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.

PR for the Greater Good

A reflection on good times past....

In general, we in the PR business deal with the softer side of life and of news. Even the categories have a soft, non-confrontational sound to them…business to business, consumer, lifestyle, healthcare, and so on.We’re hired to help sell products from cosmetics and jewelry to software and underwear…and management philosophies responsible for thousands to celebrities responsible only to themselves. And then, every once in a rare while, we’re asked to assist in doing something for the greater good…something that allows us to utilize our talents and experience for simply the betterment of others without an economic judgment call. 

In perusing a recent Sunday NY Times, I was stopped by an article that took me on a memory jag of just such a circumstance. The piece by Clifford Levy, Explorer: Israel With a Russian Accent (and Pork) Israel city on the south coast of the Mediterranean inhabited by a large number of Russian émigré. He explains that the vast majority of these Russian expatriates migrated from the former Soviet Union over the last couple of decades after the fall of the Soviet Union and where they have settled, gives Israel a distinctive Russian cultural flavor.

The piece reminded me of a call I received now some seventeen years ago from the then chairman of the United Jewish Appeal, Marty Stein, asking if my firm would be interested in “spreading the word through the U.S. media of the plight of Jews in Moscow and throughout the Central Asian republics (once a part of the Soviet Union) desperately trying to migrate to Israel.” It seems that the UJA, an enormous philanthropic organization, needed to raise additional monies to provide the on-ground assistance and the flights to help the thousands still living in these isolated Jewish colonies to escape the continuing religious and economic persecution.The problem in raising these needed funds was in greatly raising awareness in the U.S. that in spite of the fall of the communist state, the persecution and the desire to find sanctuary in Israel still very much existed.The UJA needed to get the U.S. “secular media” to pay attention and start covering the story…but wasn’t sure how to go about it. Thus, the call.

I was honored, not only because of the nobility of the cause but in the fact that my firm, distinctly small and non-Jewish in ownership but noted for our national media successes, would be asked to carry out such an important task.Over the next two years, we devoted ourselves to their cause but utilized our PR skills and news instincts to find the stories that would resonate with U.S. media.I sent teams (including myself) to Russia and Central Asia, we interviewed officials and peasants, we traveled on stealth overnight flights from Uzbekistan crowded with Jewish emigrants and their families lugging their allowable two duffle bags of life’s belongings…and we spent time in Israel following the freshly arrived Diaspora as they slowly and sometimes with great difficulty assimilated into modern Israeli life. And we chronicled all into real stories, not press releases, for the U.S. media…NBC, ABC, CBS, CNN, USA Today, NY Times, and all the major dailies carried the tales of their plight and their successes. And importantly, contributions began flowing again.

So now fifteen years later, It’s great to read that many of these brave folks that we shared an incredible experience with are doing well and have made homes for themselves in that little sliver of land called Israel. It’s also great to remember and reflect on the power that PR can have beyond buzzwords, endless press releases, internal bickering, sales metrics, and indeed greed…when actually used for the greater good.

Win Some, Lose Some...

No Hall of Fame for PR rainmakers

As CEO of a pay-for-performance public relations firm, I spend much of my time on new business…accounts that will be both interesting and challenging to our army of pros as well as profitable to the company. And as many of you in this industry know, the two are not always compatible. Even if rainmaking has become more of sifting through referrals than cold calling, it’s still requires a skill set and mental discipline developed through experience and over time. Plus, finding that rare new client that is both fun to work on and produces solid revenue is often as difficult as hitting an inside curveball or as daunting as driving the lane clogged by an NBA center.

Sure, there are actually specialists these days that rent themselves out as rainmakers-for-hire; and most of the larger PR firms have at least a designated new businessperson or even a whole department dedicated to seeing the pipeline is always full. More often than not, these new biz pros know more about sales technique than PR, or how a new client might or might not fit the culture or business sense of the firm. They might win a game or two, but not sure they have the consistency for a whole season.

I remember a very successful ad exec and mentor of mine telling me when asked who handled new business for his global firm…”Me”, he emphatically stated. “I’m the guy with the passion and the name on the door…and most importantly, know the people behind it.” I’ve followed a similar philosophy for my firm over the years, and while it may not work for some larger more anonymous PR institutions, it’s worked for us in welcoming the kinds of clients that best fit us. We’re fortunate that referrals from current and past clients along with internet and social media inquiries make up the bulk of our prospects today, but each still has to be researched and carefully followed up with to determine whether the story is there, the compatibility exists, and if it can be a profitable relationship for both us. I happen to enjoy this and prefer not to delegate something I believe is this important to our survival and growth.

No matter the new business methodology employed however, the metrics of success are as clear as a ball game…you either win or you lose. Yes, you may go to extra innings or overtime, but there are no “kissing your sister” ties, only winning or losing. You land the account or you don’t. And when you do, it’s exhilarating and heady stuff. When you don’t, it sucks. Sound familiar? The big difference from this sports analogy of course, is that when the new business game is over and the celebrating has ceased, then the real work begins.

And, of course, there’s no Hall of Fame.