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We're Dying Out Here...One Hourly Rate at a Time
Each month Stalwart Communications distributes a monthly newsletter that examines industry news, announces new client acquisitions and provides other useful information for PR professionals. This month, our newsletter featured guest commentary by Dick Grove, Chairman/CEO, INK Inc PR. He wrote a great piece on how PR agencies should move away from charging hourly rates and instead focus on chasing opportunities and getting coverage for their clients. I couldn't agree more. I welcome your thoughts and don't forget to sign-up for the newsletter here.
"We're Dying Out Here...One Hourly Rate at a Time"
By Dick Grove
It's no secret that recessions, big old nasty deep ones like what we're currently experiencing, are particularly hard on public relations budgets...which in turn is bad for the hundreds of PR firms in receipt of the shrinking largeness of those budgets...which in turn sends thousands of PR folks (often the young good ones, unfortunately) out on the street looking for new employment. But does it really have to?
Not in all cases. Not if we in the profession and those that employ us, would ever unshackle ourselves from the concept of the billable hourly rate.
Of course lost in all of this, is actually servicing the client in a reasonable efficient and measurable way. But exactly when did efficient, measurable client service translate to between $150 and $300 an hour?
Here's a simple, elegant solution to keep good people employed...dramatically lower the hourly fees, or even better, eliminate hourly fees altogether. Charge clients fairly for actual PR services completed...actual media placements, and projects completed. Incorporate a bonus structure for meeting budgets and deadlines or levels of coverage. What a revolutionary idea...charging clients for actual work completed and not for creative timesheeting.
The result will not necessarily keep everyone from losing their job...just the good ones.
*(For the sake of full disclosure, my firm and myself personally, have not billed our clients by the hour in seventeen years...through three recessions...but what do we know.)
"We're Dying Out Here...One Hourly Rate at a Time"
By Dick Grove
It's no secret that recessions, big old nasty deep ones like what we're currently experiencing, are particularly hard on public relations budgets...which in turn is bad for the hundreds of PR firms in receipt of the shrinking largeness of those budgets...which in turn sends thousands of PR folks (often the young good ones, unfortunately) out on the street looking for new employment. But does it really have to?
Not in all cases. Not if we in the profession and those that employ us, would ever unshackle ourselves from the concept of the billable hourly rate.
Of course lost in all of this, is actually servicing the client in a reasonable efficient and measurable way. But exactly when did efficient, measurable client service translate to between $150 and $300 an hour?
Here's a simple, elegant solution to keep good people employed...dramatically lower the hourly fees, or even better, eliminate hourly fees altogether. Charge clients fairly for actual PR services completed...actual media placements, and projects completed. Incorporate a bonus structure for meeting budgets and deadlines or levels of coverage. What a revolutionary idea...charging clients for actual work completed and not for creative timesheeting.
The result will not necessarily keep everyone from losing their job...just the good ones.
*(For the sake of full disclosure, my firm and myself personally, have not billed our clients by the hour in seventeen years...through three recessions...but what do we know.)
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