By Shannon Furey
So, how much does PR really cost? That is a question our firm gets asked all the time. The answer: It depends.
Now I realize this isn’t what business owners are looking for in a response. But, just the like the term PR itself, vague service requests often yield vague responses. It’s similar to someone saying, “I want to buy a new car. Now, how much is that going to cost?” Until you get down to the nitty-gritty—base model or fully loaded— honing in on the final sticker price is going to require some additional information.
I will fully admit that public relations is a very ambiguous term that can mean a lot of different things to different people. It can include anything from press releases and media relations to expert positioning, stunts, and event planning.
So the question becomes less about price and more about what you really need, and how much you are willing to pay for what you need.
Know your goals
First, you need to understand that public relations is an investment, not an expense. With the right team and strategy over an extended period of time, public relations can yield substantial returns based on either an individual’s or a company’s overall goals. But first, you need just that: a measurable goal.
For example, if your expected outcome from a public relations program is to drive more traffic to your website and increase your conversion rate by 30%, do you really want to be pitched on a PR plan that includes event conceptualization and management? I didn’t think so.
Most public relations firms offer a suite of services that can meet a variety of client needs. As such, pricing is often packaged into a bulk rate, or retainer, that supports the client’s expressed goals. The retainer is often, but not always, estimated according to the hours in which the firm believes it can successfully execute the tactics outlined in its plan.
Know the differences between PR firms
Pricing at public relations firms differ based on size, niche, location, and more. Top public relations firms in hubs like Manhattan, Chicago, and Los Angeles can have retainer minimums of $15,000 and upward. If you are looking at global public relations firms, you will certainly surpass that $15,000 a month minimum.
Companies looking at boutique public relations firms may find retainer pricing starting at $3,000 or higher for an initial six-month commitment. Again, pricing with this type of firm will be based on hours and scope. The advantage with boutique firms? The account directors and managers you meet with during your first meeting will actually be working on your account and you may not get passed down to lower-level personnel.
If you are a startup or sole proprietorship, it may behoove you to source an independent practitioner or consultant who charges an hourly fee based on smaller projects. In this instance, hourly rates could run anywhere from $75 to $175 an hour. Tasks that fall under the hourly rate may include writing press releases, developing media lists, or an agreed upon number of hours between the consultant and you for pitching media story ideas.
RELATED: Why Paying for Publicity for Your Business Isn’t a Bad Thing
Know what you need
Keep your goals in mind as figure out the type of PR firm that’s the best fit for you. It’s easy to fall prey to industry lingo from slick sales reps who will tout all of their media relationships and promise you placements in the nation’s trendiest lifestyle magazines.
Don’t let this talk lead you astray. Your goals must always be at the forefront of any conversation that you have, otherwise, you may get sold a package of services that you don’t really need—or worse, that you can’t afford.
If your goal is to increase traffic to your website by 30% and build your social media audience by 20%, then those are the conversations you should be having with prospective firms. They should be providing you with a strategy and budget to achieve those goals within a six- to 12-month time frame. If they aren’t doing that, then it’s time to move on.
Know your budget
Determine ahead of time what you are willing to invest in a PR program. I always recommend examining your gross sales before determining how much should be put back into marketing and public relations.
As a rule of thumb, 5 to 8% of gross sales, based on where you are looking to take your business, is recommended. For the sake of round numbers, if you gross $1 million a year, then you can consider investing between $50,000 to $80,000 back into a public relations or marketing program that has a goal of driving brand awareness and delivering marketing leads to your sales team.
Now, this is where the PR retainer comes back into play. Remember the top PR firms that charge upwards of $15,000 a month? A company that does $1 million a year in sales clearly can’t afford them. But it may be able to afford a boutique agency that specializes in its industry and is just the right fit in terms of expertise, size of the team, and service capabilities.
Find your firm
Understanding the public relations landscape, including pricing structures and agency size, in conjunction with your business goals, will help you make the decision of whether investing in a public relations program is right for you. If you decide to take the plunge, do your homework and conduct the research necessary to source the consultants or agency executives with whom you should be speaking.
Most importantly, have your goals and budget clearly defined. This way you will have a clear understanding of what you need to reach your goals, and which PR firm would be the best fit to execute your plan.
RELATED: How to Run an Efficient Marketing Campaign on a Shoestring Budget
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