How to Make Money How to Make Money With Premiums, With Premiums, Incentives and Incentives and

RecognitionRecognition

How to Make Money How to Make Money With Premiums, With Premiums, Incentives and Incentives and

RecognitionRecognition

Distributor Day at the Motivation ShowDistributor Day at the Motivation Show

Thursday, October 6, 2011Thursday, October 6, 2011Distributor Day at the Motivation ShowDistributor Day at the Motivation Show

Thursday, October 6, 2011Thursday, October 6, 2011Presented byPresented by

Paul A Kiewiet MAS CIP CPCPaul A Kiewiet MAS CIP CPC

PremiumsPremiumsPremiumsPremiums

[pree-mee-uhm] [pree-mee-uhm] nounnoun

1. a prize, bonus, or award given as an inducement, as to purchase products, enter competitions initiated by business interests, etc.

2.a bonus, gift, or sum additional to price, wages, interest, or the like.

IncentivesIncentivesIncentivesIncentives

in·cen·tive

   [in-sen-tiv] noun

1. something that incites or tends to incite to action or greater effort, as a reward offered for increased productivity.

RecognitionRecognitionRecognitionRecognitionrec·og·ni·tion[rek-uhg-nish-uhn] [rek-uhg-nish-uhn] nounnoun

1.an act of recognizing  or the state of being recognized.

2.the identification of something as having been previously seen, heard, known, etc.

3.the perception of something as existing or true; realization.

4.the acknowledgment of something as valid or as entitled to consideration: the recognition of a claim.

5.the acknowledgment of achievement, service, merit, etc.

Learning Objectives

✤ Why sell premiums, incentives and recognition?

✤ What are the opportunities?

✤ Who are the buyers?

✤ Where do I find the resources?

✤ How can I make money at it?

✤ What do I need to know?

Be DifferentBe DifferentBe DifferentBe Different

Be RelevantBe RelevantBe RelevantBe Relevant

MoneyMoneyMoneyMoney

Your Clients Are Buying Your Clients Are Buying ThemThem

Your Clients Are Buying Your Clients Are Buying ThemThem

ProfessionalismProfessionalismProfessionalismProfessionalism

Value PropositionValue PropositionValue PropositionValue Proposition

One Stop SolutionOne Stop SolutionOne Stop SolutionOne Stop SolutionIf you can’t solve the problem, they can find someone else who canIf you can’t solve the problem, they can find someone else who canIf you can’t solve the problem, they can find someone else who canIf you can’t solve the problem, they can find someone else who can

Open New MarketsOpen New MarketsOpen New MarketsOpen New Markets

Opportunities

✤ Employee Incentives

✤ Sales Incentives

✤ Dealer Distribution

✤ Customer Service Programs

✤ Consumer Promotions

Employee Employee EngagemeEngageme

ntnt

Employee Employee EngagemeEngageme

ntnt

Increase PerformanceIncrease Performance

SatisfactionSatisfaction

RetentionRetention

Improve CultureImprove Culture

Increase PerformanceIncrease Performance

SatisfactionSatisfaction

RetentionRetention

Improve CultureImprove Culture

EmployeeEmployeeEmployeeEmployee

SafetySafety

WellnessWellness

Length of ServiceLength of Service

AttendanceAttendance

ProductivityProductivity

QualityQuality

SalesSalesIncentiveIncentive

ss

SalesSalesIncentiveIncentive

ss

MotivateMotivate

TrainTrain

ActivateActivate

AccelerateAccelerate

MotivateMotivate

TrainTrain

ActivateActivate

AccelerateAccelerate

SalesSalesSalesSales

New customersNew customers

Sales increaseSales increase

New product introNew product intro

ReferralsReferrals

ReactivateReactivate

Calls and follow-upCalls and follow-up

DistributioDistributionn

DistributioDistributionn

FeaturesFeatures

DisplaysDisplays

Preferred PositioningPreferred Positioning

PartnershipPartnership

FeaturesFeatures

DisplaysDisplays

Preferred PositioningPreferred Positioning

PartnershipPartnership

Channel PartnersChannel Partners(Dealers, Distributors)(Dealers, Distributors)

Channel PartnersChannel Partners(Dealers, Distributors)(Dealers, Distributors)

Dealer LoaderDealer Loader

Display EnhancerDisplay Enhancer

Co-op Advertising Co-op Advertising SpecialtiesSpecialties

ConsumeConsumer r

PromotioPromotionn

ConsumeConsumer r

PromotioPromotionn

Generate TrialGenerate Trial

Stimulate ContinuityStimulate Continuity

LoadingLoading

Display FeaturesDisplay Features

Generate TrialGenerate Trial

Stimulate ContinuityStimulate Continuity

LoadingLoading

Display FeaturesDisplay Features

Consumer Sales Consumer Sales PromotionPromotion

Consumer Sales Consumer Sales PromotionPromotion

In-pack, on-pack, In-pack, on-pack, near-packnear-pack

Sweepstakes or Sweepstakes or ContestContest

Free or Self-Free or Self-Liquidating Mail-Liquidating Mail-insins

Who Are the Who Are the Buyers?Buyers?

Who Are the Who Are the Buyers?Buyers?

Human ResourcesHuman ResourcesHuman ResourcesHuman Resources

Employee Employee EngagementEngagement

Employee Employee EnrichmentEnrichment

Recruiting, Referring Recruiting, Referring and Retentionand Retention

On-boarding and On-boarding and TrainingTraining

WellnessWellness

Sales ManagementSales ManagementSales ManagementSales Management

Incremental sales Incremental sales pay for the pay for the program.program.

No results means No results means No Costs.No Costs.

New skills and New skills and habits continue to habits continue to pay off after the pay off after the program ends.program ends.

Customer ServiceCustomer ServiceCustomer ServiceCustomer Service

Retaining 5% more Retaining 5% more results in 90% results in 90% higher profitshigher profits

It costs 10 times It costs 10 times more to acquire more to acquire new customersnew customers

Instill better habitsInstill better habits

Create great Create great cultureculture

Marketing, PR, Marketing, PR, CommunicationsCommunicationsMarketing, PR, Marketing, PR,

CommunicationsCommunicationsEngaging Engaging CustomersCustomers

Building BrandsBuilding Brands

Corporate Social Corporate Social ResponsibilityResponsibility

Shareholder Shareholder RelationsRelations

Media RelationsMedia Relations

Information Technology,Information Technology,Research & DevelopmentResearch & DevelopmentInformation Technology,Information Technology,

Research & DevelopmentResearch & Development

EfficiencyEfficiency

SuggestionsSuggestions

BreakthroughsBreakthroughs

New Product New Product DevelopmentDevelopment

Cost SavingsCost Savings

Production, Engineering,Production, Engineering,Operations and FinanceOperations and FinanceProduction, Engineering,Production, Engineering,Operations and FinanceOperations and Finance

Suggestion / Idea Suggestion / Idea ProgramsPrograms

EfficiencyEfficiency

Increased Increased ProductionProduction

Reduced CostsReduced Costs

SafetySafetySafetySafety

Workplace injury Workplace injury costs exceeded the costs exceeded the combined profits of combined profits of the Fortune 10the Fortune 10

2009 = $225.8 2009 = $225.8 BillionBillion

$1,685 per employee$1,685 per employee

Reducing accidents Reducing accidents reduces insurance reduces insurance costs too.costs too.

C-SuiteC-SuiteC-SuiteC-Suite

Theory and ExecutionTheory and Execution

Need strategic Need strategic partnerspartners

Identify Business Identify Business IssuesIssues

Sell Solutions and Sell Solutions and Program ResultsProgram Results

Nobody has a Nobody has a Premium or Product Premium or Product Problem.Problem.

Who Are Who Are You You

Selling?Selling?

Who Are Who Are You You

Selling?Selling?

Demand FulfillmentDemand Fulfillment

vsvs

Demand CreationDemand Creation

Demand FulfillmentDemand Fulfillment

vsvs

Demand CreationDemand Creation

Operations and Operations and AdminsAdmins

Operations and Operations and AdminsAdmins

Focus on pricingFocus on pricing

Economy of scale Economy of scale and efficiencyand efficiency

Vendor on demandVendor on demand

Control costsControl costs

Fix problemsFix problems

ConsolidationConsolidation

Line ManagementLine ManagementLine ManagementLine Management

Time and price Time and price orientationorientation

Product focusedProduct focused

Implement strategyImplement strategy

Implement budgetImplement budget

Discuss productsDiscuss products

Identify cost cuttingIdentify cost cutting

Senior ManagementSenior ManagementSenior ManagementSenior Management

Identify new Identify new corporate strategiescorporate strategies

Assign resourcesAssign resources

Build and distribute Build and distribute budgetsbudgets

Can shuffle Can shuffle programsprograms

PrioritizePrioritize

CEOCEOCEOCEO

Identify business Identify business problemsproblems

Identify business Identify business opportunitiesopportunities

Create ValueCreate Value

Create VisionCreate Vision

Focus on legacyFocus on legacy

The Case for The Case for IncentivesIncentives

The Case for The Case for IncentivesIncentives

Return on Return on InvestmentInvestment

Paid for from Paid for from ResultsResults

Saves moneySaves money

Makes moneyMakes money

Builds EngagementBuilds Engagement

Builds CultureBuilds Culture

Engagement ResultsEngagement ResultsEngagement ResultsEngagement Results

16% more profitable16% more profitable

18% more 18% more productiveproductive

>2 1/2 X higher >2 1/2 X higher growthgrowth

37% less 37% less absenteeismabsenteeism

60% less quality 60% less quality defectsdefects

Results!Results!Results!Results!

51% less employee 51% less employee thefttheft

12% better with 12% better with customerscustomers

62% less likely to 62% less likely to have an accidenthave an accident

31% - 51% less 31% - 51% less likely to leave the likely to leave the organizationorganization

Where do I find the Where do I find the Resources?Resources?

Where do I find the Where do I find the Resources?Resources?

How can I make money How can I make money at it?at it?

How can I make money How can I make money at it?at it?

BundlingBundlingBundlingBundling

Add a high margin Add a high margin product to a low product to a low margin product.margin product.

Gift card in a walletGift card in a wallet

iPad case with iPadiPad case with iPad

Value-added Value-added services such as services such as data capture, gift data capture, gift wrapping, shippingwrapping, shipping

Creative and Project Creative and Project ManagementManagement

Creative and Project Creative and Project ManagementManagement

Charge for creating Charge for creating the theme, copy, the theme, copy, artwork, collateralartwork, collateral

Charge for Charge for managing the managing the project project

Charge for Charge for reporting and reporting and analysisanalysis

Collateral SalesCollateral SalesCollateral SalesCollateral Sales

Website designWebsite design

Brochure designBrochure design

Promotional Promotional Products Products campaigncampaign

Point of purchasePoint of purchase

Posters and Posters and BannersBanners

LoyaltyLoyaltyLoyaltyLoyalty

RelevanceRelevance

DifferentiationDifferentiation

IndispensableIndispensable

TrustTrust

TeamTeam

TransparencyTransparency

VolumeVolumeVolumeVolume

1000 pens @ 1000 pens @ $1.00 each (P) $1.00 each (P)

2 Watches @ 2 Watches @ $1000.00 each (R)$1000.00 each (R)

Average order sizeAverage order size

What do I need to What do I need to know?know?

What do I need to What do I need to know?know?

The Channel is The Channel is DifferentDifferent

The Channel is The Channel is DifferentDifferent

Different HistoryDifferent History

Retail v. EventRetail v. Event

AspirationAspiration

Program Program OrientationOrientation

MarginsMargins

Multiple ResellersMultiple Resellers

You Cannot Sell On You Cannot Sell On PricePrice

You Cannot Sell On You Cannot Sell On PricePrice

You must sell on ValueYou must sell on Value

You cannot compete You cannot compete with Wal-Mart (or Best with Wal-Mart (or Best Buy, or Amazon, or Buy, or Amazon, or anyone else who buys anyone else who buys by the truckload).by the truckload).

Service, Results, Service, Results, Convenience, Convenience, ConfidenceConfidence

Lower Your Lower Your ExpectationsExpectationsLower Your Lower Your

ExpectationsExpectationsUrgencyUrgency

CustomizationCustomization

Out of stocks, Out of stocks, changing models, changing models, seasonalityseasonality

Product literature, Product literature, websites may not be websites may not be distributor-friendly. distributor-friendly. Be prepared.Be prepared.

Don’t AssumeDon’t AssumeDon’t AssumeDon’t Assume

Blind shipping labelsBlind shipping labels

No Packing SlipsNo Packing Slips

AnythingAnything

If possible, offer If possible, offer your client special your client special packaging services packaging services or gift wrapping so or gift wrapping so that you can inspect that you can inspect and re-pack.and re-pack.

Choose Your Choose Your PartnersPartners

Choose Your Choose Your PartnersPartners

Your Premium Your Premium RepsReps

Incentive HousesIncentive Houses

PP Channel PP Channel CommittedCommitted

Open Open CommunicationCommunication

Keep it LegalKeep it LegalKeep it LegalKeep it Legal

Use of the word Use of the word “Free”“Free”

Sweepstakes, Sweepstakes, Contests and Contests and Games of ChanceGames of Chance

Tax ConsequencesTax Consequences

Discover New Worlds of Profit, Discover New Worlds of Profit, Relevance, Creativity, and MeaningRelevance, Creativity, and Meaning

Discover New Worlds of Profit, Discover New Worlds of Profit, Relevance, Creativity, and MeaningRelevance, Creativity, and Meaning

Thank You!Thank You!Thank You!Thank You!Paul Kiewiet MAS 269-806-4489 Paul Kiewiet MAS 269-806-4489 paul@brandkiwi.compaul@brandkiwi.comPaul Kiewiet MAS 269-806-4489 Paul Kiewiet MAS 269-806-4489 paul@brandkiwi.compaul@brandkiwi.com

www.create2bgreat.comwww.create2bgreat.com