How much are you worth? If we are talking about how much you are worth to the station, I would say you, and all successful sellers, are irreplaceable. Consider that without us, there is no them. If your radio station exclusively relied on the emailed, programmatic business or called in business, they would have folded their tent by now.
Without us creating demand with buyers or occasionally putting a bow tie on a pig, there wouldn’t be enough business to make a go of it. So, while I understand the economics of return on investment for these radio operators, I am still a little bitter that we turn over on average 85% of everything we sell to the station and only keep 15% for ourselves.
In 2019, The Center for Sales Strategy surveyed 190 sales managers with job titles such as VP of sales, director of sales, and general sales managers. They also sampled 337 salespeople, primarily account executives. The majority were industry vets with 11+ years of media sales experience representing a balanced cross-section of market sizes. The survey revealed that 57% of media reps and managers want a base salary plus commission, but 92% reject the idea of eliminating commissions from their pay package when you ask just the sales reps.
Commissions are where it’s at! Here are a few things to keep in mind regarding commission.
#1 Know the basics. Do you know when your paychecks are available? Are you paid on sales or collections? Do you have a draw system set up? Can you raise or lower that draw to better manage your cash flow? Ensure you set up your larger auto withdrawals from your checking account, so the timing is best for your cash flow.
#2 Be a proofer. If you are not making sure, you receive the proper commissions for direct, new or NTR revenue who is? NOBODY! The payroll person has their hands full and will do the best they can, but mistakes happen and its on us to catch them or at least let the payroll person know we are double checking for accuracy and want every dime! Double-check your paycheck!
#3 ASK QUESTIONS. If you don’t understand how you are paid, find out. If you are paid a higher commission on new direct business for the contract’s life, find out how the station keeps track of that. If the payroll person does it by hand, make sure you do as well, and if that makes you uncomfortable, good. You are taking an active role in your income, and more often, this will be to your advantage. Be aware of collection deadlines as well. Many companies will charge back the commission you earned if the client doesn’t pay in 90 days or less. Some companies give you 90-120 days to collect the money and have the commission added back in. If you let the station manage your collections, that is a mistake. I think it is only fair that we get paid when the client pays, but if the station wants to advance the commission before the payment arrives in under 90 days, I’m all in on that!
Making sure you get paid for what you sold is all part of being your own boss. Own it!
Jeff Caves is a sales columnist for BSM working in radio and digital sales for Cumulus Media in Dallas, Texas and Boise, Idaho. He is credited with helping launch, build, and develop Sports Radio The Ticket in Boise, into the market’s top sports radio station. During his 26 year stay at KTIK, Caves hosted drive time, programmed the station, and excelled as a top seller. You can reach him by email at jeffcaves54@gmail.com or find him on LinkedIn.
