Ten Steps to Selecting Master Agents Ten Steps to Selecting Master Agents 1. Establish the key roles and responsibilities of master agents 2. Chose the selection criteria that will result in a group of master agents that can achieve the results specified in their roles and responsibilities 3. Chart the landscape of existing distribution channels, including layers within the value chain, levels of ownership, and areas of exclusivity 4. Graph potential players within the distribution channel landscape to required roles and network size to determine which have the most potential as master agents 5. Document the value proposition for each potential master agent, realizing that their motivations could vary widely Ten Steps to Selecting Master Agents 6. Map the financial infrastructure, seeking to understand the locations of bank branches and ATMs that can be leveraged for liquidity management 7. Based on the anchor product, target initial, secondary, and tertiary retail agent locations, as well as a strategy for rolling out the distribution network country-wide 8. Chart potential master agents locations against rollout strategy 9. Score the agents based on selection criteria, overlap with financial infrastructure, adherence to rollout strategy, and other key factors 10. Create a profile of highest ranking potential partners that can be used to prepare a sales presentation for them 1. Key Roles and Responsibilities for Master Agents Business Management Financial Planning Sales  Recruit new retail agents  Plan all aspects of business  Develop primary financial statements  Develop sales forecasts for  Meet with retail agents on a regular basis to understand  Perform financial forecasting their network their business  Reconcile electronic and cash  Motivate agents, and monitor  Track needs for additional movement at end of each day training, promotional progress against sales goals materials, other tools  Report results to MFSP Liquidity Management Training Compliance  Monitor retail agents  Ensure that retail agents have  Provide initial training on MFSP effectiveness in achieving sufficient electronic value on services their phones compliance with MFSP and  Encourage retail agents to  Set up system to provide and attend MFSP special training regulatory policies retrieve cash, as needed by sessions agents  Follow up on overdue or  Ensure retail agents are sufficiently trained outstanding documentation Refer to the Master Agent Responsibilities in Part 7 of the Toolkit for more details on these and other roles and responsibilities of Master Agents 2. Master Agent Selection Criteria Every MFSP will have a unique set of selection criteria that are used to assess and select Master Agents that are likely to include: • Regulatory Criteria • Business and Operational Criteria • Location, Location, Location • Sales and Marketing Criteria • Motivation Level Refer to the Master Agent Responsibilities in Part 7 of the Toolkit for more details on these and other roles and responsibilities of Master Agents 3. Chart the Distribution Landscape Identify companies, government agencies, and other organizations that move products, money, or services across the country. Be sure to understand the ownership structures across the value chain, which may be surprising. In Mozambique, commodities traders handle scratch card distribution for one of the biggest mobile operators in the country. In PNG, coffee moves money to 400,000 people. SIM cards and airtime FMCG Petrol Export companies Mobile Operators Manufacturers Petrol stations Wholesale buyers Airtime resellers Distributors Small refilling stops District level truckers Mobile phone shops Wholesalers Individuals with trucks Retail shops Owned Fully owned and managed by service provider Tied Not owned but business exclusively or strongly linked to service provider business Independent Independent 4. Graph Players to Identify Highest Potential Candidates Multiple Petrol FMGC Skills Manufacturer Companies Distribution Mobile Company Operators FMGC Wholesalers Match to critical roles and Airtime Export Distribution Companies Company responsibilities Petrol Wholesale Stations Buyers Retail Bank Shops Branches/ ATMS Post Mobile District Office Phone Shops Level Individuals Truckers with Few Trucks Skills Few Outlets Network Size Many Outlets Potential Master Agents and Potential Retail Agents can be targeted through a process that maps ability to perform the required roles against geographic reach 5. Document Value Propositions for Potential Agents Negative Neutral Positive Positive: will Export reduce cash- Companies Positive: way to be handling paid faster and increase security Mobile Very positive: will reduce Mobile Phone District Level Truckers Operators Shops churn Very negative: will replace airtime Airtime Neutral: will help reduce cash FMGC Wholesale top-up business Distribut handling but may be regarded as Wholesaler Buyers means by which exporters ors Positive: may reduce payment terms reduce time to Very positive: be paid will result in Post Office & Other Government Agencies new revenue Negative: seen by for channel employees as more work Positive: regarded as additional revenue Petrol source Petrol Company Station Neutral: Good Individuals opportunity for Retail Shops with Trucks Positive: Revenue earner + franchises, more work money changer to money for them changer remittance product Positive: Revenue earner + creates customer footfall Refer to the Master Agent Value Proposition in Part 8 of the Toolkit for additional insight into motivations for these companies or individuals 6. Map Bank Branches and ATM Networks Bank branches, ATM networks, and microfinance networks can be a vitally important part of the agent infrastructure. In addition to adding more cash-in/cash-out points, these locations can be utilized to manage liquidity more effectively. Integration of this network is particularly important in the early stages of network build-out. 3 23 4 3 Phnom Penh 76 7 7. Target Centers of Economic Activity If money transfer is not a key feature of the anchor products, then building capacity in capital cities and other economic centres could be a way to build the customer base quickly while minimizing the resources that are required to deploy a nationwide network prior to launch. Tourism Services, admin and manufacturing Port 7. Target Major Arteries If greater national reach is required, a popular strategy is to build agent infrastructure across the countries major traffic arteries. This is particularly effective if export and import networks are going to be leveraged because they send trucks across these routes on a regular basis. To Laos To Thailand 6 5 7 4 1 2 3 To Vietnam To port To Vietnam 7. Target Provincial and Population Centers When reach across the country is desired, focusing on major population centers within each province or district is mechanism to begin to reach into more remote areas. Selecting towns or villages to which people travel for marketing and purchasing purposes can increase the amount of traffic that could be driven to the agents. 7. Build in Concentric Rings The growth of the agent network needs to be tied to growth of the customer. Therefore, it is not possible to blanket all parts of the country simultaneously. Building out from central points, like the population and provincial centres just mentioned, in rings that push deeper into the countryside can be an effective way to balance numbers reached with resource constraints. 8. Chart Master Agent Locations Mobile Operators Export Companies Microfinance Institutions, Corporate FMG Companies Petrol Stations Level of integration FMCG Distributor Post Offices Tied business Bank Branches and ATMs District Level Truckers Wholesale Buyer Super Market FMGC Retail Shops Independent business Airtime Resellers Individuals with Trucks Urban Provincial Rural Geographical focus 9. Score Potential Partners Against Key Metrics FMGC Banks/ATMs Airtime Post Office Trucking Wholesalers Distributors Companies Match to Skills Business management Financial skills Sales acumen Access to liquidity Ability to train Selection Criteria No of years in business Trusted by locals Required capital Central location Value Proposition No of strong motivators Geographic Match Large number of outlets Overlay with rollout plan Urban and rural locations Close to banks and ATMs 10. Create Master Agent Profile Business description Suitability Main business types • Geographical distribution • Number of locations: • Urban/rural composition: Estimated monthly turnover • Match to MFSP rollout plan: • Proximity to bank branches: Estimated cash float • Brand perception • Brand/trust with customers • Educated staff • Security of premises Customer reach • Management • Sales experience • Number of customers: • Management experience • Types of customers: • Potential obstacles • Frequency of visits to network • Exclusive or semi-exclusive • Sees mobile money a threat • Financial value prop not clear Services to be offered • Not highly motivated • Customer registration • • Cash out • Merchant motivation • Cash in • Purchase • Provide additional revenue • Bill payment • Offer value added services • Airtime top-up • Increase customer footfall • Reduce cash balance