the producer
Expert
Why do most insurance marketing companies offer their agents trips and vacation instead of cash compensation?
Why Trips and Vacations -instead of Cash
- Thread starter the producer
- Start date
- 220
Probably because they buy in bulk and get it at a great price while agents are thinking that they spent twice as much as they actually did. (just a guess)
Many, many reasons. One on most of their trips that take you on, they are going to make you sit down in a room and listen to them about their company and products.
Another reason, 500 in cash cost them 500 bucks. A 500 vacation that you think is worth 500, might only cost them 300.
I've had a lot of fun on some vacations that the company paid for. I always try and win the contest and trips. I want to be seen with the other top agents there. It's like a bragging right.
- 1,802
It is the companies way of giving you something of inflated value to make you think they are paying you more.
Several years back, before I asked this very question and did something about it, I won a trip.
The trip was to Puerto Vallarta, Mexico and the accommodations consisted of being at the Grand Velas resort. this resort was very nice, seaside suite and all inclusive, even room service was included...........5 stars the whole way.
My wife and I were both very pleased until I got the 1099 for the trip. 17K for a 6 night getaway and airfare.
After doing some research on travelocity I found that I could have bought this trip myself for less than 12. What favors have they really done for you? It is the companies way of padding their deductions for the year. You and I both know that they got even a bigger group discount.
One final thought: Last year I won a premier partner status with Lincoln Financial. They sent me a very nice plaque for me to hang in my office, and then they had the audacity to send me a 1099 for that; almost 300 bucks. Needless to say I sent it back to them...................and had to file an explanation on my return.
- 307
One real answer to this is that agents and spouses look forward to the yearly get togethers. Also it is normally to an area of the world that we would not ever think of going.
We think we have found a good way to motivate agents. When we have an agent qualify for a major trip, my wife hands the spouse $400 for spending money. Takes the pressure off the agent having to spend his/her money for souvenirs, and gives the spouse his/her own money for the trip.
This also creates some interest by the spouse to make next year's trip.
- 924
One the other side...
Getting cash is, well, getting cash. No big deal.
Getting a trip is probably something that you won't go to the expense and trouble to do for yourself.
The trips are fun. Most of the time you know the other people.
All the planning and scheduling work is done by someone else. Just show up at the airport.
Yeah, there is the 1099.
Getting cash is, well, getting cash. No big deal.
Getting a trip is probably something that you won't go to the expense and trouble to do for yourself.
The trips are fun. Most of the time you know the other people.
All the planning and scheduling work is done by someone else. Just show up at the airport.
Yeah, there is the 1099.
- 14,809
They're fun.
Best meal of my life was when Conseco Life who I hate, sent me to Las Vegas and took me to this place where I ate a 5 course meal. Every course had about 10 things to pick from.Everytime you took a sip of one of your 4 drinks, they would refill it. White wine, red wine, water and then the drink you started with. I know the meal must have cost a couple of hundreds dollars for each person.
I will never forget the trip for as long as I live. Even though I hate the company that took me on the trip, I will always tell others about it.
I've been on some really great trips with companies.
My wife makes sure that I sell enough policies to go on a trip every year.
Only bad thing is I wish some of the companies will find out that not every agent plays golf.
I will never forget the trip for as long as I live. Even though I hate the company that took me on the trip, I will always tell others about it.
I've been on some really great trips with companies.
My wife makes sure that I sell enough policies to go on a trip every year.
Only bad thing is I wish some of the companies will find out that not every agent plays golf.
- 14,809
I've made some great friendships and valuable contacts on those trips. Cash to me is a "cold" gift - I get cash when I write deals. My wife and I got to eat dinner on the trading floor of the stock exchange - think I could do that on my own?
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- 10,276
I prefer cash.
But trips are nice. Our all-time favorite was the one at Martha's Vineyard in the 1990s. It was for P&C (Back in those days, I was writing 250-300 P&C policies per year).
Golden Rule is very easy to work with. About five years ago, I won a set of personalized Ping golf clubs. I don't golf (still playing tennis) so they were nice enough to give me $1500 in cash.
But trips are nice. Our all-time favorite was the one at Martha's Vineyard in the 1990s. It was for P&C (Back in those days, I was writing 250-300 P&C policies per year).
Golden Rule is very easy to work with. About five years ago, I won a set of personalized Ping golf clubs. I don't golf (still playing tennis) so they were nice enough to give me $1500 in cash.
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