Premiums have been a part of our lives since the 1920s, featuring Cracker Jack toys to kid’s meal surprises. These tiny collectibles are sales incentives, but also were coveted when we were children and are immersed in nostalgia now that we are adults. Cereal companies have dominated this marketing strategy, selling millions of dollars worth of product with children seeking the prize at the bottom of the box. This brilliant concept all began with an idea by Sam Gold.

Gold began working for Whitman Publishing Company, one of the largest publishers in the country, in 1920. He created and developed children’s books; then just two years later, Gold moved to Chicago and started the American Advertising & Research Corporation, producing not only children’s books but also premiums, direct mail, and displays. He followed the principle that a child is the best salesperson because he/she could convince mom and dad to buy something when no one else could. That meant companies with products aimed at children needed to convince the kids, who would sell the product’s value to the parents.

Gold’s idea was very progressive for the time period when children were not listened to by parents they way they are now. Many people he worked with did not think children would be able to influence their parents as much as he did. But, the determined salesman created a marketing plan including posters, displays, and radio scripts directed toward selling products to children. In 1934 he created and produced the Mickey Mouse Waddle Book and created and produced a pop-up book with characters such as Tarzan and Orphan Annie.

Gold moved into fields other than the cereal premium business in the 1940s. He developed the Traffic Builder Program with hope to have children selling adult products to their parents. In this plan dealers would give children premiums when they were brought into showrooms with their parents. This meant that when an adult brought a child into an appliance store, the salesperson would have a good chance at selling a product to the adult via premium given to the child. He was given the opportunity by General Electric to try his idea, and following its incredible success, he sold the idea to General Motors and many other large companies. This led to more entrepreneurial ventures producing premiums added to various products.