Should PR agencies be paid for pitches?

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San Francisco, CA. - December is always one of the times of the year when would-be-clients review their PR agency relationships. Most of the time we are happy to see an increased flow of RFPs from great companies but unfortunately we also tend to receive numerous requests for proposals at this time of year from companies who seem to have no intention of hiring a PR agency at all.

It’s hard to judge whether those companies have good intentions or are malicious in their intent to obtain fresh PR ideas without paying for them, but whenever we hit a run of ‘phantom pitches’ the question of whether PR agencies should be paid for presenting their ideas always comes up.

Paid pitches are, after all, nothing new in advertising, so why shouldn’t PR firms get paid for their ideas, irrespective of an ultimate appointment?

A recent survey from Europe reports that 26% of advertisers use a paid pitch to appoint an agency, so why couldn’t it catch on in PR?

Well, of course it may catch on if our industry comes together to agree what we should do for free, and what should be paid for, but I’m under no illusion that until such an agreement is reached, there would be five agencies lining up to pitch for free any company that we would elect to charge.

In the interim, I’d offer five pearls of wisdom to companies seeking to make a PR agency appointment. Following these tips will help you find a great agency without asking for the earth – or investing too much of your own valuable time in the agency selection process.

1.    Be up front about your budget. Negotiate, but don’t bluff.

2.    Be honest about your experience. If you’ve never hired a PR agency before, say so. Good firms will help you through the process.

3.    Issue a realistic RFP. You can learn a lot about an agency by asking for references and case studies – you don’t need to ask for a full PR plan to figure out which partner is best for you.

4.    Set realistic timelines. Don’t rush agencies through the selection process. You simply won’t see the best work the agency can offer.

5.    Be collaborative from the start. The more you tell your prospective agency about your business, the better their ideas and programs will be.