THE REAR VIEW MIRROR: Why it pays off to be transparent about your PR budget
By David Josephs
Let’s say you’re thinking of renting an apartment in Laika’s home city of Berlin. Prices are going up, as you’re probably well aware, and you may well start your search online to establish what you might be able to afford with the money you have. That doesn’t mean you will necessarily opt for the most expensive apartment you find, as you will no doubt take lots of factors into account.
But I’m pretty sure you won’t waste time looking at a 5,000 euro per month apartment if your budget only extends to 3,500 euro. That’s in no-one’s interests, right?
I mention this to illustrate a business challenge that has faced PR companies for as long as I can remember (I’ve been involved in this industry since 1991).
Let’s talk budget
The new business proposal has always been a cause of excitement for those of us who work in PR agencies. In the good times, it’s not uncommon to have as many as 20 of these requests at any one time. Good agencies might not feel they have the appropriate expertise for some, so will decline the opportunity quickly, but most will look interesting and relevant.
Early in the conversation, I’ve always asked a prospect to indicate what kind of budget they have available. Most have been prepared to give at least an outline of what they want to invest. Others are very precise.
But other companies are less forthcoming and will say things like ‘why don’t you tell us what we should spend, and we will tell you what we can afford’. This is far from ideal. Let me explain why.
What does the client actually need?
When you invest in PR you are basically buying time and experience. Laika charges a standard hourly rate of 125 euro, which I believe is somewhere in the mid-range for companies like them. They’re not a cheap and cheerful agency, but neither do they feel the need to charge some of the eye-watering rates proposed by other companies.
I suspect some prospective buyers fear that if they reveal that they have 6000 euro per month to invest, each proposal, remarkably and coincidentally, will be presented to them as costing 6000 euro per month.
Laika won’t do that. They will tell you what they think they can deliver, and what that will cost. They might propose additional ideas for you to consider, but their principle is to tell you what they think you need rather than what they think they can get away with. If your proposed budget is less than they would recommend, they will tell you that, too, or perhaps recommend a freelancer you could work with.
Riddling confession finds but riddling shrift
Transparency and openness save everyone’s time. If you don’t know if you can invest in PR, but would like some ideas, just say so. Most agencies will try and help you if they feel they have the right skills for your company.
I leave you with a final point. The numbers I’ve mentioned in this post (6000 euros per month), were not untypical for companies to pay for PR at the turn of the last century. PR agencies are working harder than ever to produce results, arguably in a tougher environment. So let them have as much budget information as possible early in the process, as only then you can expect to receive a well-thought-out and fit for purpose proposal. It will mean you start to see the results you’re expecting quicker. Everyone wins.
David Josephs
ABOUT ME: I’ve worked in the PR industry for 30 years, and have advised tech companies of all shapes and sizes ever since. My experience extends across Europe, the US and the Middle East. My posts for Laika aim to share some of those experiences to help you make the most of your investment in PR. I’m proud to serve on Laika’s Board of Advisors, and support the team through training sessions and one-to-one guidance.