Keeping motivated is hard. In any industry, maintaining a desire to want more from your job is difficult, and even more so when at least half of the time you hear, “no”. The world of sales and marketing is not a kind one, and those that survive its hardships have had to maintain their own motivation and perseverance. At the Mustang Daily, we understand that selling is hard, and that hearing, “no” every day makes it difficult to stay motivated and want to do sales day in and day out. As a result, we created a sales incentive program that not only rewards ad reps for meeting revenue goals, but also for generating new clients, selling with the use of a spec ad, knowing the articles that have ran in the paper, and just for sticking it out during the tough ruts. Sales goals for each week were initially set by the individual ad rep, this way they could tell the management staff what they viewed was possible in their territory. The goal was set such that they would be stretched a little, as all goals should do, but that the end result was obtainable. For every week that the ad rep made his/her goal, a $25 bonus was given. If an ad rep made his/her goal for 3 weeks in a row, a $50 bonus was added for that third week. If an ad rep continually made the goal, the weekly amount would be upped after consulting with the ad rep about how much the goal should increase in order to encourage further sales growth. Ad reps were also rewarded for selling new clients or by using a spec ad to sell a client (new or existing) with another $25 bonus per client or spec ad sold. Non-monetary rewards were also given for perseverance and knowing articles that ran in the paper. Each week, an ad rep meeting is held to discuss objections occurring in the field, upcoming special sections, future events, and also to give a quiz on articles that had ran in the paper during that week—rewarded with candy or small gag gifts—as well as to
name the ad rep of the week who management had viewed as doing and outstanding job for that week—rewarded with a gift certificate to a local eatery. In order to qualify for any bonuses or prizes, the ad reps were required to sign off on all dummied papers prior to the advertisements running in order to double check for errors in their clients advertisements. As a final incentive, to have the entire advertising staffs contribute and to build teamwork, a team goal was set for the entire quarter, where upon meeting this goal a ski trip would be provided for the entire staff. All of the individual bonuses and prizes, and team goal progress, were accounted for on a large white board that is displayed in the office to promote a healthy competition amongst the ad reps. The sales incentive program has proved extremely effective at increasing ad rep moral, but also in increasing local sales. In comparison to the previous (2005) fall quarter, this past fall quarter (2006) saw a 15% increase in local sales alone. The Mustang Daily views these advancements as sufficient proof for the success of the sales incentive program and look forward to continually improve upon the program.
Fall 2006
“Titan Teams” “Titan teams” is the Daily Titan’s new sales incentive program. Each Daily Titan newspaper Account Executive will be a part of a two-member team. The team with the most new business sales will split a 10% bonus of those new business sales for that week. Also, each team will have the opportunity to split 10% of sales for each special section provided they meet the minimum sales goal. This is a great opportunity for teamwork and to earn some extra money. New Business Details: Each team will pick their team name. New business sales totals will be written on the “Titan Teams” board for each week as the sales are made for each team. (It is the teams’ responsibility to keep their totals accurate and up to date). For a sale to count, the AE must have a signed CIO and received the money. New business means that the client has not advertised in the past year. Bonuses at the end of the semester based on total sales will still be determined individually and not on team sales. Every week, each team will be required to go on at least five walk-ups together. This can be done at any time during the week that works for both team members. Teams can take turns for who drives and which zones are visited. A weekly sales report must be turned in by Friday before the sales meeting every week by each AE to Emily’s box detailing what walk-ups were made and how much money in new business was acquired. Team names and the AE’s name should be written at the top of the form. Failure to turn in this form on time may result in forfeiture of bonus payment. Both members in the team that wins for that week will split a 10% bonus of the new business sales made that week. The winning team will be announced at the sales meeting every week.
Fall 2006 Special Section Details: Each team will have the opportunity to split 10% of sales for each special section provided they meet the minimum sales goal. These sales goals will vary for each special section and will be announced at a sales meeting prior to the start of special section sales. The team with the most sales for each special section will receive an additional bonus to be specified at a sales meeting prior to the start of special section sales. These sales must be new business or incremental advertising from existing clients (old clients cannot be advertising in the special section instead of the regular Daily Titan issue in order for sales to count towards your team’s sales).
The Daily Pennsylvanian Sales Incentive Program
T
he Daily Pennsylvanian’s Advertising Department uses a quota system that’s based on both results and effort. An individual quota is given to each rep and each team receives a team goal, based on the individual quotas. The program motivates sales reps to sell more individually and as a team, and ties into the selling truth that the reps that make the most calls are, more often than not, the reps that make the most sales. Every rep in the advertising department has a customer list. Obviously, senior reps have better customers than newer reps. The quota system is an inch goal given to each rep based upon what their customers advertised during the two-week period one year ago, plus a percentage increased based on the advertiser manager’s goal for the department. So, the first advantage to the quota system is that it gives the reps an understanding of exactly how many inches they need to sell in a two-week period. As a result, I may sell 200 inches less than another rep, but in doing so I may exceed my goal and therefore I know that I’m doing a good job. With each quota sheet, a printed report is attached that details the customers that ran during this two-week period last year, as well as the size of the ad and the publication. This also helps to focus the reps and to give them a priority list of which customers to call on. All reps are required to make a certain amount of sales calls during each two-week goal period. The same amount of calls is required of everyone, and the quota system is directly tied into the bonus/retraction part of the quota system. It is The Daily Pennsylvanian’s strong belief that if you do the work that is required, you should be eligible to receive a bonus and you should never lose commission due to an “off week” of selling. The reverse is also true — if a rep does not make the required amount of calls, he or she is not eligible to receive a bonus and may lose additional commission if he or she did not make the individual quota. The sales department is made up of three teams. Each team covers a geographical territory in Philadelphia. A team leader leads the teams of four. It is the job of the team leader to manage the reps in that territory. When the individual quotas are made, the sum of the quotas make up the team goal. In addition to making a bonus for exceeding the quota, teams have the opportunity to make an additional $25 each for exceeding the team goal. If the team makes the goal, only those reps that fulfilled their sales call requirements are eligible for the team goal bonus. Sales reps need to be motivated in order to continue to work their territory, face the rejection and overcome the obstacles. By giving them individual and team goals, we motivate them to work harder and more efficiently. This sales incentive program uses a system that is fair and works both the positive and negative approach to motivation. Reps have the fear of losing money and the promise of gaining money. The system teaches that hard work will always be profitable and that sales is all about the effort.
Advertising Department Department Structure Goal System •
Every pay period, a goal of inches to sell is given to each rep
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The goal includes an individual goal for the rep as well as a team goal
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The goal is based upon what the rep’s customers placed during this 2-week period last year
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Added to the Goal: A % increase that is determined at the beginning of each semester Any inches from businesses that are no longer advertising in the DP are divided up for all of the reps to cover
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Each goal also includes a tally of the inches sold by the rep since the rep started selling for the DP. This helps the rep to see how many more inches are required to move up to the next tier
Bonuses/Retractions • If an ad rep goes above their goal amount by x% AND meets requirements, the ad rep receives a bonus of x% of their commission, with the bonus percentage capped at 30% •
If an ad rep goes above their goal amount by x% AND does not meet requirements there is No bonus/No retraction
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If an ad rep goes below their goal amount by x% AND meets requirements there is No bonus/No retraction
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If an ad rep goes below their goal amount by x% AND does not meet requirements, the ad rep receives a retraction of x% of their commission, with the retraction percentage capped at 30%
Team Goals • The team leader’s individual goal counts towards the team goal and the team leader can also get the bonus •
The team goal is the sum of the individual goals plus an additional 2%
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The bonus for making the team goal is $25 to each member that makes their requirements
The Daily Pennsylvanian The Independent Student Newspaper
of the University of Pennsylvania
Founded 1885
GOAL SHEET GENERAL INFORMATION ADVERTISING REPRESENTATIVE:
Alex Raksin
DATE RANGE:
11/27/06 to 12/8/06
QUOTA INFORMATION
CUSTOMER INCHES: COMMENTS: Domino’s Jos Anthony Cafe Habana Cherry St. Tavern Dining Services
TOTAL
345.0 8.00 4.00 21.00 126.00
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This goal period does not include the Finals Issue
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7% over last year’s rep inches is the goal of the advertising department
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11 inches have been added to everyone’s goals to make up for Campus Technologies, Weisenthal Properties and other lost inches from last year.
193.50
Individual Goal: 219 inches
Team Goal: 558 inches
Inches to Date: 2,812 inches
To: Cnbam Contest 2007 From: Pete Waack, Daily Orange, Syracuse University Date: January 18, 2007 Re: Best Sales Incentive Program, Calling and Database Upkeep
At the bottom of The D.O. sales database reside potential clients that have languished with no ad sales and not much prospect. Many of the “low ranks” have taken up space for many years, occasionally getting a mass mailing and a phone call a year. Somehow though they made it into our sales database so there is probably some reason that they could benefit from advertising. With our college paper and its high turnover, many of these companies are rarely touched; we have strived for at least once a semester. Frankly, as much as I plead, that isn’t happening. Perhaps one phone call is made where an unreturned message is left or, just as likely, the decision maker was unwilling to talk much about it at that moment. Discouraged at that point, most ad reps don’t bother calling again or putting a package in the mail to the owner. These clients are also most likely to have incomplete mailing information, little if any customer information, and if your lucky, a few narrative snippets about past sales efforts. Hey, I’m not blaming you guys; I understand the pressure for commissions forces triage. We’ve tried cold calling incentives in the past with some limited success. If the potential client responded favorably, the ad rep pursued whole-heartedly. If the client was luke-warm or hard to reach, little else was done besides collecting the cold call bonus. At the Daily Orange, we have started a new incentive program to have the least likely prospects in the database called, personally mailed with basic mailing and contact information updated. There is no way to track these efforts on the computer; you must fill out the attached sheets for the credit. Please hand in sheets each Friday. If you do all the steps, as needed, for a completed sheet you will get a $2 bonus. Many of you have hundreds of leads in your database, so if you are diligent, the bonus will add up to at least a new pair of Uggs for the winter!
Ad Rep Name: ______________________
Date All Completed: _________________
Client Company Name ____________________________ Did this client exist in the database? Y or N STEP 1: Initial Phone Contact, Database Info
Completed ________
Address and basic information completely entered, the following are required: First, Last Name, Position Company Name Street Address, City, State, and Zip Phone Number AND Email STEP 2: Initial Phone Contact, Sales Info
Completed ________
Establish Phone Contact with decision maker Record Sales Notes Record general information about business If possible, set face to face meeting. Step 3: Follow-Up Mailing
Completed ________
(even if meeting is set up, unless within 3 days) Mail rate card, marketing flyer, copy of paper and 315 Include upcoming flyers for special sections Include Orange Pages Neighborhood Guide (if relevant) Step 4: Follow-up Phone Call
Completed ________
If no meeting was scheduled, follow up with phone call in 10 days to discuss packet and see if meeting can be scheduled. Re-Rank if needed. Step 5: Turn in sheets to Pete by Friday of each week.
Note On Outcomes: The Daily Orange ad reps took to this incentive right away. They had realized the need to getting all of their clients updated and contacted, however, it was easy to get bogged down. The incentive dollars helped, but the form that they could fill out and keep track of their progress was probably the biggest help in getting them to call. So far, after 2 weeks approximately 30% of the database has been completed with nearly 90% having at least begun the process.
Sales Incentive Program
On your mark. Get set. Go! The sales force in Student Media Marketing participated in the “Race to CNBAM” Sales Incentive Program. Account executives “raced” against one another in an effort to increase sales for the newspaper. Specifically, they were competing with one another in the area of signed contracts. The account executive with the most signed contracts was to be rewarded with a trip to the 2006 CNBAM Conference. The idea came about when the marketing director and sales manager wanted to increase sales, but in a fun, new and different way. With the city of Charlotte having so many race fans, it was only appropriate that there be a race. The marketing director drew a race track, complete with curves and sharp turns and hung it on a cork board in the sales office for all to monitor progress. The track, which was almost three feet wide and 25 inches deep, was easy to see, especially when the cars were placed on it. Toy racecars were used to monitor progress. Each car featured the first initial of the account executive it belonged to. Post-It notes were place near the cars with the number of contracts signed to date. It was updated every week to keep momentum. Sales reps got to move forward on the racetrack according to how many contracts they were able to get signed. The program was held for two months and account executives were collectively able to secure 10 new contracts, one valued at more than $10,000! All in all, the competition was a success. The Student Media Marketing Department secures at least one space for an account executive to attend CNBAM, and this was an excellent way to fill the spot. Therefore, it really cost nothing extra to the
department. The marketing director drew the track, which only took a couple of hours. She found the toy racecars in a box in the office as well. Through a little time and effort, the contest built a spirit of friendly competition amongst the sales reps and encouraged them to get more signed contracts. That is revenue that continues to generate every month now!
4b. Best Sales Incentive Program The University Daily Kansan In November 2005, the Kansan had dismal revenue performance. The staff sailed through August, September and October, but suddenly seemed to hit a wall in November and struggled to a finish in December. As I moved into one of the top two management positions before the Fall of 2006, I knew Fall 2006 couldn’t end the same way. As the business manager and I looked over the semester, we knew that discovering the source of the slump and addressing it would be key in order for this staff to overcome it. Analysis proved that the revenue rate for October 2005 slowed considerably at the end of the month. That trend carried over into November; as a result, morale slumped and frustrations grew. Additionally, our Sales and Marketing Advisor shared that she felt the emphasis was taken off selling advertisers into our core daily product and reps became used to selling into special sections. With few special sections in the later part of the semester, local revenue struggled. Essentially, we saw that fixing November really meant strengthening October. By doing that, it would help carry momentum into November and keep drive high until our last paper on December 7. This would put the emphasis on finishing strong for the semester, not on trying to climb back up and salvage success. From this, the October Sales Incentive Program BINGO was born. The idea of Bingo is simple and it has a positive, cheery connotation. Through it, we were able to emphasize different behaviors that help reps grow and develop their skills. The 25 squares ranged from specific sales goals (“Sell a class display for a minimum of 3 days”) to those related to developing clients (“Upsell a client 20% over last year”) to those that just practice good ad rep behavior (“Send 3 thank you notes to clients”). The best part of Bingo was that it allowed all members of the sales force to compete equally, whether a first semester account executive or a major accounts representative. Each rep received their own card, which was posted on a window we decorated with colored paper, streamers, and balloons. Stickers marked each Bingo square as it was achieved. When making the Bingo card, we made it so that each Bingo line had a mix of easy, medium and hard tasks to accomplish. Each Bingo was worth $5 and the rep with the most Bingos received a $50 bonus. Overall, we had an incredible response from the sales force to the incentive. I often overheard reps saying something to the effect of, “Okay, I sold a new business, so now if I just go drop off papers to my clients, I’ll get a Bingo.” The rep with the most Bingos had six, and only pulled off the lead on the last day of the month. Additionally, we were able to better springboard into November, as we had three squares that specifically focused on that month, particularly since one rewarded for being at 60% to November goal by October 31. After we totaled up all revenue accounted for by reps on their Bingo cards, the Incentive channeled over $90,000 through it. Although all that revenue isn’t directly due to Bingo, the numbers over the previous year for both October and November speak volumes. For the two months, we finished
$50,000 over the previous year, or at 131%. November, which had been the demise of the previous fall, ended 2006 at 163% of November 2005 revenue.
2005 2006 % change
October $99,169 $111,977 113%
November $59,416 $96,555 163%
Total Oct/Nov $158,585 $208,532 131%
BINGO Bring in 5 help wanted prospects to the classified girls
Sell Jayplay to a client who hasn’t run in Jayplay yet this semester
Sell a Campus Coupon for November
Write Patty and your creative a thank you note
Be at 60% to November goal by 10/31
Sign an annual contract
Sell a sponsorship (print or online) or promotion
Take a manager or majors AE on a call with you (your call)
Drop papers off at ALL clients who aren’t running (attach a contact log)
Sell a bundle or flight plan
Sell an ad in Basketball Preview (regular rates/ deadlines, runs 11/2)
FREE SPACE!
Sign a Jayplay contract
Help hand out Homecoming (to hotels or at the parade)
Send 3 thank you notes to a client
Make up for September losses (no losses? FREE SPACE!)
Go on a call with a manager or majors AE (their call)
Upsell a client 20% over last year
Sell a class display for a minimum of 3 days
Make goal by 110% or more
Take a creative on a client call
Sell color (spot or full)
Make 100% of your monthly bonus
Sell a new client (not zero quota)
Sell an ad on kansan.com
Rules: Each Bingo worth $5. Total at the end of the month buys you a giftcard to: KU Bookstore, JBS, Yello Sub, Target, or Old Chicago Person with the most Bingos at the end of the month will win $50 on October check!
The Diamondback’s New Account Contest Prospecting and bringing in new accounts is a priority with all of our representatives at The Diamondback. To assure that prospecting takes place when the reps return, we instituted a contest to reward the staff for prospecting and closing the sale. The contest is for the first four weeks of the semester so as to allow the staff a period of time for meetings and sales calls. The goal is for the staff to get a base prospect list so even if they don’t transform the prospect into a new account, they can continue to work with them throughout the semester. The following accounts are eligible for the contest: accounts that have never advertised before or accounts that have not advertised in the past 13 months. The reps receive one point for every account they sell a campaign and have to run the advertisement by the end of the four weeks. In the event that there is a tiebreaker, the deciding factor is the most brand new customers (excludes accounts from 13 months ago and beyond). The incentive to win the contest is money. The winning rep must place at least 8 new accounts and receives $10 per account. For any account over the minimum of eight, the rep will receive $15 per account. Reps also receive 250 bonus points ($50) and 50 bonus points for the total number of new accounts sold – one bonus point averages to be $0.20. Second place receives $75 and an extra 150 bonus points ($30). Third place receives 100 bonus points ($20) and fourth place receives 50 bonus points ($10). Another incentive for new representatives is if they sell three new accounts, they will get their own business cards. We chose three new accounts because the reps are
primarily working on building rapport with their account list the first few weeks but we want to encourage them to prospect and close new sales.
NEW ACCOUNTS CONTEST Bonus Period I Contest Time Period: 8/30-9/24 For every customer that you get to advertise who has not done so in the past 13 months or who has never advertised, you get 1 point (including ones that switch from inactive). Add color to any of these advertisers and receive an extra point.
Prizes (A minimum of 8 accounts required) First Place:
$10 per account (8 accounts) $15 per account (9+ accounts) An extra 250 points on the bonus period
Second Place:
$75 An extra 150 points on the bonus period
Third Place:
An extra 100 points on the bonus period
Fourth Place:
An extra 50 points on the bonus period
Example: If the winner gets 20 “new” accounts, then he/she would receive almost $300 plus bonus points and commission!
Ties are decided by the most number of “new” advertisers (not 13 months), then by the total number of color ads (new and 13 months). Also don’t forget you still get 50 bonus points for each of these new accounts and commission for each sale. REMINDER: All reps must sell at least 3 new accounts to meet your quota for Bonus Period #1. All rookies are required to achieve this goal and will be provided with FREE Business cards if the goal is achieved. If you do not achieve this goal then you will have to purchase your business cards at cost ($15.00)!
New Accounts for Bonus Period One 8/30-9/24 Name AYK DBP DCB DBB IRF KHH KAD LJH MAK MHF NER RBF SNS
Ttl. Amt. Aeon, Smith Joan, Hugo Amy, Lasicks, Victoria Hoskayan, Three Brothers 6 Micron Tech, Costar, NIH, Z Pizza, Calanis Brittany, Afro cuts, Cabin John Tennis, State Highway, Koll Dist, Phi Alpha, KSEA 11 Houstons, Fieldworks, Bennigans, Busch Joe, Dem for Jim, Skydive, Branham angela, MD Collegeian 8 DJ Hut, My Cell, Clean Advantage Group, Savah Djamshidi, State farm 5 Riverdale Farmer, Leizner Lisa, Convenient Cutz, Lager Karen, Flalierty james, sixhandi, lookinglass, Pinion, Mongomery sports, Envirom 10 Daedalus, Library of Congress 2 Dreamwizards, Atek, Cunningham denis, Tech USA, Pure Elegance 5 moongate prod., Dr. David Fishkin, eldon charles, readers edge, Blackburn, Fiechtner louis, Int Student Vol, SIDS, Bennett, Childerns 10 United Healthcare, SEEC, Gehres Ed, Gervais Frank, Savannah Club 5 Thecollegeparksite, college bed lofts, metro emer an, wing zone, DLLR/MWE, Exponent, NASA, Gymkana Troupe 8 Sidepocekts, Centronia Nwankwo, Theresa 3 Simon Leslie, Children Achieving, Thirsty Turtle, AMG Entertainment, Corus Home 5 Mass School of Pro, Frame Mendor, Mark Sharon, Rothfard lauren, Anna's Linens, Chaikin dawn, ametepeh monia, Flexcar, Sandy wing 9 Customer Name
Bonus Points 300 550 400 250 500 100 250 500 250 400 150 250 450
8) Prospecting Guidelines Use the business name. All prospects must be in the computer by the business name, not the contact’s name. If you do not have the business name (e.g. someone took a message for you or the customer is reluctant to tell you the business name) you need to get it as quickly as possible. A prospect will only be valid if it is entered in by a business name. Phone numbers. All prospects in the computer must have either a phone number OR an address. You may not enter a prospect unless you have one of the two. If any of your prospects are entered with only a name, they are open to be taken by another rep (the rep who wants the account must come see me first). Talk To Someone There. To enter a customer as a prospect, you need to have spoken with the main contact or left a message for them (voice mail messages do count). You cannot simply enter a prospect without having spoken to someone. Along these same lines, you need to have a contact First and Last names in the computer. Update! Prospects and accounts are to be updated at least every 30 days (you should be contacting clients every couple of weeks to see if any advertising is needed). These updates should be entered in the computers, though you may also keep paper records. Be advised – if you haven’t updated the computer in more than 30 days and you cannot produce paper records on demand that proves you have been contacting them, you will lose the account or prospect if another rep comes to me and asks for it. Additionally, I will run reports showing me which accounts and prospects haven’t been contacted within 30 days. Notes in the computer should begin with your initials (i.e., CLM talked to Smoothie King about TBP). Who’s Prospect Is It? We try to keep businesses with only one internal contact. For instance, if Sales Rep A has Houston’s of Rockville (which makes advertising decisions out of THAT OFFICE) as an established customer and Houston’s of Bethesda calls up on Sales Rep B’s office hours to place some ads for the Bethesda Restaurant (and will pay for it out of THAT OFFICE), that would be considered 2 separate accounts. However, if Sales Rep A has Victoria’s Secret in White Flint Mall and CORPORATE Victoria’s Secret calls up on Sales Rep B’s office hours to place some ads, that would be Sales Rep A’s account. The difference is that in the first example, each store is advertising for themselves exclusively. In the second example, corporate ads will also benefit the local store. Monthly Updates. A prospect report will be given to you every month with prospects from year-to-date. You will have a given amount of time to update the list and return it to the ad manager. If this list is not returned, you will lose bonus points. If the clients are not contacted, they will be given to another rep.