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LPFMs and Underwriting - The Basics

I'm not posting to express opinions on what is in the spirit of NCE radio and what isn't. I am simply dealing with facts of dealing with clients and selling radio for the past 38 years. So many have no clue about how sales work. So I'd like to share some basics:

First, the client says yes because of you and simply because they like you and feel they can trust you. Sure, you are presenting underwriting for your radio station and that does figure in but I guarantee you if they don't care for you or don't trust you, they will never say yes even if you had 100% of the listening audience!

Think of sales (yes, we are talking underwriting) as dating. You go out on a date to get to know one another. If both parties enjoyed 'the date' then you make another and another. Sales are not meet and go right to the alter to say 'I do'. The average client needs about 5 to 8 visits to develop trust, maybe longer. You need to stop by every week or so and spend a few minutes with the client. Get them to talk about their business. Take notes because what they say IS important. If they appear busy or not their usual friendly self, simply say you see they're busy and you'll come by again later. You don't want to associate yourself with negative moments.

Be agreeable. If you're a Democrat and they're a Republican, do a good deal of head nodding and if you have to say anything, something like "I wish both sides could come together with a plan everyone could stand behind." Indeed, everybody wants that! If they start talking religion, just listen and nod your head even if you think there is no God. My point is you don't win them over by confronting them but even if you disagree, big deal, you're there for the Underwriting. Let them ramble because as they do you build trust and 'budget'.

Get to know employees. Treat them with the same respect you do the owner. They will tell you what you need to know. I'll get back to that.

Always ask what they'd like to budget for your station. You might be amazed. Now to explain this and the above sentence.

I walk in to a business and the owner comes by at random because they own 6 stores. I ask the employees about how the owner advertises. The manager tells me what they spend on two stations that are partial market coverage stations in a major market. I say that is a huge amount and ask what he buys. I'm told and ask if I should pitch him that. The manager says yes because he really likes that. An employee gave me a call to tell me when the owner would be there. I show up with my proposal that was just under $3,000 monthly or about 12 times what the average client spends. He took this annual plan of almost $36,000 a year. Because I befriended the staff and asked employees what to pitch, I got about 6 times more money that I though I might get from the client. And I love this client because he gives so much back to the community. I have come to know the owner. He was a middle class kid who had to get a job at 16 and he built his company from the ground up with a friend.

For full disclosure this was commercial advertising in the illustration above but while we know the difference, the client just sees you as a radio station on the dial. The client likely doesn't care if you're a non-profit. Use your website and on air to create a package that gets their message across using what is legal to use on the air and what can't be said placed on your website. Tell them you pay by the month in advance (just like everything else you buy) because there is an important wording that resonates with your listeners: "Support comes from". Those words make listeners consider changing their buying habits and to be truthful, we must have your bank draft, check or credit card draft at the first of the month to be able to say those 3 words that change buying habits.

Count of about 1 to 3 months for clients to warm up to you and want to allocate dollars to you.

Understand sales is not about selling. It is about going out and making new friends and doing something you both feel will be beneficial.

I get slammed for this comment but in every instance, clients wrote out the check only after feeling there would be a return on their investment. I had a convenience store offer 5 cents a gallon on any fill-up when the high school cheerleaders pumped the gas (and they got tips for cleaning windshields). A restaurant (burger place) donated 100% of the revenue the day the cheerleaders manned the drive through and delivered the food. The deal was off in both locations if the cheerleaders wouldn't do the work. Why did they do this? They knew they'd get a bunch of people who weren't their customers to their place and perhaps some would become regulars and they got good PR out of it including PSAs on the radio and their picture in the paper. My point is their contribution was based on what return it might result in. Donation or purchase, there is an expectation of a return. My point is you can call it a donation or you can say here's what you might consider and what the results could be. If you try the later, chances are you get 3 to 10 times the money because the client is thinking through the possibility versus how small the amount can be on that check they can get away with and get you out of their hair. Be a person that helps your client versus a taker of a donation.
 
Prometheus is a good organization that is a pool of information. Their information should be worth a hard look.

My comments are based more on daily calling on businesses and having to understand their mind. I disagree that most funding is typically from listeners. Usually grants and underwriting exceed listener support.

Gather as much information as you can. Be careful though. A DJ at a station might have no clue about fundraising. Lots of people will say they know lots of stuff but in reality they really don't. Mine is just one opinion.

I want to comment on something said in the above video: I have been in radio since 1978 and never has anyone, advertiser or otherwise, tried to tell us what we could do or not do on the air. If anyone had (including airing of news stories) that person or entity would simply be told where to go and that place is a bit warm. Plainly put, we in radio don't take kindly to anybody telling us how to run our business.

Businesses do not give money because they get warm fuzzies because of your station. They expect a benefit whether they say it or not. In fact, who cares if they think they will benefit. If they do they will be non-stop underwriters. If they see no benefit, they'll be gone and never come back.
 
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