pbma 2008 compensation underwriting sales reps presented by:kirk nelson

Download PBMA 2008 Compensation Underwriting Sales Reps Presented by:Kirk Nelson

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  • Slide 1
  • PBMA 2008 Compensation Underwriting Sales Reps Presented by:Kirk Nelson
  • Slide 2
  • PRP Client Stations Phoenix Seattle Nashville Austin Denver Sacramento St. Paul Minnesota Cincinnati
  • Slide 3
  • Questions 1.What concerns or frustrates you most about your current comp plan for corporate support? 2.Whats your GOAL?
  • Slide 4
  • Session will Cover Define Compensation Understanding Dimensions to Selling Designing a Plan for Your Market Five Different Plans Pros & Cons Achieving Results
  • Slide 5
  • 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
  • Slide 6
  • 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
  • Slide 7
  • Slide 8
  • Broadcast Sales Product Peddler High Plan Low Participation Counselor Representative Low Plan High Plan High Participation Relationship
  • Slide 9
  • 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
  • Slide 10
  • Value of Inventory Broadcast Print Events Web Specials Other Values in thousands
  • Slide 11
  • Selling Compensation Continuum HardEasy Degree of Difficulty
  • Slide 12
  • Designing a Plan for Your Market Understand your markets value Market Compensation Considerations Total Compensation Statement Recruitment - Positioning Your Compensation
  • Slide 13
  • Understanding Your Market Public Broadcasting Profile Excessive Talent Pool Growing Market Economy Culturally Dense Rich in Public Broadcasting Categories Commercial Competition Public Competition
  • Slide 14
  • 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
  • Slide 15
  • Recruiting The 7 Behaviors Customer Service Self Management Written Communications Persuasion Interpersonal Skills Goal Orientation Presenting
  • Slide 16
  • 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 e-mail cover letter and resume to xxxx xxxxxxxx at xxxxxx.com
  • Slide 17
  • Promote your Total Compensation Value Statement to Good Candidates
  • Slide 18
  • 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
  • Slide 19
  • 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
  • Slide 20
  • 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
  • Slide 21
  • 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
  • Slide 22
  • 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
  • Slide 23
  • 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
  • Slide 24
  • Sales Management Comp
  • Slide 25
  • 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
  • Slide 26
  • Compensation Agreement Guaranteed Commissions Guaranteed Commissions Pay Structure Individual Commission Structure Charge Back Policy Termination Background Check & Drug Screening Acknowledgement
  • Slide 27
  • Achieving Results Responsibility answerable for something within one's power, control, or management Accountability Being accountable, liable or answerable
  • Slide 28
  • 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
  • Slide 29
  • 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+
  • Slide 30
  • Rep Growth Rates First Year 100K 150K Year Two 250K + 50 100 % prior year Year Three + 25 50% Year Four + 20% Senior Rep +10%
  • Slide 31
  • New Rep Growth Expectations $0 - 1,500Month 1 $2.5 - 5,000Month 2 $5 - 10,000 Month 3 $7.5 - 10,000 Month 4 $8 - 12,000Month 5 $8 - 12,000 Month 6 $10 - 15,000 Month 7 $10 - 15,000 Month 8 $10 - 15,000 Month 9 $12 - 20,000Month 10 $12 - 20,000 Month 11 $12 - 20,000 Month 12
  • Slide 32
  • Benchmarking Performance Radio
  • Slide 33
  • Benchmarking Performance TV
  • Slide 34
  • Salary Only Measure activity during Probation Period Time in, time out # new business calls Daily, weekly Total # calls Daily, weekly # presentations weekly # Sales
  • Slide 35
  • Revenue Versus Collections Revenue is predictable three months Revenue can be: Planned Predictable Sustainable Collections can be erratic If rep leaves theres little motivation to work account
  • Slide 36
  • ?? Questions ?? Presented by:Kirk Nelson