Sorry dude, but this is ludicrous:
"What would you rather have a coffee cup with a company logo or a USB key with a company logo and maybe for the bigger customers that key having the companies health insurance plans or even the companies phone directory distributed on it, the possibilities are endless!"
Health Insurance Plans - Yeah, right. Plans are customized to each client. They have no set plans or pricing. Dumb idea.
Companies (sic) phone directory - Again, utterly stupid. No company goes around giving away their directory. Dumb idea.
Would I rather have a coffee cup? Nope. I'd rather get the crappy drive and reformat it (it's free, after all) and use it to store my MP3's. No one receiving a free drive will check out the contents. From that aspect, a coffee mug makes for a much better ROI from the issuer.
Try again bud. You don't seem to grasp it.