You’ve reached the point when you want to boost your business through a concerted public and media relations program. But what will it cost? Kathryn Goater & Anthony Caruana, co-CEOs, Media-Wize give you the lowdown.

Setting a budget for a successful PR program can be as nebulous as determining the length of the proverbial piece of string. But once you understand how PR firms set costs you can design a program that fits with your budget.

The two PR program models 

PR’s typically offer services using two different models. The first is a retainer model. You work with the PR to set some regular goals and pay a fixed amount each month to the agency or freelancer to deliver on those goals. A typical retainer would include a mix of media releases, articles placed in publications with your name on the byline, pitching you for interviews, a regular status meeting and some reporting on the reach and impact of the program. 

From your point of view, this is relatively simple to manage. There’s a recurring monthly fee so you can effectively budget and there’s accountability for the PR to regularly deliver on your goals. The key benefit for your business is that you can call your PR when something new comes up and amend the monthly plan. 

If you’re not ready for a monthly commitment, you can look at a project model. For example, let’s say you have a new product or service coming out. You can engage the PR to write, distribute and follow up on the media release. PR experts have deep industry knowledge that enables them to craft a media release that speaks to the journalists and audiences at your target publications. And they are skilled at following up journalists to maximise your chance of coverage 

For a business just starting out on its PR journey, the project model is a good way to learn how PR works and to potentially try a couple of different agencies or freelancers out. But when you negotiate for a PR project, make sure you set a ceiling on the costs so there’s no bill shock at the end. 

The biggest disadvantage of the project model is that you must go through the entire engagement process, potentially with a PR that knows nothing about you, before you can get started. And if you’re trying to take advantage of an emerging opportunity, by the time you do that a competitor might have swooped in and your opportunity is lost.  

The agency also may not be as committed to your success as they view it as a one-off project, they don’t have the time or budget to really delve into understanding your business, products or services, they just focus on the task at hand and then move back onto focusing on their other clients. There are some PR agencies that won’t engage in ad hoc projects because the time it takes distracts from their retainer ongoing accounts, they want to invest in doing the job well, not just ticking one short-term box.  

What’s a reasonable cost? 

PR firms vary significantly in how they charge their clients. PR agencies and freelancers can charge anywhere from $100 to $500 per hour depending on the task, their level of experience and expertise for a project. Generally, freelancers and smaller PR agencies charge less for PR projects as their overheads are lower. 

Retainer agreements are structured around the delivery of specific outcomes. As these are recurring, the monthly fee remains constant. A small retainer agreement typically starts at around $3,000-$5000 per month for a boutique agency, but for medium to larger agencies that fee might start higher at $7,000-$10,000 a month and can escalate significantly from there depending on your needs and goals. 

Setting the budget 

When starting out with PR, we’d suggest taking a cautious approach. Rather than signing a 12-month agreement, start with something shorter and only commit to a modest monthly cost. If you’re working with freelancers, rather than a larger agency, you could budget 10 hours a month or negotiate a set fee per activity.  

If retainer fees are too high for your current budget, consider a series of small projects. For example, perhaps discuss having an opinion article written and placed every other month and, if you have some news, a media release or two. That will enable you to manage costs and get a feel for how things work.  

By understanding how the PR industry values its work, you can build a realistic expectation of budgets and deliverables.  

Want more? Get our newsletter delivered straight to your inbox! Follow Kochie’s Business Builders on Facebook, Twitter, Instagram, and LinkedIn.