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  • Alec Drake

Does your station get paid minimum wage by advertisers?

Updated: Jan 19

You might be surprised that you are paid even less than minimum wage by the advertisers on your radio stations. How do you know?

What if an advertiser pays someone to stand on a busy street corner and spread the word about their business?


How many times an hour can this person deliver a 60-second script or message? With 60 minutes in an hour, they can verbalize a message 60 times if they go nonstop. So, in an eight-hour day, that is 480 impressions (folks) delivered on the street corner. If we use a minimum wage of $12 an hour, the investment required for the day would be $96 or about .20 cents per impression.


Now, test your daily earning power. If a typical schedule is 3 or 4 ads per day, what are those ads worth based on impressions delivered? Take the ads and multiply them against the AQH (average quarter hour) persons for the dayparts where the ads run. Then, take .20 cents and multiply it against the total impressions to find what the ads are worth based on minimum wage.


Are you surprised by the results? Put this example in your sales tool kit and ask if an advertiser is willing to pay at least minimum wage for your station to go to work for them. Taking a different path in building value through common examples can break down the confusion on price. Add this example to your next sales meeting for discussion and to help everyone see value from a different perspective.

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About The Author:

Alec Drake openly shares revenue management strategies and sales improvement ideas in the "Sales Success Library" at Alecdrake.com. He is a regular contributor to Radio Ink Magazine, where he leverages four decades of experience to write about sales and management. Alec is the founder of The Radio Invigoration Project (T.R.I.P.), a support initiative for local radio sales and promotion staff.

Drake Media Group, LLC retains exclusive rights to any original content in articles written by Alec Drake or published on any third-party platforms and featured in any podcast.



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