While many continue to poke a stick in Ronn Owens' eye over his bulletproof contract "with benefits" -- so few really understand what "Endorsement Radio" is all about.
So few, too, will actually talk about it outside the hearing distance of a microphone either, because "personal services" or "endorsement ads" can in a city like San Francisco add up in personality "talent fees" and other bennies, like, free use of product like automobiles, appliances or, as in Ronn Owens' case -- what must be a truckload of Sleeptrain mattresses through the years he has huckstered or "endorsed" the product.
Ask Owens how much he makes doing Sleeptrain ads on KGO would be like asking his often celebrity guests from a Supreme Court justice to Carol Channing or Carrie Fisher if Ronn writes them a check for participating in his often annoying "reads" and "interactions" of those live spots. (The answer is "no.") They might well tell you that they put fannies on the mattress and, so, they rake in a million bucks just to "play" with Ronn as he spews forth about his being a proud endorser of Sleeptrain products.
He, however does rake in a boatload of cash over the years for his endorsement of Sleeptrain. How much? Well, that's anyone's guess. Some will tell you "inside" that Owen's making $200,000 to a quarter-million-a-year would be ballpark for the top talkmeister in Bay Area radio and they may well be right. How right? Who knows. But in the fourth largest city in the media landscape of the USA, consider it a pretty sure bet.
That means one thing.
Owens puts a lot of fannies on Sleeptrain mattresses year in - year out.
How many? That's company proprietary information, but the speculation is as high as the number offered of $200,000 a year. Oh, and the prerequisite new mattress whenever the mood hits.
Does KGO pay this? No. The advertiser does, probably, as most do, through it's advertising agency. Very common to do.
In fact, a check finds several "Endorsement Radio" firms (like AdResults, Inc.) whose sole interest is matching personalities with products, negotiating talent fees and benefits (including free use of products,) communication directly with the personality on delivery, tone, excitement, product talk points, etc. to ensure that the client gets results ... and in Sleeptrain's case -- a LOT of results.
Figure this: The given spot rate for a "live" personal endorsement on KGO is significantly higher than for "regular" commercials. Match that with a personality of Owens' notoriety and that comes to mid-to-higher triple digit figures every time the "spot" airs. So, just for grins, let's say on the conservative side, that KGO gets $1000 a :60-sec spot each time the spot airs. (Some rates are as high as $2000 or more in some bigger cities.) If Owens gets, say, 10-percent of each spot aired for Sleeptrain, he makes, roughly $100 a minute and change. Do that three times a day, and that's $300 a day or $1500 a week or over $6000 a month for, roughly 65 minutes of work. Total: $72,000 a year ... and that doesn't count performance bonuses if the ratings go up in the "buying demographics", the perks and benefits of expensive products and other benefits. This number is quite possibly not even half of what Owens' makes because he's been doing it for so long and so successfully. So, $200,000 to $300,000 could well be in the ballpark.
Sleep on that.
*Rich Lieberman 415 Media Exclusive
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