PART ONE.
This photo of a radio advertising product generated over $1 billion in advertising revenue.
In 1991 More FM was launched under the leadership of Doug Gold.
To launch a brand-new radio station takes courage and guts and rather big dreams.
There was a problem.
But Doug had a problem, the new radio station had no listeners, no advertisers, just a name – MORE FM.
What they did have was inventory, or we may call it stock/product.
But this product was different, it was commercial time, advertising airtime.
Every radio station has to have a balance of keeping its listeners loving the programme it plays, (music in this case) and not switching them off with too many commercials.
(We know that too well with other media don’t we, and we have a tool to switch off too many ads, a remote)
What they did not have were advertisers.
He made a plan.
So, what he did was create a plan. He realised that over the course of a day, a week, a month, some of his inventory would not sell, it would remain unsold.
How do radio stations and all media make money? They sell advertising with that airtime.
What did he do?
He figured out that a typical radio station would only sell out of 70% of its commercial time over a year. How did he know this?
Doug had been in broadcasting for 20 years before launching his own radio stations – the MORE FM group.
His plan then was to take the 30% he did not sell and make it available to advertisers at a discounted rate; once a year, packaged into a 12-month membership programme.
A club, a programme, a membership.
This was called the FOUNDATION ADVERTISER PLAN (Year 1) / GOLD KEY PROGRAMME (Year 2)
Media companies – Radio, TV and to some extent newspaper – are like airlines, once the plane is up in the air, that seat beside you that is vacant (middle) cannot be sold.
That is why Grabaseat came along. They are pre-selling their seats. It’s just sound inventory management, simple as that.
Are we not better off to get something for that seat beside us? Yes, but make no mistake, yield and inventory management is a science. Doug knew yield management before it was called yield management.
He applied the same principle to media inventory.
Face-to-face selling.
Doug attracted a team of the best salespeople to sell that unsold time (30%) to advertisers.
Some of those salespeople joined Doug for FREE just to be part of his exciting new radio station.
His first product was called THE FOUNDATION ADVERTISER PLAN.
It was sold face-to-face by the sales team to advertisers.
The result was $1.2 million dollars in revenue sold by his sales team prior to MORE FM launching.
$4.5 million in today’s terms. Small advertisers, over 100 of them, invested in a 12-month advertising programme and agreed to pay a weekly direct debit.
Doug generated that money before one song was played on his radio station!
Think about that – imagine you are in retail, you are about to launch your retail store, and you generate $1.2 million in sales before you open the doors. Amazing.
What could have gone wrong?
Non-acceptance by advertisers. Why would any advertiser invest in a radio station that had not even launched? Would it work? The sales team and Doug’s reputation held them in good stead. It was a roaring success.
The $1 billion dollar product comes to life.
Year 2 – MORE FM launched the GOLD KEY Programme, (see photo above) and seminar selling comes to media.
Coming out of a successful first year both with the success of MORE FM and advertising support, Doug believed he could sell more of his product if he could control the environment.
A simple 15-20-minute selling seminar was created to invite small groups of advertisers to take part in year 2 of the FOUNDATION ADVERTISER PLAN, but with a name change – THE GOLD KEY PROGRAMME. Same concept with a few tweaks.
Surprise the client.
Every advertiser that was invited and purchased went into the draw to win a brand-new BMW Series 3 sedan.
Result – $2.5 million in one week! Over 150 advertisers buying into an advertising programme.
My epiphany.
That was the week I was invited to sit in on that programme. I had just been asked to join Doug’s consultancy company with his partner Brian Duffy.
I had an epiphany!
Just the week before, I had attended a Robert Kiyosaki course and we had played a game about leverage and the power of it.
There, in front of me that week, was that game in motion.
I had to know more, excuse the pun.
If you would like to hear part two of the story, please let me know either in the comments or message me.
I think you would enjoy the next part of the journey.
Let me know what you think.
PLUS, whenever you are ready…here are four ways I can help you grow YOUR business.
1. Join my free Facebook group – Sales Mindset Inner Circle
My favourite thing to do is show you what’s working right now. It’s not as good as being a client, but it’s close.
2. Take advantage of a FREE 45-minute consultation
Need some sales support? Make an appointment, and let me take you through the past, present, and future template.
3. Work with me one-on-one
If you are wanting to take your product or service from face-to-face to virtual selling, then I have a product that may be able to help you. You can get started for as little as $250 a month. If you’re interested then email mike@mikebrunel.com and put ‘Virtual Selling’ in the subject line…tell me a little about your business and I’ll get you all the details.
4. Finally, grab my new digital book on ‘How to get a predictable sales system into your business without coming across as salesy’
Click the link: https://www.salesblueprintbook.com/book
Cheers
Mike
Mike Brunel started mikebrunel.com after being a successful entrepreneur and founder of NRS Media. He co-founded NRS Media in Wellington, New Zealand, expanded it into a global powerhouse in media sales and training, and was eventually responsible for opening offices in London, Atlanta, Toronto, Sydney, Capetown, and Bogota. He has hired hundreds of salespeople around the world.