Companies are spending more than ever on non-cash rewards, creating a $100 billion annual market, according to the Incentive Research Foundation. But Counselor SOI data shows that distributors aren’t capitalizing, as incentive-related sales only make up 2% of all promo revenue. Among the barriers to entry: 54% of distributors report that they’re not familiar with how incentive programs work and another 17% claim these programs are too complicated.

Sean Roark, VP at PromoPros (asi/300654) and IncentPros, agrees there’s a learning curve with the category – but with vendor support and industry education, the added capability is worth it. “Seek out vendors that can handle the entire program for you – merchandising, website, inventory, decoration,” says Roark. “Once you learn the vendor’s capacities, you can customize the programs for any client who needs it.”

Distributors across all revenue classes are hesitant to offer incentives for a variety of reasons, citing lack of knowledge, complexity and product cost.

Stock issues and model upgrades on premium retail items can also be potential turn-offs for distributors new to the incentives scene; however, tools like ASI’s ESP incentives search filter can aid reps in getting started. Helping distributors’ cause: In recent years, products from popular brands like Under Armour, Apple and Bose have become available in the promo market and fit well into high-end incentive deals. “You’re missing out if you’re not asking about achievement, gifting and recognition programs in addition to the promos you’re already providing,” says Michelle Altobelli, owner of Altobelli Advantage (asi/119272).

Reps can get a foot in the door through awards like plaques and gift sets for corporate safety programs, employee recognition and service campaigns. “Recognizing employees with incentive items can boost morale and encourage people to perform better – plus, it’s a more cost-effective and creative way to say thank you than cash bonuses,” says Myles Fey, owner of Superior Awards & Promotions (asi/339662).

Five Tips for Selling Incentives

Not sure where to begin in pitching programs with higher-end gear? Here’s advice for what to do and what not to do.

1. Utilize your current customer list.
“Because your clients already consider you a trusted advisor, it’s easy to begin a conversation about providing incentives,” says PromoPros’ VP Sean Roark. “They may be delighted to know you can help them with another part of their purchasing.”

2. Start simple.
For your first program, help clients add structure to recurring gift orders. If they give Employee of the Month, Length of Service or End of Year gifts, ask to set up a program that’ll automate the orders. It takes the burden off the client and eases you into a program without too many parts.

3. No freebies.
For one-off incentive orders, have a strong relationship with clients before volunteering ideas. “Clients who don’t genuinely appreciate your time can buy the same product from Amazon once they know it exists,” says Michelle Altobelli of Altobelli Advantage.

4. Convey the value of acknowledgment.
Whether it’s to say thank you or to motivate employees, Myles Fey of Superior Awards & Promotions suggests holding a meeting or sending out a company-wide email to acknowledge an honoree in addition to distributing incentives.

5. Seek out educational resources.
Trade shows are setting up designated areas to highlight incentive items. ASI also offers online courses, lectures and search engine tools to give salespeople access to educational information about program business.