art of selling deals 4.26.12

#2ndstdeals

The Art of Selling Deals

#2ndstdeals

How to Interact with Us

GoToWebinar™Questions Panel

Twitter Hashtag:

#2ndstdeals

Note: We are recording this webinar and you will receive an email with links to the recording

and the slide deck.

#2ndstdeals

□ Increase ROI, Build & Engage Audience

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Who We Are

#2ndstdeals

Deadline Deals

To date, Deadline Deals has executed

• More than 3,000,000 gift cards sold

• On more than 400 local media sites

• More than 900,000 consumers have purchased deals through our partner’s sites

A truly white label deals provider

#2ndstdeals#2ndstdeals

Speakers

Matt ChaneyDirector of Affiliate Success –

Deadline DealsSecond Street

Jeff ShabramVP of Digital/Director of

Digital AdvertisingOmaha World Herald –Midlands Newspapers

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Agenda

• Organization

• Prospecting

• Standing Out in a Crowded Field

• Deal Approval & Negotiations

• Wrap-up

#2ndstdeals

Organization

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Sales Focus is Key

Months in GREEN are ones

with a dedicated rep

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Sales Team

Team Structure– Who’s selling deals

– How are they organized

Characteristics of a Good Deals Salesperson

Aggressive - a hunter Won’t accept a deal just to fill the

calendar Has a deal in mind ahead of call Understands traits of a good deal

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Keeping Deals Top-of-Mind

• Top down focus

• Sales training

• Sales contests

• Competitive tracking

• Review key accounts list

• Target lists – monthly reviews

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Training Reps to Get the Right Deal

Get “Cream of the Crop” Products and Merchants Focus on the Successful

Categories

Aim for Peak Season

Deals such as Golf, Yard

Care and Holiday Sales

Go after the Core

Products and Services of

that Business

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Setting Goals for Deals

• New customer acquisition

• Historical data

– Competitors

– Your own

• Seasonality

– Best categories

– Territory make-up

• Reps getting annual deal contracts

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Goals and Incentives for Reps

Establish NET goal per sales rep

Incorporate deals into digital goals

Focus incentives on:

New business

Bringing in target accounts

Target categories

Top deals – highest NET revenue

& most sold

Make it worth their while

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Support Structure for Deals

Use existing infrastructure

– Fulfillment

– Production & Design

– Customer Service

#2ndstdeals

Prospecting

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Category Mix By Revenue

Beauty19%

Event4%

Internal Product0%

Recreation16%

Restaurant39%

Retail9%

Services9%

Travel4%

Based on 400+ Sites

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Merchant Appeal Checklist

Strong Brand Awareness

Relevant Location

Multiple Locations

Capacity

Financially Stable

Positive Online Presence

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Where to Find Top Prospects

• Successful Past Deals

• Competition

• Review Sites (Yelp)

• Our Own Content & Reviews

• Reader’s Choice Polls

• Active Advertisers

• Chamber Members

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Target Lists & Key Accounts

• Produce a List of Target Categories for Optimum Deals – Set a Target Time Frame

– Assign Sales Reps Responsible for the Category, Target Results and Deadlines

– Create a Target List of Businesses on a Monthly Basis

– Optimum Run Dates

– Optimal Deal for Business

– Ensure Follow Through for Optimum Run

• Produce Selling Materials to Target Key Accounts

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The Pitch

Focus on the Quality of Audience and the Additional Media Exposure

– Print Readership, Online Reach, E-Mail List, Social

– Your Readers Demographics, Trusted Source, Higher Income, Loyal Readership

– Strong Potential for Repeat Business, Opportunity to Extend Promotion

#2ndstdeals

Standing Out in a Crowded Field

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Local Media

We’re Local

Ongoing Ad Options

Trusted Info Source

Affluent Audience

Key Client Relationships

Multiple Media

Promotions

Local Media and Deals

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Selling Against National Sites

• Reach Potential Customers with Better Demographics

– More Desirable Age Bracket

– Higher Income Levels

– Family Consumers

• Higher Spend per Visit

• Increased Potential for Repeat Business

We Reach More Valuable Customers!

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Deals are Advertising, too

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Top Objections

“I don’t need to advertise.”

“I’m already busy – I don’t need more business.”

“I want to promote this [product], not that one.”

“I don’t do discounts.”

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Deal Approval &Negotiations

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Good Deals are a Balancing Act

Revenue Goals

Audience Interests

Merchant Needs

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Negotiating a Deal

Promotional Power Highly Visible Print Ad

Post Deal Throughout Your Website

Produce a Strong E-Mail list

Inspire Strong Social Media Interaction

Target the Promotion Appropriately to the Deal

Local Presence

Local Site for Local Consumers

Supporting the Local Community

Trusted Local Source for News and

Information

Local Support for the Consumer

with Long Term Relationships

Local Support for the Advertiser

with Long Term Relationships

Leverage your strengths to get the deal you want!

#2ndstdeals#2ndstdeals

Getting Multiple DealsSite Benefits

• Build your inventory

• More efficient selling

• Lock-in top customers

• Plan ahead for deal stores

Merchant Benefits

• Gives advertiser consistent

marketing

• Ability to offer different types of

deals

• Bonus promotions for annual

contracts

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Deal Appeal Checklist

Aligns With Your Audience

Deal is Unique

Priced Appropriately

Few Restrictions

Bonus Offers

Expiration Date

Deal Category

Right season

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The Deals Committee

Focused discussion on deals Establish approval criteria Refine new deals Discuss negotiation terms for large deals Track & discuss the competition Learn from past deals

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Deal Rejection

Quick Tips

Point to established approval criteria

Look to refine deal, if possible

Why rejected? Recommend other

advertising options

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Advertising Conversion Model

Conversion Example:

• Gross Revenue is $5,000

• Less Platform Fees of (Assume 10%) Nets $4,500

• Net 50/50 split - $2,250 to Both Advertiser and Media Company

• Or Offer Advertiser an Advertising Match on Their Share and Provide $4,500 of Advertising for Their

$2,250.

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Revshare vs. Ad Conversion

Traditional Revshare Ad Conversion Model

Based on Gross Revenue of $1,500,000

$345,000

$1,035,000

$120,000

Advertiser Share Media Company Share Platform Fees

$690,000

$690,000

$120,000

Advertiser Share Media Company Share Platform Fees

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Post-Deal Follow-throughGoal: to build a long-term relationship by giving

merchants the tools to advertise consistently

Deals

BrandingOngoing

Offers

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Wrap-Up

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Key Takeaways

1. Must keep sales pressure on to be successful; not flavor-of-the-month product

2. The deals and merchants you run are a reflection of your business – choose wisely

3. Create deal approval criteria & share it

4. Leverage your top assets: promotions & audience

5. Work to build long-term relationships with advertisers with multiple deals & the Ad Conversion Model

#2ndstdeals#2ndstdeals

Questions?

Jeff ShabramVP of Digital/Director of Digital

AdvertisingOmaha World Herald – Midlands

Newspapersjeff.shabram@owh.com

Matt ChaneyDirector of Affiliate Success - Deadline Deals

chaney@secondstreet.com619-333-0444

Twitter: @mattchaney