Pay-on-Performance PR: Revolutionary or Ridiculous?

[David Oates]

There has been a great deal of discussion in various circles about this model, with many strongly in favor and in opposition to such revenue models for PR firms.

What's your take? Dive in to the discussion!

[David Oates]

Here's a reference to help with the banter

[Matt Baron]

First, thanks for the invitation to join this group, David. I hope that I provide as much value as I derive from being here.

As for diving into the discussion here, I just did my 1st pay-for-placement work---a newspaper wrote a feature story on a father-son dentistry team. They are interested in hiring me, but in the midst of assessing various issues, financial and otherwise, and I offered this option as a quick, easy way for them to try me out without any risk of receiving zero coverage while going into their pocket. I crafted an email pitch to various media, and there may well be more hits later.

I also just began work for another client who was willing to pay me my hourly rate or go with the commission structure I proposed. Though going for the hourly was a 'safe' thing for me to do, I wanted to try the commission, pay-for-performance route again, and see how it goes. I track my time on all my clients, and so I'll be able to gauge the relative ROI for me.

I also agreed to "cap" my pay on this one----a step that I don't plan to take, generally, but was willing to do so in this case. Does anyone else in this community provide a commission cap of this kind?

[David Oates]

I have also been willing to place a monthly cap on fees charged to the clients, with the stipulation that any additional performance charges for that month are rolled over the subsequent months. Clients have appreciated that, if only to ensure that their expenses stay in line with budget. However, they are more than willing to see the charges rolled over and pay for them, since they are results-oriented.

Great news! Hope the trend continues!

[Dick Grove]

Thanks for the invite to join the discussion. It's always a pleasure for me to discuss a subject and a form of PR compensation that I've been practicing formally for over seventeen years on a very structured and national basis. Pay-for-performance PR is hardly new or revolutionary, but it's always good to have it re-recognized in a positive way every decade or so. My firm, INK inc., works with some really great companies across America and globally under a compensation system where we charge our clients only if we actually land published or broadcast publicity placements for them...never for just the effort nor is there ever a meter running. Yes, it's necessary to keep the overhead low, and to eliminate much of the time consuming, but almost completely unnecessary things like overstaffed and redundant meetings, client "audits," etc. In return, our clients receive media savvy, experienced senior representation dedicated to serving the clients with what they actually want...consistent positive coverage in the media that serves their desired audiences. All under an accountable compensation system. This may seem new, but in reality it's kind of old fashioned...paying for results, not promises.

[David Oates]

Concur with your findings! Thanks for joining in!