Really great post. I've never been a fan of retainer fees, it doesn't encourage the agency to do their best for the client. Paying by results is my favourite option.
<abbr>Richard Millington´s last blog post..Downsizing</abbr>
Danny
· 1 year ago
I agree - if anything, I think it encourages many agencies to be lazy, knowing that they've been paid regardless. The ones that disagree the most about value-based pricing are usually the ones that aren't servicing the client's needs properly.
If an agency can do their job properly and work with a client towards realistic results, why so apathetic when it comes to working without retainers?
Thanks for stopping and and glad you enjoyed the post, Richard.
Eric Morgenstern
· 1 year ago
Most clients prefer to pay for "outcomes," not "outputs." The old model of retainers still works for those clients that prefer a level-payment plan, but we're finding that value still drives client satisfaction with results. Keep up the great work!
Danny
· 1 year ago
Thanks Eric.
There are some clients that prefer the old style retainer fee, but I feel that as they become aware of the alternatives we're going to see less and less of this practice.
Just checked out your site - I like your ethics and message.
Michael Hatamoto
· 1 year ago
Danny, what role, if any, do you think social media has in this?
Isn't it possible for smaller companies to do their own PR work using Twitter, Facebook, and other Internet services, rather than pay a PR firm to do the work for them?
I've been approached by a couple companies recently who pitched their own press releases and arranged interviews with their own executives -- I'm honestly not used to having a company randomly contact me without working with them in the past.
I think it's imperative for any small business to promote themselves - using social media is a key part of this (and something I try to help my clients with as much as possible, small and large).
Where the need for a PR firm comes in would be the extra reach and expertise that they can offer - contacts in the media, press release formatting, distribution channels, prepping clients for media interviews, etc. There's a lot of work goes on behind-the-scenes in PR that most people don't realize, including PR interns and students.
The ideal solution is to become familiar and comfortable with social media, what tools are most suitable for your business niche, and then utilize some form of value-based pricing PR service to really push your news out into the mainstream. The budget doesn't need to be high, either - it'll be less expensive than a traditional PR campaign and potentially much more impacting.
Good question, and thanks for stopping by.
Eyal Rofe
· 1 year ago
Hi Danny
What, in your opinion, will be the the value based pricing of a social media strategist?
Nice to read you
Eyal
Danny
· 1 year ago
Hi Eyal,
Much of it will come down to current pricing structure versus realistic pricing structure. Many agencies overcharge their clients for their services (although this is true in any business).
What's needed is to see the value of what you, as the agency, bring to the client, both financially and brand-wise. This is where getting to know your client comes in - you (should) want the best for them and they'll be more appreciative of your commitment.
It may be an agreed fee on returns (monetary, traffic, sales) with incentive-based additions for above-average results, for example. At the end of the day, the agency needs to be realistic and charge for the service offered and not just the "reputation" of the agency and past results. The past is great for what you have done, but the present and future results are where you're judged now.
All Comments
<abbr>Richard Millington´s last blog post..Downsizing</abbr>
If an agency can do their job properly and work with a client towards realistic results, why so apathetic when it comes to working without retainers?
Thanks for stopping and and glad you enjoyed the post, Richard.
There are some clients that prefer the old style retainer fee, but I feel that as they become aware of the alternatives we're going to see less and less of this practice.
Just checked out your site - I like your ethics and message.
Isn't it possible for smaller companies to do their own PR work using Twitter, Facebook, and other Internet services, rather than pay a PR firm to do the work for them?
I've been approached by a couple companies recently who pitched their own press releases and arranged interviews with their own executives -- I'm honestly not used to having a company randomly contact me without working with them in the past.
<abbr>Michael Hatamoto´s last blog post..HDTV prices to remain low</abbr>
I think it's imperative for any small business to promote themselves - using social media is a key part of this (and something I try to help my clients with as much as possible, small and large).
Where the need for a PR firm comes in would be the extra reach and expertise that they can offer - contacts in the media, press release formatting, distribution channels, prepping clients for media interviews, etc. There's a lot of work goes on behind-the-scenes in PR that most people don't realize, including PR interns and students.
The ideal solution is to become familiar and comfortable with social media, what tools are most suitable for your business niche, and then utilize some form of value-based pricing PR service to really push your news out into the mainstream. The budget doesn't need to be high, either - it'll be less expensive than a traditional PR campaign and potentially much more impacting.
Good question, and thanks for stopping by.
What, in your opinion, will be the the value based pricing of a social media strategist?
Nice to read you
Eyal
Much of it will come down to current pricing structure versus realistic pricing structure. Many agencies overcharge their clients for their services (although this is true in any business).
What's needed is to see the value of what you, as the agency, bring to the client, both financially and brand-wise. This is where getting to know your client comes in - you (should) want the best for them and they'll be more appreciative of your commitment.
It may be an agreed fee on returns (monetary, traffic, sales) with incentive-based additions for above-average results, for example. At the end of the day, the agency needs to be realistic and charge for the service offered and not just the "reputation" of the agency and past results. The past is great for what you have done, but the present and future results are where you're judged now.
Thanks for stopping by, appreciate your question.