Friday, June 20, 2008

From Mark's Mouth To Al's Ears

NTS Aircheck: "I believe there is going to be an entrepreneurial renaissance in radio, and that independents of all shapes and sizes are going to thrive and flourish. I predict you will see management syndicated in return for inventory and success fees. These people will be among the best GMs and PDs — the best management minds in America.

"I know people who have taken stations from a $50 a minute to $1,500 a minute who never got a success fee or a bonus from doing that. I think those are the individuals who, over the next five years, will be brought in like “hit squads” to help stations.

"I think most radio groups will want to become more like the way well-run shopping center owners operate. They don’t necessarily want to own the shopping center and all the tenants. I
think you will see a major shift in the industry to a more merit-based, success fee system that, in the end, will help all stations have more to spend on marketing and promotion and for building and recruiting great sales teams. And with less time spent on bureaucracy.

"But no matter how you slice it, it always will come down to answering the question, “Have you recruited the best sales team?” The second you begin to cut costs and look at salespeople as a cost, you’re out of business. We can talk about talent and the Internet all day long, but, in the end, everything in radio will be based on asking what have we done as an industry to attract,
recruit and retain the best salespeople — from newspaper, television and other worlds — to our industry. Because ultimately, you either increase top-end revenues, or you lower costs — and
there’s only so much cost-cutting that can be done."

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