The 80 – 20 rule od Radio Sales

“80% of our business comes from 20% of our clients.”Ever heard that bit of wisdom?  It’s known as the Pareto Principle, named after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population.  He also observed that 20% of the pea pods in his garden contained 80% of the peas. 

Most sales managers will tell you that 80% of their station’s billing is produced by 20% of their sales staff.  Program directors know the Pareto Principle as “P-1 listeners”.

What becomes important to us is knowing which of our clients make up the 20% that produce 80% of our income.  Once we identify these clients, we can devise ways to take very good care of them.  These are our “A” accounts. These are the accounts we should see or talk to on a weekly basis.

It’s a good exercise to look at your client list, ranked by billing for the last year, largest to smallest.  How much does your top 20% spend with you in a year: $10,000, $25,000, $50,000, $100,000? What about your next tier of spenders?  How can you move them up to the “A” list?

Knowing which 20% of our pods contain the most peas is the beginning of even larger revenues.  After all, the easiest people to sell are those who already do business with you.

About The Author 

Pat Bryson is the founder of Bryson Broadcasting International, a consulting firm that works with radio stations around the world to increase revenue by raising the skill level of their sales staffs. Her client list spans from the United States to Canada, Europe and Central Asia.

Pat has spent her entire career creating a culture of over-achievement for her stations. She began her career in radio sales, becoming one of the highest billing sales people in her market. Her career advanced to General Sales Manager, and then to Market Manager. Since starting BBI 7 years ago, she has helped hundreds of radio stations to find, train and grow great quality sales people and managers.

Pat was the recipient of two prestigious educational fellowships from the Educational Foundation of the National Association of Broadcasters: a fellowship to the Executive Development Program and a fellowship to the Broadcast Leadership Training Program.

She publishes the Bryson Broadcasting International Newsletter twice monthly and is a contributor to Valerie Geller’s latest book, Beyond Powerful Radio: A Communicator’s Guide To The Internet Age.

You may contact Pat at [email protected] or visit her website at http://www.patbryson.com.

This article was republished with permission from Pat Bryson’s Newsletter