The document discusses organizing online sales teams. It suggests defining potential advertiser groups and their needs. Example groups are national, regional, local small businesses, and individuals. Sales channels are then organized around these groups, with different staffing, compensation, and marketing needs. A case study example of a successful "At Your Service" directory is provided. When organizing for online sales, options include a separate online team, integrating online into traditional sales, or a hybrid model. The key is understanding advertiser needs and organizing costs and teams accordingly.

1. Growing Online Revenue:
Advertising, Sales and Classifieds
Moscow, Russia
27 – 28 September 2012

2. Agenda
Topic Presenter
 Online Advertising Market Overview Ross
 Sales Teams: Organization & Motivation Ross
 Advertising Networks Ross
 Online Classifieds: Local Opportunities Ross
 Social Media: Building Audience & Revenue Kevin
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3. Sales Teams: Organization & Motivation
It’s all about people solving problems for people…
… using your products and audience at a price they are
willing to pay.
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4. Sales Teams: Organization & Motivation
In order to organize the most profitable sales effort, the first step is
to define the universe of potential advertisers.
How many advertising accounts do you estimate are available?
- Locally, regionally, nationally
- Currently advertising; not advertising
- Current clients, past clients, non-clients
Why do they need you? What products can they use to achieve their goals?
What are their business goals for their advertising?
- Brand awareness?
- Store traffic?
- Product sales?
- Other?
What are the costs of serving each group of clients?
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5. Sales Teams: Organization & Motivation
The first step in organizing sales is looking for groups of advertising
with common needs.
For Example
Advertiser Groups
National Major Regional Local Small Business Individuals
Advertiser #  Few  Moderate  Many  Very Many
Budget Size  Very large  Large  Moderate/Small  Small
Ad Frequency  Occasional  Regular/Frequent  Occasional  Infrequent
Need  Brand  Store Visits/  Store Visits  Sales
Awareness Awareness
Agency Role  High  Moderate  Low  None
Online  High  High - Moderate  Low - None  None
Experience
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6. Sales Teams: Organization & Motivation For Example
Our example sales channels might have the following characteristics.
National Major Regional Local Small Business Individuals
Strategic
Low High High - Moderate Moderate - Low
Investment:
Staffing: - Online Experience - Online Experience - Online Experience - Online experience
- Agency Experience - Ability to articulate - Ability to identify online - Ability to describe
- Occasional/ package online needs opportunity standard online packages
Infrequent Contacts - Frequent, regular - Ability to train/coach online - Infrequent individual
contact tools contact
- Occasional contact/seasonal
Compensation: - Mostly Commission - High base, some - High commission; liveable base - Balance between
commission commission & base
- Commission grows - Commission on sales - Commission on revenue/new - Commission on sales
over certain sales increase on previous accounts revenue and new account
quota year creation
- Commission on new
accounts
Marketing - Standard materials - Creative proposals - Account identification - Call centre
Needs: (brochure, media kit, - Ad Design (Lead Sheets) - Online self-service platform
website)
- National Rate Card - Online training/support - Online training/coaching
- Network of sites for advertisers
- Respond to RFP's
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7. Sales Teams: Organization & Motivation
Based on these example characteristics, sales channels might look
like the chart below.
For Example
Sales Channels
National Major Regional Local Small Business Individuals
 National Advertising  Account-based  Region or Industry-  Call centre
Channels
Sales
Representative Sales Force based Sales Force
Agency  Self Service Online
 Ad Network
Standard Product Custom Advertising Standard Ad Standard Ad Prices &
Product/
Pricing
Packages & Prices Prices & Packages
High Price Packages
Limited
Customization
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8. Sales Teams: Organization & Motivation
Let’s look at an example if how sales, product and marketing work
together to make some money in print and online.
Advertiser Group: Travel/Real Estate Category – Resident Hotels
Advertiser Need: Increase rental inquiries
Solution:
Product:
- Created a new online directory of residence hotels for the city.
- Quarterly print update of the directory
+ Distributed to HR Directors/ Executive Search Firms
+ Mailed on request
Marketing:
- Seminar on online marketing (annually)
Sales Effort:
- Large Clients Direct Sales Call
- Single Hotel Seminar invite/sales
- Small Occasional Clients Direct Mail/email; follow-up call
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9. Sales Teams: Organization & Motivation
The example – At Your Service – from the South China Morning Post,
Hong Kong continues to deliver profits and expands each year.
“At Your Service” - Overview
Average Annual Revenue =
Over $ 1 million
Direct Margin = Over 50%
Annual expansion to other
cities/countries:
- China (12 cities)
- India (9 cities)
- Thailand (7 cities)
- Australia (5 cities)
- Singapore
- Malaysia
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10. Sales Teams: Organization & Motivation
Motivating sales is a constant effort that requires a continuing
investment in :
Training: Sales training continually upgrades the quality and effectiveness
of your sales force. One of the most important assets at a local media
operation is the local sales force.
Incentives: Incentives includes more than just commissions. Depending
the goals or challenges facing the sales team, incentives may include:
- Sales Contests
- Instant Bonuses
- Awards
Advancement: As the company’s revenues grow looking for organizational
ways to give sales people more responsibility.
Recognition: Providing for company and external awards and contests.
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11. Sales Teams: Organization & Motivation
Special Issues: How to organize online sales?
Three models for online sales organization in a larger traditional
media company.
Separate, Stand-alone: Create a special, independent online sales team.
Pro: Creates focus and expertise for online sales
Con: Creates an internal tension and competition with traditional sales
Outcome: May see early gains in online sales; but creates strong internal
friction.
Combined/Integrated: Existing sales is trained and expected to sell
online advertising in addition to traditional advertising.
Pro: Develops/trains the existing sales force in the techniques of online
Con: Traditional sales may see no value in selling low-priced online ads
without a special commission.
Outcome: Online ads sold occasionally, but often included as bundled
“bonus” buys.
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12. Sales Teams: Organization & Motivation
Special Issues: How to organize online sales?
Three models for online sales organization in a larger traditional
media company.
Hybrid – Integrated with Support
Integrate sales with existing sales selling both traditional and digital. Create
a special incentive program to reward the sale of low-priced online ads. Add
internal online advertising specialist(s) to support with internal training,
online advertising development.
Pro: Reduces internal conflict. Develops internal staff.
Con: Requires more staff than simple integrated sales effort.
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13. Sales Teams: Organization & Motivation
Sales organization has to start with the advertisers’ needs and then
continually evaluate the costs of sale and the effectiveness of the
organization.
Advertisers: What types of advertisers are you serving and what do they
need?.
Sales People: What skills do they need to have to cultivate the advertiser
account?
What type of compensation do you need to balance the needs to provide
customer service for regular advertisers while also bringing in new
advertisers.
Go to Market: How to best reflect the needs of the advertiser in what the
advertising opportunity is (the product), the sales and marketing team that
makes the sale and the price that is charged.
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