Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
How Not to Advertise
Old 12-09-2005, 09:41 AM   #1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,120
How Not to Advertise

For the past couple of months, Allstate has run a weekly ad in the business section of the local paper. They are holding a contest called the "Allstate Stock Market Challenge", pitting teams of students at local schools against each other and Allstate agents in picking stocks. There are two school team categories, grades 4-8 and grades 9-12. Each team and Allstate agent starts with $100,000 to invest and the weekly ad publishes the top three winning school teams in each category, the top Allstate agent and their respective total equity amount.

The contest has gone on for 8 weeks and the six top school teams have made more money than the best performing Allstate agent every week. The worst of the school teams has twice the return of the best Allstate agent and the best has more than six times the return. In simple terms, kids in middle school are better at picking stocks than Allstate agents.

I do not understand why Allstate sponsors this contest and advertises the lack of market expertise of their agents. Do they think this will encourage someone to turn to Allstate for their insurance needs? What am I missing here?

__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: How Not to Advertise
Old 12-09-2005, 09:51 AM   #2
Thinks s/he gets paid by the post
JPatrick's Avatar
 
Join Date: Jun 2005
Posts: 2,494
Re: How Not to Advertise

The kids that are winning must be getting help from their USAA and State Farm parents
__________________

__________________
JPatrick is offline   Reply With Quote
Re: How Not to Advertise
Old 12-09-2005, 10:46 AM   #3
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Re: How Not to Advertise

Quote:
Originally Posted by REWahoo!
I do not understand why Allstate sponsors this contest and advertises the lack of market expertise of their agents.* Do they think this will encourage someone to turn to Allstate for their insurance needs?* What am I missing here?
There's no such thing as bad publicity!

[sarcasm] While it can be humiliating for less-experienced agents to be outperformed by a bunch of kids, Allstate prides themselves on their long-term investment philosophy. If you think that irresponsible students are the only stock-pickers who can turn in these impressive results, let Allstate show you the returns on their private accounts. Allstate can't share these returns with the general public because so many people would retire rich that they'd all quit their jobs and the economy would collapse. But for you (and a small monthly fee) they're willing to make an exception and show you how their active management will beat the benchmark every time. By the way have you considered an equity-indexed investment that gives you a guaranteed check for the rest of your life? And after the inevitable occurs, have you considered how your grieving uneducated unskilled family will support themselves while being protected from gold-digging scam artists without having to work in sweatshops for the rest of their lives?[/sarcasm]
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: How Not to Advertise
Old 12-09-2005, 10:59 AM   #4
Recycles dryer sheets
 
Join Date: Jul 2005
Posts: 113
Re: How Not to Advertise

do you happen to have a link to this contest?
__________________
boutros is offline   Reply With Quote
Re: How Not to Advertise
Old 12-09-2005, 11:13 AM   #5
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
Re: How Not to Advertise

Quote:
Originally Posted by boutros
do you happen to have a link to this contest?
Googled for it:

http://www.chron.com/cie/contests_smg.html

Looks like you may have to sign up to see, but I'm not sure.
__________________
BigMoneyJim is offline   Reply With Quote
Re: How Not to Advertise
Old 12-09-2005, 11:57 AM   #6
Full time employment: Posting here.
 
Join Date: Oct 2002
Posts: 717
Re: How Not to Advertise

I think this is a case where the agents actually believe the crap they tout.* They must have talked their even stupider bosses into sponsering the contest.* I doubt if Allstate will* repeat the contest.* *I've always been amazed at salesmen who keep a straight face when they are selling you crap.* The good liars are impressive . . . the others come by the skill naturally.* * * * *
__________________
Random Reinforcement is Highly Addictive.
riskadverse is offline   Reply With Quote
Re: How Not to Advertise
Old 12-09-2005, 12:02 PM   #7
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,120
Re: How Not to Advertise

BMJ, the link you provided was to the Houston Chronicle, while I was referring to the San Antonio Express-News. I could not find a link to the SA contest, but it's comforting to know that the Allstate agents in Houston are also no better at picking stocks than Houston middle schoolers.

Annuity anyone? :P

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: How Not to Advertise
Old 12-09-2005, 05:29 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: How Not to Advertise

To be fair to the insurance salesman, there is only one of him and potentially hundreds of student teams. We're seeing the ins. salesman's returns, and only the best student returns from hundreds of teams.

__________________

__________________
justin is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
How does Vanguard advertise RedHawk Other topics 18 03-19-2007 02:13 PM
Legal for employer to advertise your job before you've left? TheGeneral Young Dreamers 9 03-06-2007 12:18 PM
HOW to advertise my new lawn care company? thefed Other topics 10 02-20-2007 01:48 PM

 

 
All times are GMT -6. The time now is 09:20 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.