Do What You Do Best and Outsource The Rest

By Jim Elliott, President
James G. Elliott Co., Inc.

June 8, 2021

Peter Drucker once said, “Do what you do best and outsource the rest.”  As far as I know, the “Father of Modern Management” wasn’t talking directly to media owners, but his advice certainly is still on target.  Most publishers of any size could benefit by seriously considering outsourcing their advertising sales because sales and sales management are often not what publishers and editors do best.  By delegating sales functions to experts with broader experience and infrastructure in place, media owners and operators can achieve more with less wasted effort.    

My company has delivered more than $650,000,000 of net revenue to our clients. Along the way, we have learned a lot about what works.  We know that it is crucial to set up the relationship properly from the beginning.   Senior management at the client must not only approve the general idea of outsourcing sales but also must sign off on the firm selected.  We have found that periodic meetings of senior management of both companies has been an important part of our most successful relationships.

A successful outsourcing relationship is based on trust, which the sales team must earn by communicating frequently and truthfully with client management.  That communication should go beyond data about specific accounts and extend to information about market conditions and trends.  We believe in constantly studying the market and the products offered by our clients and the competition and providing our clients with feedback so that we can plan intelligently.  In fact, each of our sellers creates a written sales plan for his or her area of responsibility every year, which is shared with our clients.  When we reach agreement on the strategy, we execute the plan.

Since I founded my company in 1984, I’ve been saying to my clients, “We manage the process; you manage the results.”  If you would like to find out how that might work for you, please feel free to give me a call at 213-624-0900, ext. 1514 or email j.elliott@jgeco.com

WFH? The Tax Authorities May Have a Surprise for YOU!

By Jim Elliott, President
James G. Elliott Co., Inc.

June 1, 2021

With the help of our HR, tax, and legal advisors, we have been investigating some of the unexpected implications of staff working from home instead of an office.  There may be serious tax consequences for both employers and employees.  

Here’s just one example: An article dated December 11, 2020 in the Journal of Accountancy reports that 55% of respondents who worked remotely in 2020 were not aware of potential tax consequences.  A survey conducted for the AICPA by the Harris Poll also revealed that 47% don’t realize that each state has its own laws about remote work.  With offices in three states, we must learn about the pertinent laws in each.

“New York, for example, has already issued guidance in FAQs saying that out-of-state telecommuters working for Empire State employers will still be considered as working in New York for state tax purposes unless the employer ‘has established a bona fide employer office at your telecommuting location.’ “  

https://www.journalofaccountancy.com/news/2020/dec/surprise-tax-bills-for-some-teleworkers.html

I strongly urge you to learn about these issues before they affect you-- and your people-- unexpectedly.

At Questex Events, the Emphasis is on Safety

By Jim Elliott, President
James G. Elliott Co., Inc.

May 25, 2021

In the next two weeks, FIPP Insider Webinars will feature Kate Spellman, CMO of Questex, Simon Leslie, CEO of INK Global, and Steve Grossman of Steve Grossman & Associates, a prominent sales consultant, in a webinar hosted by John French of French LLC and me, to talk about managing sales forces as we rebound from the pandemic.  To receive notice when this webinar is scheduled, just sign up to receive emails from James G. Elliott Co. using the form to the right.

When asked about how Questex will handle the return to live events, Kate Spellman talked about her company’s Global Meeting & Incentive Travel Exchange (GMITE), held May 10-13, 2021.  GMITE brings top meeting planners and incentive buyers together with global industry suppliers for three days of pre-scheduled 1-to-1 meetings.  Kate says the environment was almost a bubble; the 1-to-1 meetings were held in one building at the Arizona Grand Resort & Spa private suites with six-foot tables and Plexiglas barriers.  Everyone was tested before they go into the building, and there was a medical team on staff.

Immediately after GMITE, Questex hosted SIBEC for the club and fitness industry from May 17-20, 2021 at the same location, following the Questex Be Safe campaign ( https://questex.com/event-safety/ ) .

The emphasis at Questex events is on safety.  So far, even fully vaccinated Questex employees are not required to attend live events if they are not comfortable.  Most have chosen to attend—especially salespeople.  I think the measured, thoughtful approach being taken by Questex is laudable.  On a personal note, it is wonderful to be thinking—and writing—about live events once again!

Selling from Home

By Jim Elliott, President
James G. Elliott Co., Inc.

May 18, 2021

Since vaccinations against Covid-19 have become widespread, conversations about the workplace have ramped up.  Many offices are reopening and there is much discussion of what a return to work will look like in different industries. Executives of some companies who had considered getting rid of their expensive real estate and housing their employees in their home offices are now having second thoughts.  Issues like liability, workers’ comp insurance, and taxation are surfacing; employment lawyers and HR departments are sure to be busy for the next couple of years.

Over the past year, we’ve all become more adept at using videoconferencing technologies like Zoom, Teams, and Google Meet.  We have learned to do many of our tasks remotely, perhaps just as well as we had done them in offices.  But performance of certain job roles may suffer.  One of these may be sales. 

I believe that salespeople need the energy, feedback and encouragement they get from a sales office environment to do their best work.   True, salespeople can schedule appointments and make phone calls effectively from home, and they may have more hours available as they avoid long commutes.  It’s also true that a seller can make an appointment to meet a customer face-to-face and then return home.  However, putting themselves out there day after day and hearing “no” much of the time can be discouraging.  I think that salespeople need to be able to return to a positive environment to find motivation and do it all over again each day.  Home needs to be the place a salesperson goes to decompress and relax after fighting the good fight all day.

In the next two weeks, FIPP Insider Webinars will feature Simon Leslie, CEO of INK Global, Kate Spellman, CMO of Questex, and Steve Grossman of Steve Grossman & Associates, a prominent sales consultant, in a webinar hosted by John French of French LLC and me, talking about managing salesforces as we rebound from the pandemic.  To receive notice when this webinar is scheduled, just sign up to receive emails from James G. Elliott Co. using the form to the right.

Why Size Matters

By Dennis Connaughton, General Manager
James G. Elliott Co., Inc.

May 11, 2021

Some B2B or association brands rely on vertical sales organizations that specialize in the markets served by those brands.  Many times, we hear that those publishers would like to carry some near/non-endemic advertising, but their current sellers don’t seem to be able to bring much in.  We think the problem is structural.

There is one often overlooked benefit in hiring the James G. Elliott Co. – size – in people and geography. It matters in sales. We always have had a lot of salespeople and they are, and always have been, invariably selling across a long list of categories which in turn produces a great deal of sales intelligence that can be shared by all of our sellers. But equally important is the source of the intelligence. We’re geographically scattered because we believe that selling directly to marketers today is far, far more important than chasing their agencies non-stop. The decision makers in most categories are spread across the country. We need to be close to them.  

Our system – the people and the locations – have always made the difference to our publishers.

Don’t Overlook the Importance of Fun

By Jim Elliott

May 4, 2021

Early in the pandemic and lockdown, we initiated weekly company-wide video chats using Google Meetings. We still hold these faithfully, and rarely miss a week.  As you might expect, each meeting includes discussions of company business and announcements.   

We rotate the responsibility for running the meeting among the sales, executive and administrative staff. Each week, a designated person will lead a discussion about issues of concern to them.  

In addition to the serious part of the meetings, we try to have some fun each week.  Most of our staff miss seeing their colleagues and the busy office environment that encourages interactions.  So, the designated leader chooses an activity that they think everybody will enjoy.  It doesn’t take much time: about 30 minutes a week.  Most of the ideas are creative and well-received.  For example, the leader of the day recently asked all the participants to name their favorite song and to sing a few lines.  The result was hilarious.  There was some very good singing, some very elaborate excuses, and many creative ideas aimed at side-stepping the assignment.  It turns out that senior executives are among the best at avoiding potential embarrassment. 

We’ve done what we can to mitigate some of the isolation during the pandemic, and I’m sure these moments of fun will be among the good memories we’ll share when we finally get back together.  I highly recommend taking a little time to build in some fun.

Visiting Customers in Their Offices

By Jim Elliott

April 29,2021

Our good friend, the sales consultant Steve Grossman, (www.linkedin.com/in/stevegrossmanassociates) recently commented that the question sales leaders should be asking is not when salespeople should return to their offices, but when they will be able to visit customers in their offices.

A couple of weeks ago, I visited my first prospective client in a year.  Neither the publisher nor I had met with anyone in person since the lockdowns began.  Now that we are vaccinated, it is safer. We had a great meeting, and he really seemed to appreciate my traveling halfway across the country to visit.  We were masked and socially distanced, but it was much, much better than a Zoom call.

As options to meet safely increase, I am sure the advantage will go to the selling organizations that are among the first to visit customers in their offices.

A Sales CRM = Good Sales Management (Part 2)

By Jim Elliott

April 27, 2021

Last week, we talked about some salespeople who resist using the CRM system their publishers provide.  I promised to explain how we are able to get all the salespeople at the James G. Elliott Co. to use our clients’ systems or our own default CRM system.

The answer is pretty simple; using the CRM system is a condition of employment.  Every seller is expected to use the CRM system.  They add prospects, track proposals, schedule to-dos and follow-ups, and keep notes on important account progress.   

We use, or have used, Salesforce, MagHub, Datatrax, AdManager, Elan, LaunchPad, Magazine Manager, and others.  Each has different strengths and weaknesses, but all enable salespeople to save time by keeping records centralized in one place.  Most CRM systems have ways to link to emails and calendars and offer various degrees of automation.  As salespeople become familiar with their particular CRM system, they often become proficient at generating required reports and projections easily.  Some systems link with other departments as well, such as marketing and production.

However, when we do consulting projects for media owners through our Ads&IDEAS company, we often encounter some of their salespeople who are adamant that CRM systems are a drag on their sales productivity.  As we interview sellers, we generally discover that they either have experienced frustrations with specific requirements of a CRM system used previously or they are afraid that management will establish arbitrary KPIs and monitor their activities too closely.  Sometimes their concerns are valid, and the systems need to be adjusted; sometimes the salespeople just don’t want to be managed.

In my experience, CRM systems are valuable tools for both sellers and management.  They can help sellers become more effective and more efficient.  And, they help ensure that our clients have access to their important data.

A Sales CRM = Good Sales Management (Part 1)

By Jim Elliott

April 20, 2021

Because we are an ad sales organization, we often encounter salespeople’s reluctance to update or even use notes in the CRM system provided by the publisher.  After all, they often say, we were hired to sell, not to be data-entry clerks.

There are several primary reasons for reluctance. Salespeople often have a proprietary interest in their accounts, although those accounts are really owned by the publisher.  They are resistant when sales managers nose around in “their” accounts. Keeping account information close to the vest, particularly during times when advertising is not pouring in, offers a kind of job security.  Because they might lose business, management can’t make any personnel or account changes if they don’t know what’s happening, can they?

Salespeople are persuasive, powerful influencers of behavior.  When reporting to sales managers, they often find ways to escape the task of keeping the CRM current and, after a while, sales managers just give up.

A publisher not having account information at their fingertips is a dangerous practice.

It’s a bad practice for lots of reasons.  The first is that the organization is left in the lurch when a salesperson leaves if there is no useful information in the CRM.  At the James G. Elliott Co., we see this all the time, particularly when we take over a new client and there is no information about individual account activity.  We also see inequities in account assignments that develop over time due to the lack of information available to management.  An average salesperson absorbs the better accounts when others leave and looks like an outstanding producer.

It doesn’t have to be that way.  We use a CRM system: either one our client provides or our own default CRM.  That has included Salesforce, MagHub, Datatrax, AdManager, Elan, LaunchPad, Magazine Manager, and others. Next week I will share a few tips on how we make sure our salespeople keep their CRM systems up to date.