It’s quite a sad moment as I wrote this because I have just overheard that one of my ex-colleagues was fired and asked to resign with immediate effect because of “giving too little” shopping vouchers to the client as one other insurance agent has decided to offer “two times more…”
The Insider Story – The Art Of Giving Shopping Vouchers
I can be honest that the act of giving monetary rebates are not legally correct according to the Insurance Act but we, as Financial Planners, usually do give some form of shopping vouchers to our clients as a form of “thanking them” for taking out time to meet us and to giving us a chance to plan for them, and also that we recognize the fact that there are many other agents out in the market fighting for their business…
And we do recognize that we are not allowed to give direct cash rebates back to the clients and most of the time, they are compensated in the form of shopping vouchers either by a stipulated amount decided by the insurance company or based on personal discretion (usually depending on the commissions received…)
And usually the amount can go higher if the commissions received are high as well… (this is the extent that some Planners will go just to secure their insurance business and to hit their sales target)
This is why being a Financial Planner can be tough at times…
To Those Who Need Financial Planning – Do You Really Need To Have Vouchers?
If I put myself down as a Customer or Client who is keen to look for some form of Proper Financial Planning, I would definitely see these Shopping Vouchers as something “extra” or “a form of appreciation from the Financial Planner”.
This is because to be able to do a proper Financial Planning Review may be tough at times because if a Financial Planner can do a good job in this area, not only can he help me to understand my current financial situations, on how to go ahead and do a proper planning and how to convince myself to set aside a monthly budget to plan for myself and my family….
If there is such a Financial Planner who is able to do so and make me commit to a proper Financial Planning, having to be rewarded with shopping vouchers will seriously be something “extra”…
But for those who are into vouchers… there’s nothing wrong with that because you will be setting aside some hard-earned money every month for the next many years and getting some form of “compensation” is definitely well deserved…
The only thing is that it’s good to express this interest to any Financial Planner and there’s even an opportunity to be introduced to other Planners who are more willing to give up more shopping vouchers in exchange for the business.
In this manner, you can get what you really want… get yourself planned… and will not have to go through the hassle of making it known that the vouchers given are not enough or that other Financial Planners are able/willing to give more… this will definitely save up a lot of time as well!
I feel bad for your friend. I think that’s unfair to fire him because he didn’t give much vouchers to the client. In the end, that will still be the client’s decision whether he accepts the deal or not. I don’t think it will really matter.