Live from the Local Media Association/Blinder Group/Florida Press Association Revenue Summit
By Nancy Lane, President, Local Media Association
Chris EdwardsFrom Chris Edwards, VP Sales/Customer Care, SourceMedia (Cedar Rapids, IA - newspaper and broadcast brands)
New Business Development Team formed in early 2011:
- Prospect and sell non-customers only
- Transition new accounts to the legacy teams
- Work as a “hit squad” for projects, new markets and new product launches
The Good:
- Drove an average of 11 new clients per month; 27% bought multiple products
- Created better working relationships between the teams (legacy reps started asking for their help on sales calls)
- Special section revenue was up in every pub
- Vendor tab revenue was up
- Created a pub designed to re-introduce them to surrounding small markets
- Provided the best feedback on new products
- Cross Roads – small town focus on fringe of circ area went from $2,500 to over $50,000 in advertising revenue; these areas also did over $20,000 in net “deals” revenue in 2011
- 64% of deals revenue was sold by new biz reps (they declared no account protection for daily deals when it started to get tough to fill the pipeline). Gary’s Food was the 2nd largest deal in Second Street’s network at the time (small grocer) that grossed $97,000. Legacy reps started teaming up with new biz reps on deals and splitting commissions.
The Not So Good :
- Too many short or one time runs – only 13% sold ran the following year
- Process was not well defined enough at the start
- Special projects drained time away from core business development
New business reps:
- “Different kind of cats:
- Didn’t have to have sales experience
- Guarantees for 6 months and then 100% commission (all of their sales reps in the company are 100% commission)
- When they hand over accounts to the legacy reps, they get paid on that account for the first year (he is happy to double pay commissions)