• Alec Drake

Does your station get paid minimum wage by advertisers?

Updated: Sep 22

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.


Context can create value in our minds and therefore support confidence in what we quote. The price question is also tied to how the market perceives us, the effort of a sales team to deliver that value message (they are one of the vital demand engines that drive price), and, how specific customers measure us.


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About Alec Drake:

As President of Drake Media Group, a content creation and sales consulting company, Alec is on a mission to share his unique perspective on best practices to enhance sales performance and drive revenue. The company offers a range of consulting expertise, including sales operations, team and individual coaching, yield and revenue management strategies, event sponsorship formats, and sales marketing.

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

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