Summer Internship: – A Successful business Model

(Opportunity for Students or Companies?)

Y[/b]es[/b]!! Don’t be surprised with the title. Think twice before making your decision as summer internship is the best way for students to get exposure to corporate world and to get a practical feel of management theories and blah-blah... Sorry to disappoint you but It’s not always true. Summer internship is nowadays more of a Give and take relationship than what we have assumed.

After finishing my 2 months of summer internship at one of the leading ‘Wealth Management’ company, I have realized that summer internship which acts as a need for most of MMS/MBA students can also be taken as an opportunity by some shrewd companies. And there is nothing wrong in it. It’s all about grabbing the opportunity with both the hands, it’s all about Business!

Before joining for my summer internship, I had butterflies flying in my stomach; I was very excited. I rejected few opportunities because I wanted the best opportunity for myself. Then came this opportunity and I thought this is it. A Leading Wealth Management firm offering detailed training in finance, capital markets, etc and in return we just have to sale some insurance policies. But for the time being, we ignored that Insurance selling part and only concentrated on that “Financial Training Part’. I, with my seven more class mates joined that firm.

But fortunately or unfortunately, we never got an opportunity to work for that ‘Wealth Management’ Firm; rather we started our internship at ‘Insurance’ branch of that firm. On first day we got to know that the schedule is, we have to go there only 4 days a week and that too 3 hrs. a day. [/b]Of course I was happy. But i was also shocked to know that we have around 35-40 students from different colleges in our batch and there are 5 more such batches, carried out by 2 Mentors. So in all, there are around 200 students in 6 batches carried out by 2 mentors. This (2012) was 3rd consecutive year of such Internship Program.

This concept made me think and understand the logic behind it. I contacted my friend who is working in Insurance Industry for last 10 years and have earned good amount of money for himself. Then I analyzed this case.

Suppose Approx. 200 students are there and basic target selling insurance plans worth 50,000rs minimum (48,000 to be exact.)

Total of approx. Sale will be 50,000 * 200 =1,00,00,000 Rs

More than 1 crore business in 2 months by 2 mentors and in return they will spend maximum 5000 per student i.e. .5000*200=10,00,000 Rs

Total Rs. 90, 00,000 of net business.

Let’s assume students achieve only half of their given targets, still approx. 50 lakhs business in 2 months by 2 mentors. In general, minimum 30% of the first year’s premium is given as commission in the first year.

(As per Insurance Act, 1938, The insurance companies are allowed to pay a maximum commission of 40 per cent of the first year’s premium, 7.5 per cent of the second year’s premium and 5 per cent from there on)

Now, 30% of 50 lakhs = 15 lakh Rs Net Commission just in 2 months for first year only.

Yes, that’s right…

Don’t be surprised. These figures are just explanatory.

Apart from this immediate commission, they will gate some per cent (around 5%) commission of the second year’s premium and some per cent from 3rd year onwards. That makes a lot of money. Apart from money matters, this networking is very important in insurance business. This internship keeps adding 200-300 or even more students in their contact list every year. Sooner or later, these students will start earning and they will again become target customers for another Insurance plan or some investment Plan or Retirement plan. This is a very good business strategy.

Given the initial success of this Program, rather a ‘Business Model’, it is likely to continue for at least next few years. So every year they will receive their first year commission and will also continuously getting commission for sale done by each batch of summer interns in the past.

But in return what will students get? These Mentors were MBA/MMS in Finance. And they were really good in their subjects. So they will take class lectures for 2 months and keep taking lectures on Financial Basics. I attended most of the lectures in first month of my internship and I must say this, I found those lecture really good and they increased my interest in Finance. I enjoyed that first month. As always, I used to Seat in last raw, passed few comments, made my friends laugh, made some new friends. By the end of first month pressure of sale started increasing and I stopped going to office. I went to my native place and spend next one and half month there, citing reason of Malaria.

There was also one rule that if you want to take next month’s Finance training then you have to sale at least one policy of 28,000. After knowing or say assuming such an income from our sale, I was not ready to even try for making any sale. I was not even aware about the product which we were supposed to sale.

Good or bad, I learned very basic but most important thing from this experience. We must make use of the opportunities and make them count. I am still impressed with my mentor for his Idea and sense of Business. Sometimes I think this was just the right kind of summer internship for me. Learned a lot which, I think I was not supposed to learn.

Even today, I, with my 6 other classmates have not received certificate of completion of the summers report and we will get this certificate only after completing at least one sales of the policy. I still keep on saying to my mentor, ‘Sir, We are still trying.’ and he already knows that I have not even tried. I am really glad that I got this opportunity to meet my Mentor.

They say ‘everything is fair in love and war….

And Isn’t Business war now a days?

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Note – [/b]

This report is based on my personal experience and assumptions. The facts and figures may not be exact but are used only for explanatory purpose. There is no intention of defaming any organization or any individual through this report.

 

[KamleshVarlekar]

very nice,,,,,,liked/////

 

[Dhruv Bindhani]

This piece offers a candid and analytical perspective on a summer internship experience, reframing it as a "Give and Take relationship" and a shrewd "Business Model" rather than a purely educational opportunity for the student. The author effectively uses their personal experience to illustrate a broader point about companies leveraging internships for their own gain.

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Writing Style and Techniques​

• Provocative Title and Opening: The title "(Opportunity for Students or Companies?)" immediately sets an intriguing and critical tone. The opening paragraph challenges conventional wisdom about internships, grabbing the reader's attention by promising a non-traditional viewpoint.
• Argumentative and Analytical Tone: Unlike a typical internship review, this piece is less about personal growth and more about analyzing a business strategy. The author presents a hypothesis about the company's motives and then supports it with calculations and observations.
• Personal Anecdote as Evidence: While analytical, the report remains personal. The author uses their own experience, including their initial excitement, the rejection of other opportunities, and the eventual realization about the internship's true nature, to illustrate their arguments.
• Transparency and Disclosure: The "Note" at the end, clarifying that the figures are explanatory and that there's no intention to defame, adds a layer of ethical responsibility to the provocative claims.
• Use of Rhetorical Questions and Exclamations: Phrases like "Yes!! Don’t be surprised with the title," "Of course I was happy. But I was also shocked," and "Yes, that’s right…" engage the reader and convey the author's surprise and conviction.
• Quantifiable Analysis (with caveats): The inclusion of approximate sales figures, commissions, and student numbers provides a compelling, if generalized, financial argument for the company's strategy. The explicit mention of the "Insurance Act, 1938" adds a touch of authority, even if the numbers are illustrative.
• Focus on Disillusionment: The narrative effectively conveys the intern's gradual realization and disillusionment when the promised "Financial Training Part" is overshadowed by the "Insurance selling part" and the actual structure of the program.
• Wry Humor and Irony: The author's admission of fabricating a reason for absence ("citing reason of Malaria") and the ongoing back-and-forth with the mentor about certificate completion ("Sir, We are still trying.") injects a subtle, wry humor into the challenging situation. The final "Isn’t Business war now a days?" reinforces the cynical yet pragmatic view.
• Concise and Direct Language: Despite the complex analysis, the language remains clear and to the point, avoiding unnecessary jargon to ensure the core message is understood.

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Overall Impression​

This report is a bold and thought-provoking analysis of a summer internship from a highly critical, yet ultimately pragmatic, perspective. It courageously exposes the potential for companies to utilize internships primarily for their own business objectives, challenging the often romanticized view of these programs. The author's personal journey of discovery and the subsequent financial breakdown of the "business model" make for a compelling and insightful read, offering a valuable lesson for students to be more discerning about internship opportunities. It's a testament to learning "what I was not supposed to learn" but which provided crucial real-world business acumen.