Q:
How is your publishers’ representative company paid?
A: Mohanna & Associates, Inc. receives a 20% commission on
net advertising sales. A bonus commission of 5% is paid on net
sales that exceed an agreed upon revenue level.
Q:
When are you paid?
A: When a given issue of your magazine closes for space, you
are sent an invoice. The invoice lists all advertisements booked
within that issue and the net amount to be charged for each
ad. The invoice for an issue is due when the issue is mailed
to the subscribers.
Q:
Is your company paid on advertisements that have been sold prior
to your start date?
A: Mohanna & Associates, Inc. does not ask the publisher
to pay double commissions on any advertisement. If the previous
publishers’ representative is owed commissions for an
advertisement in upcoming issues, then Mohanna & Associates,
Inc. does not receive commission on that advertisement. Our
firm will begin to service the pre-sold accounts immediately
upon our becoming your magazine sales force of record even though
we may not receive commission for some of the advertisements.
Q:
Our cost of sales is lower than 20%. Why should we pay 20% plus
a performance bonus to you?
A: Mohanna & Associates, Inc. provides face-to-face sales
calls for publishers. Our sales representatives criss-cross
the nation making across the desk sales presentations that result
in new or expanded commitments from advertisers. This kind of
professional selling effort comes at a price. However, the commissions
paid out to Mohanna & Associates, Inc. pale in comparison
to the additional advertising revenue our firm can produce.
Q:
Does your company secure pre-payment for first time advertisers?
A: We can. However, asking for pre-payment impedes the sales
process and ultimately reduces the net advertising revenue for
a publication. Several of the publications we represent have
had no bad debt whatsoever during the last 12 months. One in
six advertisers were new in those same publications and yet
all advertisers paid in full.
Q:
How does your publishers’ representative company account
for bad debt?
A: 20% of the total of any bad debt that might occur while Mohanna
& Associates, Inc. is under contract is subtracted from
commissions owed to our firm. We ask that you give us one last
chance to collect from the past due advertiser before they are
turned over to a collection agency.
Q:
How many publications does each sales leader represent?
A: Our sales goal for each sales leader is a minimum of $1,000,000
a year. Ordinarily, each sales leader can build up the revenue
in 3 or 4 publications enough to reach his individual revenue
goals.