Has your business grown to that stage where you’re thinking about hiring a PR agency, but you’re unsure how to start? Perhaps, you’ve looked at public relations rates online, and the numbers are scaring you back into your shell. And rightly so, because cost is always one of the critical factors to consider when deciding whether a PR agency is the right solution for you.
Well, it’s good that you’ve taken a moment to pause, because, chances are, you might not even need professional PR representation yet. And if you indeed do need one, here are some tips that can help you get the best rates from public relations professionals.
Key Takeaways
- Public relations rates depend largely on the size of the firm and the company rank of the person working on a certain project.
- Many PR agencies have set rates for every client, but some adjust their rates based on the scope of the campaign and the type of client.
- Some agencies choose to forgo hourly fees altogether and instead charge clients a monthly retainer.
- The cost of hiring a PR agency will depend on many factors, including your goals, your budget, and your agency selection.
- The type of work and salaries a public relations agency pays employees can also greatly affect how much they charge clients.
How are Public Relations Rates Determined?
Public relations rates depend largely on the size of the firm and the company rank of the person working on a certain project. They also increase with a person’s rank.
Rates charged by CEOs with yearly revenues between $10 to 25 million equate to an average hourly rate of $439. Those with revenues exceeding $25 million are slightly more, with an average hourly rate of $492. Company account managers charge an average of $257 an hour, while account coordinators charge an average of $149 an hour.
However, account coordinators likely have many more billable hours than higher-up executives, as presidents and CEOs spend much of their time on business development rather than on client accounts.
When consulting with a PR firm, consider asking these questions to assess whether the firm will be a good fit:
- How would they approach your program?
- What do they truly excel at – and does that fit your expectations?
- What is their communication style?
- How do they measure success?
- How will they go about generating leads and coverage?
- Do they know how to manage crisis situations?
- How will they help you reach your goals?
What are the Average Rates for Public Relations?
Public relations agencies’ rates vary widely, ranging from $125 per hour to upwards of $500 per hour. The average hourly rate is about $150 to $250, according to R Public Relations. Many agencies have set rates for every client, but some adjust their rates based on the scope of the campaign and the type of client.
For example, many agencies charge nonprofits a lower hourly rate than for-profit clients.
Some agencies choose to forgo hourly fees altogether and instead charge clients a monthly retainer, which is a predetermined monthly price for an estimated number of billable hours. Agencies calculate retainer fees by speaking with clients to determine the number of hours the agency will be working on the client’s account within the next month, then multiplying the number of hours by the hourly rate.
The average retainer is $2,500 to $6,000 per month, according to the Canadian services marketplace Bark.
Factors That Affect Public Relations Rates That You Control
The cost of hiring a PR agency will depend on many factors, including your goals, your budget, and your agency selection. Consider some of these factors when considering whether a PR firm is right for your business. If you are contemplating the cost of hiring a PR firm, chances are you already know the importance of establishing your business’s image.
Positive PR can help increase brand recognition, loyalty, and community goodwill.
THE PR COST FACTORS WITHIN YOUR CONTROL
Don’t be afraid also to ask questions about their fee structure. The cost of hiring a PR agency and your budget are major factors that decide whether to hire an agency or keep your PR work in-house. A PR firm should be transparent when discussing what they charge and how their fee structure works. You may also want to ask how long it takes their team to craft a press release or set up for an event.
Understanding how many hours a typical project can take may help you evaluate whether a PR agency is cost-effective for your business.
To help foster a successful relationship with a PR firm, you need to communicate your goals upfront and set your expectations early. Doing so means that you and the firm start on the same page and can track results throughout the relationship. Meeting with a company before you hire them allows you to gauge how comfortable you are with the firm and how they will manage the reputation of your business.
Other Considerations That Affect Public Relations Rates
The type of work and salaries a public relations agency pays employees can greatly affect how much they charge clients. Agencies specializing in sports and entertainment, health care and public affairs charge higher rates on average. They also vary based on geographic location, according to HubSpot.
Accordingly, The U.S. Bureau of Labor reports that PR specialists based out of Washington D.C. get paid the most, with a median annual salary of $106,040. The second-highest area is New York, where the average annual salary is $83,460, followed by California, where the average annual salary is $81,84.
Public Relations Secrets You Should Know That Can Help You Determine Your Rates
#1. Do you need a PR firm…yet?
There are times when, as a PR consultant, I advise entrepreneurs to align with a PR agency because the brand is prepared to grow bigger and broader. However, there are other times when, as much as I’d love to promote a brand, I feel like the company needs to identify its story, stretch, and grow a bit more before making the investment.
It takes time for a brand to be ready for professional PR, but this doesn’t mean there should be no PR at all; you can always do your own PR by yourself. However, if you feel like you’re already in need of a PR agency, you can ask yourself these questions to be sure:
- Your niche is relatively saturated, and you aren’t able to rank above major competitors
- The local market is aware of you, but you’re ready to build brand recognition at the next level(s)
- You’ve realized that staying relevant requires long-term vision, goals, and continued communication with media/influencers sucks up too much inhouse time/energy
- It’s been a while since you’ve been front-and-center in any top-tier media outlets (journalists, podcasters, industry or mainstream magazines, newspapers, the guest on a local show, etc.)
- You’re not a great writer or speaker (or marketer, or videographer, or photographer), which is necessary to achieve the latter-mentioned journalist showboating required for good PR OR you are good at those things but are trying to run a business and don’t have the time.
Do one or more of those resonate with you? If the answer is yes, then you can start looking for PR agencies who speak your brand’s language.
#2. Are they in your price range?
As you can imagine, public relations firms are wildly successful self-publicists, and the agency that caught your eye may charge rates way out of your price range. Every business likes to be a bit sneaky, luring in prospects with such a warm and fuzzy atmosphere that the consumer will just hit “Buy Now!” in ecstatic glee.
You, however, are a business owner with a closely guarded bottom line, so budget is king. Honor that and be upfront with your budget boundaries. There’s no point in hiring public relations gurus if their rates put you out of business before they can work their magic.
Also, don’t forget to ask how they bill. Is it by project, by the hour, or by the service tier?
#3. What are your main objectives for the PR agency?
If you don’t have concrete objectives to bring to the table, a client-hungry firm will eat you alive. They’ll create fluffy, beautiful, rosy goals and objectives for your brand, using so many industry terms and acronyms that you’ll be dizzy with desire. Then, you’ll walk away feeling confused about what just happened.
Be clear about your objectives and what you plan to achieve through public relations support. This protects you from investing too early or selecting the wrong company to represent you.
#4. Do you have market research to present?
Don’t get me wrong; your PR team will do their homework and research once you’ve contracted with them. If they really want you, they may even do some proactive research to wow you with their intuitive greatness.
Nevertheless, bring any solid market research you have via in-house efforts or consultants/analysts you’ve used in the past. This includes HubSpot or the website host’s analytics about website and social media performance. Gather videos and print footage or any other public exposure you’ve had.
This gives the PR firm more information to brainstorm further goals, suggestions, and strategies based on where you’ve been and where you are now. It also illustrates what’s worked and what hasn’t and where you plan to be in X years down the road.
#5. Are your key players and team onboard?
I highly recommend meeting with management, key players, and staff/employees before you hire PR help. Let them know that hiring a PR firm means change may be on the horizon. Your brand reps need to tell a unified story, and that requires specific language, lingo, customer interaction, etc. It also requires a unified company language and culture.
These are all things the PR pros may come in and work with via in-person or webinar training, rewording of existing content/documents/customer service scripts, etc., and specific instructions regarding internal and external communication.
You’ll also want to identify a point person, lead contact, or PR manager who is there from the beginning and is the chief liaison between your company and the PR agency.
If you’ve considered all of the above and you’re moving forward with hiring a professional PR agency, it’s time to learn what prospective agencies can do for you and what rates you can accommodate.
#6. What are your niches?
Some PR firms operate across the industry spectrum, but most have a few “favorites” or niche industries/brand markets based on their team’s experience and passions. You want to select a PR firm that specializes in and has experience with your brand’s niche.
Some PR firms offer the roundabout of services and have specific industry niches. Others are oriented around specific aspects of public relations services, specializing in particulars such as communication, media relations, community-based brand development, internal employee/staff communication and policies, non-profit promotion, or public affairs PR.
#7. Do they offer the services your brand needs most?
The PR world can be hard to define. It uses marketing and offers marketing experience, but it’s not the same as marketing. Some of us offer only the services that reflect our niche expertise. Examples of prospective services or attributes include:
- Brand and product launches
- Media training for you and your key players
- Event conception and planning
- Tradeshow planning
- Promotional events and publicity stunts
- Community event planning and publicity stunts
- Established relationships with your industry’s influencers and game-changers
- Content amplification
- Social media monitoring
- Pre- and Post-crisis communication planning and training
- Creative direction and advertising campaigns
The list goes on, and many companies offer a bit of all of the above. Your job is to find the one with service focuses in sync with your brand’s short- and long-term objectives. Don’t be afraid to ask if you can speak to current and former clients to see if they got what they paid for, and to learn more about prospective PR agencies’ strengths and weaknesses
Bonus: How do they work with existing marketing teams?
If you don’t have a marketing team, your PR firm will take over that role, or they’ll refer you to marketers they trust. If you have an existing marketing team, and you love them, prospective PR firms should provide clear information about how they integrate with client teams.
The goal is for the public relations/marketing team integration to happen slowly, smoothly, and consistently, with the two sides’ cultures similar or complementary enough to enjoy a symbiotic relationship.
In Conclusion
Do your homework ahead of time before committing to a PR agency. Sit down with your team and outline your goals and expectations. What are you hoping to gain out of your relationship with a PR firm? How much of your budget will you dedicate monthly to a PR firm? Do you expect your PR firm to visit your office?
You need to be honest when answering these questions and establishing your objectives. When your goals are firmly set, schedule meetings with various PR agencies.
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