Question

Topic: Research/Metrics

Commission Rates For Mobile Billboard Advertising

Posted by Anonymous on 3/28/2008 at 12:03 AM ET 250 Points
Hello,

I am currently researching starting a mobile billboard advertising firm, and am having a challenging time finding out approximate commission rates I should expect to pay to a sales representative. I've heard everything from 10-40% with no base salary. What do you think of the range? What's the best way to build this staff? HELP!

As you are experts, I would greatly appreciate some direction from you.

Thanks!
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RESPONSES

  • Posted by darcy.moen on 3/28/2008 at 9:45 AM Accepted
    I am doing digital signage (another great opportunity - call me!) and have been fortunate enough to have developed a relationship with a professional advertising agency. My ad agency friends tell me that in the standard billboard (roadside, non-mobile) they would expect a 15 percent commision from the billboard company for 'placement'.

    Placement is the term used to research traffic counts, determine best location to place the ad, and place the order to book the billboard. The commission is typically paid to the advertising company by the billboard company for bringing in the 'sale'.

    If you can build relationships with advertising agencies, you will not need to pay a base salary to them, simply cut a commission check for the orders they bring you. You can negotiate your 'placement' fees directly with the agencies. If you want to be aggressive, offer a higher percentage to start with, and back it down as you book your inventory of ad space. The higher the percentage, the more willing the agency will be to push jobs your way (usually).

    Hope this helps you.

    Darcy Moen
    Customer Loyalty Network
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