Some of the things I write about here on BSM are sports radio or radio sales issues I had or continue to struggle with now. Over the last thirty-eight years of selling radio, one of the best habits I created for myself was figuring out how much money to ask for and for how long from the client.
It is as easy as A, C, and B. In that order.
I struggled for a few years trying to customize every proposal and sensed how hard it sometimes was for me to ask how much money the client was “willing” to spend with me. I hadn’t built up enough knowledge, or financial security, to offer a budget solution to the client. I was scared that if I asked for too much money for too long of a time that the client would say that I was too expensive and wouldn’t accept a lower spend amount. I felt like I was shooting in the dark.
I started researching average advertising budgets based on gross sales through the RAB. I also had managers teach me that I should offer three proposals. The old good, better and best packages. Others have called it the bronze, silver, and gold packages. That felt too gimmicky to me. I wanted to sell from the feel, felt, and found perspective. I believe in the power of third-party endorsements, testimonial letters, or now Google reviews.
I had been trained and had accepted the benefits of telling prospects, “I understand your confusion on how long to advertise on the radio. Bitchin Motors felt the same way, and they found that twelve months was the most valid test.” So with that in mind, I researched more specific information on station advertisers’ contracts. I found out the average contract total and length for the station. I focused my research on short event-type flights and long-term monthly/weekly advertisers. I wanted to know what the most consistent advertisers were spending to get results and the same for concert promoters or local event advertisers.
I would present my results to each type of client. When dealing with monthly local direct advertisers, I suggest starting with 12-month contracts. I explain that this is the way to get the best rates on the station, and we can establish a 60-day out clause if they want to stop the advertising. It’s best to plan for success. Who wants to lose 40 pounds but only commit to one week diet? Try this the next time you want to know how much an advertiser may spend with you. During the discovery call, ask your prospect the following question:
Regarding monthly budgets, I usually work with three types of clients. Client A spends $1,000 a month on afternoon drive, only trying to get frequency with a smaller group of listeners. Client C buys all dayparts and wants every listener we have on the station at about $4,000 per month. My average client, Client B, spends about $2000 a month and focuses on both am and pm drive each week. Which are you most like?
Then SHUT UP.
Most clients will gravitate to Client B. When presented with extremes, it’s the “safest” option. And, because you researched it and determined it gets results for most of the station’s long-term clients, you are setting them up for success. Let’s go with Plan B.
Start downloading my podcast, Seller to Seller, on the BSM Podcast Network starting Monday, July 11. My guest is Alec Drake of Drake Media, and our topic is selling a rate increase.
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.
