Negotiating a Media Buy

In media sales, sellers often confuse Selling and Negotiating. For them, an analogy that compares the sales process to a relay race often helps form a better distinction of the two.

In a relay race, each member of the team must perform at his best and then pass the baton to the next member of the team without fumbling it. Prospecting may be the one who gets us started – coming out of the blocks with a furious attack. The baton is passed to Qualifying down the backstretch before Selling takes over. Ultimately, Selling hands the baton off to Negotiating and he breaks the tape at the finish line.

This visual makes it clear that while Selling and Negotiating have some overlap, Negotiating is always the final leg of the race.

The vast majority of media is purchased by professional buyers who alert media outlets of a pending buy. By the time a buyer has issued the specifications of a buy, she has already formed a picture of who will be bought. The final piece of the puzzle for her is to figure out who gets which percentage of the available money and at what price. In other words, Negotiating is being done and the opportunity for Selling has ended.

Buyers split all media outlets into four categories: 1) Those they have to buy; 2) Those they would like to buy; 3) Those they can take or leave and 4) Those they will not be buying.

Negotiating your best deal doesn’t depend on the category in which you’ve been placed so much as it depends on your knowledge of where you’ve been placed.

Category #1 – Name your price
Category #2 – You will be able to negotiate a premium
Category #3 – You are fighting for the leftover money
Category #4 – You will not be on the buy.

Remember that while you are Selling, the buyer is forming an impression of the categories into which she will place you. Once the buy specifications have hit her desk, you’ve been categorized and the Negotiating begins.

Sellers in Category #1 and #2 will obviously have the easiest time Negotiating. They’ve positioned themselves well with all the important decision makers and they correctly perceive no additional need to continue Selling.

If you’re in Category #3, your best bet is to make a deal quickly. Not all Category #3 outlets will get on the buy so while it’s okay to take a shot or two at moving up, remember that there is little overlap between Selling time and Negotiating time.

Category #4 outlets may feel as if they have nothing to negotiate for and will want to continue selling. However, continuing to sell in a hopeless situation reduces your credibility and damages your chances at future business. The one thing for which you can negotiate is a meeting to take place in the very near future where you can get a head start on re-positioning yourself for the next buy. While Category #4 outlets have little leverage, you can exchange a graceful exit in exchange for the meeting. Buyers appreciate it when you don’t waste their time.

The best media sellers know the category in which they’ve been placed when the Negotiating begins and act accordingly.

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Related posts:

1. The Sales Evangelist toolkit – Resources for Negotiation Education