What News/Talk Radio Stations Can Learn from Past Brokered Programming Scandals

Paid-for broadcasts are a reality. Here are some other things to keep in mind. Your company may be on top of this, but it is a good refresher.

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Likely, your news/talk radio station has some brokered programming, especially on the weekend. Many of our companies include this in the business plan. Perhaps we need to revisit some of the pitfalls and even benefits of these shows.

I categorize these shows into three groups: program content, soft infomercials, and hard-core sales pitches. Your station may have a mix of all three.

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The brokered show that provides program content is by far the most preferred. This is the garden show that is paid for by the local garden center, or the home improvement show sponsored by a local hardware store or contractor. Some of these are very good, and the station’s staff love them.

There is program content while letting people know that if they go to ACME Hardware, they can find the materials for their project. In fact, the less selling on these types of shows, the better. The business owner is paying for the ability to be the community expert in their specialty. There is something to be said for being the expert whom people trust. I have seen these shows build these reputations, and it is a terrific marketing strategy.

The soft infomercials have some content that people would like to know more about. The real estate show explains the market and homes for sale. The real estate program’s appeal can be somewhat narrow.

That being said, a live show on a Saturday can explain curb appeal, give advice for listeners preparing a home to be sold, or provide tips for new home buyers. Some financial shows can fit into this category; some, not so much. The local annuity jockey can explain why their products may work if you are about to retire or preparing for retirement in the next decade. The smart annuities show can build a strong relationship with the audience and have clients ready to see them.

What about gold shows? May I remind you of the Superior Gold Group? From 2007 to 2010, this company was on news/talk stations all over the USA. This turned out to be a Ponzi scheme, with the owner, Barry Sands, being sentenced to 11 years in jail.

This is a stark reminder that we have a responsibility to our listeners and ultimately our shareholders to do due diligence on shows like gold and crypto, since there are no guardrails to guarantee that the company or show host is a legitimate businessperson. I’ll give tips on protecting your brand and/or company coming up.

The hard-core infomercial has almost no programming content at all. It is a pure sales pitch. Vitamins, nutrition products, etc., are usually the products sold. Frequently, there is a doctor recommending the vitamins, and almost never is there a disclaimer that the doctor is either an employee or a company officer. Which is fine, but this is the scenario.

Besides being poor programming, these shows have very little commitment to your station. If the shows are not working, they will cancel on as short notice as possible. It is not advantageous to your station if the lineup is not consistent. I have also found that if you cancel these hard-core infomercials, they are usually not happy. It’s funny because they will drop you in a hot second and expect that cancellation to be immediately completed. Hard-core infomercials have no loyalty to you, your station, or your company.

How do you protect yourself from a Ponzi scheme like the Superior Gold Group? It is difficult to do so. I personally believe it must be done before accepting the show to air on your station. Your company may be doing something like this: a background check on the company’s officers and any host of the show.

Sometimes you can find if there is someone with a felony conviction for fraud among the cast members. If you get complaints, follow up with the brokered show immediately. Don’t ignore the complaints. If you are attentive to your station’s listeners, this will lessen the blow to the station’s reputation.

Paid-for broadcasts are a reality. Here are some other things to keep in mind. Your company may be on top of this, but it is a good refresher. Make sure that there is a sponsor ID before and/or after the show. If the show says that it is live but is delayed on your station, use a disclaimer that the show was previously recorded. There have been FCC fines on both of these issues in recent years.

If you have a paid-for show that is sponsored by a political party or political action committee, make sure that the information is in the station’s FCC political file.

Ultimately, the license holder is responsible for whatever airs on the station. The market manager and program director are the people who must evaluate these shows.

I think that wherever you can have programs that fit the audience and have program value, that is always a winner. Developing shows that can get there for the long run is best.

May I suggest a revenue share for shows with program content value? Depending on the agreement, the garden show hosted by the local garden center may allow for commercials from competitors as well.

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