To the managers who've been required to perform layoffs. Most companies have done so in order to cut the cost of benefits, especially to employees considered to have a low yield of performance versus their overhead. In an honest attempt to do it analytically and objectively - they miss the ancient fact that sales is more art than science. No matter. When the dust settles, it now falls upon the microcosm; the LSM with local people, feet on the street, to achieve quota-level performance - but now with fewer salespeople.

Can we all agree that fewer calls will be made? Because of those fewer calls there will be fewer ASK-LEVEL PRESENTATIONS made. One might argue that the remaining AEs are the cream of the crop and that might be true. But the remaining cream of the crop has the same eight hours as everyone else. With a smaller sales staff, each AE now accounts for a larger percentage of the station's total billing than before. Heaven help the poor manager when one of those top billers takes a vacation, gets sick or as a consequence of the madness - checks in to Betty Ford. And by the way, with fewer AEs handling larger accounts one must pray that those accounts stay active. That's because there'll be far less developmental work on new business. In time they'll shudder when they see the resulting math. The drop in revenue will make the cost savings look paltry.

But consider the following math.

• Let's say that averaging out all commissions (New, Agency, Direct, NTR, whatever) they equal 10%.
• Let's also say the overhead on each AE created an average cost of sales of 35%.
• Why not outsource AEs with at a straight 25% commission on net billing?
• If the manager wants former AEs to maintain and grow previously successful relationships - outsource the AE.
• Everybody wins.

I know I'll receive a Weenie E-mail with a Weenie Question like, "What if they call on a protected account?"  "Who's doing that already?" In the New Economy the answers are much simpler. "Was that account on the air and is there an Ask Presentation sitting on the client's desk? Is there anybody else who can produce more billing? Do you care more about protecting accounts or super-billing?" It's a New Economy. 

The IRS has specific criteria for a Contractor relationship. They're not as bad as they seem.  In order to be defined as a "contractor" the IRS says you must prove that you're not a part of the company, meaning things like it's 401K, medical benefits, worker's comp and the company doesn't take out payroll taxes. Likewise the contracting company can't supply things like computers, phones, office space, nor can they dictate activities or number of hours. This list isn't complete - check with a business manager for details.

While it requires careful management it works in several industries. For us, the number of Ask Presentations go back up and hey, outside of the medical part - this isn't a bad deal. (Regarding medical, If you're recently layed off, take a look at Obama's new deal for COBRA insurance.)

To the Independent AE. Talk about Win-Win? Working out of home is a great gig, far better than No Gig. Plus, you can now make a couple big sales, turn them in, get a fat check, then go home for nap - guilt-free. Not like before.

Corporations! Want to save some money? Think about how much you're paying for that Cubicle Farm, occupied for only a couple hours a day. In many cases those cubicles are being used no more than 10 hours a week. However, you're paying rent for the other 158 hours in the week when they're empty. If it's a four-week month, you're paying rent on space that's used 40-hours - but empty the 632 other hours.

Sounds like The Abomination, right? We want to make sure they're HERE and working. They MUST BE HERE at 8A, then LEAVE HERE at 10A, then BE BACK HERE AT 4PM. It's another one of our supposed Divine Laws that we never examine. In reality it's a carryover from the 1850's when hourly workers were required to punch in on a time clock. Back then productivity was measured in hours worked. Today it's measured in money. There's an unspoken presumption that if AEs were working from home they would probably be screwing around, not making enough calls.

What if the industry considered AEs as actual grownups who really wanted to make a good living and didn't need their activity monitored to the extent we do now. What if managers and AEs sat down once a quarter and both agreed on the AEs net billing goals for the following three months? And what if, they had a pre-determined commission rate for reaching goal, higher commission percentages as goals are exceeded and lower percentages if goal isn't reached? The manager's only job is to monitor AE revenue performance.

Yes, of course there'd be required meetings, one-on-one meetings, workspace for coming and going AEs, etc. But that trip into the station to show up and check in everyday wouldn't be necessary. 

I know what the e-mails will say, "That could never work, Radio is different." To that I'd reply, "It's not working very well now. Let's see what can work." We need to try.