Pay-for-Performance PR

Not getting credit when credit is due....

For the sake of full disclosure, I have been a proponent of pay-for-performance PR, or more specifically, paying after-the-fact for media placements, for nearly twenty years now. I believe it is the fairest and most accountable way to charge clients for media outreach. Yes, there are many PR services that are time-intensive and not as easily quantifiable where a fee is appropriate, but media outreach can be easily judged by tangible success and should be charged accordingly. While obviously in the minority in this profession, I continue to believe that fat hourly fees or fat retainers based upon hourly fees are not in the client's best interest. The temptation to abuse this time-honored (pun intended) practice is simply too great for most PR firms, global or local boutique, to avoid. If exaggeration doesn't take place in the original cumulative estimate, it certainly occurs at the bottom end on the weekly time sheet.

However sometimes a weakness can show itself in this compensation model...no, not to the client...but to the practicing PR agency. The soft spot lies not within the professional effort nor within how or how much a placement might be charged, but within the media outreach process itself. Like the proverbial needle in a haystack, landing a great story for a client, even with the established contacts and resources we all share, is more often than not a series of trial and errors, of contacts and hand-offs, of starts and stops, of steps and missteps, ...and, of luck. Then finally after all this activity and effort that may consume a few days to several months, a commitment is made, an interview is conducted, and a story appears...or maybe not. Under a traditional retainer or hourly fee model, the PR agency is compensated regardless. "Good job, Brownie, you gave it the old college try....here's a check anyway." Under the pay-for-performance model that story must actually appear before a check is issued.

But every so often, another weakness of the model shows itself when three-fourths of the way through the process, rather than a commitment being made and an interview being set up, the reporter or producer decides to shelve it or sit on it or becomes distracted...and nothing, silence. Until one day, something extraneous in the way of breaking industry news kick starts that producer or reporter into action...and he goes straight to the client for comment...and a story utilizing much of the original background effort results. If there is not sufficient documentation to demonstrate the winding circuitous route the agency took to find that proverbial needle, and the client so chooses to believe that it simply revealed itself miraculously with a phone call, a check will not be forthcoming.

Fair to the PR firm, not really...but part of this real recessionary world, yes. Worth the trade-off of short-term revenue for a sense of self-respect and knowing it will balance out in the end, maybe. I've never been a believer in that cliché that the client is always right, but I am a believer that every client treated fairly will usually reciprocate. And, it's still a better option than trying to get paid against a bunch of phony time sheets.