Hi,
I would just like to find out from the sales managers here on how they handle Sales Reps that are able to sell for multiple stations.
Here is the scenario, I am part of a broadcasting company that have 3 radio stations (Different formats but cover the same area). We have sales reps that are allowed to sell for all the 3 stations.
The problem is that Station A was established about 13 years ago, Station B about 7 years ago and then the newest station, Station C, about year and a half ago.
Since Station A is much better established it is easier to sell then Station C. It seems that once the sales rep gets a little bit of resistance to sell Station C they will switch to the Stations that are easier to sell, thus meaning that sales for the young stations is not happening.
How can this problem be overcome to help these sales rep to be able to sell all 3 stations equally?
Thanks
Complete disclosure: I've only been in this position since the end of January, so take my opinion for what it's worth!
While I'm not a sales manager, I'm actually in the very same boat as your reps are; we have three stations with drastically different formats and one of them leads the pack as a top station in the market. While our Station A practically sells itself, B and C both both lag far behind in terms of listenership; they're much harder sells.
I've found a certain amount of success in going after businesses who fit the other two stations better than our primary. One of them is skewed much more heavily toward a female listener, so I've approached businesses such as home decor and even a horse tack shop. The other is News/Talk/Sports with a heavy focus on local news and, conveniently, is also the only station in the market with the license to broadcast Red Sox games.
It also helps that rates on our other two stations are significantly lower.
Basically, I think a good approach is to avoid attempting to sell all three simultaneously. Some businesses simply may not be a great fit for your primary station, or perhaps one of the other stations features a program, format or listener they would prefer to target. Maybe their budget doesn't allow them enough frequency and consistency to make it worthwhile to buy with the primary station, but they still want to advertise.
There's value across all three stations. It might be worth to have your reps talk about how great of an opportunity it is to jump on board with the newest station while the pricing is great. Perhaps they'd enjoy the "status" of being amongst the first round of sponsors?
Gerrit,
The quickest "fix" to this is to establish lower commissions for the established station and higher sales commissions for the other stations. Sales people are motivated by money - so put a premium on the stations that management wants to sell
Almost exactly my answer. Disagree with lowering the commission on the more popular station. This really demoralizes sellers. Agree with raising the commission on the slower selling stations but only for six months.
Hi Rick,
Thanks for your feedback, we are busy with Ryan to have InfluenceFM implemented.
Regards.
Firstly, thanks for all the replies. (Clifton, Darrell, Jack & Rick).
I will not reply to all the suggestions/comments in general and not to each one specifically.
We encourage reps only to sell stations that will fir the market of the client since the formats of the stations are so much different. So clients, for example a mobile telecommunications operator suit all 3 stations.
Pricing for the youngest station is also much lower then the other 2.
We have also used "extra bonuses" to reward reps tht sell for the youngest station, but that was not so effective.
Another factor is also that the 2 older stations does not have such fierce competition and the youngest one. They are a "Traditional" (Local Language) and an Urban Stations. The youngest station is a Hot AC station but local competition is fierce.
I have worked as a seller and as a manager in your shoes and have a couple of ideas. First, the questions is why do you believe all stations need to be sold equally?
I believe each station should be given a budget that is appropriate for the station. Sales people will either sell what is the easiest for them to sell, or their favorite station.
Have an overall goal/budget for each salesperson and let them decide where to place the money among the stations. All the money goes to support the overall operation. Then start working on what needs to make the stations that you believe are under performing revenue wise and see what needs to be done to improve the marketing/programming.
One last thought is to hire sales people that "specialize in stations B & C" They are not allowed to sell station A by itself, only in combo with B or C.
Hi Scott,
Thanks for your reply.
Each station does has its own sales targets, problem is the youngest station is currently running far below target.
Personally I also feel like employing sales reps to specialize on on certain stations and not sell for all 3, but that does not sit well with everyone.
You will get much debate on this. As a former media buyer, I detest being forced to work with more than one sales person from the same company. After all, if you really have the client's best interests at heart, you shouldn't be forcing the sales team to push specific products to meet individual station goals.
I agree with Scott. Internal communication/marketing is a lost concept. There is a price point where people will see value. An empty seat produces no revenue.
There are different schools of though, one of the easiest being to offer lower commission on your TOP station. I cannot agree with this idea at all as it takes the same amount of work to service and keep an account on a top biller as on a bottom feeder.
This is taken care of with rates and the "blending" thereof. Each station should have its own rates (in my opinion) based upon demand on that station... nothing else. If station A is typically running at 90% and station B is at 45% then it follows that stations B's rate should be 50% of station A. As station B moves up, so does its rates using simple percentage multipliers.
Example: Steve Winn owns the Winn and Encore in Las Vegas. During the NAB convention rooms at both averaged $350 per night. But they were slightly lower at Winn than Encore because Encore was better sold. The rate for this weekend is just $150 for the exact same room at Encore, but Winn is higher... again... demand. Just like airline tickets.
If you were to REALLY set your rates correctly they would factor expected load by month or the year, week of the month (ever notice how car dealers always Heavy Up the last week of the month?) and day of the week? When all things are brought into focus it gets far easier to add your second station to your incredible ad campaign by showing the value, vs hassling with buying your competition.
But, in no case would I ever screw with commissions.
Weird as this seems, this unique idea turned out fairly good. Example: Take a 2K budget and pitch 1K on the most popular station and split 1K between the other two stations. Problem: most clients want to place the whole 2K only with the most popular station. So we went ahead and split the 2K between the two lessor stations and no-charged 2K on the most popular station. The clients received an invoice billed on the perceived lesser stations (thus these stations were now in their payable system). As intended, after three months the plan was discontinued. Result was that several clients added the perceived lesser stations (or a station) to their buy by upping their budget or they split the 2K budget, as you initially hoped.
I have faced this on numerous occasions. It's amazing how sales people will take the path of least resistance.
I have had to treat this as if it were a digital asset, and have it included in every pitch.
By offering a great incentive to the buyer by buying both stations, you give them an opportunity see the power of the newer station with less risk. The more advertisers that come on just build the value of the inventory allowing you to begin to wean advertisers off that program after time.
I also believe that assigning budgets for the weaker station with great incentives will make it easier for your sellers to keep it on the front burner rather than letting it cool off in the back.
