turnover in sales

[flyingundertheradar]

I know a ton of people in the radio world here in town, and it seems like all the good sales people are jumping ship, especially from CC. What's the deal? Are the Fred-Heads finally micro-managing themselves out of a senior staff, thus making it much easier for young hot women to roam the halls at 8044 Montgomery Road--more potential card carrying members of Team Joe.

Is the same thing happening at Cumeless and Bonneville(or is there a new owner)?

how long before it's just Tapscan talking to some sort of avail software and there are no sales people on the street? Can you put a short skirt on a computer?

 

[88.9 Miracle]

Sure wish they'd call us! We have been looking for a good sales team.

ClassXradio.com

 

[ilovescotch]

I know a ton of people in the radio world here in town, and it seems like all the good sales people are jumping ship, especially from CC. What's the deal? Are the Fred-Heads finally micro-managing themselves out of a senior staff, thus making it much easier for young hot women to roam the halls at 8044 Montgomery Road--more potential card carrying members of Team Joe.

Is the same thing happening at Cumeless and Bonneville(or is there a new owner)?

how long before it's just Tapscan talking to some sort of avail software and there are no sales people on the street? Can you put a short skirt on a computer?

Many of the good sales people have gone to sell for the Cincinnati Reds.

 

[flakunkel]

When CCU salespeople start making too much money (in the view of management) the company cuts their commission rates. Then they quit. CCU would rather take in less revenue than pay people.

 

[flyingundertheradar]

Is there a radio company in town that actually pays the sales people to produce? And how do they handle the billing prevention departments, ie promotions, production, traffic, and credit?

I hear those are all top notch at CC...meaning they are great at preventing billing.

 

[KevinFodor]

I can't speak for Cincinnati specifically, but a couple of general thoughts:

Salespeople in a lot of companies are being paid less in commissions than before.

They're under constant pressure to "deliver their budgets", which, depending upon the market condition can be more and more unrealistic.

A lot of markets are under extreme rate pressure these days.

Add all of it up: and it leads to the best sellers getting out of radio and selling something that can make them big bucks.

 

[hipporadio]

Add all of it up: and it leads to the best sellers getting out of radio and selling something that can make them big bucks.

I did [but not so sure about the "B-I-G bucks" part ] – and I doubt I’d even entertain the notion of working for nearly-any of these corporate [insert fav noun here]. I’ll need to shake many hands to connect with enough fingers to count-off all the others I personally know who hold the same position. Many of us started with little-more than a copasetic account list on a station that was less-than-stellar in the book [if there even was one]. I began at a graveyard AM that couldn’t cover the market at night, but the “Three Ps” paid-off grandly [and well-before I even turned 30] – as it did for many others who had a “work ethic”, basic integrity, and quality management/ownership who understood that a good salesperson isn’t paid to just “wheel the deal” – but build loyalty and grow sales accordingly. ALL three of the former [especially the third] seem in short supply these days in the new-millennium radio game. That unfortunate reality isn’t unique to broadcast sales – but it certainly seems to congregate disproportionately there.

Like any good personality, talented production pro, and engineer; good sales-types can easily-find other opportunities when the "suits" keep setting fire to the green pasture out back; but a sales professional has the option of trekking beyond the boundary of the station across town – into a business unrelated to radio and one minus the modern-day baggage of broadcasting. They are doing just that – and in shockingly increased numbers. On a recent visit to Cincy, I can recall being in the car with an advertising industry “bud”. A sales-recruitment ad came on 55KRC. He looked at me and said: “There they go again... ‘Need my cell? [he snidely chuckled] Nope, I didn’t think so!” That’s a sad state of affairs considering it came from a man who places orders for advertising.

When CCU salespeople start making too much money the company cuts their commission rates. Then they quit. CCU would rather take in less revenue than pay people. [?]

You’d think this to be a fruitless method of managing a sales-team member, but those shenanigans have been going on at low-class radio operations for 25+ years... Just NOT at the so-called “top shelf” stations. So this is happening at a CCU station? I’ll let you folks fill in the blanks and draw your own conclusions; but before you think that’s some wild conspiracy theory, consider this startling revelation:

I came across this quote from Bob Lefsetz of Los Angeles FM talker KLSX that I felt I had to share:

“Many people believe the owners are not going to fix radio. They're just gonna consolidate and add commercials, withdrawing cash until nobody listens anymore and the stations have been devalued to next to nothing.”

http://www.laradio.com/

db

HAPPY SELLING!

 

[flakunkel]

You’d think this to be a fruitless method of managing a sales-team member, but those shenanigans have been going on at low-class radio operations for 25+ years... Just NOT at the so-called “top shelf” stations.

With the flood of stations on the dial post-Docket 80-90, the big money boys discovered something, a hypothetical example of which could go something like this:

In market X, no matter how much you spend to be number one, you will only do $10,000,000 in revenue, because with 40 stations on the dial, you will never do more than about a 5 share, no matter how good you are. Your costs to get that 5, with top-tier talent, a full-service news department and a lot of promotion, are $6,000,000. That's a pretty nice margin, right? But wait -- if you voice-track it, automate it, get rid of the air staff, eliminate the promotion budget and the news department, cut sales commissions, and spend only $1,000,000, you'll get a 3 share, and your demographics might even be better, and you'll still take in $6,000,000 in revenue. Thus, running it cheap 'n' dirty can make you more profit in absolute dollar terms, and a much higher margin, than trying to be the best. True success lies in finding the sweet spot of being "just good enough," not great.

This scenario is enabled by audience fragmentation, which is only getting worse.

 

[johnnyrichards]

In market X, no matter how much you spend to be number one, you will only do $10,000,000 in revenue, because with 40 stations on the dial, you will never do more than about a 5 share, no matter how good you are. Your costs to get that 5, with top-tier talent, a full-service news department and a lot of promotion, are $6,000,000. That's a pretty nice margin, right? But wait -- if you voice-track it, automate it, get rid of the air staff, eliminate the promotion budget and the news department, cut sales commissions, and spend only $1,000,000, you'll get a 3 share, and your demographics might even be better, and you'll still take in $6,000,000 in revenue. Thus, running it cheap 'n' dirty can make you more profit in absolute dollar terms, and a much higher margin, than trying to be the best. True success lies in finding the sweet spot of being "just good enough," not great.

This scenario is enabled by audience fragmentation, which is only getting worse.

All the more reason to hail the (fruitless?) efforts of the WDJO crew. They are tilting at windmills - but at least they're trying.

I hope, for their sake, they can at least pay Duke and their sales staff.