Friday, July 21, 2006
The $10,000 PR problem
This seems like a crazy problem, but it seems Silicon Valley is again awash with money and wants to spend it on PR - sadly though it would seem there is a shortage of people who they can spend it with - this particularly the case for those companies that want to spend about $10,000 a month. Before all the relative newcomers to PR dash out to set up PRismybag.com and soak up all this demand they should understand the real problem. The real problem is that the people who want to spend all this money want 'experienced' PR pros. This is of course where the catch lies. So many good people left the industry when the bubble burst that there are not that many great people around who have more than 5 years of experience (which is in turn driving up salaries). In addition the problem with most of the start ups that want to spend this kind of money is that they want at least $15,000 worth of service. The last of the problems is these businesses want lots of media attention and sadly since the bubble burst the media they can reach has shrunk. In any other market than Silicon Valley this problem would seem ... as silly as it sounds. Perhaps this might encourage some of the start ups to launch in another market where their $10,000 a month will go a lot further such as China or good old fashioned Europe.
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I think there's a demand on the other side as well. Since there's not very many PR pros with 5+ years of experience, PR firms and corporate companies have a huge demand for those that do.
Most jobs I have looked at (since I'm a student and do not have 5+ years of experience) are not entry level, but want anywhere from 3 to 7 years of experience in PR.
This makes it hard to break into the industry. It also makes hard, I think, for agencies to find new people, since there aren't many around with the experience.
Tim,
I hear you. But I think that it's even more than that. Many start ups don't need 10k (let alone 15k) worth of work each month.
I went through the crazy budget time when I was at Alexander Communications (Alexander/Ogilvy) as well and quite often companies wanted to spend more than they had a need to, because they thought they had to.
Now, I work pretty much primarily with early stage companies and am trying out a new concept (at least new to me), the 'Quick Call Retainer.' $750 bucks per month and we're available to talk with clients and answer questions. If they need action as a result of those discussions, they pay for it as needed. Link is below and I'm interested in your perspective:
http://donteattheshrimp.blogspot.com/2006/07/morgandorado-intros-quick-call.html
Andrew -
Alot of work can be done, and effective messaging achieved for a alot less than the numbers you've mentioned here. Targeted and effective relationships with influential media and analysts can be developed can maintained if you're working with a solid, experience PR rep or team. It only makes sense to work with tech pr pros who have experience relevant to your business. Ask to interview each member of the team and know who's on the phone on your company's behalf and how well they're singin' your company's tune... It also may be important to do this periodically given the employee turnover at many agencies.
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