Pay-for-performance public relations

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A recently developed alternative to traditional retainer-based and project-based public relations (PR), pay-for-performance PR specializes in securing media coverage, charging only for the publicity results achieved.

[edit] Definition

The pay-for-performancce PR model (also referred to as “pay-for-results”, “pay-per-clip” and “unbundled” PR) was introduced in 2004 by a company called PayPerClip, based in New Jersey.

Pay-for-performance PR has sometimes been called the “unbundling of public relations services” (Fast Company, February 2005), because clients outsource only a single component of public relations, rather than paying for ancillary PR services they do not need. Lacking the expertise, time or resources needed to generate publicity for themselves, they turn to pay-for-performance PR firms, who specialize in working with the media.

Proponents of traditional PR models argue that most organizations need a more fully-rounded communications program than is provided by firms that offer pay-for-performance services. However, those traditional models usually offer communications services in addition to securing publicity, and they typically charge for time or for a project, regardless of outcome.

Pricing for pay-for-performance PR is typically based on three variables representing the value of the coverage: media type (national vs. a local TV program), extent of coverage (feature article vs. a brief mention) and audience metrics (number of readers, viewers, or listeners).

Organizations most likely to benefit from the pay-for-performance PR option are those that:

•Have a clear understanding of the messages they wish to covey

•Have a clear understanding of the audiences they wish to reach

•Do not need PR services aside from publicity, such as crisis management, event management, employee relations, market research, etc.

•Require tangible results for the money spent on PR