No coverage, no fee – the future for PR?

Posted on: 22nd June 2010 in Public relations

I’ve come across a couple of agencies in the last few weeks who are selling their services on the back of a no coverage, no fee model.

Whilst this is undoubtedly an attractive proposition for potential clients, who can procure services without the worry of having to pay the bill should the results not be delivered, it’s left me wondering whether it’s missing the bigger picture.

Many of the clients that DTW works with engage us to not only to carry out proactive media relations for them, but to also look after their reputation for them. Not only does this involve keeping them out of the media just as much as keeping them in, but it also links in to a much wider programme of stakeholder engagement.

Under a no coverage, no fee deal how do you cover the cost for dealing with an incoming media enquiry or question from a local councillor – something that can be equally, if not more, important than preparing a proactive press release.

Traditionally, most agencies charge based on the time and expertise that has been spent on dealing with the issues in hand. This can be on a retained monthly fee or a ‘taxi meter’ type system. Both of these require an element of trust between client and agency that they aren’t being ripped off.

I suppose where DTW differs from many agencies is that we operate a fully transparent accounting system. Our clients are welcome to, at any time, inspect our records to ensure that we’re not pulling the wool over their eyes in any way – not that we ever would.

Over the years we’ve built up a reputation as being trustworthy and ethical, but putting myself in the position of a start-up, looking to build a portfolio of clients quickly I can well understand how a slightly riskier business model might prove attractive.

Whether the no coverage, no fee charging model is sustainable in the long run remains to be seen (it certainly seems to be going strong for the personal injury lawyers) and it’s something I’ll certainly be watching with interest.

Pete Whelan (Jr)