Radio Sales Café

How would you compensate people working in a market of 75,000 people - or any market for that matter? What do you do at your station? What about compensation re days outstanding?

20% across the board in my opinion. The less confusing, the more motivating. Bonus is bogus for the most part unless you give it to someone as a surprise for a month or quarter well done. I have yet to see someone sell harder strategically to earn a bonus. With a big enough bonus you may get them to sprint the last day or two of the month and sell something to someone that they often didn't need. The sales person grabs a fist full of nickles, your bogus, I mean bonus and as a sales manager, you get buyers remorse from the client and a sales person to manage who just lowered his/her own self esteem. Try to fix that one. If you recruit and motivate good, client focused sellers, a solid, easy to understand structure works wonders. If you want stars, treat them like stars, don't manage them like they were convicts on the take. Ask around but don't ask sales managers, ask those who make you the money. Try this, "Mr/MRS Seller, if you could design the ideal commission structure, one that would work for the company and work for you at the same time, what would it be?" Now, do what most sellers and managers typically don't do, listen carefully and don't interrupt no matter what you hear. At the end of the sellers comments, don't open discussion, just thank your seller for taking precious time off the street to share their ideas with you. Now, consider what you heard, it might be a way for you and your team to strike gold together.

Thanks Brian! How do you deal with reducing days outstanding where most stations pay on collection?

Andy,

We pay commissions on collections, so we do not have the messy charge-back situations that happen so often. I know there are many operators who like their salespeople to get direct and quick satisfaction from the selling process (commissions on sales) but our philosophy is that a sale isn't completed until the bill is paid. Toward that end, there is nothing wrong with asking for cash in advance...."How would you like to pay for that?"

All our sales people have a small salary and we pay 18% on Local Direct business and 15% on the net of Agency/National sales.

Andy: A good sales person is motivated by the KILL. Now I know there are those who say that "the sale is not done till the money is collected" but think on this: A rep goes out today and sells an annual that starts January 1. First bill is Feb 1. If they get paid in February, they get their first sommission on this sale some time in MARCH. I pay on SALES. They'll get their first commission check in January. Then there is an ABSOLUTE NO EXEPTION charge back at 90 days. Sales Managers are also charged back 2%. Then it is up to bookeeping. If they can get the money in they get 10% commission.
Yes your bookeeper has to watch collections... as they should. Sales people are now motivated by Money Now, and thye fear of loss later.
I have been doing this for a decade now and I am happy with it.

We pay on collection: 22.5% on direct, 15% on agency. We do encourage prepays by giving the advertiser a 10% bonus for prepaying the order. It is surprising how few clients take us up on that.

Andy,
We are in a market just a little bigger than what you are working with. I have a couple of ways that i compensate my sellers. If you want to give me a call at 419-331-1600 i would be more than happy to walk you through what we do here in Lima.
Tiffany

Chris, can I clarify? Are the AE's getting the 10% off the late pay or the bookkeepers? Thanks!
Jul

Greeting Jul!
Once the account hits 90 days they are OUT of the chance for getting anything. Now, if Bookeeping brings it in, they get the entire 10%

Greetings Tiffany:
One of the nice parts about a forum like this is that everyone has a chance to take as well as give. We would ALL like to know what you are doing as it may be better than what WE are doing.
Thanks!

Bonuses are great . . . bonuses inspire. It’s not so much the amount of the bonus, as the accomplishment and acknowledgment. Our monthly staples are $ for starting the month at 85%, making goal, and the station making goal, but then there are numerous other monthly incentives. 90% of the time bonuses are based on individual performance, but occasionally they are competitive . . “first to sell 3 Santa Blitzes receives $. . . .first to reach goal receives $. . .” But, we only do competitive occasionally. The consolidators here offer no bonuses, their attitude is “selling is your bonus.” How lame is that? We pay on sales. Instant gratification is one reason, and since no one wants to give back $, it produces a better collection outcome. We openly chart the [percentage] progress of each sales person for the current and upcoming month. When we don’t update the chart, I hear about it. So it seems to be a good thing.

I always gave 15% for direct business and 12 1/2 % agency. I think that is only fair.

This is a very interesting discussion, and I am sorry to be arriving almost four years late.

1. Are most of your compensation plans strictly commission-based, or do they also include some kind of base salary or draw?
2. Do most companies offer any sort of health insurance, or is that just a fantasy these days?
3. Are there any other perks or incentives which are offered to salespeople in your station?

Thank you!

A little beef of mine when it comes to charge backs.. is if you're going to charge me back anyway...then don't make my client fill out a credit app....if you do then you get the chargeback, not me.. just sayin'