In case you missed it, Jason Calacanis at Mahalo recently set off a West Side Story-esque Jets vs. Sharks debate by suggesting in his blog that startups stretch their cash by not spending it on PR firms:
Really think about if you need that $15,000 a month PR firm. Perhaps you can get a PR consultant to work on 2-3 projects a year for $10-15k each and save 75%. More PR firms are wasted half the year while you build up your product anyway.
Apparently, it’s okay to spend $14,000 a month for a PR firm… Or even $20,000. Just not $15,000! (There I go again being literal)
So, why no love for PR agencies? I suspect the reason has less to do with cost than what I call the fallacy of the silver bullet. Let me explain…
You’ve no doubt seen or are familiar with the movie “Field of Dreams” in which the main character, Ray Kinsella, plows over his corn fields (and his source of income) to build a baseball diamond under the pretense of, “If you build it, they will come.” Similarly, corporate decision makers often think, “If we hire a PR agency, great press and sales opportunities will automatically follow.”
There is, of course, no silver bullet. Specifically, you can’t simply hire a PR firm and expect the floodgates to open. Yet companies fall into this trap only to end up disillusioned…
I know of a startup that terminated the relationship with its PR agency after twelve frustrating months of paying monthly retainers and reaping few placements. Problem was, the PR plan was centered around a pivotal product launch that the company delayed for more than six months of the engagement.
Another startup fired its PR firm because it claimed the agency was unable to effectively communicate the company’s value proposition. Internally, however, the company failed to define its messaging and positioning, so it tended to use “flavor of the month” sound bites in its interaction with both the PR firm and media.
PR can be very effective – and monetized. The key, however, is to set attainable objectives, obtain commitment and participation from stakeholders (product R&D, product marketing, marcom, sales and the executives), integrate PR with other marketing programs (demand generation, advertising, events, etc.) and stay both nimble and flexible with respect to the implementation plan.
Most importantly, don’t confuse PR with a silver bullet – agencies may have relationships with the media but there must be substantive news to get ink.
What do you think: Is the anti-PR position about budget or false expectations?
