CIO COO CTO CMO

15. 401(k) Vision Develop a Basic 401(k) Vision • Number of Plans • Added Per Year • Under Management • Average Plan Size • Assets • Employees • Assets Under Management • Annual Revenue • 1st Year • Recurring Workbook Page 5, 6

16. 401(k) Vision - Activity Your experience For the Period: Next 12 Months Last 12 Months 3 2 3 6 2,400,000 2,000,000 3,000,000 5,600,000 1,000,000 800,000 1,000,000 933,333 26 40 50 45 20,000 6,000 30,000 14,000 26,000 44,000 Workbook Page 5, 6

17. 401(k) Vision When creating your “Vision Statement” consider the following factors: • How you’ll spend your time • Industry Standing • Ancillary Reasons for Writing 401(k) • People with Money • Expand Spheres of Influence to include C Level Officers • Access to other Institutional Revenue • Feed Rollover business • General AUM Actionable Item – Set some basic sales goals Workbook Page 8, 9

18. 401(k) Vision - Activity Step One – Brainstorming • Why write 401(k) Business? Step Two – Your Basic Vision • Why you choose to work in the 401(k) market? • How much time you will devote to it? • How much money you wish to make? • When will you measure your success? Step Three – Any Great Ideas you want to share? Workbook Page 8, 9

19. The 401(k) Value Proposition Objectives: • Understand what is of value to a prospect • Clearly define your value Workbook Page 10

20. The 401(k) Value Proposition The 4 Pillars of Value • Plan Design & Compliance Assistance • Plan Administration • Employee Communication & Education • Investment Selection and Maintenance The 2 Phases of Value Phase 1 – Plan Provider Selection and Plan Set-up Phase 2 – Ongoing Plan Servicing Workbook Page 10

21. The 401(k) Value Proposition Develop your own Value Proposition and create your own Value Statement • Value Proposition – make list of the services you actually provide your clients. • Value Statement – Create a statement to market these services. Workbook Page 11

22. Value Proposition Pillar 1 – Plan Design and Compliance Assistance • Phase 1 - How will you serve them during selection and set-up? • Phase 2 – Your ongoing plan servicing • Value Proposition Worksheet - List Your Value • Value Statement Worksheet – Draft a brief statement Workbook Pages 11, 12, 13

23. Value Proposition – ActivityPillar 1 - Plan Design & Compliance Assistance Answer this Prospect Statement “We need to know that our plan is in compliance and is properly designed to maximize the benefit to our employees. Further, we recently went through an acquisition and found that the resources at our current provider were very thin. How can you help us in this regard?” Workbook Pages 12, 13

24. Where’s the Client? Objective: • Develop Techniques to ensure a Steady Stream of Prospects Workbook Page 26

25. Where’s the Client? Building Your Database of Prospects • Getting Clear on Your Criteria • Search Engines • Referral System • Social Networks • Organizational Networking Workbook Page 26

26. Where’s the Client? Lead Criteria • Number of Participants • Participation Rates • Plan Assets • Current Provider • Current Broker • Current Trustees • Commissions Paid “Schedule A” Workbook Page 26

27. Where’s the Client? Search Engines • Free ERISA • Judy Diamond • Larkspur Data • 401(k) Exchange - (Ask your TRS Consultant) Actionable Item – What Search Engine will you use? Actionable Item – What Criteria will you use? Workbook Page 26

28. Where’s the Client? Create a Referral System • Position yourself as unique in the industry • Develop a referral script • Trade referrals • Make referrals a condition of doing business • Give incentives • Consistent creative follow-up • Prospects/Clients/Social Networks Workbook Page 27

29. Where’s the Client? Organizational Networking • Property Casualty Firms • Accounting Firms • Pure Employee Benefit Firms • Business to Business Firms of any kind • Law Firms • Bankers Actionable Item – Dog-ear this page Workbook Page 29

30. Creative Prospecting Objective: • Explore some basic prospecting techniques • Outline a basic plan to implement upon your return Workbook Page 30

31. Creative Prospecting Prospecting Techniques are Limitless • Cluster Prospecting • The Leave Behind • Industry Associations • Chamber of Commerce • Seminars • Direct Mail Workbook Pages 30, 31

32. Creative Prospecting Cold/Warm Calling • Catching them on the first call • Leaving a message • Engaging the gatekeeper • Expecting to leave 4 – 5 voice mails • Establishing your brand • Final thoughts on cold calling Workbook Pages 31, 32, 33

33. The Approach Workbook Page 39

34. The Approach Your Team of Experts • Tax Expertise • Plan Design Expertise • Administrative Expertise • Communication/Education Expertise • Investment Expertise • Plan Level • Participant Level Actionable Item – Dog-ear Page 41 for discussion with your TRS Consultant Workbook Page 42

35. Communicating Your Value Workbook Page 43

36. Communicating Your Value Pre-appointment Planning • Reconnaissance • Meeting Agenda • Value Statement • Questions to Gain Clarity • Statement to Gain Agreement • Presentation Tools • Closing Strategy • Follow-up Strategy Workbook Page 43

37. Communicating Your Value Value Statement – Why should they listen? Describe: • Your focus and expertise • Your market niche • The benefits of working with your organization • Transition to “Reconnaissance” Actionable Item – Outline your “Value Statement” Workbook Pages 46, 47

38. Thank You! For spending your valuable time with us! Transamerica Retirement Services – The Retirement Answer