WE DON'T PERFORM, WE DON'T GET PAID
One hundred years after Edward Bernays laid
the founding infrastructure on which the public relations industry
has prospered on the corporate nipple, News Bureau is unbuttoning
the conventions of traditional consulting relationships by segregating
bundled agency services into accessible, affordable service bureaus
and shifting the onus of performance from the client to the agency.
News Bureau has installed accountability between
the masthead and bottom line of agency billing statements. Binding
annual service agreements, fat monthly retainers and self-perpetuating
monthly activity reports are out – replaced by Performance
Fees paid on bi-monthly Accountability Statements which detail
results and provide tangible supporting evidence that clients
can touch and feel and read on a positive balance sheet. If
we don't perform, we don't get paid. Period.
We believe Mr. Bernays would be impressed.
News Bureau indemnifies qualifying clients
from unwarranted expense with performance fees predicated on
a discounted percentage of the equivalent advertising cost of
each publicity placement. This fixed percentage, known
as the Performance Fee Quotient, customarily ranges from about
40-85% of equivalent print and broadcast advertising rates. Interactive
media placements are most often predicated on web traffic and/or
Prevailing performance fee quotients are determined
by a composite evaluation of a client's newsworthiness, campaign
budget and duration, media placement opportunities, media targets,
topical crossover values, reach and frequency, logistics, distribution
of out-of-pocket expenses and client tenure. The higher
the score, the lower the performance fee quotient.
In some instances, performance fees may be
reduced by as much as 15% by adopting a hybrid fee structure
which diminishes the agency's risk by incorporating a modest
monthly service fee. In most cases, the hybrid service
fee amounts to about 20-30% of monthly fees charged by traditional,
retainer-based public relations agencies.
If your PR firm won't share risk and
take equity in results produced, check your bottom line. It's