Tuesday, October 03, 2006

inc magazine on reasonable PR rates

In August, Inc. magazine's "Ask Inc." column tackled the question of a small business CEO about whether to hire a PR firm, even though retainers seemed high to him. Should he just tackle the PR tasks himself? The magazine (and another CEO) recommended hiring a fulltime publicist at a $36,000-per-year salary instead, comparing that favorably to a scenario in which one might spend $4,000 per month in retainer fees. DGC President Denise Graveline's response appears in the current October issue, which unfortunately, doesn't yet appear on Inc.'s website (the September cover is shown here). Here it is for you:
Inc.'s response to Michael Wolverton's question about hiring a PR firm offered incomplete advice. Hiring a $36,000-a-year in-house publicist may actually cost more than the $4,000 per month ($48,000 per year) in retainer fees for an outside firm once you add up training, taxes, insurance, and an operating budget. You also missed the opportunity to suggest several money-saving options, including asking for other pricing models besides retainers and finding smaller PR firms that charge lower rates.

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