Why is public relations so expensive?

Why is public relations so expensive?  Because you continue to pay the ridiculous monthly retainer fees that firms charge.  Without question.  You don’t even expect them to quantify the return you will receive on the investment they are asking you to make.  The reason public relations is so expensive is your fault.

The first question that any PR company asks when you enquire about working with them is ‘what’s your budget?’ And you tell them.  At least, you tell them the number you think is the going rate for the cookie-cutter PR ‘strategies’ most sell comprising a standard set of activities and, let’s be honest, very little strategic input.  It’s like playing poker where you show all of the other players your cards – and then wonder why you always end up losing your shirt.

If you want to make public relations more affordable here are three easy things you can do:

  • Start being more specific in what you need.
    You don’t need media pitching. You DEFINITELY don’t need somebody else doing it on your behalf.  Focus on specific short-term outcomes that will help you achieve your big hairy business goals – and have a PR company tell you how they are going to help you achieve them.  Then ask them to put a price on their part in that process.

To get resources and templates that will help secure media coverage email lyndon@comms.bar

  • Focus on building relationships.
    Relationships are the key to the success of every business.  Devote time, energy and money on building strong relationships with the handful of people that are critical to achieving your next milestone

To get a Key Relationship Mapping™ Canvas email lyndon@comms.bar

  • Start focusing.
    Whether it’s milestones towards your ultimate goals or stepping-stones to building a relationship with key people, start focusing on specifics.  Most PR firms justify their activity on the basis that they’re trying to deliver awareness.  Most of the activity is wasted [at your expense] because they’re targeting the wrong people.  More focus means less waste.  Let waste means lower investments.

To start setting pr and marketing goals that will help you achieve commercially valuable outcomes visit https://comms.bar

  • Stop telling PR firms what your budget is.
    It’s the fastest way to have them spend every single cent – and more often than not, it’s not necessary.  More often than not your budget is really what you think the going rate is – but there is no ‘going rate’.  You can’t put a price on activity – only on advice and outcomes that deliver value.

To get affordable pr and marketing advice from startup and small business specialists visit https://comms.bar

Only you have the power to change the price of PR retainers, by voting with your money.  If you refuse to buy in the way that most PR firms sell then they’ll have to change.  But, while you continue to play their game – a game they’ve loaded to ensure they always win, PR will continue to cost thousands of dollars every month and continue to deliver little value for your investment.

For affordable public relations & marketing advice designed for startup and small business budgets visit https://comms.bar

2 Replies

  • Good post! As you know, the economics of the PR industry are driven by long-term engagements given the overhead and profit margins. I tell my startup clients that, at most, they need two or three months of PR help, rather than signing up for long-term retainer agreements. They get what they need, exit stage left, and then come back for more PR when/if they need it.

    • Thanks Mark. Two problems – the overhead is not necessary; and the profit margins are perfectly reasonable. The problem is that a lot of the profit margin is spent in overheads [usually expensive offices designed to woo customers]. Another problem is that most PR companies sell public relations but deliver publicity.

      Startups generally don’t need publicity – they need help building relationships with key people. They need to be helped to figure out a strategy that delivers company specific outcomes and they also need to own the relationships [whether with customers, prospects, investors, journalists, influencers…]. The value is in the the strategy and in the relationships they build.

      The economics of ‘PR’ are also, generally, built on a financial model that is built on activity rather than outcomes. Startups have the power to change that – they just need to stop playing the game that the ‘PR’ industry wants them to play.

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