This isn't really news, the challenge has been in the trade for a very long time. I'm referring to the challenging situation that owners and managers find themselves in when it comes to suppliers offering agency frontline a multitude of perks in order to attract the business to their brand. I'm hearing that it's a challenge on both sides of the trade - with each supplier trying to best the other's incentive. It used to be that the owner and the manager set the rules of engagement when it came to who sold what and who earned what and all supplier perks were the "property" of the agency - well, actually any and all perks are the property of the agency owner. The reason for this is simple. It is the agency owner who finances the business and therefore all financial offerings, returns and perks are in fact the property of that owner.

Of course it might take a strong character to stand up to a stronger character in the shape of a top sales person who challenges back with "I sold it so I get it" - and that's fine IF it works for the good of the company. The problem is when a supplier's perk or offering seduces the frontline into selling away from the current preferred supplier agreements and against specific policies and procedures the agency has established. There are some owners who do not tolerate such goings on - which can be deemed as subversive and toxic to the stability of the agencies finances and supplier relations.  

So where are you on this issue? Do you have a strategy in place that funnels all perks to you the owner / manager and you dispense the cash, fams, gadgets etc., according to what you feel will further your business? Or do your staff run the agency and tell you how it's going to be? The next question is this: do you have an internal incentive strategy that you control and manage and a strategy that causes your team to stretch both in education, knowledge, performance and sales? 

FAM trips for instance should be used to enhance the knowledge of the destinations and products that your agency is known for and support your niche sales. When one of your frontline accepts a perk'ed FAM and disappears for 7 days to a place that they will never sell, a few things have happened: 1) your soft and hard costs ranged between $3,000 and $7,500, 2) time, money and energy were wasted on the wrong destination / product, 3) the rest of the team were stressed out, 4) there will be no ROI on your investment... and 5) the supplier who awarded the FAM will not experience an ROI either!  Here's the thing: when someone on your team takes a FAM to a destination that is not in your strategic plan - it's called (and always has been) a vacation. 

It's a good idea to practice Team Work and build that well worn term into something meaningful. It needs some soul. All perks are the property of the agency. Gadgets such as iPads also belong to the agency and it is you the owner who should use those gadgets as internal incentive prizes for when your team achieves what the agency has set for goals and performance standards / benchmarks. Start preaching that everyone works for the common good of 'The Agency' and from that core business all things eminate... such as jobs. 

Is it time to take control of the perks? Have you discussed the issue with your preferred suppliers? If on the other hand you have let this run wild then you are in for a battle - however, from here on, make sure the rules are written into the employment handbook, discussed in the hiring session as one of the hiring requirements right alongside with the expectation of prospecting and most certainly alongside the statement that with 99% of agency clients are expected to be prsold travel insurance.

Need help? Let me know.
Steve Crowhurst, CTC, NBG
250-752-0106
steve@smptraining.com 

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