Reading the Journal this a.m. and came across this story in the small business section, looking at the pros/cons for a small business to engage a PR firm. The story focuses on the concept of pay per placement as the solution, and profiles one small business owner on her journey toward PR salvation. It's not pretty -- schmoozy PR people billing for parties, big fees with no results, being nickled and dimed to death, ugh. The company profiled picks pay per placement as the best option. Here is the nut paragraph:
One approach that's getting an increasing amount of attention is pay-per-placement PR. Critics point out, however, that it isn't for everybody. For one thing, they say, many pay-per-placement firms usually won't take on tasks other than pitching stories to the media. That means no strategy development, marketing or other work that many small businesses may need for an effective PR campaign.
The flip side:
A mention in a news article or television broadcast can have a big payoff for a little-known business. But small companies often struggle to get such media coverage. Most can't afford the big fees traditional agencies charge or in-house expertise to guide them. And solo efforts may yield only rejections or, worse, bad press. So many small companies are constantly looking for some middle ground.
Having done PR for big and small companies alike, and at big and small agencies, I've never been a big fan of pay per placement, simply because it encourages "smile and dial" calls/emails that do nothing more than create grumpy influentials without generating results. As the article itself notes, it took two tries to find a pay per placement firm that delivered both results and quality experience. That said, I'm not sure the $6,500 Le Gourmet Gift basket will be charged for this article is worth it -- it misses the target audience, doesn't contain a value proposition for the business and is totally off message.
My tips for small business owners looking to do PR:
- Look for freelance help, preferably someone who has experience in your industry and has context/contacts with the media covering your space. In vertical areas, I've found there are lots of people who have been either in house or at an agency and have decided to go on their own. Alternatively, if you are going to use an agency make sure they already have proven expertise in your area.
- Define very clearly up front what you are looking for and get a bid that covers that. For example:
- Audience assessment (you should provide - this is your customer set/who you want to sell to).
- Media analysis (provided by PR)
- Message development (shared)
- Tactical execution/timing (PR)
- Fight scope creep -- it's like doing a remodel. Agree on the scope up front and stick with it.
- Ask for clear accountability in terms of results and process. That means define success up front, and ensure the process leads to those results.
- Engage PR early -- it is a leverage model, it seems counterintuitive but the earlier PR is a part of the process, the more cost effective it is.
- Commit your time. There is a direct link between PR results and owner engagement.
The payment model is sort of a red herring here -- all clients pay for results. Some pay by retainer, some by hourly rate, some by placement. But no results, over time, equals no payment.