Wednesday 8th Feb 2012 03:10 PM
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Qotion.com is a website for you to browse and discuss financial products. Currently, we are undergoing further development, and hope to serve you when we relaunch the site with new features.
Wed, 10/21/2009 - 20:20
Cast Your Vote:
Many financial institutions these days often run promotions and give perks for signing on to an insurance or investment plan. Some agents go a step further and choose to offer additional incentives out of their pockets to clients who sign on the plan with them. Do you think these incentives are good for you, as a consumer? Share your views here!
For experienced investors, freebies do not lure them into buying a product. So, any freeby is an added bonus.
One should always be wary of paying high commissions upfront.
The pertinent questions to ask are:
1. In the worst case scenerio what happens to my money?
2. What are the positives and negatives of the product?
NO!
(The following refers to a certain breed of customers, obviously there are always good, discerning customers around!!)
Gifts & premium giveaways, which sweeten the deals for most customers, are commonplace. Between this insurance policy & that plan, this credit card, investment deal or other products, sometimes the only stark difference is how the advertiser markets & packages the product.
It is now "expected" for customers to receive rewards when they sign up. Even if the financial professionals do not offer any, the customers will ask for it! And that they will start comparing what they once received, or their friends received when they signed up for similar products.
The bad thing is that, the size of the gifts forms the "perceived value" of the policy/products/plans purchased or affects how many friends they refer to the agent!
This shouldn't be the case. Let's hope this practice stops someday. It totally blinds the customer to see the products for what they are, how it will benefit them. When something goes wrong (w the product), who pays for the mistake in the decision-making?
(I've heard of friends who have had to return their "gifts" from credit cards (from banks) becoz they cancelled their cards within a certain period ie. the cards wasn't as attractive after use, as expected)
Honestly there is no need to becos I tend to think that the cost of whatever free gifts that come with it will be factored into the product.
But I would welcome any direct discount. I would buy the product based on its merits, and not any freebies.
The business world has changed. Selling tactic has changed. We can't be helped.
Should, added incentive and bonus is always welcome.
Should not, if it entices people to sign up or refer for the wrong reasons.
It depends on how the incentive is used.
As a form of gratitude to appreciate the customers support is fine.
But to lure them to signing up unsuitable or unnecessary things, then is it is for the wrong reasons.
Incentive & freebies are already added in the product itself.
Therefore you are paying for it, not free.
But cash discount or lesser commission will be welcome.
Looks like most of us don't really think financial advisers should provide too many incentives. Indeed, in this case it feels like putting the cart before the horse.
Some responses we really liked:
Member aaronlau shared that "it depends on how the incentive is used...(if) as a form of gratitude to appreciate the customers support, (it's) fine...But to lure them to signing up unsuitable or unnecessary things, then is it is for the wrong reasons." We agree! It would be unfortunate if a customer were to indiscriminately choose products based on incentives, only to lose money later.
We also like how member fr9693 was forthright in announcing that "incentives & freebies are already added in the product itself. Therefore you are paying for it, (it is) not free" Just like with the art of packaging, incentives add appeal, which are often paid-for by customers themselves.
Thanks for posting the responses for this week's question. Hope to see you guys around the forums.