Insurance Agent Forum

[the producer]

Why do most insurance marketing companies offer their agents trips and vacation instead of cash compensation?

[warnerins]

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)

[Markingriffin]

Originally Posted by the producer

Why do most insurance marketing companies offer their agents trips and vacation instead of cash compensation?

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.

[insuranceexec]

Originally Posted by the producer

Why do most insurance marketing companies offer their agents trips and vacation instead of cash compensation?

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.

[Joe Moore]

Originally Posted by the producer

Why do most insurance marketing companies offer their agents trips and vacation instead of cash compensation?

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.

[Charpress]

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.

[healthagent]

They're fun.

[Markingriffin]

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.

[healthagent]

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?

[CHUMPS FROM OXFORD]

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.

[SportsNut]

The the clarity and motivation that comes from striving for a visual goal of a quality world class trip is far greater for most than the motivation to go out and make another $ 2500...

It is far easier for a company to bang the drum of a well advertised trip and that of offering say a 1% higher comm.

Not having been in the business for many years, and back when I was, the core business was investment driven, not insurance. However I did qualify for a few trips back 20 yrs ago and longer, and I can still vividly remember something about each one of them... I'm quite sure I couldn't say that about the extra bonus dollars, had they been paid in lieu of the trips.

My wife gets quite interested in knowing about what trips are being offered. It is to the point that if a product that I have little interest in selling, but a nice trip offered, that info is NOT passed along to her. No sense in having to explain and re-explain to her why I am not offering that product. You see, she is highly driven by the oppty to travel, and she will make certain that I am motivated to sell the product offering the nicest trip, if it was totally up to her... The offering of a trip in lieu of cash is highly effective with her, and in turn me, once she is aware.

This all goes back to basic goal setting... the idea of ensconcing a photo of the new mercedes you wish to buy; (or today the Prius Hybrid).... or the new Rolex.... or the pic of the trip destination... or the photo of you when you were thinner, or whatever the goal... make it visual and affirm that you will achieve that goal, at X time, and the roadmap of doing so... hence, the trip and the pretty color brochure, in detail.

[Jacob59]

Originally Posted by insuranceexec

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.

I agree. When I was a captive agent I qualified for six trips to Hawaii with my wife. Got a 1099 for all of them. Only benefit was they let me keep the Delta miles and used those for other trips to South America to visit in-laws. I think for new agents it's a nice deal and a good boost building renewals, but after 3-4 trips I would prefer the cash and do what I want with the money. Must admit, Hawaii is AWESOME!!

[CHUMPS FROM OXFORD]

I hate to say it, but cash seems to motivate me more than trips etc...


Spellcheck was used with this post.

[Peelerinsurance.com]

Originally Posted by healthagent

My wife and I got to eat dinner on the trading floor of the stock exchange - think I could do that on my own?

Screw the trips. My wife is from Sweden so I'm over there twice a year. Sick of traveling.

It's all about the cashola.... show me the money!

John, you could do the wall st thing on your own, I did... but I'm married to a wall st. investment banker.... so, just get a divorce and i'll hook you up with her single nyc friends..lol

[Newby]

The trips have worked well for me and definitely for my wife. If you have a good year you already have plenty of cash but the trips allow you to take a break AND meet other people from all over the country that do exactly the same thing you do. I've made great connections on the company trips.

I've won cash bonuses too...I don't remember where the money went. The trips you never forget.

I do remember one cash bonus. One year Forethought had a contest that gave us pre-loaded Master Cards with $500 on them. One of my co-workers made a small purchase and checked their balance and they still had almost $1,500 credit. The rest of us checked ours and they all had $1,500 so we all went out and spent the money real quick (don't feel bad for ForeThought, they made millions and millions off of us.) ForeThought figured out the error the next week but told us to all keep it as it was their mistake. Great company.

[SayBob]

Trips can provide all types of new opportunties

[Frank Stastny]

For most people even though they will not admit it, Chumps excluded, money is not as great a motivator as earning/winning something. It elevates one to a higher level than the average agent. One that the company points to as an agent to be admired and emulated.

It puts that agent, publicly, in a very elite group. Pictures in the company magazine for all others to see. Pictures of the agent participating in activities that say "this person is someone special".

And, as several of you have mentioned, don't forget the agent's wife. Most likely she not only wants to go on the trip but delights in telling others how successful her husband is. Her husband winning a trip for exceptional production also elevates her to a higher status in certain circles.

Insurance agents can talk all day about how much premium they write and how much money they make but when the company acknowledges that publicly it confirms that agent as a top producer. It is a huge ego boost for most people, me included.

Insurance companies use the trips to motivate the "minions" to reach for higher goals in production, not just to reward the top producing agents.

After all that, I will say that the trips that I have won to Europe and elsewhere were very nice but the trips Jacqueline and I have taken on our own to some of the same places were a lot more fun.

Who wants to spend a "vacation" with a bunch of insurance agents?

[healthagent]

So your team just won the championship? Why give a trophy - figure out the cost of the trophy and split it between the team.

And that's why they have trips.

Also, with the internet we have way too many keyboard warriors. It's nice to be around a group of agents who actually write business.

[ABC]

I am seeing less trips being offered by the health carriers.

One of my last carriers that offered those kinds of trips has decided to do a way with it and offer a great bonus program with a much higher tiered commission structure.

I would rather get that fat bonus check in the 1st quarter. There is something about a 5 figure bonus check that just makes me smile.

[moonlightandmargaritas]

Originally Posted by healthagent

So your team just won the championship? Why give a trophy - figure out the cost of the trophy and split it between the team.

I have about three good sized boxes filled with plaques gathering dust. Wish I had the cash...