PUBLISHER’S BEAT
6 RADIOINK•COM MAY 6, 2019
DEBORAH
PARENTI
EVP/PUBLISHER
STREAMLINE
PUBLISHING
[email protected] Glenn Bell, president of Stoner
Broadcasting, once said, “I never
regretted paying good people too
much. I did, however, regret not
paying enough and losing them.”
Wise words. Words often applied
when hiring at the executive
level, and completely reasonable.
Experience and leadership carry a
price tag. There is ample justifica-
tion for paying top dollar to top
people who can deliver the goods,
who provide inspired and visionary
leadership, and whose promises
can be taken to the bank.
Move down the food chain,
however, and the picture is not
just slightly but vastly different.
We’re not talking about actual
dollars and cents here. Of course
there’s going to be a big spread
in that regard. Experience, rank,
and tenure are, as they should be,
rewarded. This is also not to imply
that a rookie sales rep deserves
to jump out of the box expecting
to pull down the same lucrative
commission checks earned (and
they are definitely earned) by a
seasoned AE who has spent years
building, nurturing, and growing
their list. Everything is relative.
What we’re talking about is
situational, pragmatic, and often
brushed aside or, quite frankly,
never even considered.
Welcome to a black-and-white
numbers question.
What is a fair, equitable, and liv-
able salary for an entry-level rep?
The answer undoubtedly
depends on market dynamics —
its size and with that, the cost of
living. But whatever the econom-
ics, the bottom line should be:
can a person afford to pay rent,buy groceries, and cover other
living expenses such as insur-
ance, clothing, gas and car main-
tenance, and maybe occasionally
a night out on what they make?
While wage taxes vary depend-
ing on where one lives, the overall
average is thought to be close to
30 percent. If a rookie rep starts
off making $45,000 — and depend-
ing on the compensation plan, that
can be temporary, a draw against
commission, or some other struc-
tured initial arrangement — their
take-home pay (before insurance,
if they opt into that) is roughly
$31,500, or $2,625 a month. For
the sake of argument, let’s say this
person is single and living alone.
According to RENTCafé, average
rent across the USA in March 2019
was $1,430. That means almost
55 percent of monthly take-home
could be eaten up by the roof over
the rep’s head.
If car maintenance and gas
take another $400 a month, our
bright-eyed, energetic rookie is
now left with about $800 a month,
or $200 a week — for groceries,
utilities, insurance, clothes, and
yes, perhaps that occasional movie
or drink with friends. Forget about
payments on a college loan or sav-
ing anything. As much as we love
to talk about the importance of
advance planning, this is a case of
survival. We have asked a young,
talented, and very enthusiastic
newcomer to radio to take the ulti-
mate leap of faith, painted visions
of “sugar plum” futures in their
head — but given no thought to
their circumstances here and now.
It’s easy to mentor a rep on the
importance of taking clients tolunch as one way of nurturing rela-
tionships. But when trying to figure
how to afford a badly needed tire,
that $25 is hard to spare.
And they definitely need it
because they need their car — the
one they put hundreds of miles
on weekly driving highways and
byways in search of the new busi-
ness they have been charged with
delivering.
They also need decent business
attire that adds a polished and
professional look as they are mak-
ing those client calls. Those are
expenses an office or work-from-
home job doesn’t require.
Is it any wonder that when sex-
ier-looking digital comes knocking
at the door with a better pay pack-
age, they leave radio? That dreams
dry up when a bank account is
overdrawn? And that the industry
loses not only future sales assets,
but prospects who will fill the
management pipeline as well? Do
we think Google and Facebook are
paying their salespeople minimum
wage, or a draw on commission,
or charging them back? Or is com-
peting with Google and Facebook
reserved for discussing ownership
caps at the FCC?
Solving the dilemma is not easy.
I’ve done a few budgets, and mak-
ing numbers work for everyone
can be difficult at best. But dis-
missing a reality doesn’t make it
go away. We need to find creative
solutions. That starts by recogniz-
ing and talking about this. There
are so many smart minds in the
business. Some of them should
have bright ideas that could help
alleviate this situation.SHORTSIGHTED OR
COMPETITIVE: WHICH
ONE ARE WE?