The definition of average is, “a number expressing the central or typical value in a set of data, in particular the mode, median, or (most commonly) the mean, which is calculated by dividing the sum of the values in the set by their number”.
If you’re an Account Executive, do you know what your average invoice is? Sales Managers, do you know what the average invoice is for each seller and your entire team?
Before you can “increase” your average, you must first know what your average is, and knowing your average invoice is a great place to start to increase your billing.
“The goal is not to be better than others; it’s to be better than your previous self.”
– Dalai Lama XIV
I’m going to assume that if you are in the sales world, you didn’t come into it saying, “I just want to be average”, or as the definition suggests, “typical”. The goal should be, at minimum, better than average. Of course, as we all achieve to be better than average, that average rises… but then, so does your income!
Here are a few quick examples of knowing what “average invoice” is and how shooting to be better than average can and will increase your billing.
Senior Seller “A” has on average 30 accounts on the air each month. His/her average billing is $45,000 per month. Their average invoice is $1,500.00. Going forward, if Seller “A” increases their average ask by $120, they will increase their billing by $3,600 a month and their income by 8%. Not bad for asking only $120 more per proposal.
Small Market “A”, on average, has 420 invoices that go out each month. Their monthly billing averages $82,000 which equates to an average invoice of $193.00. By simply increasing their average proposal or package to $211 per month, an $18 increase, this station would increase its annual billing by over $90,000.00.
Your current average invoice is, in essence, what your sellers believe your stations are worth. By simply paying attention to the average invoice and focusing on increasing that average, you and your sellers will be well on your way to better days ahead.
Averages can be deceiving, but understanding your average invoice and managing your average invoice will yield revenue results. Focusing on even the slightest improvement in average invoices each month, over time, will produce huge results.
Don’t be an “Average Joe”!