PBMA 2008 Compensation Underwriting Sales Reps Presented by:Kirk Nelson

PRP Client Stations Phoenix Seattle Nashville Austin Denver Sacramento St. Paul Minnesota Cincinnati

Question’s 1.What concerns or frustrates you most about your current comp plan for corporate support? 2.What’s your GOAL?

Session will Cover Define Compensation Understanding Dimensions to Selling Designing a Plan for Your Market Five Different Plans – Pros & Cons Achieving Results

Compensation Defined Dictionary.Com 1.The act or state of compensating 2.The state of being compensated 3.Something given or received as an equivalent for services

Understanding Sales Types Retail Salesperson –Reactive selling/business comes to you –Focus on product features benefits Outside Salesperson –Pro-active selling/you go to the business –Focus on: Product features and benefits or Customer focused-solutions Telemarketing –Lead generator or product peddler –script selling –Focus on sale Industry-Type –Short or Long term sales –Focus on buyer needs

Broadcast Sales Product Peddler –High Plan –Low Participation Counselor Representative –Low Plan –High Plan –High Participation –Relationship

Reward What You Need? Spot Sales –9% Existing Business and renewals –20% New Business first 15 months 25% Web Sales Events –10% Renewals –15% New Business Group Market Stations –15% Lead Sales Rep –9% Station Rep 1% Business 10%+ Quota 2% Business 20%+ Quota -1% Deduction less than 95% of Quota

Value of Inventory Broadcast Print Events Web Specials Other Values in thousands

Selling Compensation Continuum HardEasy Degree of Difficulty

Designing a Plan for Your Market Understand your markets value Market Compensation Considerations –Total Compensation Statement Recruitment - Positioning Your Compensation

Understanding Your Market Public Broadcasting Profile Excessive Talent Pool Growing Market Economy Culturally Dense Rich in Public Broadcasting Categories Commercial Competition Public Competition

Compensation Considerations Pay – Commission, Salary, Both Medical Benefits Education Non-taxed Retirement Accounts Time Off Retirement Benefits Station Position – 1 st or 2 nd tier Work Environment Selling Tools & Support

Recruiting The 7 Behaviors Customer Service Self Management Written Communications Persuasion Interpersonal Skills Goal Orientation Presenting

Recruitment Posting Do You Love Public Radio (Television)… Corporate Sponsorship Sales - Public Radio Partners seeks determined and persuasive sales professionals to join our public radio sales team at XXXX. Position requires the development of new business and excellent communication and presentation skills. 3 years sales experience and 4 year college degree required. Media or marketing related sales experience preferred. Please cover letter and resume to xxxx xxxxxxxx at xxxxxx.com

Promote your Total Compensation Value Statement to Good Candidates

5 Types of Comp Plans 1.Salary Only 2.Salary + Commission 3.Salary + Commission + Bonus 4.Commission Only 5.Commission + Bonus Plus Sales Manager Comp Model

1. Salary Only - Station Station Perspective + Easy to budget + Easy to manage cost of sales + Easy to process –Difficult to recruit “good” sales people –Difficult to motivate sales people –Station must create demand Employee Perspective + Guaranteed Income + Can budget accordingly –Slow income growth –No incentive to grow revenue

2. Salary + Commission Station Perspective + Greater motivation to promote budget attainment + Better recruiting tool –Requires establish trends to budget –More time to process payroll Employee Perspective + Provides safety net for reps + Modest opportunity for income growth –Significant upside may be difficult

3. Salary + Commission + Bonus Station Perspective + Excellent recruiting tool + Promotes budget attainment + Promotes employee engagement –Requires establish trends to budget –More time to process payroll Employee Perspective + Provides safety net for reps + Opportunity for income growth

4. Commission Only Station Perspective + Budget against projected billing + Cost of sales variable based on performance + Good recruiting tool –Incentive flexibility for budget attainment –Expect Low performer turnover Employee Perspective + Significant income potential for high- performers –Viability of income based on ability to perform

5. Commission + Bonus Station Perspective + Budget against projected billing + Excellent recruiting tool + Promotes budget attainment + Promotes employee engagement –Requires establish trends to budget –More time to process payroll –Expect Low performer turnover Employee Perspective + Significant income potential for high- performers –Viability of income based on ability to perform

Sales Management Comp

Cost of Sales Considerations Cost of sales –Whatever the cost, employee comp stays the same Total Compensation Package –Base –Commissions –Team bonus –Individual bonus –Discretionary Incentive flexibility

Compensation Agreement Guaranteed Commissions Guaranteed Commissions Pay Structure Individual Commission Structure Charge Back Policy Termination Background Check & Drug Screening Acknowledgement

Achieving Results Responsibility –answerable for something within one's power, control, or management Accountability –Being accountable, liable or answerable

Responsibility Sales Manager –Assigning realistic quotas Obtainable objectives Based on station or industry benchmarks –Maximizing department revenue potential –Overall department development –Tools to succeed Sales Rep –Understanding departments, and individual goals and objectives

Accountability Manager –Attainment of budget objectives Monthly, quarterly, annually –Department account collections –AR minimums 30, 60, 90 & 120+ Sales rep –Meet or exceed personal Quota Monthly, quarterly, annually –Personal account collections –AR minimums 30, 60, 90 & 120+

Rep Growth Rates First Year 100K – 150K Year Two 250K + 50 – 100 % prior year Year Three + 25 – 50% Year Four + 20% Senior Rep +10%

New Rep Growth Expectations $0 - 1,500Month 1 $ ,000Month 2 $5 - 10,000 Month 3 $ ,000 Month 4 $8 - 12,000Month 5 $8 - 12,000 Month 6 $ ,000 Month 7 $ ,000 Month 8 $ ,000 Month 9 $ ,000Month 10 $ ,000 Month 11 $ ,000 Month 12

Benchmarking Performance Radio

Benchmarking Performance TV

Salary Only Measure activity during Probation Period –Time in, time out –# new business calls Daily, weekly –Total # calls Daily, weekly –# presentations weekly –# Sales

Revenue Versus Collections Revenue is predictable three months Revenue can be: –Planned –Predictable –Sustainable Collections can be erratic If rep leaves there’s little motivation to work account

?? Questions ?? Presented by:Kirk Nelson