Hi ,
Business is great and Incentive Research Foundation stats suggest industry-wide YTD incentive annual budgets are increasing at 40+%. If this is the best incentive business environment I have experienced in my 35+ years in the industry, then why has there been a recent rash of incentive company bankruptcies and failed IPO’s due to poor balance sheets?
Answer: Poor Management and Technology
Companies that did not take the “recession” downtime to reinvent themselves and provide a better incentive product for corporate incentive sponsors, can no longer compete! Think about it: most incentive companies are doing business the same way they were before the iPhone was introduced in 2007! Your business has changed, so why have incentive companies not adapted to accommodate that? Hoping that all boats rise with the economic tide is simply not enough. Those incentive companies that took client deposits, did not accrue for the liabilities, lived off that “accounting” revenue but did not provide the new level of "value" technology and engagement that the current, educated incentive customer expects, will eventually pay for their sins.
You Have the Right to Know Your Incentive Suppliers Accounting Practices!
At Incentive Solutions, we have been voted “Best & Brightest” 3 years in a row and have a perfect BBB score. We are totally debt-free, accrue 100% of client liabilities, escrow deposit monies and, most important, we share our financials and profits with our employees. Can your supplier claim that?
- Why Is This Important for You?
After 20+ years in the business, we have never “bounced” a check, have $5 million liability policy, an unused $1 million credit line, and have average employee tenure of 4x the industry average. Net effect: the company and the account manager that you have become dependent on will be there when you need us! Perhaps that is why our certified “Net Promoter Score” is higher than Costco or Chick-fil-A.
- Ask Your Incentive Supplier:
- Are they mobile optimized?
- What technology advances have they made?
- How are client liabilities accrued?
- When is revenue recognized?
- Are deposits comingled?
- What debts are on the audited financial balance sheet?
- Are they insured against items such as cyber fraud?
Incentive providers cannot survive without a profit and cash flow, but they should not rely on client deposits for operating income. In my view, “economic Darwinism” necessitates that the incentive firms that have not upgraded their product offering will eventually fail.
Don’t get caught unprepared. Contact me at 678-514-0203 or visit our website and we would be happy to give you a free incentive program evaluation and recommend how to improve your marketing ROI.
Good selling,
Steve Damerow
CEO
404.444.4281
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