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Strider
02-28-2001, 08:01 AM
We are in the process of developing a new advertising service. I can't give you any details at this stage but I do need your help with getting it off the ground http://geekvillage.com/ubb/wink.gif I am going to need to hire some people to sell advertising for this new service. I am not looking for an outside rep firm, I am looking for full time employees. At this stage, I would probably be looking for one senior account rep and two people to work under him/her. The problem is I have no idea how to structure the pay scale. I would prefer to offer a very low salary with commissions so there would be little risk on my end. Do any of you have expereince with this? What kind of commission structure do you use? Any good sources or job sites you would recommend for something like this?

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Voltaire
02-28-2001, 09:42 AM
A good sales rep will pull in 30% commission on ad sales, plus a base salary. I don't know where you would be able to find a 'good' online ad sales rep, but there has to be some of em out there.

Strider
02-28-2001, 10:19 AM
30% commission seems too high to me, I am looking for these people to sell ads across a network of sites. They will be employees, not independent reps. Giving each employee 30% of the revenue they generate from the ads they sell plus giving the webmasters there cut would not leave a whole let leftover for the company itself.

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Strider
02-28-2001, 01:02 PM
Lil_Red, sure I agree with that if we where selling a different kind of product but I can't see how an advertising network could afford to pay 50% to there webmasters, 30% to there sales rep and only keep 20% to cover salaries, servers and operating expenses. The figures I am getting from the few ad reps I have talked to in the last couple of days is much closer to 10% - 15% plus salary. I may be wrong but I can't see how 30% would be viable in this type of business.

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Lil_Red
02-28-2001, 03:47 PM
Originally posted by Strider:
Lil_Red, sure I agree with that if we where selling a different kind of product but I can't see how an advertising network could afford to pay 50% to there webmasters, 30% to there sales rep and only keep 20% to cover salaries, servers and operating expenses. The figures I am getting from the few ad reps I have talked to in the last couple of days is much closer to 10% - 15% plus salary. I may be wrong but I can't see how 30% would be viable in this type of business.



I'd love to join your network if you're planning to pay 50% to the publishers. Almost no one gives that much to the publisher anymore if you compare the rate cards to the payouts.

I was talking to a friend of mine who has done ad sales and he recommended making it purely commission or if you really felt it necessary give a very nominal salary.




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Kaiosama
02-28-2001, 03:49 PM
If it will be over a large network of sites even 15% is huge. For an medium individual site 30% is okay but it looks like you need to hire a full time/ part time ad rep. The pay should most likely be around $60,000 yearly for full time.

This all depends on exactly what you are looking for...

Check out some online job sites (if you haven't already), some example would be dice.com, hotjobs.com, and monster.com. There you can find what other companies are offering.

There must be lots of other job sites I am forgeting so...

[This message has been edited by Kaiosama (edited 02-28-2001).]

Neuads
02-28-2001, 04:03 PM
30% commission plus a base salary? Hire me http://geekvillage.com/ubb/wink.gif
May be 30% on net profit but no way an ad agency can offer 30% gross to sales rep.
Here is a summery of costs: (Estimated)

50% goes to publisher
10% goes to server costs and other related costs
10% goes to bad checks, banking fees, accounting, and other related costs
2% to 3% goes to sales department.

some times the net profit is less than 10%

Take burstmedia as an example, they pay up to
70% to publishers, how can they afford to pay another 30% to sales rep?

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Strider
02-28-2001, 04:04 PM
Lil_Red - most networks are still giving there webmasters 40%-50% of the ad rates for non exclusive partnerships. Some, such as adtegrity.com give there webmasters 60%-70% of the amount they sell there ads for. You can't go by the rate card, they are all meaningless, no advertiser in his right mind pays the amount listed on the rate card. Those figures are posted to give them plenty of bargaining room.

Kaiosama - Yes, I agree. 15% seems pretty high to me too, we should have at least 20 million impressions to work with in the first month just from our beta testers. That figure is pretty small as far as ad networks go but we are confident we can get this figure up pretty quickly.

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Kaiosama
02-28-2001, 04:21 PM
If you think you can get far (I do mean far) higher then 20 mil then you should do okay with the salary option.

I really think you should check out job sites to help you figure out how much you should pay. I don't deal with selling ads as that is something I really want to stay away from. I always try to focus on content.

I'm sure Robert from SI can contribute...

Robert from SI
02-28-2001, 04:53 PM
Did I hear my name? http://geekvillage.com/ubb/smile.gif

My experience has been that it has been EXTREMELY difficult for us to find qualified banner ad sales people.

I spoke with the BD manager from a top freehost today, a Wharton MBA no less, to discuss hiring him simply for ad sales.
And I'm willing to pay straight salary.

And...what really drives me bonkers...is when we interview and they only focus on generating revenue. Not profit...REVENUE! Maybe that worked in the "DrKoop.com" days, but it doesn't work for me! http://geekvillage.com/ubb/smile.gif

I've met lots of folks who could talk the talk, but not many who could walk the walk. http://geekvillage.com/ubb/smile.gif

Robert from SI
02-28-2001, 04:54 PM
Wow.

3 smilies, 2 exclaimation points, and 2 words spelled out in capitals all in the same post.

Can you tell I'm displeased with this situation?

http://geekvillage.com/ubb/wink.gif

Voltaire
02-28-2001, 09:04 PM
Originally posted by Neuads:
30% commission plus a base salary? Hire me http://geekvillage.com/ubb/wink.gif
May be 30% on net profit but no way an ad agency can offer 30% gross to sales rep.
Here is a summery of costs: (Estimated)

50% goes to publisher
10% goes to server costs and other related costs
10% goes to bad checks, banking fees, accounting, and other related costs
2% to 3% goes to sales department.

some times the net profit is less than 10%

Take burstmedia as an example, they pay up to
70% to publishers, how can they afford to pay another 30% to sales rep?




You're right. I saw the 30% figure somewhere, but it must not have been with a base salary. Even so, it means ad networks need to sell a lot of advertising just to make a worthwhile profit. That is why we see so many going out of business today.

Lil_Red
02-28-2001, 11:37 PM
Originally posted by Strider:
30% commission seems too high to me, I am looking for these people to sell ads across a network of sites. They will be employees, not independent reps. Giving each employee 30% of the revenue they generate from the ads they sell plus giving the webmasters there cut would not leave a whole let leftover for the company itself.




You need to offer sufficient commission so that the ad reps go out and sell. 30% is not on the high side for commission to the sales person.

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Edwin
03-01-2001, 03:49 AM
We have been looking at hiring an ad rep firm to help us sell our space, such as DoubleClick, Winstar Interactive, Phase2Media etc.

While I cannot go into specifics on the contracts we were presented (they're confidential) these agencies were all proposing taking from 35-50% of all ad revenue they can generate.

And this is for many millions of targeted *business* audience ad impressions.

So I guess you may have seen a figure of 30% from an agency, rather than an individual.

On the other hand, I believe a successful top-notch ad sales person can expect to make well in excess of $250,000 a year - and much more if they are located in a competitive area such as New York. Of course, most of that is commissions, but it still gives you an idea of how much space you have to have available to sell in the first place.

Edwin

Strider
03-01-2001, 07:40 AM
Thanks for your help everyone. I think I am all set and ready to move forward on this. I have been doing ad sales on my own for awhile now, just never had to hire anyone to help with it until now. The rates I have found being offered on job sites have varied, the highest commission rate I have seen offered so far is 10%.

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