American Executive - Where Business Leadership Begins

When it comes to PR, sometimes less is more. If you’re using the traditional retainer-based PR model to get your company’s name out there, you may be selling yourself short. Not only are you probably paying for services you don’t need, you may not be getting the coverage you deserve.

At a restaurant, you wouldn’t pay for filet mignon when all you got was a salad, but in a retainer-based PR model, that’s exactly what happens. Companies pay a flat fee of anywhere from $5,000 to $100,000 per month for PR services, no matter the quantity or quality of the coverage, and they are often locked into an agreement for a year. According to Richard Virgilio, media expert at PayPerClip, a pay-per-placement PR firm based in New Jersey, as the business world evolves, the retainer-based model has become less effective.

“Five or 10 years down the road, we envision the rest of the PR industry unbundling its services to offer customized PR for companies. We have started down that road with our pay-per-placement model,” Virgilio said.

Back in the game
The idea behind pay-per-placement PR is simple: you get what you pay for. Clients only pay when they see their name in print, and because PayPerClip does extensive research beforehand (at no charge), the client’s message goes out to a more targeted audience.

“Traditionally, you pay in advance for something, but the PR firm can’t tell you what they are going to give you. With pay-per-placement, they tell you exactly what you are going to get. It is a completely different buying experience,” said Chris Bradley, CEO of San Francisco-based 2ndEdison and a customer of PayPerClip.

“I had become so numbed by the experiences I had with other PR firms that I stopped doing PR,” said Bradley. “Becoming a client of PayPerClip enabled us to get back into the game. In the long run, it is going to pay off millions of dollars in revenue that we probably wouldn’t have without this service,” he continued, noting that not only does pay-per-placement save the company a monthly retainer fee, it has greatly increased the number of inbound calls.
Prices for pay-per-placement services vary depending on the client’s goals and size. For a brief mention in a small newspaper or magazine, clients can expect to pay around $750; a feature in a well-known national or international publication runs around $4,700.

On the Web, the same rule applies: $400 for a small appearance, $2,400 for a full feature. The cost of television placements falls between $400 to $5,000, and radio broadcasts range from $200 to $1,000.

Story pickups (placements that are picked up by newswires, online databases, syndicated columns, Web-based magazines, newsletters, and magazines) go from as little as $200 to a maximum of $8,000. The best part of the pricing structure is that clients are guaranteed a complete refund if they are unhappy with their service.

Predictable ROI
Another aspect of pay-per-placement that PR clients enjoy is control. With traditional PR, the quality and type of placement is largely determined by the firm, not the client. With pay-per-placement, clients are very much involved in the process.

According to Bradley, the relationship is a partnership in perfect balance. PayPerClip does the research and behind-the-scenes work, and 2ndEdison determines which opportunities it accepts. “If they hand us a bunch of press opportunities that don’t hit our target, we can work with them on a different pitch,” Bradley said.

“I love having financial control as well,” he explained. “Every time we are going to lay out a lot of money, I can do an analysis in advance to know what the ROI will be. If I spend $50,000 to $100,000 on PR, I am guaranteed a return on it. With a traditional PR model, I may not get anything in return.”

Pay-per-placement PR is not for everyone—some companies require a full PR service package because they need the structure and direction. But for companies simply wishing to revitalize their PR practices, Virgilio suggests asking yourself a few questions before jumping in:

1. Do you know what message you want to relay?
2. Do you know who your customers are and what type of media they prefer?
3. Do you have the time?

“The media is going to want to talk to you, so if you don’t have the time, you need to designate someone else as your spokesperson,” Virgilio said.

Broadcasting to pod-casting
Another direction change for PR is a move away from the printed page to the airways. Many executives consider talk radio a convenient way to receive up-to-date information and news. SNP Communications, a consulting, training, and executive communication services company based in San Francisco, has taken this concept to the next level with its TalkRadio PR format. “It is very similar to NPR or Larry King Live, only the host is a high-level executive,” said Scott Sigler, marketing director at SNP.

With an 85% to 90% success rate over the past 10 years, TalkRadio may be the answer executives have been looking for. SNP holds an agenda meeting with the CEO/host to determine what topics need to be covered and who the guests should be, then conducts a pre-interview with each guest. From there, SNP writes a script so when the host takes the stage, an introduction and a bullet-point list is there to guide him or her through the broadcast.

“Because we do extensive prep work, the host knows what the topics are and roughly what the answers are going to be, but because it is in list form, it remains conversational and natural,” Sigler said. “It is a much better way to deliver information than a lecture, e-mail, or slide show. Not only are listeners getting the information they need, they get a direct connection to the host because his personality and style comes through.”

High-end executives acting as hosts gives these programs and their content validity, but because those at the top of the ladder are often the busiest, SNP has to cater to that need—the entire process only takes up about two hours of the executive’s time.

When the company began, broadcasts were burned on CD for distribution to the company and, often, customers, investors, and the press. Listeners could also log onto the Internet and listen through their computers. With MP3 players and iPods in the hands of 30 million Americans, SNP has updated its delivery format to include downloadable broadcasts.

Sigler says SNP encourages companies to do use the talk radio format regularly. “It’s like any talk radio show you hear. Once you’ve heard it three or four times and get accustomed to the voices and the personalities on the show, you become a fan. Consistency is key,” he said. Shows can run once a month, twice a quarter, or once a quarter, and prices run $5,000 to $15,000 depending on the frequency and type of broadcast.

“TalkRadio is a great way for people to hear directly from their leader, which is something they can’t always do, considering our clients are Fortune 500 and 1,000 companies with 30,000 to 40,000 employees. Now, all those employees can receive the information they need to do their jobs in a personalized way,” Sigler said.