Are You Underselling?

Are your clients investing enough to get results? If not, the fault may be with your proposals.

Radio and TV salespeople should ask for enough to get results

Photo by ivanmateev

When I prepare for a market visit, I like to ask managers and salespeople how much money it takes to generate measurable results on their station.

The answer I get varies depending on market size, rates and ratings, but there’s usually a consensus among the staff on the minimum monthly spend necessary to move the needle.

And often, there are advertisers spending well below that number.

Recently I accompanied an AE to a “save” appointment. The client was threatening to cancel because he felt his advertising wasn’t working. It was my job to come up with a way to save the business.

“What’s the minimum an advertiser needs to spend on your station to see a return?” I asked the AE.

“$3000 a month, at least,” she said.

“How much is this guy spending?”

A look of embarrassment crossed her face. “$1950.”

“Why are you letting him do that if you know it won’t work?”

She replied, “He told me that’s all he had in his budget.”

This AE is not alone. Every time I go out on the road, I encounter at least a few clients who have big expectations for tiny budgets. They are destined to be disappointed.

When a client underspends on a campaign, there are three losers:

  • The advertiser, who won’t get the return they expected.
  • Your station, who now has a customer telling their associates: “I tried [TV or radio] and it didn’t work.”
  • The salesperson, who loses confidence in the power of the medium.

If you’re a sales manager, this is a great subject for a sales meeting.

Before your next meeting, ask your sellers to email you a number – the minimum monthly dollar amount they think is necessary to get results on your station or media platform.

Compile the responses, lead a discussion on what it takes to generate results, and agree on a range.

When the meeting ends, ask your AE’s to go back to their desks and pull out their last ten direct proposals. How many of them were above the number?

You – and they – may not like the answer. Many will have to admit they’re not asking for enough to get the job done.

In my book Breakthrough Prospecting, I recommend setting an “Evangelista Number” – a minimum dollar amount for every proposal that goes out the door.

The Evangelista Number may vary for each AE depending on experience level and market conditions. But it should always be above the minimum necessary to get results.  

As marketing professionals, it’s our job to educate advertisers on the right way to do things. That includes investing enough money to get the job done.

Confession time: As a radio sales rookie, I once accepted an order for $20. What’s the smallest order you ever took? You can leave a comment by clicking here.

LIKE THIS POST?

Sign up for my blog updates and never miss a post. I'll send you the first two chapters of my new book, Breakthrough Prospecting, as a thank-you.

Please note: I reserve the right to delete comments that are offensive or off-topic.

Your Chance to Be Heard -- Comment Here!

4 thoughts on “Are You Underselling?

    • This reminds me of an attorney I met with who told me that when he was fresh out of law school, he practiced “transom law.” I asked him what that met and he said, “I accepted anything that came over the transom.”

      I was the same way my first year in the business. I learned to be a lot pickier as I gained experience.

      Did your $120 client renew?