1V12

2

Why choose Florida, Arizona and Illinois?

• They asked me…• In OKC we saw destiny now… but I thought we

might miss it • That the marketing strategy, the branding and

marketing communication approach had moved but unless the sales approach moved with it we would not make the most of our opportunities

3

We have been actively developing the brand from this…

4

to this…

5

We have never questioned the selling system.

despite of all that has been done, growth is not nearly what it should be

6

Our Product Has Wide Acceptance, We Have 1.4 Million Members…

Definitely Probably Maybe ProbablyNot

DefinitelyNot

Q: Do you want to buy what we

are selling?…yet we remain a long way from reaching our potential!

7

Maybe it’s time we adjusted the way we sell

• Observations on the direct selling industry

• Comparisons with mainstream commerce today

• Suggestions for modifying our approach

• The test results.

• Note… very little of what I am about to say is not supported by data

8

Consider every single direct selling company you have ever known. What happens?

Product-based• Invite friends to a party• Create a controlled social

environment• Do a great demonstration• Ask for the order

Service-based• Invite a guest to a meeting• Create a controlled social

environment• Do a great explanation• Ask for the order

9

What makes this model work?Product-based• Try before you buy• Fun / social interchange

Service-based• Full explanation before

you buy

• Great if you are an unknown product or brand (you get 30 minutes to pitch).

• Yet it is not completely comfortable• A sense of social obligation is created. (but our “you may or may not

be interested” positioning helps dilute this.)

• The sales pitch is controlled by the seller.• There is a feeling if you don’t close the sale they are gone.

10

Associate research indicates that many associates feel uncomfortable with the process

• They sense some pressure as a seller

• They feel like buyer is under a little pressure too

• This direct sales environment has not changed for 60 years…what has changed is the world around us

11

In a world where, increasingly, the customer is invited to serve themselves, we retain control.

Think about vacations, restaurant reservations, real estate, supermarket checkout, airline check-in.

12

Let’s consider what we thinka great customer experience feels like.• Amazon• Trader Joe’s• Netflix• Nordstrom• Publix

For whatever reason, prospects like to buy from these companies.

And people like to sell for them.

CBS list published June 2012

• Southwest Airlines• Apple• FedEx• Costco• UPS

13

Why do we like dealingwith Amazon?As customers, we want to control the experience

• I want to check it out myself

• I want it in my timeframe• And, I guess…‘I don’t

miss a sales assistant’

14

Yet we have Nordstrom,Apple and Publix in the Top 10

• Even with a salesman it has become more about customer service and less about selling

• Ask yourself, what would the following be like at Apple or Publix? • A three-way call• A luncheon• A business briefing

• How does the seller feel afterwards? I would suggest he always feels happy because…he either advanced a sale or made a sale.

15

Most new associates fear3 things:1. Fear of rejection

2. Not having the social skills to bring up the product naturally

3. Not having the product knowledge to answer customers’ questions

16

Where are these three fears in the 21st century?1. Does the Nordstrom assistant go home

feeling rejected?

2. Did the Apple assistant have the social skills to approach you?

3. Did the Publix assistant feel miserable because he did not know the ingredients of the soap powder?

17

So why do our Associatesfeel fear?Our current focus is on getting each prospect to a meeting or three way call ASAP.

• Sales lines• Techniques• Confidence builders

This does not come naturally to many associates, a feeling that can translate to their prospects. They see this as a personal failure

18

We seldom transfer to our Associates the real magic of the great sales people of LegalShield, who constantly and patiently build relationships.

19

Being Persuasive (Inc. magazine blog)

• Don't ask or argue… advocate (persistently)• Listen and be receptive… to objections (or agreement)• Be likeable and empathetic… wait for permission to

advocate• Value strong opinions and they will value yours• Give ground when you can• Learn to be quite after you have asked a closing question• Know when to back away, some sales are complicated and

require time. Nothing is more powerful than self persuasion.

20

What if we could make all that associate anxiety disappear?It would if we…

• Allow the Associate to engage naturally • Encourage the Associate to focus on building

relationships more than sales• Move patiently at the customer’s pace• Embrace the 21st Century selling environment…

(allow the prospect to control the experience, check it out for themselves, in their own time)

21

In OKC we took a small step for that could be a giant leap for direct selling

• Moving the company into a digital environment has created incredible opportunity

• Going to a meeting, while preferred, is no longer critical.

• Associates can take the time to establish a relationship

• Your business is conducted in a way that is completely expected, transparent and not in anyway forced…

22

23

Five principals that you have to embrace now about the new LegalShield!

1. You are never going to be rejected…ever.

2. Your prospect is unlikely to have any clue who you are or what you are selling and you need to be prepared for that reaction

3. When you are recruiting and you say ‘our company needs direct sellers’ you mean it more than anyone else.

4. When you show a video, people will want to know more, most of the time.

5. You have the option to sell in the real world and on line.

24

1. You are never going to be rejected…ever.

Definitely Probably Maybe ProbablyNot

DefinitelyNot

Q: Do you want to buy what we

are selling?

• You begin with a good chance of making a sale —50/50

• Your goal: How can I help them find out if it’s for them?

• Your time limit: As long as it takes.

25

2. Your prospect is unlikely to have any clue who you are or what you are selling and you need to be prepared for that reaction.

LegalShieldYes, but

could not name them

No

Q: Do you know anyone who

sells anything like this?

Credibility is an issue

Unknown Company• 94% have never heard of the

brand name

Unknown Product• 60% have never heard of a

service like this

Video is important• Credibility and explanation

26

3. When you are recruiting, and you say ‘our company needs direct sellers’ you mean it more than anyone else does

• No competing infrastructure visible to them

• There is no way that they will understand the product from competitors

• Unless you encourage them to watch the overview video they will never find the product

Don’t Know

Maybe

27

4. When you show a video, people will want to know more, most of the time

• They are liked…overall rating 84% and

89% (excellent/good, 4 point scale)

• They create interest in knowing more…

64% and 61% (definite/probably 5

point scale)

• We can put a ‘complete’ product

experience in a customer’s hands to be

viewed on their terms

28

Our Product Has Wide Acceptance, We Have 1.4 Million Members…

Definitely Probably Maybe ProbablyNot

DefinitelyNot

Q: Do you want to buy what we

are selling?…yet we remain a long way from reaching our potential!

29

4. When you show a video, people will want to know more, most of the time

• They are liked…overall rating 84% and

89% (excellent/good, 4 point scale)

• They create interest in knowing more…

64% and 61% (definite/probably 5

point scale)

• We can put a ‘complete’ product

experience in a customer’s hands to be

viewed on their terms

30

5. You have the option to sell in the real world and on line

In fact, we suggest it may be a more natural

selling process to work in the virtual world than the real world.

• Make contact

• Build rapport

• Sense if there is interest

• Hand off to technology

and follow up! (think Nordstrom; think Apple, think Trader Joe’s)

31

…on line is the new neighborhood

‘My generation uses twitter to ride share the way the way other generations used to share cups of sugar’

Heard on PBS on august 15th

32

If you are going to connect on line don’t leave a cup outside of every door, knock… and go away

33

Make each on line connection a personalized campaign• Don’t connect with too many—5 per day, max.

• Think carefully what you want to say.

• Customize it for them; why are you writing?

• Customize it for you; does it sound like you?

• Think about your follow up: what and when would it be something you would like to receive?

34

The danger and the opportunity.

The danger is that we will settle for small-percentage returns

• Mass techniques like mass (leafleting, e-blasting, text blasting, etc.) can only capture a few

• The prospect doesn’t know who or what you are!

And the brand will suffer!

• We don’t want to be competing with window washers, car washes, 10-minute lube, etc.

• We have a responsibility to keep the market open and preserve brand integrity for everyone

35

The danger and the opportunity.

The opportunity is far too big for us to mess it up for each other.

“No direct seller has principlesthree and five working in their favor like

LegalShield!”

• 3: “no competing infra-structure”

• 5: “as real communities get fragmented, virtual communities get stronger”

36

Does this mean the end of the LegalShield system as we know it? No… but we need to look at it from a customer’s point of view

‘It’s not what we want to say that’s important; it’s what they need to

hear! (I’m sure glad you asked that)’.

37

How important are the 3-way call, business briefing, luncheon, and Super Saturday?To a prospective member…Who wants to…

• Trust you• Explore the product• Have their questions answered

• Is it a reliable company?• Is it too good to be true?• Do I need it?

There’s no problem with traditional direct selling methods, if they are handled like 21st Century customer service

38

High tech meets high touch.“Think about your role at the beginning and the end”

Where do you prefer to get information?• 72% from the insurer’s website• 61% by asking friends and family• 55% from exclusive agents’ website or comparison sites

Where do you prefer to obtain a quote?• 43% website• 26% via phone • 26% in person

Where do you prefer to set up and pay?• 76% with an agent• 58% via web (this may be a subset of the 76%)

Source: Accenture study on auto and home insurance

39

How important are the 3-way call, business briefing, luncheon, and Super Saturday? CriticalTo a prospective associate…who wants to…

• Share the product• Enjoy the social opportunity• Gain recognition• Develop themselves• Create independent income• Build a career

Social contact is a critical prerequisite for recruiting

40Focus: Florida, Phoenix & Illinois test markets

41

The objectives were happiness, fulfillmentand productivity…and don’t get them out of order

42

The test was a 5 part play

1. We eliminated fear of rejection by setting realistic expectations

2. We eliminated fear of inadequate product knowledge by explaining the videos

3. We reduced fear of social interaction by providing a 3 hour training

4. We asked participants to document activity (initiating and following up)

5. We asked participants to form teams (for initial learning and support)

43

1. We eliminated fear of rejection by setting realistic expectations

“Help each prospect find out where they are today.” (50/50)

Definitely Probably Maybe ProbablyNot

DefinitelyNot

44

2. We eliminated fear of inadequate product knowledge by explaining the 5 videos

“Have at least enough knowledge to understand what each video does.”

45

a. Intro to LegalShield video (two minutes)

Answers: “Can I havea quick overview?”• It’s a real company• The unique

service model• The scope of the service• The benefit to you

46

b. About Us video (three minutes)

Answers: “I’ve never heard of the company.”• We are a real company,

with history, scale, and stability.

47

c. Provider System video(four minutes)

Answers: “It’s too good to be true.”• Why the paid-in-advance

provider network creates• Quality service• Quality lawyers• Very affordable plans

48

d. Membership video (4 minutes)

Answers:“I don’t need an attorney.”• We provide attorney services

when you need an attorney

• We provide attorneyservices when an attorney’s advice would be useful

• We provide knowledge thatyou have access to anattorney if you need it

49

e. Opportunity video (4 minutes)

Answers: “Why would I want to be recruited?”• It’s fulfilling to sell a

great product• I have made friends • I have developed personally• I have my own business• I have a career

50

3. We reduced fear of social interaction by providing a Three-hour training

Patrick’s training covers:• Success Triangle• Contact Management• Contemporary Communication• Social Selling Skills

51

4. We asked participants to document activity

Where they were with each prospect

Report in weekly and complete a questionnaire at the end of the 6 weeks

52

5. We asked participants to form teams (for initial learning and support)

a. Workout partner…Daily (or as much as you like)

b. Team of 6…Weekly

c. Regional calls…Weekly

53

Focus Florida, Arizona, Illinois

Topline Results

July 2013

Study #20130261

54

MethodologyStudy Design And SamplingThis survey was conducted over the Internet among LegalShield Associates who attended the Florida, Arizona, or Illinois Focus Presentation or Training in May 2013.

LegalShield invited these Associates by email to participate in the survey hosted on Decision Analyst’s DAISurvey™ website.

A total of 200 surveys were completed, as follows:• Florida: 91• Arizona: 64• Illinois: 45

Dates Of Data CollectionStart End

July 16, 2013 July 25, 2013

55

Alan Fearnley's new sales strategy presentation

Patrick Hodges' new sales strategy training

LegalShield's new sales strategy overall

Social Media Starter Kit

79%

82%

76%

38%

21%

17%

21%

40% 17% 5%

Excellent Good Fair Poor

Overall Ratings

56

Goal FulfillmentTo eliminate fears related to lack of product knowledge

To reduce fear of meeting and interacting with new people

To keep a record of new contacts and new prospectsTo keep a record of follow-up activities to these new con-

tacts and new prospectsTo eliminate the fear of rejection

To make Associates happy

To make Associates productive

To form small teams for weekly learning and support

To have a Workout Partner for daily learning and support

To make Associates fulfilled

66%

64%

61%

57%

52%

50%

46%

44%

38%

38%

34%

35%

39%

41%

46%

44%

48%

36%

40%

52%

6%

7%

21%

22%

10%

Fully Achieved Partially Achieved Not Achieved

57

Appeal Of Sales Strategy ElementsStop thinking rejection—start thinking customer service

Constantly and patiently build and expand your networks of contacts and prospects

Follow-up is one of the keys to success

Have enough product knowledge to understand the LegalShield videos

Move patiently at the prospect's pace—don’t rush or try to force a sale

Avoid e-blasting and mass mailing of leaflets or flyers

Don’t try to explain or sell the service yourself—let LegalShield’s videos explain the service

Associates must operate in the real world and the virtual world

Say something—prospects will never know about LegalShield unless you tell them

Confer with your Team at least one a week

Create a file on each prospect

Record sales activities and track prospects

Use email to reach out to prospects

Use email to remind and follow up with prospects

Email templates are provided by LegalShield as guidelines

Touch base daily with your Workout Partner

Use social media as a sales outreach tool

98%

95%

94%

94%

90%

89%

85%

81%

81%

74%

73%

70%

66%

66%

64%

63%

60%

5%

6%

6%

9%

6%

14%

18%

16%

21%

23%

26%

30%

26%

34%

30%

30%

5%

5%

5%

4%

4%

8%

7%

10%

Very Appealing Somewhat Appealing Not Appealing

58

Strategy Elements Recalled From Presentation or Training

Move patiently at the prospect's pace—don’t rush or try to force a saleRecord sales activities and track prospects

Stop thinking rejection—start thinking customer serviceDon’t try to explain or sell the service yourself—let LegalShield’s videos explain the service

Follow-up is one of the keys to successAvoid e-blasting and mass mailing of leaflets or flyers

Constantly and patiently build and expand your networks of contacts and prospectsCreate a file on each prospect

Associates must operate in the real world and the virtual worldUse social media as a sales outreach tool

Confer with your Team at least one a weekTouch base daily with your Workout Partner

Have enough product knowledge to understand the LegalShield videosUse email to reach out to prospects

Say something—prospects will never know about LegalShield unless you tell themEmail templates are provided by LegalShield as guidelines

Use email to remind and follow up with prospects

98%97%96%

95%95%95%95%95%

93%90%

89%86%

78%77%

75%69%

67%

59

Adopted Sales Strategy ElementsStop thinking rejection—start thinking customer service

Move patiently at the prospect's pace—don’t rush or try to force a sale

Follow-up is one of the keys to success

Have enough product knowledge to understand the LegalShield videos

Constantly and patiently build and expand your networks of contacts and prospects

Don’t try to explain or sell the service yourself—let LegalShield’s videos explain the service

Avoid e-blasting and mass mailing of leaflets or flyers

Say something—prospects will never know about LegalShield unless you tell them

Associates must operate in the real world and the virtual world

Create a file on each prospect

Use email to reach out to prospects

Use email to remind and follow up with prospects

Record sales activities and track prospects

Use social media as a sales outreach tool

Confer with your Team at least one a week

Touch base daily with your Workout Partner

Email templates are provided by LegalShield as guidelines

94%

93%

92%

91%

90%

86%

85%

81%

80%

72%

70%

64%

63%

62%

56%

39%

34%

60

Total

Florida

Arizona

Illinois*

43%

35%

47%

53%

Social Media And Social Media Starter Kit

% Who Used Social Media As Sales Outreach Tool

Before Mid-May

Series1 85%

85%

89%

80%

% Who ReceivedSocial Media Starter Kit

Series1 61%

68%

47%

67%

% Who Implemented Any Element Of

Social Media Starter Kit

61

Extra Memberships Sold As Result Of New Sales Strategy

Extra Memberships Sold Over Past Two Months(Average: 1.7 Extra Memberships)

None, no extra memberships

One extra membership

Two extra memberships

Three extra memberships

Four extra memberships

Five extra memberships

Six extra memberships

Seven extra memberships

Eight extra memberships

Nine extra memberships

Ten or more extra memberships

37%

20%

16%

12%

7%

3%

2%

2%

2%

0%

1%

Extra Memberships Expected To SellOver Next 12 Months

(Average: 8.7 Extra Memberships)

None, no extra memberships

One extra membership

Two extra memberships

Three extra memberships

Four extra memberships

Five extra memberships

Six extra memberships

Seven extra memberships

Eight extra memberships

Nine extra memberships

Ten or more extra memberships

4%

2%

0%

2%

1%

8%

4%

2%

2%

1%

76%

62

Florida

41334 2 3 4 41369 6 7 8 41403 10 11 12 13 41439 15 16 17 414730

50

100

150

200

250

300

350

11 12 13 41439 15 16 17 414730

50

100

150

200

250

300

350

4 month membership sales indexed from march 1 Membership sales indexed test period only

63

11 12 13 41439 15 16 17 414730

20

40

60

80

100

120

140

160

180

200

41334 2 3 4 41369 6 7 8 41403 10 11 12 13 41439 15 16 17 414730

20

40

60

80

100

120

140

160

180

200

Illinois

4 month membership sales indexed from march 1 Membership sales indexed test period only

64

Arizona Group – memberships per week

41334 2 3 441369 6 7 8

41403 10 11 12 1341439 15 16 17

41473 19 20 2141508

0

50

100

150

200

250

0

50

100

150

200

250

AZ MembershipNatl. Trend

Test starts Test officially ends

4 weeks post test(still 50% up on national)

65

60/60 fast start pilot

• Objective • Allow new associates time to build

relationships• Encourage activity early on• Get the ‘raving fans who were motivated to

pay $149’ paid, promoted, engaged and their money back

66

60/60 fast start pilot

• Enrollment fee $149• Go to basic training• 30 days to make a sale (or sale and recruit)• We give you back $89. ($60 net fee)• Additional 30 days (60 days in total) to fast start

qualify• No up line bonus but, if recruiting, engagement and

fast start qualifiers double… everyone will be good

File v8 – 21st century direct selling