How Much Does PR Cost?
PR delivers great value for money as a marketing communications tool and is a highly cost-effective means of reaching your target audience. The cost of hiring a PR consultancy will depend on a number of factors - such as the objectives of your campaign, the techniques used and the length of time you're likely to retain the services of the consultancy.
Member firms of PRCA Ireland operate within the following general conditions of business.
Proposal charges
PRCA member firms will provide you with a general credentials presentation free of charge.
A fee will be charged for the submission of creative proposals, if you or your organisation request this. This fee can be treated as a rejection fee and is only payable if a contract is not awarded to the consultancy in question. The PRCA recommends that the maximum number of consultancies you shortlist for creative presentation should be three.
Fee structures
There are a number of alternative fee structures that can be agreed between you and your consultancy, depending on your requirements. Your consultancy will advise you on the best options:
Retainer: An agreed monthly or quarterly fee, payable in advance, for an agreed programme of activities. A retainer fee would not usually be based on a contract of less than six months.
Retainer plus hours: An agreed fixed minimum charge per month or quarter, payable in advance, covering a specific amount of executive activity. An additional hourly charge is levied when the time input exceeds that agreed within the retainer. Additional charges are normally invoiced on a monthly basis.
Project fee for retained client: If you need a project undertaken that falls outside the agreed programme of activities, your consultancy will agree an additional specific project fee with you.
Hourly charge: Fees are based entirely on time input by the consultancy and charged at the end of each month. These fees may be structured to reflect input by directors, senior executives, junior executives and administration staff. Your consultancy will pre-agree hourly rates for each of these levels with you in advance.
Once-off project: An agreed fee for a clearly defined activity within a pre-determined timescale. Depending on the duration of the project, your consultancy may invoice the complete fee in advance or may agree a system of charges to be paid on a regular basis.
Service charges: All third party activities contracted on your behalf and billable to your consultancy will be subject to an agency service charge. This charge applies to all purchases or contracted services where the consultancy assumes responsibility for the supply of that material or service on your behalf and is the contractor of the materials or service involved. The consultancy also assumes financial responsibility for payment to the third party on terms agreed between the consultancy and the supplier. The service charge paid by you is in line with this contractual and financial responsibility. Your consultancy should indicate the standard rate of service charge to you on initiation of your PR programme.
In-house charges: In-house charges incurred by the consultancy in the normal operation of your service will be billed to you, usually on a monthly basis. This range of in-house chargeable costs include: photocopying, fax, telephone, post, travel, WP printouts and special stationery materials.
Additional specialised services: Your consultancy may be in a position to offer you specialist in-house services rather than contracting third parties for same. In these cases, an additional fee for the supply of those services may be charged. Such services include design, media monitoring, research, audio-visual production and issue monitoring. Fees for these services should be pre-agreed between you and your consultancy.
Charge administration
PRCA members operate to strict credit terms of 30 days from date of invoice. The service our members supply is people-related and high salary costs are incurred. Consultancies are prepared to service you on an immediate, no delay basis and we ask therefore that you be prepared to pay for that service on the same basis.
Where particularly high in-house costs or third party charges are incurred, your consultancy will normally seek special payment terms. In cases of high-volume executive work, particularly on specific projects, it is normal to seek regular advance payments. All payment arrangements should be agreed between you and your consultancy on initiation of your PR programme. Invoices are subject to VAT at prevailing rates.