0 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Producer Recruiting: 5 Steps to Success

Presented by:

Josh Morgan Consultant

Josh.Morgan@MarshBerry.com 440.392.6579

Jared Roy Consultant

Jared.Roy@MarshBerry.com 440.392.6560

1 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Agenda

MarshBerry Overview

Recruiting Background/Statistics

5 Ways To IMPROVE Your Strategy

Review

Q&A / Discussion

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2 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Marsh, Berry & Company

Information Services

Management Consulting

Exchange Networks

M & A Advisory

Managing Peer-to-Peer Network Groups for 15 years

6 Networks with over 186 partners across the US, Canada and Puerto Rico

Network Clients represent over $2.3 billion in collective broker revenue, and $24.5 billion in total insurance premiums

MarshBerry is dedicated

to enabling insurance distributers to LEARN, IMPROVE and REALIZE

their fullest business potential.

Founded in 1981 4 Offices: OH, CA, TX, MI Privately-held Perpetuated Ownership 19 Shareholders

Clientele Includes: Insurance Agencies Brokers Wholesalers Credit Unions Banks Insurance Companies

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3 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Recruiting Background/ Statistics

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4 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Beating The Odds Do you have the courage?

Hiring DemographicsAverage Producer Age 33Average Starting Salary 55,604Average Years of Sales Experience 8Average Number of Jobs Held (post college) 3Producer Retention Rate 70%

Production ResultsAverage 1st Year Revenue (Employed 1 Year or More) 48,674Average 2nd Year Revenue 56,033Average 3rd Year Revenue 85,493

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5 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Average Weighted Book of Business

Weighted Book of Business - Average

2.7%

12.4%

33.0%37.9%

14.0%

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%

21-30 31-40 41-50 51-60 60+

Age

% o

f Tot

al

Com

mis

sion

s/Fe

es

Weighted Book of Business - High Growth

3.9%

26.4%31.2% 29.6%

8.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

21-30 31-40 41-50 51-60 60+

Age

% o

f Tot

al

Com

mis

sion

s/Fe

es

Commission/Fees Controlled by Producers Over 50 years = 51.9% vs. 38.4%

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6 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

#1 Find Sales Talent, Not Technical Talent

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7 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

#1 Find Sales Talent, Not Technical Talent

Why Sales Talent? • Easier To Teach Someone Insurance Rather Than Sales

In many cases, getting a producer from another agency means inheriting someone else’s problem

Pictured: The star of the movie “Problem Child”

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8 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

A Breakdown of Capacities That Drive Sales Performance

Job Skills: Product and marketplace knowledge to include experience in an industry.

Sales Skills: Those abilities related to a person’s capacity to understand and apply state of the art selling skills and relative to appropriate level prospecting, selling and account management functions.

Personal Skills: Those individual capacities that determine a person’s ability to implement the job and sales skills they possess – attributes such as self-starting capacity, self-management, personal motivation, consistency and literally scores of other essential skills.

Job Skills

Sales Skills

Personal Skills

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9 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Producer Success Formula (Job Skills + Sales Skills) x Personal Skills = Producer Success Score Example 1: High Insurance Experience/Average Sales Experience/Below Average Personal Skills Job Skills : 10 Sales Skills: 5 Personal Skills: 4 (10 + 5) x 4 = 60 PSS = 60 Example 2: Low Insurance Experience/Average Sales Experience/High Personal Skills Job Skills: 3 Sales Skills: 5 Personal Skills: 9 (3 + 5) x 9 = 72 PSS = 72 Personal skills are the multiplier of performance. Product knowledge, job or sales skills are things that can be taught, learned or acquired. 9

10 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

MarshBerry Recruiting Model: Hiring from Outside the Industry

Recognition that there has been far too much failure in hiring producers due to placing so much emphasis on technical knowledge.

Hiring people who can sell and teaching them the technical side of the business poses much less risk than vice versa.

Build failure into your hiring system.

How can we build the risk into the system? • Compensation plans • Keeping training costs low initially • Focus on prospecting early in the game • Pairing with a mentor to capture revenue quickly

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11 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

#2 Have An Effective Compensation Plan

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12 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

An Effective Compensation Model I. Compensation model that offers upside to top candidates while protecting downside for your firm a. Three year base salary as follows: b. Commission From First Dollar paid to producer c. Base validated by new business appointments d. Examples at $60k Base i. Beginning in month three, the base pay of $5k per month must be earned or

base drops for the following month ii. Assume we want $60k in production for $60k base iii. Further assume $5k gross commission per account iv. 12 accounts needed to earn base - 12 accounts x $5k Base = $60k v. Using a 25% closing ratio, we now need 48 deals in the pipeline for year one vii. In this example, we need approximately five first time new business appointments per

month viii. In month three, if a new producer only obtained four new business appointments, then

month four compensation would be $4k, not $5k

Year Base1 $60,0002 $40,0003 $20,000

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13 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

#3 Sell The Industry

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14 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Selling The Industry

Insurance Noise Salespeople get inundated with insurance offers

Insurance is a dirty word in the job market

• Work From Home

• Multi–Level Marketing

• Ponzi Schemes

• Even Most Legitimate Offers Are Not What great Salespeople Are Looking For

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15 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Selling The Industry

Five of the most favored job opportunities good sales people look for: Business-to-business sales to large organizations

The opportunity to make good money soon – and great money long-term

Eventual partnership or ownership opportunities

Limitless income (many organization cap compensation for salespeople)

Long-term stability (downsizing and acquisitions have taken their toll on the candidate pool)

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16 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Selling The Industry Design all communications to highlight the five attributes Don’t hide Insurance, but slowly introduce them to it Create a multi-step strategy that touches potential

candidates on several levels • Posting Ads

o Online job sites o College sites

• Send Emails o Use online e-mail tool o Send personal e-mail through outlook o Last chance e-mail

• Word of Mouth Campaign o Offer incentives internally

• Phone Calls o Call only the best candidates o Rarely needed

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17 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

#4 Create A Mentor Program

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18 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

The Four Horseman of Mentorship

Closer Mentor - Most critical of mentors. Accompany the new producer on all sales calls. No one learns to sell in a classroom.

Marketing Mentor - This mentor will help the new producer learn what is an acceptable submission and what is not. All questions relating to coverage, markets, etc. will be handled by Marketing Mentor.

Sales Tracking Mentor - This mentor will hold weekly meetings to go over prospecting activity and monthly meetings to track goal process.

Education Mentor - This mentor is responsible for making sure the new producer is on track with acquiring the technical knowledge to be successful. This can be anyone internally that is knowledgeable of technical insurance training.

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19 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Sales Management Made Easy

Weekly Meeting to Discuss: • Week Ending Activity Sheet

• Next Week’s Prospecting Time To Be “Blocked”

Monthly Meeting to Discuss: • Month End Review of Goals

• Next Month’s “Bite” of Annual Goals

• Year-To-Date Progress on Annual Goals

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20 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Annual Goals & Objectives - January 2010 GOAL TARGET DATE

TO ACCOMPLISH ACTUAL DATE

ACCOMPLISHED

1. ____ Number of First Time Business Appointments

2. Complete and pass all 6 AICPCU basic training modules

3. Average account size for first year to exceed $_______

4.

5.

6.

7.

8.

9.

10.

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21 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

MMMooonnnttthhhlllyyy GGGoooaaalllsss

GOAL TARGET DATE ACTUAL DATE

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

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22 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Activity Sheet

Week Of: Producer Name: ______________________ Agency Name: ________________________ Hours Prospecting:____________________ New Business Commission:______________

ATTEMPTS CONVERSATIONS APPOINTMENTS

MO

ND

AY

TOTAL

TUES

DA

Y

TOTAL

WED

NES

DA

Y

TOTAL

THU

RSD

AY

TOTAL

FRID

AY

TOTAL

WEEKLY TOTAL

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23 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Block Time For Next Week’s Prospecting

Producer Name: ______________ Week Ending: ________________

Monday Tuesday Wednesday Thursday Friday8:00 AM9:00 AM

10:00 AM11:00 AM12:00 PM1:00 PM2:00 PM3:00 PM4:00 PM5:00 PM

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24 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

#5 Education And Ongoing Training

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25 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Methods Of Producer Education

Mentoring MarshBerry Sales Pro Producer Schools

• We recommend sending new producers after six months to a year

• Send only after they can prove solid activity Online

• New Level Partners

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26 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

New Level Partners Specialists in Online Education

Rise Above the Competition!

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27 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Course Learning Objectives

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28 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Course Interactivity

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29 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Course Graphics and Interaction

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30 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

SalesPro Producer Training

Sales Training to Create High-Performing Producers

April 23-24, 2012 • Raise expectations • Create capacity • Learn which suspects to chase • Discover the right way to make a

suspect a prospect • Create an environment that

enables the right prospect to buy

Commercial Coverage Essentials

April 25-26, 2012 • Practical and comprehensive

coverage instruction - great for new producers

• Blends technology with interactive learning

• Introduces key Property, Liability and Workers Compensation coverage and risk management concepts

Designed for both new and seasoned commercial and group employee benefits producers who are looking to achieve a higher level of performance.

Sessions run in tandem with Spring and Fall APPEX Summits. Visit www.MarshBerry.com/TrainingSessions for further details.

Questions about SalesPro? Contact: Justin Berry at 440-220-5431 or Jim Wochele at 440-392-6559

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31 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

Upcoming APPEX Summit

IMPROVE Spring 2012 Wednesday, April 25th – Friday, April 27th

Sheraton Dallas Dallas, TX

IMPROVE Spring APPEX Summit 2 ½ Day Semiannual Conference – Spring 2012

State of the Industry Presentation General Session focused on Healthcare Reform Strategic Issues Groups - 12 PAX Groups Educational Breakout Sessions

• Employee Recognition • Future of Technology in the Industry • Compensation and Operations

For more information or to register: www.MarshBerry.com/IMPROVEPartnerNominees

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32 Spring 2011 BANK/TASC Summit 2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, published, stored or transmitted by any means, electronic or mechanical, without prior written permission of Marsh, Berry & Company, Inc.

THANK YOU!

Josh Morgan Consultant

Josh.Morgan@MarshBerry.com 440.392.6579

Jared Roy Consultant

Jared.Roy@MarshBerry.com 440.392.6560

IMPROVE Spring APPEX Summit Wednesday, April 25th – Friday, April 27th Sheraton Dallas, Dallas, TX

FOR MORE INFORMATION: www.PeerNetworks.MarshBerry.com

TO REGISTER:

www.MarshBerry.com/IMPROVEPartnerNominees

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