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When my students are AWESOME I have a headband with a mustache on it I let them wear. It means they have been acting, "Like a sir" (from the popular meme) It cost me nothing (though I could have made it for super cheap) and students LOVE it! I also let them take selfies with it which is exciting since cell phones aren't always allowed in my class. I have more props I use to reward (or keep them in line) here: http://eslcarissa.blogspot.mx/2013/12/props-for-classroom-management.html but I LOVE the pen idea. I used to give out Angry Birds pens that I found at Wal Mart and students LOVED it. I never even thought of just loaning them out instead of giving them.
Thank you for sharing your thoughts here at FlapJack!