How to Ensure You Team with a Great PR Agency
Like cars, there is no one-size-fits-all type of PR agency. Some people might want an all utility Jeep or suv, others might want a sports car and others a dependable commuter. Looking for the right agency partner is very similar to car shopping. There are many options from big, mid-size, boutique, and independent. ChatGPT is not a PR agency, it's a tool, but recently I had someone ask me if it can replace a PR agency. I compared it to cruise control when it first came out: We all wanted to try it but then it lost its novel appeal.
Prior to forming my own council, I worked for two global agencies on some of the largest enterprise and consumer brands accounts in the world including Apple, Ford and Oracle. I also hired several mid-size agencies on the corporate side and I have hired a lot of consultants over the years. In forming LMGPR in 2001, I set out to be a blend of the smaller and the mighty, providing a breadth of experience like a big agency but with the hands-on curation and impact of a boutique. My agency approach is much more like the Goodwood Festival of Speed in the UK than going to CES in Las Vegas.??
So, this week’s question from Chicago got me thinking about what an agency should be vs. what we often expect.??
“What should my criteria be for hiring a PR agency?” — Startup in Denver
Since the 1900 debut of the Publicity Bureau of Boston, PR agencies have been available as a strategic business service. The Public Relations Society of America (PRSA) didn’t form until 1948 to bring a code of ethics and best practices for the industry. My journey in PR started in the 90s following editorial and publishing work so I was at the gateway of automation and transformation. One of the first actions on my checklist was to become a member of PRSA and learn the “code” and knowledge from other practitioners. The code of ethics is detailed at https://www.prsa.org/about/prsa-code-of-ethics and I encourage any marketing professional or entrepreneur to read these before hiring an agency.?
“Every agency has their own signature approach and expertise but the PRSA code of ethics is an essential best practice that LMGPR has woven into the fabric of our culture and client success.”? Donna Loughlin
Get Started
Answer These questions before calling on agencies for proposals.
What is the business need?
Do you need a full service, project or launch PR agency??
What can you do in house vs with an agency?
Does the agency have a team in place?
What is your performance criteria including sales, crowding competition or brand building.
What is your timing? Are you preparing for launch in six months or six weeks?
What is your budget by quarter and by year?
How do you measure success? Piles of clippings, reach or business impact such as sales?
These are all important questions to ask initially so write them down and make your own assessment.
Partnering with Ease
The power of a great network is typically where I look for professional services. Word-of-mouth reputation matters for product companies and for agencies too. Ask your industry peers who they have worked with in the past and look at company product brands you like and see who they have partnered with. When LMGPR first started, we worked directly with venture capital firms that had a host of smaller companies that needed to launch quickly. Some of these companies became public and we had a mix of startups to series B companies fast. Being agile was a key trait we developed quickly to stay in step with client needs. The array of markets from security, robotics, smart devices, and cloud services were the norm, but over time they evolved into more complex business and consumer challenges vs. cool products addressing sustainability, ESG, cyberattacks, autonomous workers, and more.
There are some obvious services every PR agency should provide: Corporate communications, product or services communications, media strategy, media training, editorial services, analyst relations, product reviews, speaker’s bureau, tradeshow support and crisis communications. Beyond that, creative programs supporting social media, digital experiences, video content etc. are additional services some agencies provide. The last newsletter addressed service being more than satisfaction—read it if you have not because an agency without great service is not like a drive through restaurant…probably not a healthy choice.
Here is my checklist for choosing a partner to help you build your business.?
Experience Matters
LMGPR is a tech and innovation PR agency. That’s all we do. If your product solves a problem using technology we should be on your short list. If you are in the food services or fashion industry we are not a match. We have launched more than 500 companies which is a lot for a boutique, so our been there-done that confidence is known well. We have also been part of 18 IPOs and dozens of mergers and acquisitions too. Often big agencies will have departments dedicated to investor relations and IPOs but we have it in a nutshell too.
Larger agencies often have been layers of staff from account coordinators to SVPs. Make sure the people in the room doing the pitch are the ones on the team and not handed off from business development.? I have experienced this scenario way too often on the corporate side and recommend avoiding the bait and switch.? A smaller experienced team can run faster and get results quicker so big doesn't necessarily mean better.
Our portfolio spans a wide variety of consumer and enterprise industries including:
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Success Stories Matter
A great agency will share case studies on how they help a company solve a big problem, build their business or disrupt an industry. It is imperative to have case study examples on prior work within a market segment. Sometimes there is overlap on different tech sectors so it might not be obvious how AI and agriculture go hand-in-hand or tracking satellites and security go together, but a good agency will look for narrative story options to tell your story better. You can check out a host of our case studies here and we have more detailed ones in 1:1.
A great case study should show challenges, results and impact, and not just the amount of articles placed but what the articles actually did for the company with detailed, measurable outcomes such as funding, new partners, or revenue growth.
Budget/Cost of Services: How do you bill for services and costs? What is your mark-up for time, retainer, and/or expenses? Please suggest a budget that would encompass your proposed services. Additionally, please describe your overall account management processes and how you ensure total costs do not exceed retainer fee.
Competitive Conflicts: Do you have any clients whose lines of business compete with Uniphore? How will you manage these conflicts to preclude breaches of confidentiality?
Reputation?Matters
In PR maintaining a positive reputation is key. References are the best recognition, but there are also numerous industry communicator, tech and PR awards praising agency practitioners. The general rule is someone had to nominate the agency vs. a pay-for-play. I am proud to say that LMGPR has won many awards from best PR Communicator, Best Podcast, Silicon Valley leadership, and campaigns. A full list of awards can be found on my Linkedin and at LMGPR.com.
At LMGPR we are not shy in networking our clients with other partners to strengthen their business. In fact, we have been known to host “Media Dinners” that bring multiple clients and media together to discuss a hot topic such as robots and humanity, cybersecurity, and even gaming devices.?
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Long-term agency engagements are more than a contract. Sometimes things don’t go as planned for business and you need to adjust, pause or navigate a different route. This is why choosing a partner is so important.?
Some of our agency relationships have spanned eight years with an average of three to get the client from stealth to IPO or merger. Often our clients return with a new product within a few years of a successful exit.?
According to PRSA the average agency tenure is three years. Most agency contracts are 12 months but projects are also a possibility too. LMGPR has flexible programs for Jumpstarting pre-funding companies and retainer-based for those wanting a longer-term value.
Transparency and open communication are key in ensuring PR is always in step with business drivers. It is also very important to be collaborative, empathetic and professionally accountable all the time.
Most agencies work 8-5 M-F but in my world it’s often 6 am to 11 pm six days a week. I know when I worked at big agencies working late nights and weekends was not allowed. In the fast paced Silicon Valley mode we work at rapid speed the same way our clients do..24/7.
We are not shy in sharing our success and you can find our fans on our homepage.
"LMGPR has played a pivotal role in introducing our transformational tech to the global media, building excitement and demand that has accelerated growth and established us as an industry leader."— Praveen Penmetsa, Founder and CEO, Monarch Tractor
“LMGPR has helped us gain momentum within our target market, supporting another direct connection point with the audiences we want to reach and further establishing FireEye as a thought leader.” — Ashir Aziz, Founder, FireEye
Work with Great People
One of the best lessons I learned over the years is to hire great people, work with great people and do great things together.
Be selective on who you partner with.? There are different culture sets, experiences and competitive advantages in hiring an agency but make sure it’s a cultural fit.
Part of the PRSA code of ethics is honesty and fairness so these should be at the top of the list along with accountability and responsibility.
One of my clients suggested not to work with anyone that is not huggable…and that is great advice.
As one great agency pioneer stated
“Hire people who are better than you are, then leave them to get on with it… Look for people who will aim for the remarkable, who will not settle for the routine.”
― David Ogilvy
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Budget & Myths
Big Agencies:?
There is no universal budget or program. The belief that big budgets deliver more results is a myth especially for earlier-stage companies. Big agencies cost more because they have more operating costs. We all like looking at luxury cars, but you should also have a budget in mind when looking at them.The stable of junior to senior staff is impressive, but you need to make sure you have the most experienced team and sometimes you don’t get the choice. Some agencies will create and hire a team to service mega accounts.
This Cybertruck size agency is a good choice if you have an unlimited budget to retain an agency. These service fees are typically 50-100K a month. I would recommend hiring a big agency if you are global and have revenue north of 500M and a decent marketing budget. These agencies typically have different billable hour rates for each team member and junior team members do the daily work load.
The hybrid work force has impacted these agencies so make sure the team is able to travel to events and meetings.
Mid-size Agencies: Next you have the mid-size car agencies that are in the 25-50K a month range and might offer some flexible project vs. retainer.? These are often regional agencies that focus on specific markets. These are great for businesses that are in the 100M plus revenue to? revenue and have been funded in the Series B range. Billing typically is the same as big agencies but I have seen blended rates allowing more senior engagement than big agencies.
During the .com bubble there were hundreds of these agencies in the San Francisco and Silicon Valley regions profiting from the high demand in tech.? Now there are a handful remaining and the pandemic and hybrid work force has helped these agencies become more affordable.
Compact Agencies: LMGPR falls into this segment and as PR consultants we are very experienced, hands-on and can go zero-to-120 very fast—working hand-in-hand with founders, investors, advisors, and an ecosystem of industry experts from design to engineering firms. These PR budgets are in the 10-25K per month range and have flexible project options too. These are typically early-stage companies under five years old and are funded in the seed to series B phase.
Third party fees. Most agencies do not pay third party fees such as wire services, video production and awards submissions unless they are marked up 15%.? I personally rather see the savings in the client’s pocket and have them pay for these services directly.?
Also, keep in mind fees can vary by region, discipline and if the media program is earned or sponsored content.? (See newsletter on Earned, Owned and Sponsored Media Content). There have been some online “agencies” that provide guaranteed placements which are not PR agencies in the traditional sense. These are SEO placement services and should not be confused with a traditional PR agency. These budgets should reside in growth strategies or social media if you have the luxury.
LMGPR works with collaborative agency partnerships too. We often do launches in other countries and with public companies acting as additional special forces.
Again, there is no-one-size-fits-all agency partner so choose the one that is best for building your business and brand.???
Take a listen to these podcasts to learn more about LMGPR’s agency and narrative story approach to building companies.
Schedule a free office hour consultation with Donna today at [email protected] to see how LMGPR can build your business with the right agency approach that matches your company.?
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4 个月Great insight here! It’s clear that finding the right PR agency is definitely not a matter of one size fits all.
Serial entrepreneur l Publisher I Podcast Host l Consultant to Startups, Small Businesses & Early-Stage Tech Companies l Entrepreneurship Course Instructor l Pitch Judge l Entrepreneurship Event Organizer
4 个月A lot of valuable insight in the article!
Thanks Stephanie and we need to do lunch!