An important concept in selling advertising of any type is the close ratio -- or the number of successful contracts divided by the total number of contracts pitched to prospects.

Some online sales consultants have claimed close ratios as high as 85 percent when putting newspaper advertisers on the papers’ Web sites.

These close ratios are achieved with four-legged calls using existing newspaper account executives, targeting their existing customers and making aggressive, well-developed presentations. They also are achieved in part because the sales consultants are highly experienced and have skills far more developed than the typical newspaper, broadcast or online sales staff.

Yes, consultants can achieve high close ratios, but they also can end up with exceptionally low retention rates — often hovering near zero.

Our experience puts close ratios for online advertising with all prospects — existing broadcast clients, newspaper clients or prospects who have never advertised in the traditional property — at 10 to 20 percent of all leads when pitched by typical media account executives. Retention rates have averaged 60-70 percent, which is somewhat above some newspaper rates and better than the consultants.

Clearly, a number of factors play into close ratios, including the skills and experience of the AE, the price of the product, size of contract, quality of presentation, etc.

Although information about online close ratios doesn’t seem readily available via search engines, one source put online close ratios for auto dealers in the range of 15-25 percent of all leads. Those leads are highly qualified.

A key difference with Internet clients is that they tend more often to be new business rather than repeat business; it’s harder to get in the door; but once in the door, it’s somewhat more qualified.

Tracking online close ratios with sales staff is a simple but useful device for measuring how well they are doing the job and whether they have the right tools, education and motivation in achieving online sales budgets.