In this post we are going to talk about structuring your first package (actually first 2 packages) to help you get off to a good start with radio sales.

The Club Package is one of the most successful packages we implemented at both the stations I managed. I have since also seen it used successfully in many other radio stations around Australia.

The Club Package is a great starter package that maximises your likelihood of success. The idea behind this package is that you reserve a percentage of your airtime for Club Members (somewhere between 30-50%). The package gives your clients 40 x 30-second spots per week, and a share of any leftover Club airtime.

The share of left over airtime diminishes as more people join the Club, favouring early adopters. This creates urgency which helps greatly when trying to close sales.

In very small markets (populations less than 60,000) you may choose to sell the Club Package for $100 or even $149 per month, giving a spot rate of $2.50 or $3.72 respectively.

For many small stations this would be a big improvement to their annual revenue. You’ll recall from Part 2 of the Getting Started with Sales series that there are 65,700 usable spots that you can sell, and based on $2.50 per spot, if you sold all your air time your annual sales income would be $164,250. Considering there are more than 200 community licensed stations with an income of less than $63k per a year this could be a significant improvement.

This package also has the added benefit for your station of increasing your effective spot rate with each sale. The more people buy it, the more the effective rate increases. Instead of just getting their 40 x 30-second spots they pay for, if a business is an earlier adopter they could be getting 300 spots per month. This is very attractive to a business looking for an affordable way to market its products. This package almost sells itself!

How it does this

If you sell your Club membership at $100 per month and they get 300 spots, then your effective starting spot rate is just 33 cents a spot. As more people buy the package there are fewer left over spots to share and eventually your clients will be paying $100 for 40 spots. So, your effective spot rate will have improved from 33cents to $2.50.

If you’re just starting in sales and you took on this sort of sales package, it would last you about 12 to 18 months before you need to start using another sales package. The Club Package has a lifetime of about 12-18months before you begin to have sold out of all your air time and the package loses its effectiveness. We will talk about what moving to the next phase in sales will look like in a later post.

When we implemented the Club Package at ultra106five, we grew from 20 clients on-air, to 64 clients on-air in four months. And 64 was our capacity and we were sold out!

However, even though it’s very effective, you still must do the leg work. There is no getting around that it’s still a numbers game, where you must go out and visit clients and make your calls.

Experienced sales person working for you?

It’s worth noting here that if you have an experienced sales person working for you then it would be worth letting them look at this article and the package and adjusting the pricing to where they are comfortable.

I would say to experienced sales people reading this not to think of it so much as getting the sales but as gaining a customer. One of the first clients I signed up when I was doing sales in Hobart started out on a $249 per month package and eventually was spending $1799 per month. Initially you want the relationship, you can build the price later.

As a client receives results and increases their trust in you and the station, you can increase how much they spend.

In the next post as part of the Getting Started with Sales series we will talk about outsourcing script writing and production to increase your sales income.

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