Yesterday the Wall Street Journal published an article about a small business owner named Ms. McKay that became frustrated with her first PR agency because after three weeks of starting her PR program and paying $3K, the agency hadn't generated any press coverage. So she took it over herself and unknowingly secured a spot on 20/20 about rude people - and she was one of the featured examples. She lost customers based on the coverage, so she decided she needed professional help again. But this time, she hired a PR professional that focused entirely on media relations and only charged her when coverage was generated.
The concept of pay for placement PR is not new, but I can't help but be a little surprised that the Wall Street Journal wrote an article about how this is a viable option for small businesses. As a business-minded publication, it seems to have a missed a major point to the other side of the story. PR professionals offering this arrangement are essentially working for free, with no guarantee of payment. Yes, companies engage with PR agencies with the expectation of coverage, which agencies ultimately provide (not always, I know). But getting from point A to point B takes time and a lot of work.
Coverage typically does not magically appear immediately (positive coverage, that is). It can't be guaranteed, and often there is a great deal of strategy and leg-work that goes into securing coverage, such as interviewing customers, gathering data, researching competitors, training spokespeople to articulate the story correctly, and creating solid, accurate messaging that is truly unique. It's difficult to place a story when the homework hasn't been done and there isn't much thought that goes behind the story you are telling. PRSA's chairman Rhoda Weiss summarized this point of view nicely in the article.
If you are a company considering public relations, think carefully about working with someone offering this model. Put yourself in their shoes. If you had a PR business, would you give all of your time away for free? And if you are working with someone that offers this model, I can't help but question the longevity of their business model. It's wise to establish long-term relationships with a PR partner, and this is highly unlikely with a pay for placement PR model (keep in mind there are always a few exceptions, of course).
Last comment on the WSJ story: PR people don't charge their clients for mentioning their name in conversation at a cocktail party (as the article mentions). If your agency does, you need to find another partner, fast.
