David,
I have some friends working in LA and would be glad to ask what they know about this. My guess is that compensation packages vary from company to company - i.e., there is no "standardized" commission formula within a market.
David:
This is the relevant portion of the reply I received from my friend in LA:
Ok… so… I talked to a friend of mine (a radio sales rep) and the question of income in the radio sales world can get quite confusing. (At least for me!) From what I’m told, the typical ... rep gets a “Draw” (I think he said $3800) which is subtracted from commission earned. He said typical commission is 15 percent…
He said it can take up to a couple years before you can really start seeing anything beyond a virtual subsistence level income… When you start out you’re handed a really crappy “List” the hope is that over time you make something out of that “list” (perhaps inheriting the occasional “good” client)
As to the 15 percent commission it seems to hardly matter in the beginning of your career (and I think that percentage can vary depending on which radio station/corporation you wind up working for. For instance, in some rare cases you might get a “commission only” arrangement. In those cases the percentage is much higher (he said not many stations…if any.. will do that). The answer to “how much” is …..Naturally….. “it depends”
He said [his company] in particular is VERY lenient and they don’t like to fire people. Even low performers. Either way it seems to be a tough “row to hoe” becoming a high earner in radio sales.
Hope this is at least somewhat helpful, David.
When I had been in radio sales for 5 years or so, I came to believe that anyone with an aptitude and heart for the business could find work in any market in the USA. Consolidation may have changed this somewhat, but I am still of the opinion that someone who is proficient in radio sales can be successful in any market, given the opportunity to succeed.
And there's the rub, as they say.
It takes time to become established in a new situation. During this period of adjustment, it's incumbent upon the employer to provide sufficient income, training, nurturing, and time to give the new salesperson a solid foundation to build on. This also involves agreeing on and reaching realistic/achievable intermediate goals to help the salesperson stay on track. The best stations will afford him/her this opportunity, and will reap the rewards of a mutually beneficial long-term relationship.
I believe it's as important for you to be careful in selecting a prospective employer as it is for the station to make a good hire. If you really want to get down to the nuts and bolts, get in touch with salespeople working for all the LA radio companies; talk to them on the phone (emails are not a good idea in this context). Invest the time and effort to get the answers you need, then visit the market to confirm what you believe to be true. Cost of living is higher in big cities than in smaller markets. $3800 might be a great guarantee in a town of 50,000. In LA...?
Keep us posted on your progress, and good luck!
