Hi Everyone,
I have a quick question I currently work for a company as a district sales manager and was offered a position with a radio station in Minneapolis in radio advertising sales, it is an all sports network that is currently #4 out 5 in sports talk show ratings in the twin cities. I earn about 65K now and really do not like my job, too much traveling, ethical issues and distrust amongst peers but I do have a lot of freedom, independence and I should be making six figures in the next 3 years and I am contemplating taking the position that was offered to me by the radio network. My biggest issue is about income. I know nothing about this industry. I ask around and it seems nobody really knows too much except people said "You can make a lot of money" but the turnover is horrible and it's a big "risk" I guess what i'm looking for is someone to tell me that i'd be a fool not to take it or you'd be a fool to take it. I need to earn at least 60K for me and my family for I am the bread winner and it needs to stay that way. I'm not looking for an easy job but someone who knows this industry and market and who can tell me either "you got offered a position in Minneapolis? Oh man jump at it! 60K will be no problem" or "It might be Minneapolis but your taking quite a risk in this industry" Any help is appreciated!
There's a lot of hard questions you'd have to ask yourself and of your potential employer.
You probably won't make a true lateral, in other words, making 60K right off probably isn't going to happen. Reasons for this:
- Radio Sales has a definite learning curve
- The new person typically doesn't get the greatest leads. Those car dealerships and other big schedule accounts go to those that have 'earned' it.
- In the best scenario, you'll get some decent leads along with some crap.
- In the worst scenario, you'll get nothing BUT crap leads...the garbage that no one else wants, but the GM or Sales Mgr. insists has potential.
- It will depend a lot on how big their current sales staff is. Have a couple of people left and now there's a big void? Do they really *need* more sales staff, or are they just trying to 'grow' at your labored expense?
- Or is the owner a megalomaniac who will have no problem ruining your life with a bunch of empty promises if he/she stands to make a few extra bucks out of it? (They are out there...)
You could do very well, especially in a larger market like Minneapolis. But also study the station's demographics, market share, ratings, etc. to find out where they fall in with the competition. Do your homework. Posting on this forum is a good start!
Be your OWN person. Forget about others with a negative attitude. Keep up your good work and others will have to mind their own problems.
Shane,
It all depends if you are going to be paid 100% commission, or a base salary plus a commission, plus any bonuses?
Plus, if they are the #4 out of 5 radio stations in that market, I'd wonder about how the public views the station...what kind of audience do they have?
Did a salesperson leave the station? Is that why they have a position open? And what kind of income do the other salespeople make?
Are you going to be responsible for writing commercial copy for your accounts? How much if any public appearances do you need to participate in monthly?
Get answers before you accept this position.
Shane,
Minneapolis is a big market, so depending on what the role is (manager vs. account rep) you have the potential to make a good living off the bat depending on how the commission structure is set up.
My concern for you would be where the station falls in terms of viability...Meaning, if there are 4 other sports talk stations in the market and yours is the worst run, lowest rated etc... You could have a hard time selling it/buying into it.
If management has changed or they've got a plan in place to revive the station...and you believe in it...you can sell it.
There is always "potential" in radio sales, but if your options are stick it out at a job where you have the financial comfort vs. throw your hat in the ring and try your hand at radio sales, you'll know it you're going to make it within 3 months, so I would say it will depend on how risky you are.
Good morning, I don't know much about the US radio market . But I can tell you that my career in radio was the best change I have ever made.
6 years ago I was in real estate and thought I had it good..The $$$$ was good and things were looking better than ever. Except I didn't have time to live all I did was work.... I was offered a Jr. position at my local station and decided to try it out. I started off small and learned all I could with in 2 years I was a senior rep make double the income and with in 5 year was offered sales manager position.
Like I said not sure about the US but the company I work for is incredible, and offer health benefits, pension packages and even stock options. I couldn't ask for more !!!
Drop me a email at [email protected] if you have more questions!
Research the market and find out if your comfortable 60K in NM is the same figure at the twin cities. CNN Money has a salary converter. Then see what they will do to move you there. Will they pay to move you? Will they provide temporary housing? What are the benefits compared to what you now have? Have them answer your "independence" needs (if they are needs) or at least tell you about the autonomy you will have. Ask to speak with other sellers there for find out about the culture. Good luck!
Don't be mistaken, radio sales is going to be difficult your first 3 to 4 years. Once you've become established with your client base, you can make a lot of money, but this will depend on your commission structure.
Some questions to consider: Is this a large and stable company? Will you only sell for one station or is there an opportunity to sell multiple stations? Will you get an established client list and what is the billing for the last 2 years from that list? How many other sellers are on the team? Will you receive regional/national orders or is that all filtered through one person?
The radio industry is creative and fun. You will still have your freedom and independence with radio sales as we are required to be out of the office the majority of the time meeting with clients and prospecting. And, you shouldn't have any travel that will keep you away from your family.
If you have no media selling background, it will really take you about 18 months to hit full steam. Previous posters are asking good questions.
I'm 58, and want to let you know, there's more to Life than money. Contentment is great gain in all aspects of ones life. Let's get real, our money is not much more valuable than monopoly money. Family first! My 2 cents, and I can't mail a bill cause I'll loose money on the stamp! All the best with whatever you choose.
HI SHane,
If you are inheriting an existing list of accounts already on the air you can fairly easliy calculate the value of that list in monthly comissions. THis is the absolute best scenario, even trumps your temporary salary, or draw on comission. Minneapolis is a large enough city that there is plenty of room for a #4 Sports station to merit good rates, and potentially good clients. I would ask if the station is using Arbitron, and if they receive national buys. I would probe what degree of local direct money they bill vs. agency business. You will build a more sustainable list, quicker in Local Direct depending on your creativity, and the dynamics of the market. Ask to see a coverage map, (how large an area does that station cover?)do they have sufficient broadcast power, what is their management team like, (ideal if run by former salespeople) what are other reps earning per year? It is possible to earn more selling Sports Radio advertising in Minneapolis than you are presently earning. Within 4 years you could earn 6 figures, but keep in mind many factors outside of your control nuance your earnings in this industry. Advertisers get jumpy when the economy falters. If you build the list by yourself it may take a couple years depending on how you take to Radio sales. You will have plenty of freedom/flexibility. My thoughts.
Shane,
You don't say anything about what the station/network has told you about your earning potential in this position.
What has the GM (or whoever) told you about the opportunity? Is it straight commission or salary + commission? Have you looked at a detailed list of accounts and prospects, with billing history or some other performance metric?
Is this a new position, or are you replacing someone who left? If the latter, what was the previous rep's billing history?
Why did that person leave?
If it's a new position, what sort of road map can the GM provide you to guide you to success? Obviously, your success is in the station's long-term best interest as well as your own. One would reasonably expect your employer to make it as easy as possible for you to make the transition and get up to speed.
One other thing - I believe you will find a lot of folks in this community (Radio Sales Cafe) who are willing to share their experience and knowledge to help you along the way, as you learn the business of radio advertising sales.
Best wishes to you.
P.S. There are some good books available that have been written specifically for first-time radio advertising salespeople, should you have the time and inclination to read up on it. Here's a good place to start.
Thanks everyone for your input, I appreciate all the comments. To answer some of the questions I was asked, yes there is a small first year base plus commission then 100% commission there after, and I would not be taking over any existing business except what is in there current CRM. So there will be a lot of cold calling and prospecting which I don't mind. I will be responsible for coming up with ad ideas but with a lot on input from a creative director. They do a lot of promotional things in the field also and I am able to attend as little and as much as I can or want. There are 5 other account managers and it is only for 1 station even though they own multiple in the market. The management has told me that I can expect to earn 60K my first year in this market and more if i'm growing. I tried answering most of the questions you all had and encourage any more feed back. Thanks again!!
Writing effective ad copy is an art form. It takes practice and adherence to best practices, and a lot of creativity thrown in to boot. I'm sure lots of people here will recommend a lot of great books by various authors...my advice is to hit Half.com, you'll save some money on the books. You'll need to be 110% dedicated and motivated out of the gate, and pretty much figure on having very little 'free' time for the first 6 months at least, if you'll make a go of it, under the circumstances that you've outlined above. I'm not trying to discourage you at all, I'm just being frank. It *is* a fun industry and a nice environment, when you work for the right people. The 5 other acct. managers for one station sounds a bit to me like the fish tank is a wee crowded, but you're dealing with a much larger market than what I'm accustomed to. I would also expect to spend more time at this position than what might be stated in the job description. If you want to sell, you have to attend the events and do the schmoozing and elbow rubbing, it's all part of the job.
Ask LOTS of questions, do your homework, talk to employees and ex employees, take it all with a grain of salt--the good and the bad. The more information you gather, the more informed your decision will be. Good luck!
Radio sales is a blast. Selling sports is even better. The industry will weed you out if you aren't any good. You're in a great sports market. Rank doesn't matter as much. Attrition with sports sponsorships is lower than general advertising clients. Higher priced sponsorships take longer to close. You need a lot of smaller monthly contracts (at least 10 on air per month) to help build a base and help you weather cancellations and such. You're selling an intangible so customer service is key. Double check on that base PLUS commission because that's pretty unusual and get it in writing. If they promise you anything, get it in writing. Radio managers are famous for promising the moon and not delivering. $60k in year one is tough but doable. That's $338k in sales at 18% commission. Don't get bogged down with agency biz.
There are over 60 stations in Minneapolis, a market ranked 13th. With tv, cable, radio, newspaper, outdoor, internet and direct mail, you are in competition with literally hundreds of media sales reps. In such metro markets a question worth asking management is what percentage of gross billing comes from agencies - because you will not find one anywhere to call on, they're taken and they're coveted. The amount of money from agencies may not be that high - a good and bad thing - simply because agencies buy 3-4 deep in radio at most. You say the station is 4th of 5 sports talk stations - what is it rated in the market overall? How many stations in the market or in sports talk are owned by Cumulus or regional groups? Look at what, if anything, your 4th ranked station offers in the way of anchor or signature programming, e.g., Twins or Vikings broadcasts, a market-recognized personality. Be sure to ask what training you will receive - Minneapolis is a rated metro market and uses those ratings so you have to know how to read a book, work with GRPs, CPP, etc.even with direct buyers - everyone in the market comes to them with a 'we're number 1 in something' and they have a LOT of media to choose from so they tend to be more sophisticated buyers. As the new guy you will have to dig up accounts in outlying areas so there will be a lot of driving. Think about what this station has that can be sold.
And... think about how much $60000 gets you in Minneapolis v where you live now. Housing. Public v private schools for your kids. Your wife's earning potential. The gas and maintenance on your vehicle. And this is not a 9-5 job in Minneapolis.
I don't mean to sound negative. Others here have pointed out that it takes time to build the relationships and skills that earn big money in a larger metro market. Realistically the ability to stick it out is a big part of success anywhere. Turnover in radio sales is relatively high everywhere but it's brutal in the top metro markets. Being the last man standing (or thereabouts) will improve your list/billing as you absorb the accounts left behind. In the end you're looking at working at a station below the media buying threshold, a station with 4 format competitors and sister stations that will compete for your sales dollars as well. And you're jumping industries. It may be more realistic to look for something more closely related to what you do now and uses your acquired skills.
Consider also benefits. Do you have good bennies now? You probably will be offered poor, if any bennies in radio that would be comparable to many other fields.
Really, in this economy, if you're making 65K now with the potential to go 6 figures in the next 3 years... if it was me, I'd tough it out, hit the 6 figures, salt away the difference between what I'm making now and the 6 figures to build up a cushion, THEN consider a change.
Some are going to chastise this advice, but moving into Radio Ad Sales from an established job is, IMO and almost without exception, not going to be a good move for you unless you have cash to fall back on. Depending on/Expecting 60K right out of the gate...not going to happen. That's just the way it is.
I've been involved with radio (Sales, Programming, on air, BUT highly involved with sales) since 1972. Please read, and re-read the opinions of Diane, Mike and Jane. I couldn't agree with them more. You have to really be involved with the job in order to make it work. You'll have to really enjoy the business to make money. Dot all your "Is" and cross all your "Ts" before you change your current job. Make sure family is on the same page (in agreement) with what you want to do. Best of luck in whatever you decide to do.
