Remembering Dick and Myra Larkin - National Association of ...

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ExclusivefocusSummer 2009An Official Publication of the National Association ofProfessional Allstate Agents, Inc.FEATURES16 Remembering Dick and Myra Larkin24 The Road Ahead – Canada Here We Come…BY NANCY AND JIM FISH29 Accentuating the Positive…The Exclusivefocus Interviewwith agent Bill Gough32 Reinventing the Wheel…Will the ALI Become Tom Wilson’s Folly?38 Savannah – a Conference to Remember…Reflections of a First-Time AttendeeBUSINESS14 How to Keep Clients inthe New EconomyBY DAVID NEUENSCHWANDER21 The Internet InsuranceMarket: Friend and Foe?BY LORI REED36 The Magic of Newsletters…How to Grow YourReferrals, Increase YourRetention and ExpandYour Business!BY BILL GOUGH48 Snookered by AllstateHow unsuspecting agents have been trained in broad daylightTECHNOLOGY27 Using Agency Management Tools to Save and Earn MoneyBY ZACKERY KNOY44 Has Your Agency Missed the “Paperless Office” Boat?46 Managing Your Communications EquipmentBY DAVID POLITIS52 Banish Your Fax MachineBY STEVE ADAMSDEPARTMENTS6 President’s Letter8 Letters to NAPAA57 MembershipApplication58 NAPAA Market Place62 Advertiser IndexA Magazine for Allstate Agency Owners and AllstatePersonal Financial Representatives4 — Exclusivefocus Summer 2009

president’s letterRichard “Dick” Larkin…my mentor, my hero, my friendBY BOB ISACSENDear fellow members:Long before I joined Allstate in 1986there existed a core group of agentsthroughout the country that recognizedAllstate agents and the consumer werenot being treated with the dignity andrespect that one would expect from thecompany that employs and insures them.Dick Larkin was part of that core groupthat finally came together at a meeting inLouisville, Kentucky in 1989. The intentof this gathering was to build a nationalorganization that would provide a muchneededvoice for Allstate agents and theconsumer. In a nutshell, our mission wasto bring agents and consumers togetherin a united front that would garner morerespect and attention from Allstate management,which typically closed its eyesin denial whenever presented with im-portant agent or consumer issues.We became known as the NationalNeighborhood Office Agents Club, orNNOAC. At the time, there were noExclusive Agents at Allstate, only employeeagents, a great many of whomthe company had convinced to becomeNeighborhood Office Agents, or NOAagents. The name of the organizationwas chosen to reflect who we were,Neighborhood Office Agents.As an insurance professional with 25years experience, I joined Allstate as aNeighborhood Office Agent in February1986. Like Dick Larkin, I was invitedto attend the first national NNOACmeeting in Louisville, Kentucky.In those years we paid all our ownexpenses, including the meeting rooms,publications, postage, travel, etc. It wasat this first meeting that I met DickLarkin, the consummate professionalwho had already spent decades helpingbuild the Allstate brand.Dick was able to explain to me thefoundation on which Allstate was builtand the misguided course it was followingwith its parent company, Sears Roebuck.Dick and I, along with the newleadership of NNOAC, had over 400years of combined experience. We spentthree days together planning a strategythat would endure over time. And as aresult of the trust and counsel of DickLarkin, I accepted a position on theNNOAC Board of Directors in 1989.Dick was a true visionary who helpedshape the future of Allstate. Dick andNNOAC were instrumental in the spinoffof Allstate from Sears. He single-ExclusivefocusNational 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.orgJim 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 Summer 2009

Savannah ConferenceCongratulations for putting on anothergreat conference. The location wasbeautiful and the cost was reasonable. I’lldefinitely consider coming to the nextone and will invite some of my fellowagents as well. I thoroughly enjoyed the“Kick in the Attitude” presentation fromSam Glenn. He did an outstanding joband I would enjoy seeing him again. Troyand Lynn McDonald left no stones unturnedas to growing your agency. Whata great couple!I learned quite a bit from otheragents around the country; some of thestuff going on in their regions is sureto come to ours. In my opinion, thevendors added value to the conference.Many of their products and services canbe used in our agencies.. . . . . . . . . . . .I joined NAPAA the day before I attendedthe national convention in Savannah,Georgia this spring. This was aftermany years of being told by our managementteam that NAPAA is a forbiddenorganization of negative and disgruntledex-agents. Contrary to what we are toldas Allstate agents, I found that NAPAAis represented by positive, knowledgeableprofessionals. The NAPAA conventionwas inspirational, educational and inforlettersto NAPAAmative. I am glad that I joined and thatI now belong to an organization that listensto Allstate agents nationwide andresponds to their needs. Thank you.. . . . . . . . . . . .The conference was fantastic. Theguest speakers were very inspiring. Iknow our sales will show a positive impactfrom our attendance.. . . . . . . . . . . .It was a great conference at a fabulouslocation. It was great to hear, firsthand,former Canada Allstate agent JimDorey talk about the Canadian experience.What goes up must come down,as I see it. I truly believe that everythingthat happened in Canada will eventuallycome to the U.S. It is only a matterof time. The only difference is thatwe have a TPP. All the company has todo is exercise the “right to terminate”clause in our contract, pay the TPP, andkeep all the policies and renewals. Thenthey’ll offer the “New” Allstate agencymodel to those who want to stay andbecome employees again, without renewals.Makes good corporate sense,doesn’t it?In the meantime, expect more terminationletters. Better have a plan “B” inplace, so you don’t get caught by surprise.. . . . . . . . . . . .The only reason I didn’t come tothe Savannah conference was because Iam having some problems with mobility.I was really sorry to have missed it.It would have been wonderful to see youand the wonderful NAPAA membersthat I met in Reno and Memphis again.With all the production requirementsand other pressures, I could use somenew ideas and inspiration. I’m seriouslygoing to have to go on antidepressantssoon because I’m so stressed out. Sorry toshare something so personal...but I guessthat’s where I’m at.. . . . . . . . . . . .We had a great time. We are lookingat some of the products presented by thevendors. What we learned is how diversethe regions are. All things are not yetequal across the country. Since the companycan fire us for not selling its productsat the price they charge, I’d say it’s timeto develop some viable exit strategies. It’shard though, because agents don’t get togetheranymore, so it’s hard to figure outwhat is actually going on. Guess they’vegot us right where they want us. I’m gladI have the ability to keep up with currentissues via the NAPAA Forum andthe weekly DirectExpress newsletters.Canada and New Jersey are warnings weshould be tracking.. . . . . . . . . . . .I came to the conference a little downbecause of the state of my business. Thevery first speaker was Sam Glenn andhe talked about improving your attitude.I found the experience uplifting. TroyMcDonald’s session gave me some greatsales ideas and a good way to position mybusiness.. . . . . . . . . . . .Jim,Hope you made it home from theSavannah conference safe and sound.We had a good run home to Canada.I tagged up with a Mercedes and motorbikea good portion of the way andthey had radar so we broke a couple ofrecords! It’s funny, yesterday we wereenjoying the island breezes of HiltonHead and today we’re back to the frozentundra here in Northern Ontario. Thereare still patches of snow and the lakesare frozen.On behalf of my family and myself, Iwant to thank you, Nancy, Bob and theNAPAA Board of Directors for yourfriendship and gracious hospitality. Iwas surprised that Jim Dorey invited meonto the stage. To top things off, I did8 — Exclusivefocus Summer 2009

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letters to NAPAAFrom CanadaThings here in Canada are not sogood. Sales are very slow and I don’t knowwhether I should stay or leave Allstate.The worst thing about the new AllstateInsurance Agency (AIA) model is thatwe are not allowed to contact our clients.They have Customer Care Assistantsdoing this kind of work. This makes meangry because my clients call and almostalways ask for me. The Customer Carerepresentatives are instructed to lie andsay that I am in the office, but that I ambusy and cannot answer their calls. Thenthey ask, “What can I do for you?”I feel bad for my clients and myself. Icannot pick up the phone first because thecalls go to the CAAs first. I feel like I ampart of a big deception by Allstate. I amthe one who prospected and persuadedthese customers to buy Allstate and now Icannot talk with them or help them.OtherMy EFS is expecting me to provideleads for him and I just am not gettingthem. I don’t know what to do. Maybemy customers are sensing my desperation.Any advice?Editor’s response: Customers can sensedesperation. I always found that a low-keyapproach worked best for me. A sort of “ifyou want it fine, if not fine” kind of attitude.That way prospects don’t feel pressured. But,at the same time, if they express any interestat all, I would become a bit more aggressiveand say “My EFS will be in your area onTuesday May 12th at 7:00 PM or on MondayMay 18th at 6:00 PM, which date willwork best for you?”. . . . . . . . . . . .I believe SPU to be a good opportunityfor agencies. I’ve had two stafferssuccessfully complete the program andcome back my office trained, enthusedand ready to work.I believe it is far more costly for me toslow or stop the functions of my agencyto meet the needs of a new hire. WhenI look at the amount of time prior staffconsumed for me to properly bring themup to speed, there’s no question in mymind that sending them to SPU is theway to go.By sending them to SPU they get fullyappointed, get more product knowledgethan I give them, they learn the basics ofquoting and selling and have a firm graspof Allstate as a whole. Plus, our office remainsfocused on the task at hand, sellingand servicing clients.That being said, however, we immediatelyhave to deprogram them whenthey return and get them dialed into therealities of agency life and the REALprocesses we use, which, admittedly, aremuch different than those of the SPU.Our region has not forced mandatorySPU training on staff. However, if theydid, we would have a problem with thatas well.Editor’s response: Thank you for writing.We agree that the SPU program can beappropriate for some agencies who want totake advantage of it.The SPU becomes problematic whenit becomes mandatory because staff couldnot be appointed with Allstate nor couldthey bind coverage unless they attend thecourse. Under the program, existing stafferswould be grandfathered in, but thosehired after March 1, 2009 will be requiredto attend within 18 months or lose theirappointment. This is a game-changer. Inour view, if SPU training becomes mandatory,it would be a very serious infractionof your independent contractor status.Agents should be free to train their employeesas they see fit.. . . . . . . . . . . .During the recent Agent ChoiceTechnology Conversion, we learned thatthe Verizon “Single Point of Contact” isreally the “proper way to safely convert.”Needless to say, the company is stronglypushing the Verizon solution and is discouragingagents from “self-conversions.”They are so insistent that they’ve guaranteeda smooth transition for agents whouse the SPOC and warned that thosewho choose other options could risk a“walk away” charge of $1,700 if the Allstatetech team runs into any problemsswitching the agency over on the scheduledconversion date.In spite of their warning, I opted to“self-convert.” The computer equipmentAllstate recommends through Verizonis built by Dell. By contacting Dell directly,I was able to negotiate a far betterdeal and saved HUNDREDS of dollarson computer equipment and associatedhardware. In addition, I was able to obtain- directly from Dell - better equipmentwith almost twice the speed anddouble the memory as the system endorsedby Allstate.This experience has me asking thefollowing questions:• Why wasn’t Allstate able to negotiatea better price for its agents participatingin their conversion package?• Is Allstate getting a commission ora kickback from Verizon/Dell for pushingtheir products and services?• Why would any company deliberatelyallow its preferred vendors toovercharge its workers for such a largeexpense?Letters continued on page 54.12 — Exclusivefocus Summer 2009

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usiness tipsHow to Keep Clientsin the New EconomyBY DAVID NEUENSCHWANDERBlood in the streets. Carnage. Everyoneis losing their home, job or business.That’s about all we’re hearing aboutthese days, right?And let’s face it - these are hard timesto be an agent. Even the die-hard, happy-go-luckyoptimists are probably questioningtheir sanity a bit.How should I respond to the currenteconomic situation?First, we’ve got to be honest. Theseare challenging times. The very bestagents right now aren’t pretending thestorm clouds don’t exist, instead they arelooking for silver linings, and they areplanting crops.They’re asking themselves a smartquestion, and it’s the very best questionthat you can be asking yourself right now.Here’s how I learned it: I was 20 yearsold, sitting in a huge arena listening toZig Ziglar for the first time. The smell ofburnt popcorn and cheap hotdogs filledthe air, but I barely noticed it.I’d heard people mention the WINPrinciple before, but for the first time Iactually got it. In case you haven’t heard,W.I.N. stands for What’s ImportantNow?And that’s the question for you to bethinking about now, especially with everythinggoing on in the economy as a14 — Exclusivefocus Summer 2009

Remembering Dick and MyraDick Larkin: 11/05/1933 – 04/18/2009Myra Larkin: 08/12/1935 – 04/18/2009As we prepared to return home from theNAPAA conference in Savannah on Saturday,April 18th, Nancy Fish rummagedaround the contents of her purse to find hercell phone so she could place the phone callthat would bring grief and sadness to manycurrent and former Allstate agents.An hour and a half after her call to theNassau County Sheriff ’s Department inFlorida, a detective called back to report thedreadful news—Dick and Myra Larkinwere found dead in their home. But sinceDick and Myra’s next of kin had not yet beennotified, the detective was unable to disclosethe cause or the circumstances surroundingtheir deaths. All we could do was speculateabout how they died. Later we learned thetragic truth; they were bludgeoned to death.Dick was a well-known figure amongAllstate agents. He was a tireless proponentof agent rights throughout his career as anAllstate agent, a career that spanned a thirdof a century or more. A prolific writer, Dickcontributed many articles to Exclusivefocusand DirectWriter magazines over the years,the last of which appeared in the spring editionof Exclusivefocus. Dick was an ardentsupporter of NAPAA and one of its foundingmembers. He served many terms on theNAPAA Board of Directors and was theeditor of DirectWriter magazine. He wasthe NAPAA Executive Vice President at thetime of his death. Dick was admired and respectedby many and will be greatly missed.As word of the tragedy spread, severalcurrent and former colleagues wrote toexpress their remembrances of Dick andMyra. We have printed these letters oftribute below:I lost two dear friends this past April.It is hard to discuss the deaths of Dickand Myra Larkin without wanting to talkabout how they died. The priest at theirfuneral service said it best when he statedthat “any discussion of how they diedwould only hurt their family and friends.”Dick and I, along with our wives,traveled to more than 40 states while Iwas president of NAPAA. These “roadshows,” as they were called, were someof the best years of our lives. Dick had asincere desire to improve the agents’ relationshipwith Allstate. The ability foragents to “sell their books of business”was perhaps one of his major successes.I believe that every agent, past and present,owes a debt of gratitude for his manyyears of service with NAPAA.There are many memories that I haveof Dick and Myra and will think them16 — Exclusivefocus Summer 2009

often. Dick loved food. Wherever wetraveled, his first words of the day were,“Where are we eating breakfast?” Then,before we would get into the car afterbreakfast, Dick wanted to know whenand where we would be having lunch.Meal planning was paramount to Dick.When it came to driving, you could notlet Dick behind the wheel. He was theworst driver I ever knew. The first timeI rode with him, he was passing tractortrailers on the inside. I thought he wastrying to scare me, but after riding withhim for an hour or so, I realized he drovethat way all the time. Consequently, Inever let him drive again!Then there was the lovely Miss Myra,who suffered from a condition Dick called“a bashful bladder.” It took her a longwhile whenever she went to use the bathroom;so many hours were spent waitingfor Miss Myra. On more than one occasion,she got lost while going to restroomsin large restaurants. Dick would wait 30minutes or so and announce “let’s findMyra, she’s lost again.”Yes, I have fond memories of Dickand Myra that I will cherish until I die.But the most important thing I will rememberis that we laughed much morethan we cried. After all, that’s whatfriends do.Bill CookeNAPAA Past PresidentThe Villages, FloridaA pioneer, in fact, a fearless pioneer, ishow I remember Dick Larkin.Few knew that Dick was the onlyemployee agent at Allstate who was onpermanent “Job in Jeopardy.” Long beforethe National Neighborhood OfficeAgents Club (NNOAC) was a glimmerin Jim Cason’s eye, Dick was busy writingan agent newsletter in the CapitolRegion, identifying some of the abusesthat were heaped on employee agents atthe time. Dick was called out by managementand told that he could neverprint any “untruths” about Allstate andits treatment of its agency force or hewould be fired. This did not stop him.In fact, Dick began to write and pub-lish even more articles, not only in hisRegion, but after joining NNOAC, allacross the nation. Because what he wrotewas well-researched, well-documentedand always factual, he was never terminatedeven though he was often criticalof the company.I first met Dick in Louisville when weformed NNOAC, which is now knownas NAPAA. We worked together to writethe association’s original bylaws. Fromthat point forward, Dick was committedto improving the relationship betweenagents and the company. He traveledfrom coast to coast, wrote investigativereports and was instrumental in inspiringthe award-winning article titled “Stalkedby Allstate,” authored by Richard Beharand published in Fortune magazine.Serving as an officer, board member,editor and legal advisor for NNOAC andNAPAA, I can think of no other personmore dedicated to the plight of agents,not only those working for Allstate, butthose with other captive carriers. It wasbecause of his passion for captive agentsthat he served in various capacities, includingpresident and board member ofthe Coalition of Exclusive Agents Association,a group of captive agent associationsthat sought fairer treatment andincluded Allstate, State Farm, Farmersand American Family.Upon his retirement, Dick steppeddown from the NAPAA Board of Directors.But after a brief hiatus, Dick cameout of retirement and, once again, becameinvolved with his beloved association. Atthe time of his death, he was serving asNAPAA’s Executive Vice President andwas still contributing articles for Exclusivefocusmagazine.One last memory of Dick was whenhe exposed a tie between Allstate and thephilosophy of the Church of Scientology.The Church of Scientology demandedthat he stop his investigation. Then,when someone broke into his home andshot a bullet in his closet leaving a neathole in every pair of pants that hungthere, he took it as a warning from theScientologists, who he claimed wantedto underscore their displeasure with hisactions. In spite this, Dick did not backdown. He never missed a beat and publishedhis findings.Dick, I will miss you. I am sure thatheaven will be a better place once you’vehad a few years to straighten out anyproblems up there.John LindsayNAPAA Past PresidentPowder Springs, GAHow does one define the man thatwas Dick Larkin? Is it courage, or selflessness?Is it intelligence, dedication or perseverance?In short, my definition of DickLarkin embodies all these noble traits andmore. Perhaps, even more defining is thatDick lived to help the agent.For more than a decade, his passionrubbed off on me. I look back on thoseyears in my life and I am proud to havebeen associated with Dick, NAPAA,and the agents. What we accomplishedtogether has created a bond that has notbeen broken by Dick’s physical death. Ourfriendship will remain with me forever.The power of the pen took on newmeaning whenever Dick was involved.I wish he could still give me advice. Forinstance, what to write regarding what Ithink he would say if he was here today.Three things come to mind:1. He would not acknowledge thisor the other accolades that appear inthis magazine. Rather, he would quicklymove on to another subject. You see thisgreat man was humble too.2. He would want us to pray for hisfamily. They are going through manytough challenges.Summer 2009 Exclusivefocus — 17

oard of directors together.As we know, Dick never stopped beinginstrumental in successfully advancingthe rights and interests of Allstateagents across the country. He was a trulygutsy guy, who never allowed his own intereststo interfere with his pursuit of thetruth or his quest to uncover wrongdoing.Dick was a paragon of integrity andrelentless in his efforts on behalf of Allstateagents, all of whom should take amoment to pay homage to his memory.John MannixFormer NAPAA DirectorCommack, Long Island, New YorkDick, along with his lovely wife Myra,and my family were together at manymeetings and conferences. His favoritedrink was gin and tonic with a slice oflime. They stayed at my home when Ihosted a NAPAA meeting.I will always admire Dick for his courage,determination, talent and the factthat, even in his retirement, he continuedto work for Allstate agents by being partof the NAPAA Board of Directors. Heleft his mark and will be sorely missed.Edward “Ed” ErbacherFormer NAPAA DirectorLakeville, CT3. His mission should continue. Theagents are worth it.Myra, I haven’t forgotten about you.I will miss your giggles, smiles, laughter,and your passion for traveling and collectingnew things. I admire your dedicationto each other (51 years). I hopeyou and Dick are walking down a beachholding hands, watching the sun rise ina better place.Joe LazcanoFriend and advisorJacksonville, FLDick and I had a long history, evenbefore there was a national association ofAllstate agents. Our paths crossed wayback in the mid-seventies when I wasinvolved in unionizing the New YorkMetro agents. Dick was leading similarorganizational efforts in Virginia at thesame time. In fact, because of the successfulunionization effort in New YorkMetro, he invited me to speak to theagents in his area. Ed Erbacher, the thenVice President of the Allstate AgentsAssociation of the New York MetroRegion, was also there. Ed would laterbecome active in the national agent association,which became to be known asNNOAC, and later as NAPAA.Our paths would cross again after thefounding of NNOAC. We served on theI first met Dick Larkin in the early70s while a group of us were attemptingto form a union for Allstate agentsin New York. We heard there was also anagent movement in the Virginia/WashingtonD.C. area. The leader of the groupwas Dick Larkin. Some in our group, includingmyself, Ron Binday, John Mannixand a few others, paid Dick and hisgroup a visit hoping to bring them intothe union effort. We were not successfulbecause, at the time, Dick was still hopingthat a more favorable agent agreementcould be negotiated.In any event, we succeeded in ourunion effort in New York. It was a hotlycontested election with 321 votes in favorof the union and 313 against. The outcomeof the election was a big blow toAllstate, which was a part of Sears at thattime. There were no other unions at Sears.Including the organizing campaign, theunion lasted for about four years.After the union was decertified, managementwas good to the agents for aboutfive years. Then the baloney started allover again. In 1989, Dick, Jim Cason,myself and others started a non-certifiedagent association. Dick was a leader and afront-runner. He sued the company, wrotetremendous articles for the organization,spoke at meetings around the country andwas always up front. Dick had a keen intellectand an investigative reporter’s talent.He exposed the Church of Scientologyat Allstate, which resulted in a leadarticle in the Wall Street Journal.I remember something about DickLarkin that stands out in my memory.About 15 years ago, the association metin different cities three or four times ayear. We would usually meet for threedays. And they were long days. By theend of the day (or night) we would be sotired that all you could do was eat dinnerand go to sleep.On one of these trips, which I believewas to Atlanta, the meeting brokeup about 9 p.m. We all went downstairsto the hotel restaurant, which appearedto be underground. When we got there,the restaurant was already closed. Wewere hungry, so we talked to the hotelmanager. He said if we could give him afew minutes, he would re-open the restaurantfor us with a limited menu. Sowithout any hesitation we all agreed.Now, just when you think you knowsomeone and what they do, or like to do,or what they are capable of doing, you aresometimes in for a big surprise, which iswhat happened with Dick that night. Atthe bottom of the staircase sat a babygrand piano. Since we had a few minutesto wait before we could be seated in therestaurant, Dick sat down at the pianoand began playing. I don’t mean to saythat he clanked and clunked out “Heartand Soul” or “Chopsticks,” he played likeLiberace. We were so surprised and impressed;you could have knocked us overwith a feather.I will never forget Dick and Myra and18 — Exclusivefocus Summer 2009

It hardly seems possible that DickLarkin is no longer with us. He was partof the NAPAA family from the beginning.To many of us, the name Dick Larkinis synonymous with NAPAA.I attended my first NNOAC/NAPAAmeeting in Chicago in November of1992, nearly two years after the associationwas founded. I was intrigued bythe communications the association wasmailing to the agency force and was curiousto learn more. They were well-written,relevant and focused on the criticalagent issues of the day. Dick was theeditor and driving force behind Direct-Writer magazine and authored many ofthe articles that appeared in its pages.I joined the association at the NNO-AC Convention the following year andhave attended every conference since.For the first few years as a member ofNNOAC, I would devour Dick’s articlesin DirectWriter magazine. He was sucha talent. His crowning achievement,however, was a 74 page exposé titled TheNOA Investigative Report, which waspublished in 1994. This stunning reportdemonstrated Dick’s thoroughness andtenacity to arrive at the truth. At thetime of his death, he was working on asecond such exposé, tentatively titled TheEA Investigative Report.Looking back, I learned a great dealfrom Dick, some posthumously. Besideshis writing skills and sharp intellect, hewas always calm, cool and collected. Inever saw him get angry. Nor did I everhear him raise his voice or complain. Henever showed fear or impatience andalways maintained an air of quiet confidence.But most of all, he cared.They say that you don’t fully realizewhat you have until it’s gone, which ishow I feel at this moment. I will misshim and hope that I continue to learnfrom his example.Jim FishNAPAA Executive DirectorGulfport, MSThe first time I met Dick Larkin wasat a conference. I had been a NAPAA directorfor a few years when he was electedto the board again after spending someyears away. I had heard of Dick and hispast accomplishments and activity withNAPAA, but had never met him.The first people to arrive at a conferenceare usually the board members. Wesee each other at the check-in counter,lobby, the hotel bar or in the hallways.That year was no different. On the wayback to my room I passed by a table fullof board members. We are always happyto see each other, so I start hugging,meeting, greeting and listening to travelstories, etc. As I’m standing there talkingand hugging, I notice a gentleman acrossthe table. At first I was thinking, “Who’sthat guy?” Then I remembered that itmust be the board member I’d never metbefore, Dick Larkin. I notice he is not reallysmiling or frowning but seems to betaking stock of me. Probably, somethingsimilar to what I was thinking…. “Whois this person?”We were introduced and we performedthe customary handshake and then engagedin some small talk. I noticed, justfor a minute, that when my name wasmentioned it seemed as if he didn’t expectme to be the one board member that hedidn’t know. At least that was my impression.Maybe I didn’t look or act like heexpected. Not sure. Not in a bad way, butI noticed a bit of surprise.For a few years we attended meetingsboth over the phone and in person.Each time I visited with Dick, much ofour discussion focused on NAPAA business,the insurance industry or a currentnews story. We were friends, but as withany group you always become closer tosome than others. I spoke to two or threeother board members more often, sharedjokes, etc. But when it came to asking aquestion or wanting an opinion, I wouldalways include all the board members.Dick always had good insight. On occasion,this would lead to a conversationbetween just the two of us. It was alwaysa pleasurable and courteous discussionbetween two colleagues. I never knewwhat he thought of me, but then I neverreally thought about it. He just seemedto be okay with me and appeared to reallylisten to what I had to say. I startedto understand him as a gentleman and a“gentle man” as well.Never was this more clear to me thanjust last year. I had decided not to runfor a board position for the 2008-2009term because I was pregnant. It was myfirst child, so I wanted to focus on it. Noone knew until last summer, when I announcedto the board that I was about4½ months pregnant. I received wellwishes and congratulations from everyone.A few months later, I invited themto visit my unborn child’s Website. Therewere a few sonogram pictures, an updateon the pregnancy, how it was going anda guestbook area where visitors couldleave comments. Again, there were manywonderful comments and congratulations.I wasn’t really sure Dick would bethe type to sign a guestbook, but then Iread the following, “Congratulations andBest Wishes. I hope she gets your integrityand feisty DNA. Keep us posted.– Dick Larkin.”As I said, I never really knew what hethought of me. Now I did. Truthfully, Iwas honored by his words. I have to admitit made me tear up a bit. I thought itwas such a nice thing to say. I looked at itmany times during the last months of mypregnancy and each time it made me tearup. I always planned to keep the Websiteas a paper tribute for my daughter. I neverthought it would be a tribute to him, aswell. His kind words will live on. Thankyou Dick, you are a true “Gentle Man.”Cheryl EnglishFormer NAPAA DirectorValrico, FL20 — Exclusivefocus Summer 2009

usiness tipsThe Internet Insurance Market:Friend and Foe?BY LORI REEDInternet ShoppersThe Internet has changed most of theways we operate our daily lives. Yes, westill may go to sporting or musical events,but now we can buy those tickets online,and if we miss the event, we can immediatelycheck out the results on some newsWebsite. However, the biggest impacthas been in how people gain informationabout almost anything: the weather,word spellings, symptoms of an illness,what friends are doing, degrees a collegeoffers and…shopping for insurance. Andthis Internet-gained information is beingused to influence all sorts of buyingdecisions. In fact, in a recent comScorereport, 65% of the people surveyed saidthey used the Internet to make buyingdecisions.And who would have thought 32 millionpeople would submit online quoterequests for auto insurance? Until thepast few years, most of the insuranceselling process was through referrals andpersonal meetings. But in recent years,except for last year, the number of peopleshopping online for insurance has beenincreasing at a 15% annual rate accordingto comScore. This means that when consumersrealize they need to reassess theirinsurance coverage, millions turn to theInternet first. And insurance agents don’twant to miss these millions of potentialcustomers.Too Many ChoicesWhen consumers go online, they typicallydon’t type in a specific insuranceagent’s name, they go to a search enginesuch as Google and type in the keyword“‘insurance.” According to Google, inApril the keyword “auto insurance” wasused as a search phrase 30 million times.“Auto insurance quote” and “auto insurancequotes” were shown to compriseanother 6 million or so searches. Thesestatistics fluctuate and aren’t 100% accurate,but suffice it to say, there are a hugenumber of potentially interested consumerschecking out insurance throughthe search engines.The problem is, if someone enters thesearch words “auto insurance” in Google,there are over 90 million matches or linksto Web pages. So in essence, there are 90million sources of information for thepeople researching insurance offerings.The Internet has become congested withinformation – so much so that it is increasinglydifficult for consumers to findwhat they are looking for. But it is evenworse for small businesses, includinginsurance agencies, to get noticed whenthere are so many distractions.A few years ago, people were moreinclined to go directly to a Website bytyping in the address, or URL, of theWeb page they wanted to visit. But thehabit of most users now is to just entersome of the words into a Google search.According to a Yahoo survey, 72% of therespondents don’t remember the URLsthey see advertised on TV; they use asearch engine instead. Unfortunately, thesearch engines make it much easier forthe insurance shopper to be distracted bythe competition. A full 79% of the autoinsurance shoppers questioned ended upbeing introduced to a new auto insuranceSummer 2009 Exclusivefocus — 21

and when they used a search engine.Because consumers are bombardedwith matches after a search, they startbrowsing around the results and neverquite make it to the site they originallyintended to visit, according to the Yahoosurvey. The point is, when a consumeruses Google to shop for insurance, evenif they know exactly who they are lookingfor, the Google results page will displaymyriad of other choices.Given that Internet consumer searcheshave become so congested with confusing,and sometimes irrelevant results,it would seem the search engines willeventually have to adapt so the consumerexperience is better. Usually when somethingpopular or useful becomes unwieldy,the market will develop a bettersolution. For the time being though, thesituation is as follows: when consumersuse search engines, they get millions ofresults in the insurance category, therebyeasily exposing them to new brands.Managing the Online MarketFor the present, what every marketingcompany and sales person faces is anInternet consumer market that is inundatedwith competitive offerings. Witha generic insurance search, the consumeris probably not going to have much luckfinding a local agent and worse, the agentis not going to have much luck findingtheir local geographic market online.Controlling your online presence has createdan industry of its own – “ReputationManagement” – because of the rampantsearch engine results.The industry is at a point where marketingonline requires a level of Websitedesign and Internet ad buying that is farmore sophisticated than the marketingsavvy of the average insurance salesperson.And, to make matters worse, thereare questionable companies who claimthey can set up a Website to guaranteebetter search engine results. They mayhave just a little more knowledge aboutsearch engines than the average person,but they portray themselves as experts.Some use what are called “black hat”practices - trying to manipulate the searchengine results. These black hat techniquesare eventually detected by the search enginesand then “punishment” is meted outby moving the company to near the bottomof the results page (for car insurancethat would be at the end of 98 million listings).So it is important to hire help that isknowledgeable, reputable and referencedby others. Otherwise, their “help” couldbe worse than nothing.Selling to the Online ShopperJust as the online shopper is difficultto track down, the shopper has differentexpectations of the sales process too. Ifyou are contacted by an online shopper,or if you buy from online lead generators,you need to react differently. First of all,you must react very swiftly. Users of theInternet expect quick, if not immediate,results. They want a quote right away, andexpect you to produce it when you callthem. Also, they have been exposed tomany competitive offers via the Internet,and they will comparison shop. You mustbe prepared and understand that they willprobably be considering other options, soyou should provide your best offer.In a survey of online insurance shoppers,InsureMe reported that many consumersdid not receive a follow up call,and would have bought if they had acall back. Other consumers complainedthey had to repeat their information so,if you purchase leads, try not to ask theconsumer the same questions that are onthe quote request form. In another surveyby InsureMe, consumers mentionedthat some agents were rude and pushy. Itis possible that since online shoppers arenot meeting face-to-face with agents, theagents might not being as gracious as theywould be in person. So even if the lead isfaceless, you need to have your game faceon and present yourself and Allstate in thebest possible light at all times.The online lead will never be the sameas the friend referred by your mother, butbecause there are so many of them, theonline market is too big to ignore. It isimportant for agents to allocate some oftheir marketing dollars to online prospectingand when a lead comes in, workit quickly and politely. Until the nextgreat marketing phenomena, the Internetand its search engines will continueto be your best friend and strongest competitor.It’s up to you to leverage it toyour best advantage.Lori Reed is Director of Marketing for InsureMe,a Bankrate company. InsureMehelps millions of consumers find the rightinsurance, while providing thousands of insuranceagents with high-quality, real-timeleads. For more information, go to www.insureme.com.I Want to Help You sell More AFS!I Have Some Tipsthat Can Help You Achieve Your Expected Resultsthis Year. Learn from a Pro when You Join NAPAA.Ranked #1 in AFS Production Credit in4 of the past 5 Years.To Learn More Contact Gerry Flores at(563) 564-1800 or at GERBEAR_61@HOTMAIL.COM22 — Exclusivefocus Summer 2009

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featureThe Road Ahead –Canada Here We Come…BY NANCY AND JIM FISHThe recent company announcementfrom Joe Richardson regarding thework in Home Office to “transform theorganization” is filled with informationyou need to know. Pay attention, becauseyou’ll have to read between the lines tosee the agent’s true role in the company’sgrand plan.Unsatisfied with its agency model forclose to three decades, the company isnow touting its “Ideal Agency Model”as the best thing since sliced bread forthe Allstate agencies of the future. Anyagent with a memory will recall themany makeovers of the agency model.From the booth, agents would be promotedto NSOs or LSOs and the oldtimerswould be sent home to work asGAs. These were mostly agents underthe R830 contract. Then, in its first bigcost-shifting move, the company introducedthe Neighborhood Office Agency(NOA) model, which gave agents a tasteof entrepreneurship, but saddled themwith a cost-sharing program that wasburdensome for many. By this time, thecompany had introduced the R1500 contract,but allowed R830 agents to keeptheir existing contracts.The EA program started around1990. And while the program has continued,agents have endured many changes,few of which have been beneficial. In theearly days, back when the vast majorityof agents were still employees, convertingto the EA contract was not a slam-dunk.Agents actually had to “qualify” for theprivilege to convert. Looking at it from acorporate point of view, this requirementmade no sense at all. After all, EAs payfor everything themselves, a huge savingsfor Allstate. Then one day, a lightbulb came on in the head of someone inHome Office. “Think of the cost-savingswe could realize if we converted moreagents to the EA contract,” one canimagine senior managers saying. Thisrealization then led to an ingenious, butmuch more diabolical plan. “Let’s fire theemployee agents and force them to takethe EA contract. We’ll bamboozle theminto thinking they’re independent contractorsand then, when they’re least expectingit, we’ll start treating them moreand more like employees again. We’lllook like heroes on Wall Street and thinkof the bonuses we’ll earn,” is a sentimentyou might have heard from senior managersat the time. This plan, known asPreparing for the Future, was rolled outin November 1999 and the mass conversiontook place on July 1, 2000.While Allstate agents still operateunder the EA Agreement, it has steadilydevolved since it was introduced in 1990.For one thing, the TPP was fixed at 1.5times annual commissions and guaranteedin the contract. Since late 1999,however, the TPP is no longer part of theEA contract. It has been moved over tothe Supplement, which means it can bechanged or eliminated at any time.Other changes followed. In the beginningany Allstate agent was “qualified”to buy a book. Today only a handful ofagents in any given region qualify. At first,no satellite offices were allowed. Later onthe company demanded that any additionalagency be purchased as a satellite.Early on, these satellites had to be withinclose proximity to the agent’s main location.A while later, any new satellites hadto have “a different market reach” than theprimary location in order to be approved.For a long time, mergers of satellite officeswere not allowed even though it madeeconomic sense for many agents. Thenalong came the Multi Book Location Testin which agents could merge the physicallocation of two offices, but still had tomaintain two agent numbers and two setsof Expected Results.The preceding are just a few examplesof wishy-washy management decisions24 — Exclusivefocus Summer 2009

that jump from program to programwith little rhyme or reason. There aremany more examples too, which we don’thave space for in this article. What hasn’tchanged in the past 30 years, however, hasbeen the sales management structure atAllstate. The only discernable changes thecompany has made have been the titles foreach position. Local managers are nowcalled Market Sales Leaders, but their dutiesand responsibilities are essentially thesame as those managers we used to callMDLs, MBCs, AMs, MSMs or DSMs.The same is true for the territory managers,who are now called TSLs, but wereonce known as TDLs, TAMs and TSMs.Tom Wilson talks a lot about reinvention.His first priority should be to reinventthe company’s sales managementstructure. It is outmoded, ineffective anda big part of the reason the companyis struggling today. The second thinghe should do is stop tinkering with theagency model. The problem is that local,territorial and regional managementblame their own ineptness and failureson “those lazy agents.” But who do youthink has Mr. Wilson’s ear, the agents orhis managers?Okay, now let’s talk about the company’snew plan for your agency. It’s calledthe “Ideal Agency Model” and is part ofthe new “Sales and Customer ServiceRoadmap.”Where does the“Roadmap” lead?First, the key features of the IdealAgency Model:1. One to three locations per agencyowner2. $3 million to $4 million premiumper location3. 3,000 to 4,000 policies per location4. One licensed staff per 1,000 policies(one staff per 600 Households)5. Work in concert with Web andAllstate call centerUnconfirmed estimates indicate thenumber of agencies that currently havemore than 3,000 policies in force is lessthan 20% of the “captive” agency forceand less than 5% are “qualified” to purchasea book of business. If these numbersare correct, there are around 10,000agents who will need to grow to 3,000policies in order to reach the company’sideal PIF goal for the new model. That’s amighty tall order when you consider thatonly about 600-700 agents are qualifiedto buy an additional book and, chancesare, they are the agents who already have3,000 plus policies. The conundrum ishow do agents grow organically, onepolicy at a time, fast enough to meet thecompany’s goal? The answer is that mostcan’t and therefore, most won’t. The competitionis too stiff. The problem is furthercompounded because even if an agent isa qualified buyer, he cannot merge thenew book into his existing book. Currentrules prohibit growth by acquisition. So itwould seem that Joe Richardson has hiswork cut out for him. How does he expect10,000 agents to grow their agenciesto the desired size without relaxing therules? Or, is it the company’s intentionto terminate weaker agencies and only letthe strongest survive?The one question that has been left unansweredin the “Roadmap” informationis: When the company reaches the pointwhere every agency is an “Ideal Agency,”how many agencies will remain?Are you at a crossroads inyour Allstate Career?Need a qualified buyer?Whether you’re ready to sell your agency orlooking to buy a satellite, we can help.CrawfordWConsultingilvonllcAt Crawford Wilvon Consulting we have the experience to guideyou through a successful transition. As former agents who havebeen there & done that, buying and selling multiple agencies. Wewill ease your concerns and walk with you through the processstep by step, providing you with great service and the mostbang for your buck. We will provide you with everything youneed to complete the process quickly and easily. Visit ourWebsite today to learn about the options you have to take thenext step in your career:www.SellingAllstateAgency.comSummer 2009 Exclusivefocus — 25

Read between the lines and you’ll find similaritiesto the Canadian model:Ideal Agency Model• Fewer agency locations, largergeographic coverage• $3 to $4 million premium volumein each agency• One Agency Principle (owner)• Required Staff - 1 Licensedproducer per 1000 policies (3-4 minimum)• Expected to service Web, CICand TPP accounts of terminatedagents, for a reducedservice feeCanadian Agency Model• Closed 256 agent locations,consolidated down to 103locations• Each new location to servicemore policies• One Agency Manager(Employee)• Three to five licensed producersper location• Eliminate the payment ofrenewal commissionsSecond, “Integrate Direct and AgencyCapabilities” – What is the master plan?Key facts to consider:1. 50% of Allstate customers begintheir experience with Allstate via Allstate.com2. Two-thirds of all first contacts aremade through the Web or the call center3. Twice as many first contacts aremade through Direct than through theagencies4. Every week, nearly 50,000 consumersbegin an auto quote on Allstate.com5. Every hour, nearly 200 leads (completedonline quotes where the consumerdid not bind) are delivered to agencies6. The New Quote 2 (NQ2) onlineapplication is now available in 19 states,reaching 80% of the population.7. Call centers provide “foster care”for TPP accounts until they are assignedto an agency.A new vice president joined Allstatein June of 2008. Mark Pitchford,Direct Sales and Service VP, has quietly,over the last 10 months, transformed theheretofore failed online application processinto an overnight success.Look around you. Do you know anyagents who have received a letter warningthem that their contract may be terminatedfor failure to achieve businessobjectives? Do you know any agentsthat have had their contract terminated?How many have already been terminatedacross the country? Are you exempt, freefrom that threat, or are you next?Agent terminations in 2008-2009 appearto be focused on long-term agentswhose books contain a substantial numberof policies that are not eligible for TPP. Andwith a shortage of qualified buyers, restrictivefinancing opportunities, and uncertaineconomic times, many books go unsold,leaving sellers with a fraction of what theycould have sold their books for a few yearsago. The plight of these agents, however,doesn’t seem to bother company managersas they continue to terminate long-termagents who were so instrumental in buildingAllstate into the massive powerhouse itis today. From the company’s point of viewthey are saving massive amounts of cash.Let’s say the company terminates a 40-yearagent who has a $1 million book of policiesthat are not eligible for TPP. Over thecourse of the renewal year, the companywill pocket $100,000 that would have otherwisebeen paid to the agent. Terminatingone agent, however, does not have a greatimpact on the bottom line, but by firing1,000 such agents, the company wouldstand to save $100 million. The companyhas already amassed a huge number ofpolicies on which it will never again pay a10% renewal. As the terminations continue,the unrepresented policies will likely beassigned to either the CIC, or to agencieswhich will only receive a small service fee.The company will convert full-commissionpolicies resulting from agentterminations to service accounts. It willdo the same thing with policies writtenthrough the Direct channel. Some agentswill be able to reach the $3 million premiumthreshold when the CSRP reportcombines both primary (your BOB) andassigned business, which includes theDirect and service accounts assigned toyour agency. As you read this, you mightbe thinking “That’s not a bad deal. Thecompany is going to assign some accountsto me.” Before you get too excited,let’s look at an example of how thismight work.Normally, a $3 million dollar agencywould generate $300,000 in commissionsat 10%. Now, let’s say that thecompany assigns $1 million of “assigned”policies to your $2 million agency. Withyour combined book, you now have a $3million agency. So far so good, and youjump at the chance. Then your MSLinforms you that you’ll need to beef upyour staff to meet the requirements ofthe Ideal Agency. Depending whereyou live, that means adding at least onenew staffer. Then you sit down and dothe math and you discover that youragency will only gross $235,000 in annualrenewal compensation due to thelower commissions paid on the serviceaccounts. So let’s see, you were earning$200,000 on your $2 million book andnow you’ll earn $235,000 on your new$3 million book. It is then you realizethat you’ve been bamboozled once again.First, you lament that you’ll never ownthe accounts and second, that you hadto add a staff member, give her a salaryand pay for her to attend SPU training.But then you start thinking about all thecross-selling opportunities in this newgroup of octogenarian policyholders,many of whom will likely give up drivingsoon. If you’re still not depressed,remember that your independent agentfriend earns $450,000 plus bonuses onhis $3 million book.But don’t despair… Joe Richardsonhas promised that “We’ll work closelywith agency owners to ensure they understandat an individual agency levelwhere the agency stands, how they canreach the ideal agency model, and howwe will support them in the process.”Where do you stand in this roadmap?Take one more look, is this actuallywhere you want to go?If you didn’t think the Canada Modelwas coming your way, look again. Quietly,unannounced and slightly revised.26 — Exclusivefocus Summer 2009

technology tipsUsing Agency Management Toolsto Save and Earn MoneyBY ZACKERY KNOYIn today’s economy, there seems to beone common theme among businessowners – saving money. Whether it isbecoming more frugal in daily purchasesor re-tooling office procedures to increaseproductivity, people are doing what ittakes to weather the storm. As an Allstateagent, your concerns should be relativelythe same: how can I become more efficientand sell more insurance? Fortunately,technology has driven the developmentof many computer-based tools directedsolely at the insurance industry to assistwith both concerns. One such example isagency management systems.Agency management systemsoverviewAn agency management system willgive you a single point-of-view of yourentire book of business and allow you togenerate reports based on the data provided.This will immediately save bothtime and money by allowing you to bettermanage your employees, customersand prospects. Business is made easierwith the ability to set reminders, trackthe sales process and identify upcomingexpiration dates.As a business owner, agency managementsystems give you insight into the innerworkings of your agency by monitoringworkflow between offices or assessingthe productivity of your employees. Theycan also help spot cross-selling opportunitiesand act as a customer contact logto track calls or quotes. Furthermore,you have the capability to track referralmethods and commission fluctuations.Most importantly, many agency managementtools can help create targetedmarketing campaigns based on the datafields captured within the system. Thegenerated reports should contain customersthat meet certain criteria and whocan then be pursued with future businessstrategies. Many agency managementsystems allow you to export the resultsto Microsoft® Excel spreadsheets whereyou can create mailing lists or provide e-mailing features within the program tocontact customers from the reports.In addition, high-quality agency managementtools also include quick links tocarrier Web sites for specific policy dataand will even integrate with documentmanagement systems so that customerdocuments can be accessed. Scanningfrom an agency management system canbe simplified too, since index values canbe mapped from the customer’s informationpage to the scanning program, reducingthe time and effort to electronicallyfile documents.So, if you are considering an agencymanagement system to help improvethe way you do business, here are somequestions you should answer before youstart looking:How many policies do I have?It is vital to have an estimate of thenumber of policies you will be workingwith before deciding on a system. Somecompanies will charge strictly by theamount of polices entered into a system.This may seem attractive at first, especiallywith a low initial rate, but oftentimesthis option becomes unaffordableas your company grows in size and morepolicies need to be added.Since the goal of any business shouldbe growth, taking time to plan ahead cansave headaches from additional hiddencosts down the road. Remember, try tounderstand the differences in price andforecast your growth potential to avoidbeing fooled by low buy-in costs.How many users need access?Some agency management systemscharge by the number of users with accessto the system. This cost can add upvery quickly when multiple users needa license to use the system. Therefore,make sure to search for a solution thatprovides access for the number of usersyou need, but is still be in a price rangethat justifies purchasing the program.Some systems understand the necessityof multiple users needing access tothe system and even allow unlimited users.For larger agencies, or smaller officeswith five or more people, this can be extremelybeneficial and more cost-effectivethan paying for individual license fees.Can I access this system frommore than one location?Nowadays, business cannot or shouldnot be relegated to one location, evenif you have only one office. The needto access your documents or generatereports on the go is essential to today’sfast-paced business world. Personal vacationsor weekends don’t stop the dutiesrequired to run your business smoothly,so being able to access your informationfrom anywhere in the world with anInternet connection can make your lifeSummer 2009 Exclusivefocus — 27

much easier.Once you’ve gotten a handle on the sizeand scope of the information you need tomanage, the next few questions will helpyou select the agency management systemthat will work best for your office:What type of agency managementsystem is right for me?The most common types of agencymanagement systems are in-house, downloadablesoftware, and Web-based solutions.There can be significant differencesin cost between and within each categoryitself, so it is important to shop around.In-house systems typically have largeinitial investments due to the need topurchase and house servers in a securelocation. The greatest challenges within-house systems are choosing vendors,infrastructure and setup, managingchange, and system maintenance. Companieswith savvy IT staff usually havethe knowledge and experience to ask theright questions in choosing vendors andcan handle imaging systems. However,if complex integrations are part of currentor future plans, they may requirespecialized assistance. Understandingthe solution’s flexibility and scalability isimportant.Web-based agency management solutionsare affordable and easy-to-implementsolutions, which provide instantaneousupdates, low to no startup costs,zero upkeep of equipment and, most importantly,no need to hire an IT person toensure a safe and secure system.“We created our agency managementsystem, in cooperation with several ofour experienced insurance agent clients,”explained Leslie Haywood, CEO ofeBridge Solutions. “With their feedbackbefore, during and after the release ofour system, we are convinced that it willmeet the needs of insurance agencies ofany size.”Every business has specific needsfrom a customer management systemso it is important to consider the initialinvestment, manual upkeep, features andpricing point of each option.Fed Up With Your Paper Files?With eBridge Solutions’ onlinedocument management system and eAgent— our new agency management tool — youcan eliminate file cabinets and paper forever.By storing your customer data and electronicdocuments in one program, you’ll:• Reduce operating expenses• Increase staff productivity• Improve customer service and compliance• Implement back-up and recovery systems• Decrease physical storage space• Increase your ability to cross sell• Go greenAll of eBridge Solutions’ low-cost start-up andmonthly maintenance fees can be charged toyour Executive Advantage card.Call eBridge Solutions today to set up a demoand see for yourself why now is the perfecttime to go paperless!www.ebridge-solutions.com 877.676.6067introducing© eBridge SolutionsWhat start-up costsare involved?A critical factor in choosing anagency management system involvesthe initial investment. This is importantand can potentially save you significantmoney in the event a system does notwork out.For example, you could invest thousandsof dollars into servers, dedicate aspecial room to secure and monitor theequipment, and even hire an IT persononly to find out that the system does notwork as planned. Typically these costsare not recoverable. That’s why it is importantto contact multiple companiesto compare system costs, fees for trainingand whether the system you chosewill continue to meet your needs as yourgrow your business.How do I get my employees tobuy into using the system?It is important to include your employeesin the early stages of choosing anagency management tool. Understandinghow they currently enter customer informationand handle reporting is key inchoosing the right agency managementsystem. Have the employees that will beusing the system the most sit in on thedemos to ensure they are onboard withthe features and functionality.How long will implementationtake?Another major consideration shouldbe the learning curve to implement anew system into your daily routine. Thiscan be determined by the amount of timeneeded for training, the user-friendlinessof the program and the level of supportyou receive from the company providingthe service.By comparing the alternatives on themarket, answering the questions aboveand determining your businesses growthpotential, you will be able to find the rightagency management solution to manageyour business and take your agency to thenext level.Zackery Knoy, Account Executive for eBridgeSolutions, has played an integral part inthe design and implementation of eAgent,eBridge’s agency management system.28 — Exclusivefocus Summer 2009

agent issuesAccentuating the Positive…The Exclusivefocus Interview withagent Bill GoughExclusivefocus magazine and our newsletters,DirectExpress and Agent Informer,are the primary sources of job-relatednews and information for many, if notmost, Allstate agency owners and staff.We believe it is our obligation to theagents of Allstate to publish truthful andnewsworthy articles and opinions, positiveor negative, about our company. We alsobelieve it is our responsibility to provideour readers with thoughtful analyses ofcompany programs and how they impactagency owners. Such is the case with ourprevious coverage on the Canadian Experiment,the independent contractor vs.employee controversy, Expected Resultsand now the ALI, none of which wouldbe considered “positive” by most agents.But if NAPAA didn’t raise these issues,who would? If you stop and think aboutit, if we hadn’t broken the story about theCanadian Experiment, how much wouldagents know about it today?The fact is, we’ve published lots ofpositive articles, including those on technology,motivation, growth strategies,BOB financing, business tips, lead generationand more. And in this issue of Exclusivefocus,we are introducing the first ina series of interviews with award-winningagents and other successful business owners.We expect that these interviews willbe both positive and informative.Our first interview is with Allstateagent and entrepreneur, Bill Gough.During his 25 year career, Bill hasbeen the recipient of many companyawards and accolades. Following aresome of his accomplishments: Rookie ofthe Year, Honor Ring 19 times, Leader’sForum 17 times, Chairman’s Conference12 times, Inner Circle 5 times, NationalChampions 4 times, Alabama Agent ofthe Year twice and numerous other Regional,Territorial and Market awards.Bill was a charter member of the NABwhere he served from 2004-2008 and hasserved on both the Southeast RegionalAdvisory Board and the Alabama StateAdvisory Boards. He owns three Allstateagencies in Alabama.You would be hard-pressed to findsomeone more uplifting or positive thanBill Gough. We are pleased to bring youthe following interview with one of Allstate’sfinest agents:Exclusivefocus: Looking over youraward history, you’ve had an impressive careerat Allstate. How do you manage to keepearning top awards year after year?Bill Gough: It’s like a club; once youget a taste for it, you want more. To bearound the best in a Fortune 500 company– WOW – that motivates me. Andas for RFG, the challenge is greater nowthan ever before.Exclusivefocus: You’ve spent more than25 years with Allstate. You have seen unprecedentedand constant change duringyour career, yet you seem to have taken itall in stride, adapting to new circumstanceswhenever warranted. Is it your philosophyto always play the hand you’re dealt, eventhough the rules of the game keep changing?Bill Gough: I have never been oneto moan and groan a lot. Emphasis ona lot! My parents taught me early in lifethat I am not entitled to anything in thislife, and that I’d be much better off meetingchange in a positive way. They alsotaught me to concentrate on the thingsin life I can control and not waste a lot oftime and energy on those things which Ihad little or no control over.Exclusivefocus: Your marketing techniquescontinue to evolve. It would appearthat you try very hard to find new ways topromote your agency. Other than the company’sLeaders Forums, where do you come upwith new ideas?Bill Gough: I study marketing andhave gone to about five conferences andmastermind meetings each year for thepast five years. Lots of very smart businesspeople attend these conferences.I started or improved other businesseswith these great learning experiences.Exclusivefocus: Let’s talk a little bitabout attitude. To others, you project the imageof someone who views life from a “glasshalf full” perspective and one who looks for asilver lining even under dire circumstances.Do you think this approach has helped inyour business and personal life?Bill Gough: At the end of the day itall comes down to attitude. I’ve tried es-Summer 2009 Exclusivefocus — 29

pecially hard these past four or five yearsto have what I call a “total success attitude.”My friend Jon Keel and I share asimilar philosophy in that we both agreethat winners in any business are thosewho possess positive mental attitudes,are open to new ideas and who can spotopportunities in whatever hand they’vebeen dealt.There are good reasons why peoplebecome successful – they stay ahead ofthe curve by being innovative and arenever satisfied with the status quo. Theycontinue to refine, refresh and reinventtheir business models. The trick is to associatewith successful people. They learnnew ideas from other successful peopleand adapt them in their businesses.Is every new idea or strategy a homerun? Heck no. In fact, I don’t believe Iknow any successful people who haven’texperienced some failures along the way.But when successful folks get knockeddown, they get up, dust themselves off andmove on. Nobody likes to fail, but winnersaccept their failures along with their successes– and they learn from them.Exclusivefocus:You know and associatewith many successful Allstate agents, manyof whom were affected by the company’s announcementthat it was canceling the 2009award trips. This must have caused quite astir among those who had worked so hardto earn the trips. After all, isn’t a big partof earning award trips the opportunity tomeet and mingle with senior managementand other top producers?Bill Gough: Yes, I got quite a fewcalls about it. I feel bad for those agencyowners who really worked hard to earnthe trip to Paris or wherever. We’re livingin a different economy and Allstatemade a tough decision based on whatthey thought was best.Exclusivefocus: Based on your conversationswith other agents, will cash awardsever replace the desire to experience the glitz,glamour and camaraderie of award trips?Bill Gough: Not for me. This ismainly because Jim Claudio and histeam in Home Office are the best in thebusiness at conference trips. I’ve heardvery few complaints on the bigger cashawards given this year.Exclusivefocus: One of the challengesagents are facing today is achieving andmaintaining a positive Agency LoyaltyIndex (ALI). We were taken aback by thenumber of agents with great retention ratioswhose agencies are now at risk becauseof their ALI results. Is the ALI a challengein your agency?Bill Gough: It’s a challenge in a waybecause it is a new process and a veryimportant process that will need managing.We will deal with it like we deal withother programs. Our monthly newslettersand welcome kits for new customerswill address the three areas of concern foragency owners. We will make it a part ofour culture here in the agency and ourresults will improve.Exclusivefocus: I am familiar with someof the proactive customer processes you havein your agency, such as the monthly newsletteryou mail to your customers. What otherprocesses have you been using to keep yourcustomers happy, informed and involved?Bill Gough: The monthly newsletterI write every month is, by far, the verybest retention, referral and new businesstool. It’s all about relationship marketing.Other things we do are voice broadcaststhrough ART (Automatic ResponseTechnology), a company-approved vendor,two to three client events annually,annual reviews, email marketing/nurturing,an ongoing referral program andcharity giving.Exclusivefocus: Yet, even with all thesehands-on processes in place, you still find itnecessary to do more, perhaps much more, toraise your ALI score, right? What new ALIstrategies will you be implementing in youragencies?Bill Gough: We will be talking abouttheir complete satisfaction with ouragency, their willingness to refer friendsto our agency and wanting them to renewwith us. There will be a minimumof four messages on the back cover of ourmonthly newsletter on this topic.Exclusivefocus: Are you willing to sharesome of your strategies with our readers?Bill Gough: We are also changingthe auto-signatures on our emails for ourcustomers. We will make the culture ofour agency that of a very loyal customer.The same is true for making our agencya referral culture. We’ve had a formal referralprogram in place since 2005.Exclusivefocus: Many small and mediumsize agencies cannot meet their productionquotas in auto, EB or AFS. Somesay the auto product is uncompetitive, otherssay they are undercapitalized and can’tobtain the financing that will allow themto market aggressively and others complainthat they do not have access to an EFS.Your main agency is in Florence, Alabama,a town with a total population of lessthan 38,000. The 2000 census estimatedthe number of households in Florence at lessthan 16,000. According to the agent locator,there are four other Allstate agencies competingfor business in your community. So,you have five agents competing for 16,000households – that’s some pretty slim pickins.If you could share the one strategy thathas helped you achieve your goals more thanany other, what would it be?Bill Gough: I have what I call the“home field advantage” because I grewup here and have been in business for 25years. We do tons of public relations andstay involved in the community. The onebig strategy for me has been to form the attitudeof a winner while dedicating myselfto a lifelong learning process. Most peopledon’t try to improve themselves after highschool or college - a big mistake. Schooling,in itself, cannot prepare you for thereal world. You must constantly improveyour skills to make yourself more valuable.This is a mistake that 98% of people in thiscountry make. People become content witha small taste of success. Consequently, theynever take it to the next level or imaginethemselves achieving anything bigger orbetter in their business or in their life. Thisis sad and a waste of potential and talent.Exclusivefocus: Have you tried usingInternet leads? How have they worked foryou? Any tips you can share?Bill Gough: We have used them since2003 and they have worked well for usbecause we were taught by the best. I flewout to see the top agent in the country atthe time and paid for a day of consultingand learned how to set up the process.It was very profitable back then because30 — Exclusivefocus Summer 2009

only a few agents were involved. It’s totallydifferent today – it’s all about speedand the right process. Many try and failbecause of doing the wrong process.Exclusivefocus:You are blessed with acapable EFS. What strategy seems to workbest to meet your AFS goals?Bill Gough: We try to be consistentyear round. My EFS, Cecil Crunk, writesan article in our monthly newsletter andour staff keeps AFS at the forefront. Cecilpartners with me on all marketing.This is the difference that most EFSs donot understand.Exclusivefocus: Are you pursuingAWD? Are you focusing on a specific product?How is it working?Bill Gough: We have done someAWD. It’s a process, and you must havepatience. We could do much better here.AWD alone can easily handle your ExpectedResults and much, much more. Ithink most agency owners get too spreadout doing all parts of AFS instead of laserfocusing on AWD. The real professionalsin the supplemental benefits businessdo it full time, just like the real professionalsin LTC only do LTC.Exclusivefocus: Do you have any suggestionsfor agents who want to increasesales in standard auto and/or EB?Bill Gough: To write more standardauto, start within your book of business.The easiest money you will ever make isthe money you are already making. Mailand call some of your monoline propertycustomers every week. The call is the keyto making this work. Next would be todevelop a referral program to reward customersfor referring friends. These referralsclose at a 60% rate normally on auto orhome policies. Third would be to developa win-back campaign for lost souls. Thesethree forms of new business are absolutelybest for closing percentage and retention.No big surprise here, right? The firstquestion agents should ask themselves isif they are actually doing any of these processes.My suggestion is to try these for 60days, really try and see what a difference itwill make in your new business.The secret to writing more EB is tolet people know you write it. Again, thebest place to start is within your book ofbusiness. Create a flyer telling customersabout the other lines Allstate sells. Wedo this via our monthly newsletter. Thenewsletter is the most important relationshiptool we have to convey informationto our customers. But since 99.5% ofagents don’t use the newsletter approach,the next best thing, besides developing aflyer, is to visit dealerships and talk upEB as much as possible. In my agencies,we let our newsletter do the work for us.Exclusivefocus: Thank you for takingtime to share some of your thoughts today.Certainly, agents face plenty of negativesevery day. There is no perfect job or perfectemployer, but you are an example of howa positive attitude can overcome adversity.It’s no secret that people create their owndestinies. Clearly, you have chosen to turnthe lemons in your life into lemonade.Would you care to make a final comment?Bill Gough: I am very blessed withgreat family, staff (my other family),and friends. I’ve had great mentors andhave tried to be a good mentor to otheragency owners and other local businesspeople.My family suffered the ultimatetragedy on January 1, 2007 with the lossof my son Bill III at the tender age of23 as a result of a tragic accident. If notfor this great support system and ourbelief in Jesus Christ, I’m not sure I’dbe here today. We received thousandsof calls, visits, emails, cards, you nameit. We still receive them today. I’m doingsome work to keep his memory aliveand could not have done it without thesupport of friends and family. At theforefront of these friends were severalhundred inside the Allstate family fromsupport staff to agency owners, seniormanagement including CEOs, bothcurrent and former.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!Summer 2009 Exclusivefocus — 31

featureReinventing the Wheel...Will the ALIBecome Tom Wilson’s Folly?Before taking over the helm at Allstatein 2007, Tom Wilson boldlydeclared, “I think you can reinvent insuranceand expand the category.”A Chicago Tribune article publishedshortly before Wilson took his post asCEO (November 5, 2006, by Becky Yerak)quotes Wilson as saying “If we didn’tdo anything differently tomorrow thanwe’d do today, you’d expect your results todeteriorate.” As if to emphasize that he[Wilson] is an agent of change, he added,“The thing is, I do like to do thingsdifferently, and it’s easier to change froma position of strength than it is from aposition of weakness.”According to the Tribune article, “He[Wilson] wants employees to think ofAllstate more as a consumer productscompany that happens to sell insurance asopposed to just an insurance company.”It’s now been more than two and a halfyears since Wilson made his propheticpronouncement. So how are things goingunder this new vision? Apparentlynot so good. At the end of two full yearsas the company’s top dog, Allstate posteda whopping $1.7 billion loss for 2008.Several rating agencies quickly downgradedthe company, citing reduced capitaladequacy and surplus. According toStandard & Poor’s, “Allstate’s operatingresults will likely be hampered by continuedinvestment losses, lower investmentincome, declining top-line growth atAllstate Protection, and weaker operatingincome at Allstate Financial.”In his response to the company’s dismalperformance in 2008, Wilson placed theblame for the company’s woes squarely onthe backs of agency owners and other customer-facingemployees. In a conferencecall on January 29 th he stated that he was“disappointed by the lack of significantimprovement in 2008 on customer loyalty,and we’re highly focused on improvingthat result in 2009.” Then he warned thatthose “who don’t treat our customers welland don’t deliver customer loyalty will nolonger be a part of the Allstate family,”a statement obviously directed at agencyowners and others who deal one-on-onewith Allstate customers.It has long been clear to most agentsthat the company is out of touch with itscustomers. This fact has been communicatedto the company for years by agentsand by NAPAA via its publications andby its attendance at shareholder meetingswhere NAPAA officers and directorsposed hard questions to company leaders.But such admonitions have consistently32 — Exclusivefocus Summer 2009

fallen upon deaf ears. And suddenly afteryears of ignoring such solid advice,combined with a woeful neglect of itscustomers, the company has a full-blowncustomer defection crisis on its hands. Soinstead of listening to those who meetwith customers on a daily basis, or takinga serious, unbiased and introspectivelook at its own operations, the companyhas chosen instead to cast blame on itsfront-line workers, who have faithfullycarried out their duties. As we will see,the company’s remedy will hurt morethan it helps.It appears that Mr. Wilson has selecteda team of employees in Home Officewho were tasked with “reinventing”something that would cause a major shiftat the agency level.Reinvention #1:The Agency LoyaltyIndex (ALI)Most insurance companies have longrealized the importance of customer loyalty.At a time when there is little growthin housing and automobile markets, carriersunderstand the importance of retainingthe customers they have workedhard to acquire. New innovations inrewarding customer loyalty include discountsto the client for a combination ofmultiple policies and longevity. Retentionratios have always been a key qualityfactor at the agent level, and high levelsare rewarded.However, at Allstate, the tried andtrue measure of customer loyalty, the retentionratio, has now been reinvented.It’s hard to improve on the wheel, but thenew, purportedly better measurement forcustomer satisfaction is the ALI.Out of the blue:A customer survey was conducted in2007 and again in 2008, following whicha numeric calculation was manufacturedto assign a score to every Allstate agencybased on the answers to three simplequestions that are paraphrased below:“How satisfied are you with your AllstateAgency?”“How likely are you to renew yourpolicy?”“Have you recommended your Allstateagency to others?”The magical number to achieve is 60.An ALI score below 60 three years in arow will result in agency contract termination.Management has been instructed toincorporate the survey results from the lasttwo years into the 2008 Employee AgentEvaluation, also know as the Agency StatusReview (ASR), which is imposed on agencyowners once a year. The risk of contracttermination begins with the October 2009survey score. And since the company willinclude 2007 and 2008 survey results whenit determines the fate of its low-ALI-scoringagency owners, you can expect to seesome terminations later this year, as manyagencies already have two strikes againstthem. Those soon-to-be-affected by the“three strikes and you’re out” rule nevereven knew they were in the game and alreadythey have two strikes against themwith only a couple of months to fix theproblem.The Formula?Here is the formula contrived to calculatethe Agency Loyalty Index (ALI):ALI is the difference between the percentof “Loyal” customers and the percentof “At Risk” customers. A “Loyal”customer gives a positive response to allthree questions. An “At Risk” customerhas given a negative response to all threequestions. All other customers are categorizedas “other” and are not includedin the calculation of the ALI score.What are positive, negative andneutral responses?“How satisfied are you with your AllstateAgency?”There are 5 possible answers to choosefrom:• Positive Responses = Completelyor Very satisfied• Neutral Response = Somewhatsatisfied• Negative Responses = Not verysatisfied or Not at all satisfied“How likely are you to renew your policy?”There are 4 possible answers available:• Positive Response = Very likely• Neutral Response = Somewhatlikely• Negative Responses = Not very orNot at all likely“Have you recommended your Allstate agencyto others?”There are 4 possible answers available:• Positive Responses = Yes or No,but willing to• Negative Responses = No, wouldnot offer opinion or Recommendagainst• There are no neutral answers tothis questionWho will receive the survey?• Agents with less than 100 householdsare not included in thesurvey.• Agents with 100 to 667 households:every customer receivesthe survey.• Agents with more than 667households: survey is sent randomlyto 667 customers.Only 40 responses are required forthe survey to be considered “StatisticallySignificant.” Apparently, 40 responsesare enough for a clear objectivemeasurement of the agent’s success orfailure at providing excellent customerservice at the agency level, no matterhow large the book.Who will respond?The most likely to respond to anysurvey are customers who have recentlyhad an event that triggers their desire totell someone, such as a rate increase, apoor experience with a claim, or a policychange processed incorrectly. Then thereare those customers who receive a propertynon-renewal notice, or those SRMcustomers whose rates increase whenthe company reruns their credit everythree years. Will any of these customerscheck the box marked “Completelysatisfied?” Not likely. Survey responserates can definitely be a big problem.When response rates are low, there isa good possibility that the people whoresponded are very different from thepeople who didn’t.Summer 2009 Exclusivefocus — 33

Hypothetical Examples of ALI results:Strike 1 – Joe Smith Agency(first year)Total number of responses: 4016 of 40 (40%) answered all 3 questions in the positive (Loyal Customers);16 of 40 (40%) answered positive on Satisfied with agent, and negative or on renew andrefer;8 of 40 (20%) answered all three questions in the negative (At Risk Customers)The ALI score is calculated by subtracting the percentage of “At Risk” customers (20%)from the “Loyal” customers (40%). Loyalty Index score for this agency is 20, which is anunsatisfactory resultStrike 2 – Joe Smith Agency(second year)Total number of responses: 4026 of 40 (65%) answered all 3 questions in the positive (Loyal Customers);4 of 40 (10%) answered positive on Satisfied with agent, and negative or neutral on renewand refer;10 of 40 (25%) answered all three questions in the negative. (At Risk Customers)The ALI score is calculated by subtracting the percentage of “At Risk” customers (25%)from the “Loyal” customers (65%). Joe Smith’s Loyalty Index score for the second year has improvedto 40, but the result is still below 60, which is unacceptable to Allstate management.Strike 3 – Joe Smith Agency(third year)Total number of responses: 10010 of 100 (10%) answered all 3 questions in the positive (Loyal Customers);85 of 100 (85%) answered 2 of the 3 questions positive, and 1 either neutral or negative;5 of 100 (5%) answered all three questions in the negative (At Risk Customers)The ALI score is calculated by subtracting the percentage of “At Risk” customers (5%)from the “Loyal” customers (10%). In the third year, more of Joe’s customers responded tothe survey, but 85% of their responses did not count toward the survey results. Joe’s LoyaltyIndex score for the third year was a paltry 5, well below the company’s benchmark of60. Therefore, it only took five of Joe’s customers determine that he was no longer worthyto be an Allstate agent, so he’ll be terminated.Now, if you really examine the resultsof these examples, you might begin towonder what they’re smoking in Northbrookthese days. When you compare theexamples from year two and year three, itis clear that the results from year three aresuperior to the first two years. Why? Becausein year three, only 5% of Joe’s customerswere “At Risk.” Compared to yearone with 20% “At Risk” and year two with25% “At Risk,” year three is looking prettygood from our perspective. Sure, the ALIscore is lower in year three, but isn’t thewhole idea stop customer defections?So, what does the ALI scoreactually mean?Is there any evidence that ALI measurescustomer satisfaction or loyalty?Does the ALI actually have a meaningfulcorrelation to the customer’s satisfactionwith the service from the agency? Doesa higher score really indicate fewer customersare “At Risk?”The ALI assumes that the agentsomehow bears the responsibility forthe multitude of issues that could elicita positive or negative response on anyone of the survey questions. Outside factorsaffecting customer answers includerecent rate changes, re-rates due to updatedcredit scores (SRM), competitivepositioning, billing issues, quality of servicefrom the CIC, underwriting decisionsand guidelines, and claim service,to name a few.We also have to wonder if the retentionratio (the actual ratio of customerretention measured against 100% of customerpolicies) has lost its significance atAllstate? Will the miniscule fraction ofcustomers who have answered a surveycause the company to simply disregardretention ratio?Individual results were sent to agentsafter the 2008 survey, including the scoreand comparison from the 2007 survey.Agents were given their ALI scores, andthe number of customers who completedthe survey. The report does not includea breakdown of the number of Loyal, AtRisk or Other customers.There is, however, a breakdown of thepercentage for each answer by question.Following are actual agent results:Actual Agent 1: ALI score = 45 (667surveys sent, 68 responses (10.2%)“How satisfied are you with your AllstateAgency?” 77% positive;“How likely are you to renew your policy?”64% positive; and“Have you recommended your Allstateagency to others?” 79% positive.Actual Agent 2: ALI score = 51 (638surveys sent, 81 responses (12.7%)“How satisfied are you with your AllstateAgency?” 71% positive;“How likely are you to renew your policy?”60% positive; and“Have you recommended your Allstateagency to others?” 71% positive.Actual Agent 3: ALI score = 74 (667surveys sent, 93 responses (13.9%)“How satisfied are you with your AllstateAgency?” 92% positive;“How likely are you to renew your policy?”86% positive; and“Have you recommended your Allstateagency to others?” 86% positive.You’ll note that Actual Agent 1 has a34 — Exclusivefocus Summer 2009

higher percentage of customers satisfiedwith the agency, more customers likelyto renew, and more customers willing torecommend the agent, but has a score 6points lower than Actual Agent 2.First quarter 2009 results as reportedby the company indicated a 1.8% declinein standard auto PIF, and a 4.2% declinein property PIF. Wall Street is still questioningcapital adequacy. In response, AllstateProtection President George Ruebensonhas indicated the company’s planto increase rates on homeowner products.Does he really believe that a property rateincrease will increase the PIF?This approach seems doomed to failbecause consumers, hard-pressed by theeconomic downturn, won’t stand for it.Raising rates on a mostly uncompetitiveproduct will certainly intensify andexacerbate PIF flight. Wall Street is notgoing to care about the new ALI schemeeither, unless retention improves.Where do we go from here?Sometimes, running an Allstateagency is like being adrift on a raft witha drunk. Just when you think you’ve adjustedthe balance to accommodate hisunpredictable moves, the drunk shiftspositions, causing you to scramble fornew ways to prevent your raft from tippingover.The ALI is here to stay – at least fora while. The company has made thisquite clear. Your raft is in danger of tippingover if you don’t make the necessaryadjustments to improve your ALI score.Your only chance for survival requiresthat you do your best to adapt to thewhims of an increasingly desperate managementteam.To help agencies improve customerinteractions, the company has introducedthe “Power of Talk,” a simplistic yet convolutednew program that Home Officehas designed teach agents how to makecustomers feel special. Like many otherprograms the company has introduced inthe past, the Power of Talk is being hailedas the ultimate sales and retention tool.Some of the processes included in thenew program are the Good Hands CoverageCheckup® and Premium Straight Talk,all of which is pretty elementary stufffor most Allstate agents. It’s almost as ifHome Office doesn’t think agents everconduct protection reviews or explainrate changes to their customers.The “Opportunity Area Guide” is anothertool which the company proclaimswill improve your ALI. Once again, agroup of non-sales employees in HomeOffice have concluded that agents andstaff must lack the know how to provideproper service to our customers, ostensiblybecause our ALI scores are subpar.Like it or not, Tom Wilson is fullycommitted to this inexact program ofquestionable value. The secret to keepingyour job is to find a way to educateyour customers how to answer the threequestions that can seal your fate. You canexpect a lot of pressure on this issue too,especially from your Market Sales Leader,who will likely send you email uponemail and offer assistance.As stated before, this program won’tgo away anytime soon, especially withTom Wilson at the helm. We foresee thatonce the ALI results have improved, thecompany will raise the bar, forcing agentsto go through subsequent rounds of ALIimprovement. Bonuses and other perkswill be dependent on your ALI score.Your game plan should be to reducethe number of those answering the questionsnegatively and increase those respondingpositively. Remember, the onlythree questions you should be concernedabout are the three questions about youragency. You will want to shift those “AtRisk” customers to either neutral orpositive responses, and shift those withneutral responses to positive responses.Obviously, the one question you have themost control over is “How satisfied areyou with your agent?”While significantly improving yourALI score is possible, it will not be easy.You will have to divert valuable time andresources to an initiative that some arecalling “Mr. Wilson’s folly.” As you cansee by the examples from the Joe SmithAgency above, the ALI is flawed andshould not be used as a basis to terminateagent contracts.What can you do?NAPAA has developed some solutionsthat we believe will help to:1. Increase the number of customersthat respond to the survey. Webelieve higher response rateswill provide a better samplingof your customer base becausemore of your “satisfied” customerswill participate, which willwater down negative responsesfrom disgruntled customers.2. Illicit more positive responses,giving you a higher probabilityof improving the ALI number.NAPAA members will find this informationin the “Members Only” sectionat www.napaausa.org. Simply clickon “Agency Solutions” to learn more.Comment to Tom Wilson: The retention ratiohas long been the standard for customersatisfaction and is found on the CustomerSatisfaction and Retention Profile report.It is on the report because of its importance.We realize you are trying to “do things differentlyto prevent results from deteriorating,”but when you start threatening agentswhose retention ratio is 88% and above, buttheir ALI scores are below 60, something iswrong. Retention doesn’t lie. The ALI is animprecise science on which you are pinningyour hopes for a turnaround of PIF losses.You don’t realize it yet, but the agency forceand other customer-facing employees are notthe root cause of Allstate’s problems. It goesmuch, much deeper than that. It is our earnesthope that you will come to your sensesbefore you lose even more of Allstate’s finestagents. Let’s not try to reinvent the wheelwhen it’s not broken.Summer 2009 Exclusivefocus — 35

usiness tipsThe Magic of Newsletters…How to Grow Your Referrals, Increase YourRetention and Expand Your Business!BY BILL GOUGHDid you know the average person seesmore than 3,900 marketing and advertisingmessages every single day? It’strue. Think about it, they’re everywhere- on billboards while you’re driving downthe road in your car, online wheneveryou log onto the Internet, on the sidesof vehicles, you get marketing messagesby email, the newspapers are full of ads,and sometimes, you’ll even find them inbathroom stalls. We are constantly beingbombarded with marketing messages intoday’s world.By now, I’m sure you’ve heard abouthow great newsletters can be for yourbusiness. But, if you haven’t heard anybodytalk about their virtues, I can tellyou from my own experience that newslettersare a great way to stay in front ofyour clients, are a great source for referralsand are an awesome retention tool.You probably subscribe to some newslettersyourself, maybe online, offline, orboth. And the really good ones, you can’twait to open because you just never knowwhat new tidbit you’ll discover inside.Sending a monthly print newsletterto your clients is the BEST marketingand retention tool available to you anywhere.They’re very cost-effective andare a great investment in the future ofyour agency.Here are just a few of the benefitsyou’ll see from sending a monthly newsletterto your clients:• Keeps your name continually infront of your clients. Agency newslettersprovide a positive, yet subtle reminderto your customers that you care aboutthem. Newsletters also prompt them tocall you when they need to make a policychange or want to add a new policy. Bykeeping your name in front of them, yourcustomers are much more likely to callon you whenever they think about insurancematters. This is called staying “Topof Mind.”• Improved client retention. Gettingbusiness from current clients costs awhole lot less than it does to go out andacquire new clients.• You’ll sell more. Telling your clientsabout new products and services can leadto more policy sales and makes it reallyeasy for them to refer their friends andfamily to you.• Gives your clients added value.Newsletters give your clients tips on topicsthat interest them, like how to avoidscams, how to save money on insuranceand how to live a healthy life. The morevalue you provide to your clients, themore they will value you. They’ll beginto look forward to your monthly newsletter.And, that means they’re thinkingof you. What other insurance agency issending them great stuff every month?• Become a New Client Magnet.When you send out a monthly newsletter,your clients will find articles that interestthem and they’ll share them withtheir friends. You’ll get new clients fromthe Rotary Club, local churches, and thecountry club just because your clients aresharing your newsletter with their friendsand business associates.• Dominate your competition. Yourcompetition is not doing this. This is allabout building a relationship with your36 — Exclusivefocus Summer 2009

clients so they feel like they know you. Nobodywants to do business with a stuffedshirt. We all want to do business with peoplewho are like us, people who are real andgenuine. Remember, there is only one you,so make your newsletter unique.• Become an expert in your field.By providing valuable information eachmonth, you become the go-to personin your industry when your clients havequestions.• Promote specials. Any time youhave a special promotion going on, yournewsletter is a great place to let peopleknow about it.By including information in the newsletterabout your agency’s referral program,your customers will start thinkingof people they know that may be interestedin your products and services. Yournewsletter makes you more personable toyour clients, making them feel like theyknow you. In business, it’s all about knowing,liking, and trusting the people you dobusiness with. When your clients feel likethey know you, they trust you and theylike you, they will stay with you and youragency will grow exponentially.Each month your newsletter should bea mix of articles that include informationon insurance, safety, financial, a personalnote from you, and whatever else best fitsyour clients needs. Provide them withvaluable information so they look forwardto reading your newsletter every month.Make sure you give clients the answersthey’re looking for and constantly showthem how you are their only solution forall of their insurance concerns.Clients want to worry less, whichis why they have insurance in the firstplace. So show them how you can help,and then be ready to answer those calls asthey come in each month. If your agencygrowth has run into a brick wall and youare no longer growing or retaining yourcustomers, it is time to do somethingdifferent. Remember that change doesn’thappen all by itself, you have to wantto improve your results and be willingto try something new. And believe me,an agency newsletter done properly, willhelp your agency grow and prosper.Bill Gough has been an Allstate agentsince 1984. He is also president of BGIMarketing Systems, which is dedicated tohelping Allstate agents take their agenciesto the next level while maximizing profit.BGI Marketing Systems produces a “DoneFor You Newsletter.” For more informationcontact BillGough@allstate.com or call(877) 208-9649.Need Help Selling AFS?Learn from a ProWhen You Join NAPAAGerry Flores was Number #1 in AFS Production Credit 4Times in the Last 5 Years. After 37 Years as an Allstateagent, Gerry retired last year and now wants to help yousucceed. Receive some good tips when you join NAPAA.To Learn More ContactGerry Flores at (563) 564-1800or at GERBEAR_61@HOTMAIL.COMSummer 2009 Exclusivefocus — 37

convention recapSavannah - a Conference to Remember…REFLECTIONS OF A FIRST-TIME ATTENDEESpeaker Sam Glenn creates a “masterpiece.”As I boarded the taxi for the briefride from the airport to the hotel,I pondered for about the twentieth timewhether or not the trip to Savannah wasgoing to be worth the expense. Havingnever been to a NAPAA Conference, Ihad little to go on except for the glowingadvertisements in the DirectExpressnewsletter and my memory of previousarticles in Exclusivefocus magazinerecounting the wonderful time past attendeeshad experienced. As a 20 yearveteran agent, I also wondered whatI could possibly gain from going to ameeting with a bunch of people I hadnever met. I detest being in large groups,and to top it off I didn’t think I packedthe right kind of clothes. This was notgoing to be a fun trip. To say that myattitude had taken a turn for the worsewas an understatement.But to really put things in properprospective, I need to digress a bit. As along time NAPAA member, I often felta certain itching obligation to attend oneof the conferences, if for nothing else butto satisfy my curiosity about what actuallywent on there. To the best of myknowledge, no one in my local markethas ever attended a NAPAA conference,but I guess it’s not something you wouldshout from the rooftops either. What Ireally wanted was an unbiased opinionabout the quality of the meeting. Also,this past year was a tough one for me financiallyso I didn’t need to be spendingmy hard-earned cash playing around atsome boondoggle in Savannah, Georgia.Topping things off was the dangling axeof the dreaded and yet-to-be receivedAgency Status Review. My stress levelwas near DEFCON 2 and climbing.Most Allstate agents are struggling,so I don’t want to try to “outdo” everyoneelse’s problems, but as a Florida agent, Ihave had to deal with a declining automarket, an uncertain economy, a deadproperty market, continued propertynon-renewals and to top it off, the embarrassmentof having the Florida Officeof Insurance Regulation shut down Allstate,not once, but twice. If ever therewere reasons to climb into a cave andhide, I think I had more than my share.But something told me to look past all ofthe garbage that was clogging my brain.So I accepted the financial challenge andjust did it. Whether it was the culminationof so many bad things and the needfor some relief, or the lure of “Springtimein Savannah” as NAPAA put it, Idecided to put my hesitations aside andbooked the trip.Over the succeeding few weeks, I alternatelycongratulated myself for makinga good decision and looked forwardto a new experience, or I derided myselffor spending my hard-earned money onsomething I knew little about. Since mywife could not attend, I at least felt a littlebetter for not incurring the extra airfare.But then there was that guilt thing againfor leaving her behind while I went off tosome “party” in Georgia. The expectationfor a good return on my investment wasstarting to consume my thoughts and so,just prior to the trip, I reconciled myselfto having made a poor financial decisionand I would just try to make the best ofa bad situation.Mansion on Forsyth ParkMy arrival at the hotel brought thingsback into focus and I was pleasantlysurprised by the efficient staff that metme outside followed by the ease of thecheck-in process at the front desk. If firstimpressions are important, then NancyFish’s choice for the Mansion on ForsythPark was a home run. Not only was thehotel staff superb, but the accommodationswere about as elegant as it gets. Myroom was five-star quality and I instantly38 — Exclusivefocus Summer 2009

decided to call my wife and tell her Ifound a new place for a second honeymoon.The ambiance was that good!While East Coast agents will applaudthe location and West Coast agents willbe critical of the choice, the net result ofbeing in historic Savannah in the springwas a huge factor in providing an excellentbackdrop to an environment conduciveto a successful meeting. I’ve beento Vegas many times, as well as other“Convention” cities, so I think I have anunbiased eye for what it takes to make aconference site a good choice. All I cantell you is that those who missed this tripreally missed a great getaway, if for nothingelse but the location itself.The Meat of the MatterMost conferences have a transitionperiod that provides time for late arrivalsto get situated yet also allows theearly arrivals an opportunity to let off alittle steam. Since I arrived a day early,Thursday morning provided me suchan opportunity. And while many choseto play in NAPAA’s golf tournament, Ichose the sightseeing trolley, thus sparingmy budget the embarrassing blow ofhaving to buy a dozen sleeves of balls toreplace the ones I would likely send intothe bay.After the morning activities, I hada quick lunch and then it was time tomeet the various vendors also attendingthe conference. NAPAA providedan entertaining forum for visiting eachvendor. A type of scavenger hunt, eachagent would stop at the various boothsand gather answers to specific questionsassigned to each vendor. This served as agreat ice-breaker and I met several serviceproviders that I plan to use in myagency. At the end of the allotted timeframe, the completed answer sheets wereturned in and used as an “entry” ticketto a multiple-prize giveaway. Many Vendorsgave away high-tech stuff includinga GPS, and the grand prize was a $500American Express Gift Card.It was during this portion of themeeting that I began to mentally “turnthe corner.” Free give-a-ways aside, itwas the opportunity to meet face-to-facethe various vendors that NAPAA had assembledthat really impressed me. Therewere representatives from financial institutions,phone and technical suppliers, aswell as a company offering quality leadsfor prospective customers.There were 14 vendors eager to talkto agents about growing their businessesand finding ways to make agenciesHaving a great time at the 3rd annualNAPAA golf tournament.“So Tom, is the gator part of yourfoursome?”Lee Huffman talks about how to gainmarket share in a down economy.more cost-efficient. Notably absent wasany representation from Allstate. Now Iknow that may sound kind of odd andperhaps a bit harsh. But the reality is thatit was NAPAA that organized the meetingand arranged the interaction withcompanies that could advance our agencies.Not Allstate. It was NAPAA thatfronted the time and expense to organizea conference, at which the only agendawas to encourage the success of an agent’sbusiness operation. Not Allstate.It was that moment, after speakingto the last vendor that I marveled at theunselfish, totally focused reason whySummer 2009 Exclusivefocus — 39

An animated Dirk Beamer emphasizesa pointBob Isacsen kicks off 2009 NAPAAConference with opening remarks.George and NeBrazy Adams enjoy aquiet moment.Lynn McDonald chats with vendorCheryl Carson at the vendor fair.NAPAA even exists at all. From Jim andNancy Fish, to the selfless board members,to the officers and legal staff thatwork so tirelessly, and to the individualmembers themselves, it is because it is anorganization made up of people whoseonly interest is to see its members succeed.Think about it! NAPAA’s only purposeis to see its members succeed! Thereare no hidden agendas. NAPAA isn’t afront for some secret society. NAPAAisn’t running some illegal ponzi scheme.NAPAA only exists because where therewas a need, a void was filled. Wherethere was a problem, a solution wasfound. Where there was a cry for help, ahelping hand was extended. NAPAA didwhat Allstate could not or did not wantto do. NAPAA does what Allstate doesnot want to do.I was beginning to revaluate and recalculatemy return on my investment forgoing to Savannah.The Best is Yet to ComeAs I drifted out of the meeting Thursdaynight, I mingled with a group ofagents looking for a place to go for dinner.Forgetting my aversion to hanging outwith strangers, I suddenly realized thatthe people standing next to me weren’t reallystrangers at all. Not only did we sharethe exact same goals for our businesses,but we weren’t all that much different inour personal beliefs either. Initially, aboutten of us decided on going to the hotel’srestaurant. Then during, and shortly afterdinner, about 50 of my closest new friendstrickled in to share the ambience of thewonderful old hotel.Food and atmosphere aside, I wastruly amazed at the openness expressedby each person I talked to. There wasmostly talk of a love for job and career.Almost to a person, I heard stories ofhow each was driven to succeed but thatthe element of “partnership” was missingfrom our relationship with Allstate Corporation.More to the point, many feltAllstate could not be trusted as a businesspartner at all anymore. And it wasthis same group that expressed unflinchingadmiration for the efforts of NAPAAand appreciation for their willingness tobe that “missing” partner. If Thursdaywas any indication of NAPAA’s commitmentto our success, I couldn’t wait to seewhat Friday had in store.More Meat, Extra PotatoesNAPAA president Bob Isacsen kickedoff Friday’s agenda. His heartfelt welcomewas especially inspiring because he is noteven an active agent. Taking on the dutiesof president, means a lot of travelingand frequent meetings. Bob spent a lifetimedevoted to building his own Allstateagency, and now he wants to help each ofus succeed. He is a realist and understandsthe challenges each of us faces. He knowswe are hurting financially and strugglingwith the yoke of employee controlswhile working as independent contractors.Bob is committed to working withthe NAPAA Board of Directors to help40 — Exclusivefocus Summer 2009

Say “cheese!” Roslynne Ross triesto shoot a photo of her and GregThompson.Canadian friends pose with NAPAAleaders. From left to right: Jim Dorey,Bob Isacsen, Rod LaRocque andJim Fish.Jim Regan of Aptela addresses conferenceattendees.agents overcome this or any other obstaclethat stands between us and success.I was totally unprepared for what happenednext. With little more than a namefor introduction, Sam Glenn took the stage.Donning a surgical mask, and a rubberglove on his right hand, Sam strode up toan easel that had been placed on the stageand began coloring with huge chunks ofsidewalk chalk. With a choreographed CDplaying in the background he produced acolorful mosaic of soaring mountains framinga huge yellow sunburst. Overlaying hisdrawing were images projected from a laptopcomputer. The result was an incrediblymotivational scene showing people walkingto a bright destiny.I’m not one for enjoying motivationalspeeches, but the incredible imagery andupbeat message in Sam’s presentation reallyfound a place in this slightly tainted,old agent’s heart. Sam is a talented, seriouslyfunny, down to earth entrepreneurwho not only gets where we are as Allstateagents, he knows how to help us transcendall of the stuff that clogs our brains andmakes us unproductive. For an hour anda half he had us laughing so hard we werecrying while at the same time makingeach of us realize that we all have moreto give to our careers if we can just get a“Kick in our Attitude.” All too often weforget the excitement our careers can offerand instead get mired down by “processes”forced on us by Allstate.Following Sam were Lee Huffman,a business “coach” who gave interestinginsights on staying focused in a downeconomy and Dirk Beamer, the NAPAAattorney, who updated us on the EEOCcase. After lunch, we heard from twoformer Canadian Allstate agents, JimDorey and Rod LaRocque. Much hasbeen written about the “Canadian Experiment”so I won’t repeat their commentshere. Suffice it to say that hearingit in person and watching the emotionpour out from them was powerful stuff.If every U.S. agent came for only oneportion of the meeting, this would havebeen a must-see.Troy and Lynn McDonald were thelast scheduled speakers. They gave animpassioned presentation about increasingEmerging Business and cross-sellingtechniques. I practically tore apart mynote pad writing down the free advicethey were giving. Truly great stuff.Due to the limited space for this articleand the inability to really do eachspeaker justice, I am omitting a great dealof my “review” associated with the variouspresenters at the meeting. It was notmy intention to detail every part of theconference, but rather to relate key impressionsof a first-time attendee. Havingsaid this, I can assure you that I amnot leaving any negative impressions onthe sidelines. If there were any low spotsor negatives, I must have missed them.Even the drinking water tasted better inSavannah. Really!Summer 2009 Exclusivefocus — 41

Money Well SpentAs I sat in the Savannah airportwaiting for my homeward bound flightto be called for boarding, I started toreflect on the financial side of my tripto the NAPAA conference. In the end,I probably spent around $900 for hotel,airfare, conference registration,food, and miscellaneous expenses. Fora Wednesday to Friday trip that’s not abad price. Add in the benefits of a greatlocation, the freedom away from phonesand other work activities and the costfactor was clearly edging toward a gooddeal. When I started the trip, all I couldfocus on were the financial negativesand how things looked like solid red onmy “justification meter.” But in the endit wasn’t even a close decision. Factoringin the camaraderie and the ability tointeract with such a diverse group of fellowagents, I felt the “justification meter”slide over to the edge of the yellowarc. NAPAA’s excellent choice of speakersand the ability to personally interactwith companies that can directly andpositively affect my business moved my“justification meter” into solid green territory.Being at such a meeting in personis much more satisfying that learningvia Citrix-based computer technology,or reading a synopsis review. The physicalconnection was an important validationfor why every agent should attendat least one of these conferences.Vendor Jim Regan waits for the vendorfair to begin.Dale Revels shares an amusing anecdotewith Nancy Fish and conferenceattendeesCheryl Carson explains how usingSend Out Cards can improve retention.NAPAA CARESWhen I read DirectExpress and Exclusivefocusmagazine I do so with aselfish eye for what appeals to me andhow I can better myself both personallyand professionally. It wasn’t until I metthe people behind NAPAA that I realizedI wasn’t alone in looking out for mybest interests. Granted, the magazine isan important tool, offering insights andsolutions to issues agents face on a dailybasis, but meeting Jim and Nancy Fishin person let me know that there is awhole different level of partnership involvedin a NAPAA membership. Thisincredible intangible is easily worth theannual dues. Where else can you spend$350 per year and gain access to an organization(and people) that plot andscheme each day for a better work environmentfor their members. In completecontrast to the agent’s relationship withAllstate, NAPAA is dedicated solely tothe agent’s success. Allstate’s motive, forwhatever minimal assistance they offer,is purely for self-gratification and that’sOK for them. To most of us it appearsthat Allstate’s primary interest is to drivethe share price up, frequently at the costof beating the agent down. In completecontrast, NAPAA’s motivation is suppliedby the loyalty and gratitude of itsmembers and it exists solely to meet theagent’s needs.For me, attending the annual conferencesolidified my confidence inNAPAA and gave me invaluable insightinto alternate ways to run my agency andto become a better agent. It gave me reassurancethat I am not alone and thatthere are other agents dealing with manyof the same issues I deal with every day.By the way, not once did NAPAAbash Allstate, its philosophy, its corporateofficers, or its managers. Even whenthe Canadian agents spoke, the conversationwas devoid of animus. If ever therewas a compelling reason to be bitter andresentful, the Canadian agents have thecorner on that market. The conferencewas professionally presented and exemplifiedthe height of integrity. NAPAAdid every agent proud.In closing, I know I speak for everyonewho attended the 2009 NAPAA conferencewhen I say to Jim and Nancy, jobwell done. Now go and take a vacation!42 — Exclusivefocus Summer 2009

Why are Allstate Agents so Excited?E-chx Payroll and NAPAA have joined forces to make an excitingoffer that has Allstate Agents jumping for joy!WarningProgram Highlights:E-chx pays your NAPAA membership dues.E-chx is saving many agents between$350-$3,500 per year on their payrollprocessing and NAPAA membership costs.Incorporation services at a discountedrate**Incorporation services provided by Incorporators USA, LLCWarning:Excitement has been known tospread through Agents“This program has been so much easier to usethan my previous service company, and costsless too.”Scott SileoAllstate Agent, NAPAA member“E-chx has made processing payroll simple.The attention to product quality and customerservice is amazing.”Yvonne S. WhitakerAllstate Agent, NAPAA memberE-chx Offers:Multiple input options “Insight” for your accountantReal-time reporting HR HelpdeskEmployee Homepages Complete tax serviceAward winning customer Employee benefit solutionsserviceGet excited! We’ll save you time and money!Contact:Tom MistrettaProgram Manager(866) 312-8863tmistretta@e-chx.comSummer 2009 Exclusivefocus — 43

technology tipsHas your Agency Missed the“Paperless Office” Boat?For years now, all types of technologyvendors have been selling the “concept”of the “paperless office” to businessinstead of selling the technology thatactually solves their specific businessproblems. By misappropriating the termpaperless office and rolling into it otherterminology, such as document managementand enterprise content management,the term has become dilutedand confusing. As a result, businesseshave continued to be sold on “concepts”instead of actual approaches to reducepaper in their organization. The driverfor reducing paper should be to attaingreater efficiencies and reduce costs, notto keep up with the Joneses of the businessworld. After all, what large businesswould adopt technology simply becauseit is cool or advanced?Imagine how long a meeting wouldlast between a document managementvendor and a Fortune 500 company. Themeeting would start with the vendor tryingto sell the company on the “concepts”of a paperless office and the “miracle” ofthe proposed technology that would effortlesslymanage company documents.The meeting would likely last all of about10 minutes before the vendor was shownthe door. The term “paperless office” hasbeen misused, diluted and therefore itsvalue diminished.Here are some incorrect uses of theterm paperless office found on the Web:“A personal scanner on your desk cancreate a successful paperless office. Youwant the user/office personnel to be ableto scan the document ...”“...Using your MFP to create the PaperlessOffice...”“...Document Management Softwareand Paperless Office Software can helpyour organization run more efficiently ...”“A scanner and OCR software are thekey components of a “paperless office.”Mr. George Pake, the former directorof Xerox Advanced Technologies Lab,was the person who coined the phrasepaperless office in a 1975 Business Weekarticle titled “The Office of the Future.”This forward-looking article states that,“…because the labor-intensive officedesperately needs the help of technology,nearly every company with largeoffices is trying to determine how thisonrushing wave of new hardware andprocedures can help to improve its officeproductivity.”While the following have not beensold under the term “paperless,” theyclearly are “paperless” office technologies:• Quick Books: has replaced ledgertypewritten accounting systems;• ACT and Outlook: have replacedthe rolodex and other forms ofwritten contact management;• Document Scanners: convert paperrecords to Adobe PDF, especiallythe Fujitsu Scan Snap;• Adobe PDF is now a standard documenttype;• Standard transfer of documents viaemail electronically; and• Computer-based faxing solutions.All of the above are paperless officetechnologies that have replaced paper-intensivebusiness processes with more efficientcomputer-based processes. Thesetechnologies have been adopted by small44 — Exclusivefocus Summer 2009

your monthly phone bills. Using technologythat has been refined over thelast half decade, this new breed of serviceprovider combines the phone serviceand the phone system into one easy todigest package. You still have advanced,feature-rich phones on your desk, but theactual system that powers it is off-site, ina data center with high levels of redundancyand security.What does that mean for you? Simple,it’s less expensive, and if it breaks, there’sno need for expensive service calls ormaintenance contracts. It is simply notyour problem at all! The provider haspeople sitting next to the system to fix itquickly. You can do all the things that yourcurrent system can do, plus you can integrateyour voice mail with your email, haveyour phone set to have callers find you atvarious numbers so you never miss a call,manage your settings via the Internet, andsee your bill and historical information inthe same Web portal. Instead of having abunch of phone lines from the local telephonecompany, the hosted phone systemdelivers your phone service as well, andtypically wraps it all together in a nice,flat-rate package. No more complicatedphone bills with charges that require atranslator to understand what you’re paying.All of your local and long distancecome together, taking advantage of theInternet and VoIP (Voice over InternetProtocol) technology. Easy to use, easy toset up, little or no capital outlay, and quitepossibly, less expensive than what you payjust for your phone bill alone.A three seat hosted solution should costno more than $120 per month (plus applicabletaxes), and that amount includesunlimited local and long distance calling inNorth America, advanced voice mail features,including integration with MicrosoftOutlook and having your voice mail sent toyou as email, and all of the advanced phonesystem features. No hidden fees or charges,and no cost of maintaining equipment.Depending on your exact needs, rates maybe lower in some cases.In order to capitalize on all that ahosted solution can do for you, you shouldbe aware of a few things. First, you willneed to maintain your broadband (highspeed) Internet connection with your currentprovider. This connection is how youwill connect the phone on your desk tothe phone system at the data center. Mosthosted providers will recommend that youpurchase certain types of phones that theywill send to you pre-programmed. Whileyou don’t need to use the phones they suggest,as they are typically working off of ahighly defined standard, but the reliabilityof the system is greatly increased if youuse the suggested equipment.In the past with VoIP technology, reliabilityhas been a concern that has keptsome customers from embracing it. Overthe past two to three years, the quality barhas been raised substantially by the providersof such services, and Internet ServiceProviders have enhanced their networksto carry voice traffic over the Internet withfewer instances of dropped calls. Today, thequality that hosted solution providers canoffer rivals that of the traditional phonecompanies, and usually costs less.If you want to eliminate the hassle ofsupporting your phone system, and quitepossibly saving some money, you shouldseriously consider a hosted phone systemtoday!Author: David Politis, Vocalocity, Inc. Forfurther details or specialized agent pricing,go to www.vocalocity.com/allstateSummer 2009 Exclusivefocus — 47

featureSnookered by AllstateHow unsuspecting agentshave been trained in broad daylightONE AGENT’S PERSPECTIVEFlorida FVP, Mike Sheely’s March 18,2009 communication to all FloridaAgency Owners comes at a critical timefor Allstate. He states “The economicdownturn and intense competition areplacing extraordinary pressures on ourability to grow, requiring that we respondaggressively. Among the challengeswe’re facing is the need to significantlyimprove customer loyalty and retention.Our Shared Vision requires us to put thecustomer at the center of our work andto be accountable for our actions. Let meoutline some of the steps we’ll take towardachieving these requirements.” Nodoubt similar emails have found theirway to agents all across the country. Butas much as agents might be expectinghelp from Home Office to address thisissue, instead they are delivered a mandatefor new employee-style controls.In what appears to be a more openapproach to defining the company/agentrelationship to that of employer/employee,the memo has removed any pretenseof preserving its ‘independent contractor’definition for its 12,000 plus U.S. basedagents. Agents can expect follow-onmeetings with their managers, continuedtraining sessions and reinforcing communiquésfrom Home Office, all relating toAllstate’s newly-defined employee agentprogram. This aggressive move is beingcombined with Allstate’s past practice ofemploying an ever-shifting quota systemdelivered through a constantly changingemployment contract. Clearly Allstate istired of dancing around treating its agentsas quasi-employees. The gloves are off.No Reading Between the LinesNecessaryIn the body of the letter, under the title“Customer Service Expectations,” the letterstates: “How each of us behaves (emphasisadded) toward the customer – whetheras an employee, agency owner or licensedsales professional in your agency – is criticalto our success. In 2007, we began toimplement Customer Service Expectationsin many parts of the company.”Statements such as this are clearlyintended to convey an unimpeachablecommand. The “us” is the agency force.Agents are not requested to join in thisnew process, they are required to join.This “expectation” is actually therefore arequirement of conformance to the kindof behavior that Allstate sets as a standard.We learn in the next paragraph thatthere will be consequences for failure toachieve success in the new Allstate-imposedbehavior. Therefore, imposing aperformance requirement with accountabilityand consequences, demonstratescontrol. Control is fine for employees,but not for independent contractors.Whenever we hear about accountability,punishment for failure to achieve adesired outcome is not far behind. Thereis no exception here. Not only does theletter continue by stating expectationsfor “consistent performance…critical improvement…drivinggrowth…improvingretention and formalizing associated support,”it also states “that it will be unacceptableif improvements are not made.”At issue this time is not just sales performance,but an Allstate-defined requirementfor a new set of business practicesfor interacting with customers. Agents arenow mandated to achieve a defined standardof behavior when interacting withcustomers. Failure to meet this newly-definedquota will likely have contract-endingimplications.The corporate directive is laced withassumptive phrases such as “Minimum acceptableAgency Standards will be set….,We have a tremendous opportunity,” and“You should have reviewed…” These arenot statements geared toward discussion.48 — Exclusivefocus Summer 2009

They are assumptive commands intendedto have an impact on our behavior. Theyare unabashed employee controls.There is no doubt, that in making thestipulations contained in Sheely’s letter,Allstate is imposing behavioral controlover its agents. This new requirement toconform to a mandatory set of standardsimposed by the company is the clearestform of control Allstate has exerted todate. Because “behavioral control” is akey element used by the IRS to determinewhether a worker is an employeeor independent contractor, a higher standardof vigilance by the employer mustbe used. Allstate’s newest mandate is ablatant violation of that precept.Training? We Don’t Need NoStinking Training!IRS Publication 15-A has been updatedfor 2009, but essentially contains thekey elements previously used to describethe employer/employee relationship. Onpage 6 of the publication, in the righthand column, is a section titled “Trainingthat the business gives the worker.” Itstates: “An employee may be trained toperform services in a particular manner.Independent contractors ordinarily usetheir own methods.”Employers are generally cautious to afault regarding mandatory training. Butwhether from mounting pressure causedby market conditions or from internalcorporate directives, Allstate has beensystematically violating IRS rules regardingsuch things as mandatory officehours, quotas, annual reviews, call forwardingand much more. Now Allstatehas fractured the “no mandatory training”element as well.Training is defined as the processof teaching or learning a skill. Trainingcan be used to improve a previouslylearned skill or to define parameters forthe performance of a particular job orduty. In all cases, the one being trainedis required to conform to a skill set beingsupplied by the trainer. Imposing newtraining requirements or changing an already-in-placeskill is a form of control.This is a significant element of control anemployer gives up when they utilize anindependent contractor. But, the tradeoffis extremely beneficial tax treatmentfrom the IRS. It is only when companiesrenege on their promise of compliancethat both the worker and the IRS beginto take notice.Interestingly, had Allstate not producedits latest corporate memo, the trueextent of its training scheme might neverhave been brought to light. In its zeal toimplement new “accountability” standards,Allstate recounted the inclusionof a program designed to move forwardits latest corporate agenda. The name ofthe program is “Customer Service Expectations.”Likely, many of you reading thiswill not recognize the name. That’s becausethe element most of us are familiarwith is called “First Impressions.” In typicalAllstate fashion, a new program willhave been in place and implemented foryears before the agency force even hearsabout it or notices it.“First Impressions” is a mandatorytraining program, which was implementedin 2008 as a series of phonecalls to all agents. It is mandatory becausethe process of answering thephone automatically enjoins the agentin the training program. The purpose ofthe “First Impressions” program was/is toinstitute an Allstate-designed programwhich included a defined work processand the sequence in which the agentshould perform the work. But the programwas, of course, never touted as atraining program. It was introduced toagents as a way for them to improve“telephone skills.”The following are direct quotes fromthe program’s FAQ’s sent to each agent.“What: Series of 3 brief calls eachmonth to all agents through 2008 – conductedand scored by a vendor called InTouch assessing how agencies handlegreetings, closings, and voice tone.Why: Improve first impressions whencustomers call agencies – drive improvementand consistency into agency telephoneinteractions.When: Launched 4/1/2008 – ongoingthrough 2008”The reality of the “First Impressions”program was that it was intended to bea key element of the “Customer ServiceExpectations” mandate. It is this mandatethat is central to Allstate’s controlof the agents’ work product: interactionwith the customer. Allstate wasn’t evencoy when it unabashedly answered the“Why” behind the calls. It stated openlythat the program was designed to “driveimprovement and consistency intoagency telephone interactions.” Mostagents were at a loss as to how to rejectthis forced, mandatory training. As withother employee controls, agents remainunable to defend themselves without potentiallyimpacting their careers.To Allstate’s credit, they invented away to require mandatory attendanceat training classes without the agents’ability to reject the process. Agents areso used to using their computers to signon to remote training classes, or to callin to Citrix-based teleconferences forvoluntary training, that they overlookedthe sheer simplicity of what occurs whenthey answer the phone to take what theyhope is a customer calling for a quote.From Allstate’s perspective, theyknow that an agent “must” answer thephone. Therefore the agent is automaticallyrelegated to “mandatory attendance”of whatever happens next. The agent answersthe phone hoping it is a prospectiveor current client. The “trainer” whois on the other end of the line, then asksa question or series of questions and recordsthe agent’s response. The agentis then “graded” on his efforts and anevaluation is posted online for him to review.Agents are provided sample scripts,the sequence of questions and possibleresponses. Those who initially scoredpoorly are encouraged to adhere moreclosely to the script in order to attain ahigher score.This is classic “Mandatory Training101.” Allstate wishes to modify what itsees as undesirable behavior. It ramps upa countrywide staff and evaluation system.Allstate implements calls to agentoffices knowing they must answer thephone and “attend” the training. Allstatecollects the data. Allstate delineates“good” behavior from “bad” behavior.Agents are contacted by managers to“help” them by reviewing their recordedcalls. Allstate provides agents withscripts and a sequence to follow. Allstateachieves modified behavior. AllstateSummer 2009 Exclusivefocus — 49

agents now interact with customers the“Allstate way.” Congratulations, You’vebeen trained.The program worked so well for Allstate,they also implemented “MysteryShopping” and “Good Hands CoverageCheckup®” telephone training programs.These are training classes similar to theone for “First Impressions.” In all cases,the process is designed to meet onlyAllstate’s internally developed goals.All of the resulting data is collected forAllstate’s purposes and in every case, isused by Allstate to modify the agent’sbehavior.Data Collected to Modify Behaviorof Independent ContractorsEquals CONTROLSome might argue that Allstate hasevery right to collect marketing datarelating to an agent’s job performance.It is not the collection of data that is atissue, it is the resulting punitive actionthat is taken against Allstate’s so-called“independent contractor” agents. Companiesutilizing employees are free tocollect data about customer satisfaction,product satisfaction and more. Companiesmay freely interpret the results andimplement changes to employee behavior,skill sets and/or production requirements.Companies that utilize independentcontractors may not collect suchdata, imply or determine deficiencies, orforce their independent contractors tocomply with remedial training to addresssaid deficiencies. Independent contractorsmay not be trained, period.Independent contractors are hired afteran evaluation of their demonstratedabilities. Some employers use only aninterview to complete the hiring process.But once contracted, companiesmust implement a “hands off ” approach.Therefore, if Allstate changes its marketingphilosophy or requires a different setof skills for its sales force, it must thenincentivize its independent contractorsto implement such a change. Per IRSguidelines, Allstate cannot give its independentcontractor agents’ sales, serviceor skills training. Ever.So no matter how much data Allstatecollects, no matter how bad the news, andno matter how much it wants to institutea plan to train its agents, it cannot implementsuch a mandatory program withoutputting its favorable tax status at risk.Independent Means Independent,Except at AllstateThe definition of “independent” includeswords such as self-governing,autonomous, self-regulating, and free.Companies that utilize independentcontractors must not only recognize theprecept of the word “independent”, theymust embrace the concept as well. Theautonomy associated with independentcontractor agents has a direct benefit tocompanies that correctly utilize them.Companies like State Farm and Nationwide,recognize that penetrating themarket with highly skilled, independentprofessionals is preferred to the employeemethod, if for nothing else because ofthe pride of ownership such agents havefor their businesses. Elimination of thewage tax, Social Security tax, 401ks, pensionsand health insurance premiums,give companies who utilize independentcontractors a competitive advantagethrough lower expenses.By slowly blurring the line of interactionwith its agents over the past fewyears, Allstate has transitioned them backto an employee-like status. Much like thefrog who hops into a pot of water thinkingit a refreshing dip in a pond, Allstateagents signed an “EA Independent ContractorAgreement,” expecting true independentcontractor status. If the temperatureof the water is raised slowly enough,the unwitting amphibian will never knowhe is being slowly cooked to death untilit is too late. This insidious analogy is exactlywhat Allstate has done to its agents.But, now after nearly ten years of subtletransitioning, Allstate feels the temperatureof the pot needs to be turned up to afull boil. That’s why with ever-increasingfrequency and intensity, Allstate has instituteddirect employee controls like quotas,annual employee reviews, mandatory callforwarding, mandatory office hours andnow, mandatory training.When a company like Allstate takesadvantage of all of the tax benefits ofutilizing independent contractors, butcrosses the line by treating its workers likeemployees, the IRS begins to take notice.It is not smart to try to fool the IRS. Notonly does the IRS have its own plan forcatching tax cheats, it has implementedan association with various state agenciesto enhance its efforts. It is paramount forAllstate agents to not only recognize theyare at “full boil,” it is imperative they dosomething about it. In a previous issueof Exclusivefocus, readers were encouragedto send a postcard enclosure to JohnTuzynski at the IRS. That was an excellentstart. Some agents are coalescing intosmaller versions of NAPAA and holdingtheir own local meetings to discuss theseissues and more. It is information sharingthat provides agents their biggest opportunityto defend themselves againstan illegal intrusion of their independentcontractor status.Finally, it can be argued that the“First Impressions” program and otherslike it will enhance an agent’s businessoperation and aid in developing a profitableagency. It is not the intention ofthis article to denigrate viable assistanceprograms so long as they are voluntary.Because the programs exist at all is afunction of the necessity to address bothcompetition and the changing requirementsof our customers. No one wouldbegrudge an employer for anticipating acertain type of return from its employeesafter investing in a new marketing campaignor a training program. But becauseAllstate claims that its agents are “independentcontractors,” there are certainemployee-like practices it must avoid, ifit wants to maintain its status with theIRS. Currently, Allstate enjoys favorabletax treatment because it classifies us as“independent contractors.” This meansAllstate must operate with a differentset of rules to achieve its corporate expectations.Looking back, it is clear thatAllstate never really adjusted to the independentcontractor model. The thoughtof relinquishing its control over thousandsof agents probably scared the hellout of senior managers. So instead, Allstatesimply reverted to its old employeeprogram mere months after convertingits agents to independent contractor status.It is the compilation of each employeecontrol, including mandatory trainingthat has now removed any vestige of independencefor Allstate agents.50 — Exclusivefocus Summer 2009

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technology tipsBanish your Fax MachineBY STEVE ADAMSAt a key point in the TV Christmasclassic Rudolph the Red NosedReindeer, Rudolph and his travelingcompanions stumble across the Island ofMisfit Toys. It’s the place where toys thatdon’t quite measure up to expectationsare banished forever, leaving them towish they could serve a useful purpose.Of course, television during theChristmas holidays requires a happyending for all except the bad guys, so atthe end of the story, all of the toys find ahappy home. It seems they were useful tosomeone after all.In the real world, however, things area little different. Once an office productor technology has outlived its usefulness,it’s time to banish it to the Island of ObsoleteOffice Equipment. The steno ordictation machine has surely found itsway there. Hardly anyone dictates lettersfor secretaries or stenographers to typeanymore. Today, we type our own letterson computers. (This is progress?)The classic typewriter is all but extincttoo. Sure, there may be one hangingaround to address a quick envelope,or sitting on the desk of some crusty oldtimer who just won’t give it up, but forthe most part, typewriters are now partof our nostalgic past. There are plenty ofother examples as well.And then there are those products thatshould be there, but haven’t quite made ityet. I’d put the fax machine in that category.Not because faxes aren’t used anymore– in truth, more faxed pages weresent in 2008 than in any year in history,many of them to and from Allstate agencies.But because there is a better way tosend and receive faxes than hovering overa machine waiting for it to scan pagesand slowly transmit the data over phonelines, the traditional fax machine has becomea bit of a relic. Who hasn’t had thejoyous experience of attempting to senda 10 page fax only to experience multiplemisfeeds or paper jams, delaying whatshould have been a simple process?That better way is to use an Internetfax service. These services allow you tosend and receive faxes as electronic documents,either through your e-mail accountor via a secure online server. Withthe e-mail option, received faxes appearas attachments (either as a PDF or someother common format), with the abilityto preview, forward and/or save the faxto any folder you choose. With the onlineserver option, you can read the faxonline, download it to your PC or otherdevice, forward it as a fax or e-mail, andstore it. Either allows you to do all of thisfrom your desktop, anywhere you can getan Internet connection.When you send a fax, it also goes directlyfrom your desktop, much as youwould send an e-mail. Yet the fax goesto the recipient’s fax machine, creating aseamless connection between both parties.Making the move to an Internetfax service has several benefits,including:• Greater mobility. With a fax machine,you are limited as to where andwhen you can send or receive faxes. If youhave a busy office, sending and receiving52 — Exclusivefocus Summer 2009

faxes via a traditional fax machine can beproblematic. Waiting in line to send afax is time wasted. Then, if you are waitingfor an urgent incoming fax, you mayfind yourself waiting as other faxes finishprinting. With an Internet fax service,though, you can send and receive faxesanywhere you can get an Internet connection– even if you’re away from theoffice on client calls. In today’s age of themobile worker, that alone might make itworth it.In addition, you can store all your faxeson your laptop or other mobile device, allowingyou to keep those important documentsat your fingertips. Some serviceseven allow you to store faxes online foras long as a year, letting you access themeven if you forget your mobile device.• No (or at least less) paper. Fax machinescreate paper documents. Papercosts money and can get lost, misplacedor destroyed. It also takes up a lot of spacein filing cabinets when there is a lot of it.Because documents faxed via an Internetfax service are electronic, they’re mucheasier to handle and manage. The onlytime you’ll need paper is if you chooseto print a particular fax. That’s better forthe environment and better for your bottomline too.• Lower cost. To operate a fax machine,first, of course, you need to buy themachine itself. Then you have to pay toinstall another phone line. Each monthyou have the cost of paper, toner, electricityto keep it ready to use 24 x 7, andongoing phone line charges. Maybe evena maintenance fee for the machine. Withan Internet fax service, the only expenseis the cost of the service itself – whichis lower than just about any one of theabove expenditures.• Increased privacy/security. Faxmachines tend to be placed in commonareas for the sake of convenience. Theproblem with common areas is that anyonecan go there, which means that theconfidential fax you’re sending or receivingis potentially left open to prying eyes.This scenario is not exactly what youwould call tight security, which is criticalin an insurance agency, where nearly allinformation is confidential.Since Internet fax services deliverfaxes directly to the user’s desktop, thechances of unauthorized eyes seeing aparticular fax are reduced by an order ofmagnitude. It certainly keeps the amateursand busybodies away. For thosedealing with medical records, HIPAAlaws do not allow confidential recordsto be sent via email due to security risks.But they do allow faxes. A good Internetfax service will have built-in encryptionof all faxes, increasing the security whilecomplying with the law.• No more lost faxes. As mentionedearlier, fax machines generate paperfaxes. Paper faxes can be misfiled, blownoff desks by a breeze, become stuck toanother piece of paper, accidentally gettossed in the trash or suffer other calamitousfates. Should that happen, the contentsare lost, sometimes forever. Electronicdocuments generated by Internetfax services not only are immune to allthat, they can also be backed up and restoredin case of a catastrophic loss. Thisis extremely important if the contents aremission-critical, such as a contract for anew piece of business. Finally, you canrun a desktop search to help you find anelectronic fax from six months ago that issuddenly important again. With a paperfax you’ll be hunting through the filingcabinets – hoping it was filed correctlyway back then.• No extra cost for a toll-free number.If you want to look big in the eyesof your customers by having a toll-freephone number, you’re going to pay extrafor it if you’re using a fax machine. Andevery time one of those customers usesyour toll-free number you’ll pay again.Most Internet fax services allow you tochoose between local and toll-free numbersfor the same cost.• No extra space required. A fax machinetakes up space, pure and simple. Sodo the filing cabinets required to storepaper faxes. An Internet fax service freesup that space. Use it to put in extra desks,or maybe even a few nice plants to dressup the office.The bottom line is there’s simply nogood reason to keep a fax machine in theoffice anymore. Sign up for an Internetfax service and you can finally banishyour old machine to the Island of ObsoleteOffice Equipment. Don’t feel badabout it, though. It can always turn tothe steno machine for company.Steve Adams is Vice President of Marketingfor MyFax (www.myfax.com), a providerof Internet faxing services for individualhome users, small businesses, and large corporations.MyFax has won a number ofawards in head-to-head competitions forease of use, reliability and best overall value.He can be reached at sadams@protus.com.Summer 2009 Exclusivefocus — 53

Too many agents put their faith andtrust in whatever the company says andthen something like this happens. I donot feel like “we” are a team any longer.We are treated like adversaries, not partnersor teammates. There is no enjoymentand little pleasure remaining in theinteractions between agencies and Allstatemanagement.. . . . . . . . . . . .I don’t spend much time dwelling onthis anymore, but have noticed the onething that has not appeared in the Exclusivefocusmagazine are testimonials fromsevered Allstate agents that have movedon to insurance careers building a bookwith independent carriers.I have attached a letter I have beenmeaning to send to you for some time.Allstate agents (not the company) are veryclose to my heart. Most agents I knew haveleft Allstate in despair, having lost most oftheir assets. I only wish I could give a testimonialto TWFG, whom I joined lastletters to NAPAALetters continued from page 12.year as an agent. They are a really greatcompany to work with (not for).Agents who are undecided if theywant to stay with Allstate or move on,should consider going the independentroute. It’s not easy, but the playing fieldis even and fair. You are told what to expectBEFORE you join. The contract isgiven to you up-front to review until youhave all of your questions answered. Andunlike Allstate, there is no 460+ pagedocument that changes at the whim ofmanagement every few months, the solepurpose of which is to exert more andmore control over the agency force.I would rather remain anonymous ifyou want to publish. So far my TPP hasbeen coming regularly and I can’t jeopardizethat. My letter follows:A New Breed of CompetitionHave the decision-makers at Allstate reallythought about what they are doing? Dothey realize that the great agents they areletting go for every reason they can think ofare now realizing that life after Allstate is awonderful place to be?I know of no other company that wouldthink of offending the agent as consistentlyand regularly as Allstate. Smart, independentinsurance companies are gobbling upsevered Allstate agents left and right, realizingthat once the twelve-month non-competeis over, the open battlefield of clients islying in wait for the agent to reclaim. We allknow that all insurance agents create strongrelationships with their clients. Therefore,the brand of insurance the agent is sellingis immaterial, as long as the client gets greatcustomer service.So, go ahead Allstate. Keep on doingwhat you are doing. The new breed of competitionis lying in wait for a little thingcalled time. 12 months? Okay, the gauntlethas been thrown. For all of the money youstole from my family with your bold lies, forall the heart and passion I wasted on yougrowing my business, for all the threatsand changes to my contract that were onlyto benefit Allstate, your competition has arrived…A Severed Allstate AgentYOU 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 Agents for customers transferring from state to stateRequests by email should be sent to HQ@napaausa.org54 — Exclusivefocus Summer 2009

Expansionis tough.Cash flowis easy.Put your TPPto work for you!866 866Oak Streetis the Bridge.Fast. Easy. Done.»Loans and lines of creditfrom $25 thousand to$3.5 million»Loans funded in as littleas two weeks»Buy an agency or a bookof business»Upgrade your technologyNeed cash to grow your business and pay down debt?Don’t let you TPP just sit there, put it to work for younow and really watch your business grow! The cashyou’re looking for is literally at your fingertips. It’s in yourbusiness. A loan from Oak Street Funding unlocks thatasset allowing you to grow today.Why borrow against your personal assets when usingyour TPP is the answer?Start growing today.Contact me for your FREENo-Obligation Consultation.» Joe McCaslin 866-625-3863» joe.mccaslin@oakstreetfunding.com»Target new marketsSummer 2009 Exclusivefocus — 55

Why join NAPAA?and Section125 Plan when payroll isprocessed with Advanco. For detailscontact: Gerry Flores at (563) 564-1800 or gerbear_61@hotmail.comNAPAA Resource Center• NAPAA HQ has extensive resourcesto help agents locate hard to find informationNAPAA Acts as the Voice of theAllstate Agent:• We say the things that must be saidon behalf of the agent.• We take stands on issues that affectagents, such as ALI, RFG, independentcontractor status, quotas andterminations (See examples in Exclusivefocusmagazine).• We are willing to meet with companyleaders, without fear.• We have demonstrated that we arewilling to take legal action when warranted.• NAPAA possesses “standing” underboth Florida law and Federal law.National EA Conference• Great speakers, informative legal andbusiness tips, vendor fair and muchmore.Free Member Benefits• Useful tools to help buy or sell anagency• Sample business plan• Sample letter agreement• Sample asset purchase agreement• Non-disclosure agreement for CSRP• Quick Reference Guide to buyingand selling Allstate agencies• Agency for sale listing on NAPAAWebsite and in Exclusivefocus magazine• Consultation with HQ staff familiarwith sale process• Access to “Member’s Only” sectionon NAPAA WebsiteFree NAPAA Communications• Subscription to the “NAPAA Forum,”our online discussion group.• Subscription to DirectExpress weeklyemail newsletter• Subscription to Exclusivefocus magazineFree Customer Transfer-in/Transfer-out Service:• We locate experienced NAPAAmember agents for customers transferringfrom state-to-state• As a member, you become immediatelyeligible to receive customertransfers to your areaFree Leads from the “Get aQuote” Page on the NAPAAWebsite• When a consumer requests a quote,we provide the lead to a NAPAAmember in the area.Special Offers and Discounts• Free membership when payroll isprocessed 2X per month with E-chxPayroll Solutions• 25% members-only discount on payrollprocessing with Paychex• Access to dental, group health, 401KExpert Assistance from Staff atNAPAA Headquarters• HQ staff has more than 50 yearscombined experience in and aroundAllstate• Many times, company managers act intheir own self-interest – NAPAA actsin your best interests all the time.• NAPAA members get straight, nononsensehelp on a wide range of issuesfrom the knowledgeable, experiencedstaff at NAPAA HQ. These includesuch issues as buying and selling agencies,staffing, marketing, HO securityinvestigations and terminations.“Legislate for Success” Program• NAPAA sponsors and supports legislationfavorable to Allstate agentsLet NAPAA Help you Succeed• NAPAA acts as a support system forour members if and when they needhelpFree Mentoring Program• We help members sort through themixed messages and misinformationthey receive.• Helps newer agent members by givingthem access to an experiencedagent who can provide solid, sensibleadvice and directionThe Board of Directors• Board members are uncompensatedvolunteers who have your interests atheart.• They are a diverse group that includesboth newer agents and seasonedveterans.06/09 - EF56 — Exclusivefocus Summer 2009

NAPAA Membership Applicationand/or Action Fund DonationNATIONAL ASSOCIATION OF PROFESSIONAL ALLSTATE AGENTS, INC.P. O. Box 7666, Gulfport, MS 39506Call Toll-Free: 877.627.2248 • E-Mail: HQ@napaausa.org • Fax Toll-Free: 866.627.2232Name:______________________________________ Off Ph:_______________________ Fax__________________________Street:________________________________________________ E-Mail:__________________________________________City:________________________________________ State:_____ ZIP:__________ Home Ph: _______________________Is this address your ❑ Home or ❑ Office?Status: ❑ Active Agent ❑ EFS Agent ❑ Staff ❑ Other (please explain)____________________________________Date: _____________ Years with Allstate________ Office Zip Code (If using home address) __________________Referred by: _______________________________(name of person or publication that inspired your membership)MEMBERSHIP SECTION - (CONFIDENTIAL)Includes:• Free Insurance Leads from the NAPAA Website ❑ Annual $350/yr• Member-to-Member Transfer-in Referrals• Timely Communications, including a weekly newsletter ❑ EFT $29/mo• Comprehensive Resource Center• Resources for Buying and Selling Agencies❑ E-chx will pay duesACTION FUND DONATION SECTION Check or CC EFT amountPAYMENT SECTION$____________ or $____________/mo.❑ CHECK - Annual: Please make payable to NAPAA and mail to the address at the top of this application.❑ CREDIT CARD – Annual: I authorize this amount to be charged to my credit card.(Please complete the information below)Card type: ❑ VISA ❑ MasterCard ❑ Discover ❑ American ExpressName on account ______________________________________ Amount to be Charged: $__________ (Annual only)Account Number ________________________________________ Expiration date __________ Security code________Address on Card _____________________________________________________Zip on Card_____________________Signature of Cardholder _________________________________________________ Date ____________(6/09 EF)❑ EFT - Monthly (attach or fax voided check)I understand that the amount stated above will be deducted from my checking account every month until instructed otherwise.I have enclosed a voided check and understand that the withdrawals will occur on or about the 20 th of every month.Authorization Signature: _____________________________________________________________Date ____________❑ E-chx will pay my dues – I am an E-chx client processing payroll at least twice per month.PLEASE FAX APPLICATION TOLL-FREE TO: 866.627.2232MAIL APPLICATION TO: NAPAA, P.O. Box 7666, Gulfport, MS 39506Note: You do not have to be a member to donate to the NAPAA Action Fund

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleALABAMAClantonBobby R. Wilsonbrwilsonins@bellsouth.net205-999-1379Asking Price: $100,000PIF: 345 Premium: $275,000Number of Licensed Staff: 11200 sq. ft. in a busy area.Lease has four years left at$675 per month. 91% retentionwith end of year RFG 8.2.Owner retiring due to health issues.Great office and market.CALIFORNIAWest HollywoodSilvina ZoltzmanSilvina@allstate.com310-205-2355Asking Price: callPIF: 1,944 Premium: $1,722,000Number of Licensed Staff: 2Solid book, 10 yr agency. ExcellentLR. Call (310) 279-9486cell.Apple ValleyDavid G Guardadodavidjrjr1981@msn.com760-885-2177Asking Price: $562,000PIF: 1,842 Premium: $1,874,000Number of Licensed Staff: 2Will carry note with substantialcash down payment. 15yr office manager willing tostay. Rent $572 per mo. Makereasonable offer.GlendaleRobert Feldmanrobertfeldman@allstate.com818-415-8000Asking Price: Open to discussPIF: 6,410 Premium: $6 millionNumber of Licensed Staff: 4Large Agency. Top 5 in countryfor EB. Low LR. Make LifeNumbers every year!. Knowledgeable,talented staff. Oneof the most successful agenciesin CA.PetalumaJohn FeerickJohnFeerick@allstate.com707-763-2238Asking Price: Call to discussPIF: 1,700 Premium: $1,800,000Number of Licensed Staff: 2Retiring after 38+ years, samegreat location 22+years. Staffwill stay. Cell (707) 217-3158.CONNECTICUTTorringtonThomas Krohnertskrohner@sbcglobal.net860-480-4920Asking Price: $685,000PIF: 2,200 Premium: $2,356,652Number of Licensed Staff: 22 agent office, 2 licensed staff,35.54 LR, 91.52 retention. After42 years with Allstate, it’s time.FLORIDAGainesvilleRonald Lawrence Grouprll@ronaldlawrencegroup.com561-889-5551Asking Price: $650,000PIF: 2,310 Premium: $1,900,000Number of Staff: 0Well-seasoned book, NorthFlorida. SELLING BOOK OFBUSINESS ONLY. Buyer willhave to set up his own officeand staff.DeltonaDenise Whitedwhiteco@gmail.com386-532-1206Asking Price: $150,000PIF: 700 Premium: $734,000Number of Licensed Staff: 23 yr agent, qualifies for newagency bonus. Includes F&E.Or, Allstate book only $300,000in premium, price $90,000.Saint Lucie CountyJohn G Gaffneyjgaffney312@aol.com772-828-0008Asking Price: $1,350,000PIF: 3,750 Premium: $5,000,000Number of Licensed Staff: 52 locations, combined PIF 3,751& $5 mil GWP. 5 figure RFGBonus. 100% funding required.MiamiEduardo Aljureeakpea@comcast.net305-785-7082Asking Price: $180,000PIF: 313 Premium: $701,645Number of Licensed Staff: 13 yr agent. Includes F&E. Noowner-financing available.Qualifies for new agencybonusFort MyersAlberta LewisALEWIS@EMBARQMAIL.COM239-560-3732PIF: 650 Allstate, 500 BrokeredPremium: $900,000SALEPENDING!KissimmeeLarry Newmanlcn1986@aol.com407-529-4147Asking Price: $1,100,000PIF: 2,600 Premium: $2,650,000Number of Licensed Staff: 321 year agent retiring, staff willstay. Great location, turn keyKissimmeeDale Revelsdalerevels@gmail.com407-924-5336Asking Price: $850,000PIF: 1,100 Premium: $2,200,000Number of Licensed Staff: 121 yr agent. Paperless office,low overhead. Close associationwith Allstate Hall of FameLife Specialist.HAWAIILahainaMichael D Amatomichaeldamato@allstate.com808-661-3542Asking Price: $210,000PIF: 1,296 Premium: $1,211,546Number of Staff: 2 (1 lic)Beautiful, turn-key office.Downtown, tastefully furnished.Talented EFS. Call9AM-11AM Aloha timeIDAHOMoscowNadine Belieunadine@allstate.com208-882-8000Asking Price: Call for detailsPIF: 1,800 Premium: $1,400,000Number of Licensed Staff: 120 yr agent, retiring. Beautifularea - hunting, fishing, recreation,Ret 89%, LR< 30%.ILLINOISMolineRosales Agencysrosales1@mchsi.com309-737-1688Asking Price: Will discussPIF: 2,650 Premium: Just over2 millionSALEPENDING!KENTUCKYHendersonNancy Thornberrynancythornberry@yahoo.com270-860-2853Asking Price: negotiablePIF: 901 Premium: $946,990Number of Licensed Staff: 158 — Exclusivefocus Summer 2009

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleExcellent quality, establishedagency, walk in ready, P&C &Life licensed staff willing tostay.LOUISIANAHammondTerry Kingking2926@bellsouth.net985-974-7144Asking Price: $1.85 millionPIF: 3,500 Premium: $5.45millionNumber of Licensed Staff: 3Premier 33 yr agency, 7.6 RFGpoints in 2008. 47% LR % 88.5%retention. Great locationMAINEAugustaAndrew PerryAndrewPerry@allstate.com207-623-1394Asking Price: $195,000PIF: 1,120 Premium: $900,000Number of Staff: 1 (0 lic)90.3% retention, 12 mo LR37.61%. Atlantic Ocean to theeast, mountains to the west.Qualifies for new agent bonusMARYLANDLinthicumJohn D. McCoyjohndmccoy@gmail.com410-859-1300Asking Price: $275,000PIF: 748 Premium: $946,465Number of Staff: 0Great satellite. Great location,month to month lease.FruitlandJack Thomaspoconojack@comcast.net410-341-0805Asking Price: NegotiablePIF: 900 Premium: $1,028,737Number of Licensed Staff: 1Beautiful East Shore locationsince 1988. LR 56%. Retention90%. Willing to finance for Allstateagent, manager or staff.MONTANAMissoulaNicole SchreckendgustSchreck@allstate.com406-728-6336Asking Price: call for detailsPIF: 1216 Premium: $1,250,000Number of Licensed Staff: 1NEVADAHendersonEric R. Zimmermanericzimmerman@allstate.com702-809-4747Asking Price: NegotiablePIF: 2,848 Premium: $2,912,000Number of Staff: 2Clean book. Agency established22 years. LR 40%, retention89%.Las VegasMary Ann ConnollyMAConnolly@allstate.com702-604-0732Asking Price: NegotiablePIF: 1,270 Premium: $1,595,000SALEPENDING!NEW JERSEYSummitJames Fitzsimmons IIIjfitzsimmons@allstate.com908-598-9302Asking Price: $975,000PIF: 1,932 Premium: $2,700,000Number of Licensed Staff: 130% LR. Great loc for AF.$325,000 in revenue.SpringfieldJim FitzsimmonsJfitzsimmons@allstate.com908-598-9302Asking Price: $1,600,000PIF: 4,555 Premium: $5,700,000Number of Licensed Staff: 3Retention 93%. Great location.Firm asking price. No buyerfinancingNEW YORKAstoriaDante Faucidantefauci@allstate.com718-726-4625Asking Price: NegotiablePIF: 1,241 Premium: $1,625,000Number of Staff: 1 (0 lic)Ret 92%. LR 32%. Client baseQueens, Brooklyn & LongIsland.New YorkCentral ManhattanAgency, Inc.bisacsen@optonline.net917-553-6404PIF: 1,900 Premium: $1,500,000SOLD!New YorkEileen Marie Rooneya056442@allstate.com212-680-1127Asking Price: $700,000PIF: 2,300 Premium: $2,300,000Number of Licensed Staff: 1NORTH CAROLINAFranklinBurl Parksburlparks@allstate.com828-369-9500Asking Price: $650,000PIF: 2,669 Premium: $2,262,733Number of Licensed Staff: 3FayettevillePaul Dalpepauldalpe@earthlink.net910-574-0895Asking Price: $100,000 firmPIF: 450 Premium: $601,624Number of Licensed Staff: 2Asking less than 1.5 time earnings.Financing available forqualified buyer.OREGONBendStan Stiebenstanstieben@allstate.com541-318-8536Asking Price: NegotiablePIF: 1,274 Premium: $1,000,005Number of Licensed Staff: 1Same location 10 years. Fastgrowing area. LR 31.57%,Retention L10, 88.60%, L70,91.94%. Owner retiring.PENNSYLVANIABethel ParkThomas Pusateritmichaelpusateri@yahoo.com412-980-1911Asking Price: Upon RequestPIF: 984 Premium: $1,076,300Number of Licensed Staff: 1No office phone calls or email.Prime location, easy accesssurrounding South Hills communities.Great opportunityfor growth. Ret 90.70% - LR46.26%. Serious inquiries only -TENNESSEEChattanoogaMitchell Beenembinsures@mac.com423-504-1078Asking Price: Call for infoPIF: 1,424 PIF Premium: $1.42millionNumber of Licensed Staff: 115 yr agency, prime location.1st yr ret 89.94, 5yr 92.76Lic staff/ 10 yr tenure. Newbranded office condo picsavailable.Summer 2009 Exclusivefocus — 59

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleKnoxvilleConfidential listingprest222@yahoo.com865-691-0000Asking Price: NegotiablePIF: 1,200 Premium: $900,000Number of Licensed Staff: 1Affluent area, longtime agent,high retention, LR under 20%.Low overhead, able split to

Why Is This Guy So Relaxed?This is FrankFrank is an independant Allstate AgentYesterday, he didn’t have Geeks On Call to handle his IT needsToday, he doesYesterday, Frank Called Geeks On Call And FoundThe Solution For All His Business IT NeedsCall us, or visit us online at www.geeksoncall.com/allstate, today for a free, no obligation review ofyour computer and telecommunication systems and a customized management proposal that willsuit your specific needs. It’s an investment you can’t afford not to make.Summer 2009 Exclusivefocus — 61

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleThe NAPAA market place…where buyers meet sellers.Place your classified ad here for just $99 per issueof Exclusivefocus (Price reduced to $50 if ad is inconjunction with online ad.)For more information, go to www.napaausa.org,or contact NAPAA at 877-627-2248,or HQ@napaausa.org.Contract Terminated?If you have been terminated by the company forfailure to meet Expected Results, NAPAA wants tohelp. We will post your agency for sale on our Websiteat no charge. Just fax or email a copy of yourtermination letter to 866-627-2232, or hq@napaausa.org.After forwarding your termination letter to us, goto the Sell Agency Listing page at www.napaausa.org and fill out the information you want included inyour ad. Important: Be sure to click “NAPAA Member– No Charge” before sending. We will post yourlisting for free.index to advertisersApplied Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5BGI Marketing Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Capital Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Crawford-Wilvon Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25E-chx, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43eBridge Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Find a Local Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Geeks on Call . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61Gerry Flores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22, 37Glass Doctor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Global Green Insurance Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45InsureMe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Massive RFG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14, 47Oakstreet Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55PPC Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Protection One . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Back CoverRhinotek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Smart Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Front CoverSpeedy Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45TelCentris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13TWFG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Back CoverWright Penning & Beamer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5362 — Exclusivefocus Summer 2009

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I N T R U S I O N F I R E V I D E O W I R E L E S SLooking to?? YOUR CLIENTS... CLIENTS... MORE MONEYBenefits to You Helps reduce frequency and severity of claims No selling required by you to earn extra money We are the only security company endorsed by NAPAAand are dedicated to serving AllState agentsENDORSED BYBenefits to Insured Allows for yearly discount on homeowner’s premium* Special security package helps mitigate damages fromlosses due to theft and fire Reduced claims keep annual renewal rates lowNational Association ofProfessional Allstate Agents, Inc.Want more information on how to Secure and Earn? Call 877.P1.Watch (877.719.2824)Visit www.ProtectionOne.com/NAPAA*Protection One not responsible for and does not guarantee any insurance discounts or reductions. Protection One services may not be available in all areas. ©2009 Protection One Alarm Monitoring, Inc. LICENSE NUMBERS: AL 533, 643, 744, 1018; AZ 07-524818-A, ROC190246;AR E97-122; CA 626615, 097592760, ACB-4570, ACB-4571, ACB-4572, ACB-4573, ACB-5039, ACB-5052, ACB-5054, ACB-5292, ACO-3717; CT 185782, 9259433-000; DE 1998200138, 97-54, CSRSL-0029; FL EF20000524; GA LVA205387; ID SC-21391; IL127-001000, 128-000113, 128-000115, 128-000151; IN 0800049913068; LA 9735523001, F-713; ME 1037011, MC60018702; MD 03230331, 107-1409; MI 5103229, 3601-205122, 3602-203841, A-0378, U-ME-0138751; MN TS00502; MS 15007478,15007925; MT 162, 299; NE 001-007929552; NV 1001200101, 0031668A, F-189; NJ 0095786, P01008; NM 58345, 08-0040; NY 931064579, 12000261120; NC 1285-CSA, 24466-SP-LV, BPN-001777P6; OH 50-25-0001, 50-31-0001, 50-18-0003,53-18-1493; OK 621; OR 34-428CLE, CCB-116325; PA 2783629; RI 9775, 93106457900; SC BAC5097, FAC3162; TN 638, 00000641, 00000642, 102623609, 102941604; TX 1-93-1064579-1, ACR1637, B08690; UT 330634-6501, E45638; VA 11-2533,2705-105226A; WA PROTEO022K2, PROTEOA033BP; WV 1052-6890; WI 600-0000181681-01; WY LV-A-17.