Performance-based PR; you can avoid hefty public relations fees by paying for results only

Black Enterprise, Nov, 1994 by Arletha Vickers Allen

You want the world to know your company exists and word-of-mouth publicity has run its course. Yet, the purse strings on your promotions budget are tight - you can't afford the hefty retainer fees and overhead expenses of traditional public relations firms.

All is not lost. Though it's not a new concept, performance-based PR (a.k.a. pay-as-you-go or results-only PR) is an increasingly used alternative. Unlike most traditional public relations firms, which require ongoing monthly retainer fees and offer no guarantees, performance-based firms offer guaranteed results or you get your money back.

At Media Relations Inc. in Bloomington, Minn., clients pay money up front much like a retainer, but if the agreed upon contract isn't fulfilled, the money is returned. For less than $6,000, Willie Gault, former football player turned model, was guaranteed national print media and television coverage to promote his new career.

"We fulfilled our contract in just a couple of weeks and now he's renewing for another set of interviews," boasts Phil Johnson, sales manager for Media Relations, which also represents 3M, the American Bar Association, AT&T and Honeywell.

Another performance-based firm, Primetime Publicity & Media Consulting, with offices nationwide, specializes in direct media placements. Primetime also sets up contracts with specific objectives for its clients - Lens Express and Visa just to name a few. There's a start-up fee that's included in the client's budget. But if after 180 days the firm is unsuccessful in placing a story on the client, the entire amount is refunded, says David H. Hyslop, director of marketing at the Sausalito, Calif., office.

Only after a story runs is the client invoiced and the fee deducted from the budget. The fee is based on the number of words in the story and the circulation of the newspaper. For instance, 300 words in the San Francisco Chronicle could cost $7,000. That same story would be worth $14,000 if carried in the New York Times, and $20,000 if picked up by the Wall Street Journal.

Broadcast fees run similarly, except now you're dealing with minutes and seconds. Ten seconds on NBC Nightly News with Tom Brokaw would cost more than 10 minutes on a local news show. The contract ends when the budget is completed.

Of course, fees differ from company to company. Also, this type of PR isn't for everyone in every industry.

In some cases, the one-shot deal, with no follow-up, might cost as much as what a traditional firm would charge for double the service, notes Serena Gallagher, co-principal of Harvey Gallagher Communications, an entertainment public relations firm in New York. Still, if you want to pay only for what you get, then performance-based PR may be for you.