Bonus Requirements from Agencies

    • 26 posts
    February 26, 2015 12:43 PM PST

    I'm the National Accounts Manager for a group in Northeastern Nevada.

    I work with all the agencies, and get a little frustrated that the agencies  consistently expect 20% bonus on every buy.

    My real question is do the agencies do that to everyone or is it just because we're a rural group? How do you handle it? Do you give the bonus away? Do you haggle it down?

    My boss won't let me do any bonus and I respect him for that. I have to turn away a few orders every year for that, and sometimes have to get creative with news sponsorships on others.

    • 455 posts
    March 4, 2015 7:34 AM PST

    I also work for a rural group. As long as radio is willing to give product away agencies will continue to ask and ask for more. I've had agencies ask for free remotes, more spots and free website presence. About five years ago, I decided to see if the request for added value was a deal killer. It was not. Never giveaway prime product, 6am-7pm, and that includes sponsorships.

    • 26 posts
    March 4, 2015 8:08 AM PST

    That is so exciting to hear! I worried we were alone, shouting into an abyss. Thank you!

    I worried we're being blacklisted or set aside as a pain in the ass when regional orders come up. This gives me something to cling to. Buyers make it sound like everyone is bending to their will "all the other stations give me a free remote." Why would anyone ever agree to give away such an expensive, labor intensive tool?

    Thanks, Jack.

    • 455 posts
    March 4, 2015 8:49 AM PST

    One of my mentors, the late Jerry Adams, used to call on clients who told him they had no radio budget. His response was always the same, "Great! I'm not here to talk about your radio budget. I'm here to talk about advertising."

    We've got to quit fighting over pennies and going after dollars.

  • March 5, 2015 12:53 PM PST

    Here is my philosophy and it has served me well:
    I tell all of my sellers who are pitching agencies to add 20% to the rate.  Then they are free to give as much as 25% BONUS stuff if need be.  That way we are never arguing the free stuff and make the buyers job so much easier.  You would think they would question rate, but when we agree to the value added, and even suggest what they take as value added, we get no complaints.