Sales staffs next to get cut.

[sixfigure]

Some will say that it is about time.
I expect to see sales staffs get the pink slips in large numbers by the first of the year.
Look for clusters to trim 4-6 of the lower performers and newbies to the radio scene to say bye bye.
Accounts would then shift to the more experienced sellers in hopes that they can raise accounts with potential to higher spending levels in a shorter amount of time. The revolving sales door may slow down and this indeed could help many cities start to build a reputation that is credible again after soooo many years of accounts seeing a new face every ninety days.

The better sellers will make more....the company makes more and then perhaps and only perhaps will some of the other on air positions return over time. Not in the same numbers that have been lost but some none the less.

Ready...set...discuss away.

 

[PTBoardOp94]

Not likely.

The buyers won't be buying, regardless of who is pitching the package, leading to reduced commissions and increased rep churn.

Of course, the rep churn assumes that they can find other jobs to head for.

 

[[email protected]]

It's happening already at a few stations in Chicago. Discretionary spending is drying up and everyone is hunkering down till better economic news surfaces. Turn on the automation, close the doors, and wait it out!

 

[pocket-radio]

Reps, who’ve been milking an agency list, are over paid order takers and are in the danger zone, on thin ice.

Reps who are hungry and willing to get their hands dirty will thrive and survive even in this economy.

 

[pocket-radio]

Nobody is safe from layoffs, not even the top biller.
The more money you made puts you on the radar screen, either for commission cuts,
salary cuts, account reassignments or reduced draws or taken away.

Be young, hungry and willing to work cheap. If you still want to be in radio.

 

[finallyescaped]

I think some of the out-of-work jocks should make an attempt at commission-only sales. If they don't make a sale in 30-60 days of trying, so what? They were out of a job anyway. If they DO make a sale, I bet they stay in sales.

To this day the top 10 sales reps that I've known personally were all former jocks. Why? They understand a brand, and its benefits, and can better sell as much.

Just my 2 cents.

 

[davideduardo]

To this day the top 10 sales reps that I've known personally were all former jocks. Why? They understand a brand, and its benefits, and can better sell as much.

In all my career, I have only found a couple of jocks who tranistioned well to sales. They may know the product, but they seldom know the client's needs, which is what it's all about. And sales and jocking are almost left and right brain different.

 

[finallyescaped]

In all my career, I have only found a couple of jocks who tranistioned well to sales. They may know the product, but they seldom know the client's needs, which is what it's all about. And sales and jocking are almost left and right brain different.

Agreed about client needs, and the difference between the two jobs. I was stating my own experience and observations.

End of the day: A client knows their needs (target demographic, etc.). The sales person needs to have the knowledge to educate the client on how their brand can reach those needs. In this aspect, I would say former jocks are better off.

The most recent station I worked for had 3 of their 9 AEs were former jocks. The top 3 sales people were those former jocks. Not by small margins. Those 3 accounted for over 55% of the station's revenue, and they were all in it less than 2 years at that station. They were banking on their own renewals while the other AEs were sweating new business constantly.

Sounds like the "sales" people didn't know how to meet client needs. They were too worried about getting bonus spots, and not worried enough about selling the true value of the brand and its audience.

 

[pocket-radio]

jocks have brand awareness and that can open doors.
Anybody can be taught to ask the right questions and how to sell features and benefits. In my opinion, the differences between winners and losers is how much pain can you take. How badly do you want it before you just give up and go home. If you can manage pain the rest will follow..

 

[amfmxm]

jocks have brand awareness and that can open doors.
Anybody can be taught to ask the right questions and how to sell features and benefits. In my opinion, the differences between winners and losers is how much pain can you take. How badly do you want it before you just give up and go home. If you can manage pain the rest will follow..

Resiliency (how much pain you can take--and bounce back) IS important--there's no doubt about that. But the real talent involved in sales (and it is a "talent"--just like singin' or dancin' or carrying a football) is the ability to persuade. Specifically to persuade other people to see the value in whatever it is you're selling--radio advertising--and to persuade them to act on it.

Some jocks do have that talent, as do a certain percentage of people from all walks of life. It has less to do with one's professional background than a particular kind of intelligence--an innate ability to encounter a difficult or complex situation and manipulate the variables advantageously.

But to address the subject of this thread... cutting any salesperson who is bringing in more than they're costing is just downright stupid.

For example, if a rookie salesperson is being paid a $2500 monthly guarantee (fairly common in the first year, before they hit commission) plus the cost of benefits--let's say another $500 just for simple math--and they're bringing in a whopping $5000 a month in sales... the company is making money!

They're slapping 3 grand on the table and getting the 3 grand back + another 2 grand. That's a 66% profit, ain't it?

America is a great place!

 

[joebtsflk1]

About the rookie salesperson scenario: I'd buy into that if economy and/or economic conditions at a station or cluster were at least holding their own. New blood has to be trained somehow...and if after several months your $3000/mo. investment is bringing in $5000/mo., that's at least a promising deal, assuming rookie is on an upward sales trajectory.

But if the rookie's accounts were transferred to a veteran seller who's billing at a 15% commission (i.e. his/her guarantee or salary has already been met) then the station's cost of making $5000 sales drops to $750. Right now, you'd better be a promising rookie or doing well above the (salary = sales / commission rate) equation.

 

[pocket-radio]

It’s everything. Ask the right questions, listen more than you talk change peoples minds, and persistence. Write commercials and proposals that sell. Understand the clients needs and be their marketing guru while building trust and relationships. Convince clients radio an invisible service is working, when the buyer is convinced it’s not. Be a collections manager, and break knees for people who don’t pay. Manage your own time, your feelings and expectations of clients and management. Peg, borrow and steal and take huge risks while some how paying your bills.

Work 60 hours plus, weekly for not much in return to start. That $2500 salary doesn’t include gas or vehicle expenses. You’ll blow $300.00 to $500 a month quick And deal with the insanity of management’s unreal goals. Voice your own spots when needed.
and more. Sell stations that rock, with numbers and dogs in the group. Sell radio time, plus find more money for NTR and the internet too. The trend has been to separate the sales staffs, some reps are lucky and can sell a great station. And some are stuck selling the dog with low rates and no ratings.

You can’t really tell who will succeed in sales because you can’t measure some ones drive and ability to keep going, when everything sucks and is working against you, including the nuts on your own team.

It’s no wonder radio people drink, an average person facing this would walk away and many can’t cut the mustard, because the odds are impossible. The odds of a new radio sales person making are worst than opening a new restaurant. Most rookies are given a list of dead accounts, with two minutes of training. Often the sales manger spends more time locked behind closed doors, and is out of touch with the streets and needs of reps.
When reps are closing sales they’re treated like a heroes and when things slow down, nothing but dog shit. What a business.


Radio revenues have hit the ceiling and have been declining for years. So managers are turning to NTR, sometimes it’s a one time event, and a big risk to blow relationships. In other words, you have one shot to prove your worth. I prefer long term selling, but the current crop of management cares more about money than whats good for the clients. If you’re good and hit goals, your rewards are money, plus increased goals. And if you don’t hit the increased goals, management rewards their stars with less commission. Sometimes the goals are really unreal. Employee turn over in radio is unusally high. Hire them, and fire them..Next..

 

[sixfigure]

It has taken two months to happen but the sales cuts at CC bear out my prediction.
I don't agree with it at all but it is what it is.
When will radio realize that we no longer have career minded employees because of our own undoing in training, compensation and job satisfaction and security. It has far too long turned good stations into marginal or poor ones from the street to on the air.
No organization cuts its way to increased growth. Never has and never will.

 

[Stewy]

I agree 6figure, we are seeing the painfully slow death of the mega-corps.