100% telemarketed ad sales for small mkt rebuild

    • 21 posts
    February 8, 2016 10:25 AM PST

    I'm evaluating a project back home some 500+ miles away to resuscitate by LMA a dark, small to micro market FM.  The cost to get it operational I'm guesstimating to be somewhere north of $25k. While I grew up in the area, it's been nearly 30 years since I lived there.  So, I'm faced with a chicken and egg dilemma.

    In a perfect world, there would be a salesperson on the ground and someone from the community to do HS play-by-play on a per game basis.  But, how do you have credibility in the market to attract these people if you aren't on the air?

    This is a case of "crawl before you walk."  I'm envisioning at first a talk-based format (no political talk, the best of those programs couldn't be cleared anyway) with perhaps an hour-long local program.  I have commitments here, so moving to the proposed station 500+ miles away isn't an option.  Telemarketing appears to be the only answer, and I'll need to be the telemarketer.

    Once on the air, my idea is to generate enough income to break even by telemarketing the larger clients in the area with annual contracts at $200 to $300/month per client, bonused generously at first.  Goal would be to get ten or fifteen clients on board, then build from there.

    Prior to my years in radio, I spent a number of years in inbound customer service, a couple of years before that telemarketing those Shoppers/Travelers/Motorists discount plans to credit card customers back in the late 80s.  So I'm no stranger to the phone.  

    Question is whether an initial telemarketing push as described would be a viable plan to initially ramp up the station.  Comments/criticisms/suggestions are most welcome...

  • February 12, 2016 7:24 AM PST

    No way.  This is an opportunity for failure.  If you were going to move into the market and be on the street and on the air daily, it MIGHT work; but remotely...no %$&*# way.

    • 5 posts
    February 12, 2016 7:56 AM PST

    Selling radio advertising by telemarketing is a tough business.  The companies that sell the small Mom and Pop businesses those locally sponsored PSA's will probably make one sale per 200 calls.   Calling on the best retailers with the biggest bugets, is a whole different story.  You will be competing with local media who call on them in person.  So that would be a hard situation to overcome.  Also, the key to sales is establishing rapport and creating relationships.  About 80% of all buying is emotional.  So, that being said....it would be virtually impossible for a telemarketer to estabiish rapport over the phone enough to get a meaningful budget from someone who has solid personal relationships with other radio stations in their area. 

    • 8 posts
    February 12, 2016 8:19 AM PST

    The average business gets dozens and dozens of telephone calls every week with each promising that they have the best idea since Edison's light bulb. If you can't be in the market in person, and ideally live in the market where your station exists, FORGET IT. There is a reason this station is dark. And what is a small to micro market FM? 

    • 58 posts
    February 12, 2016 9:27 AM PST

    Russ,

    You can do it.It's easy,but you have to have a good plan. My company was been in the business 35+yrs doing in house ad selling for radio stations.Yesterday I had 15  in a row.If the close ratio got worst that 1 out of 7 you would need to change what you are selling.I can help you. [email protected]

    • 21 posts
    February 12, 2016 10:08 AM PST

    I should have added that the counties to be served are currently unradioed, although the area is served by several stations from adjoining counties.

    Small to micro market?  I would define it as where there's less than 15,000 people in the 60 dBu service area, and the principal community served is less than 4000 people.  That''s the case here, in fact the largest town is only 2500 people.

    Most of my time in radio was in traffic reporting, but I've spent some time in sales, and some of my best success was in telemarketng the PSA style announcement packages.  That being said, I share the concerns most everyone has voiced here about not having someone on the ground in the market.  Lacking that, I'm going to say this is a no-go.  Thanks for your feedback.

    • 58 posts
    February 12, 2016 3:17 PM PST

    That's really small!! Your start-up cost is very little.That's a good deal!! It can be done. Let me explain.The station has to be on the air and you have to be able to program it from your location. You can sell from your present location too.Rapport can be built on the phone, you have to be totally honest with your clients.A person would be required in the market. I call that person the PR person, their job would be to see the client after you make the sale to review the copy and schedule.You can hire a local, in a entry level position, to work into a full time position as a account executive. Hire them in at a minimum wage, draw to commissions. Start with a grand opening sales event,just like any other business would do..Other small business understand this language.You have to have good copy and lots of frequency checking with the clients all the time.Grace Company has many promotions you can follow-up with,just add a spot sked to them to get frequency.It's hard work no doubt about it.It's starts with a well programmed station and a total commitment. I prefer to be on location when I do one of these. I provide a turn key to low power and translator owners.