Question:
Help! I run a boutique PR agency, and we're running out of
revenue streams in a hurry. What are some fresh ideas we can adopt
to try to stem the tide of red ink?
Answer:
Let's face it: this millennium has yet to be kind to the PR
industry. Many a PR professional dream back to the days of 20%+
annual raises, huge retainers, and the luxury of picking,
choosing, and declining prospective clients.
Well, the economy will eventually turn around, so not all is lost.
In the interim, many agencies, especially mom-and-pop style
operations, are struggling to make ends meet.
For many, going the route of using traditional business
development processes has proven frustrating and
fruitless--frankly, a lot of sole practitioners and boutique PR
shops are all fighting for the same clients in any given city. The
key to unlocking new clients and revenues is to take the road less
traveled and explore unconventional means of creating income.
IDEA #1: GUERRILLA PR FOR SMALL BUSINESSES.
We all know that 99% of all businesses are small businesses, and
the vast majority of those companies would never even consider
proactively hiring a PR agency. So, the key to establishing
near-term income and prospective long-term relationships is to
rely on an opportunistic communications approach.
First, try calling up a few radio shows whose formats cover a
potpourri of topics. Many markets have such programs that may
discuss the importance of preparing a Will and Trust one day and
then the health benefits of a vegetarian lifestyle the next. Ask
which segments are approaching that still require undiscovered
guest experts to speak.
With that information in hand, you can literally open the Yellow
Pages and start dialing for dollars: calling up a small business,
introducing yourself and your practice, and offering the
opportunity for them to speak on an upcoming radio program about
their area of expertise for only $500.
In the aforementioned example, it’s a safe bet that one of the
slew of lawyers advertising in the phone book would be more than
happy to pay for some radio exposure. Equally, some owner of a
local health food restaurant would be dazzled to start positioning
himself as a guru of all things vegetarian.
If you use this approach, be sure not to misrepresent the
opportunity--you're a third party whose job it is to promote
clients for media exposure. You only charge the fee if they get
booked on the show, and this media opportunity is not the same as
advertising, e.g. the client does not have total control of the
message. If you want, offer to throw in a half hour of media
training by phone for an additional $100.
Collections tend not to be a problem--many businesses assume that
since you can get them on the air to talk about their area of
expertise, you can also garner coverage about them not paying
their bills.
Another flavor of opportunistic communications is to watch local
TV news and see which companies are being ripped apart by the
local consumer advocate. Clearly, these guys need help, and
chances are that they'll be pretty receptive to guidance from you,
an expert, on how to rebuild their brand while also calming
current and prospective customers.
IDEA #2: SPECIALIZE.
As mentioned earlier, agencies tend to chase the same clients. Who
are these clients? Typically, they're a stereotype of what an
agency wants to represent and who they think needs representation.
This usually means "glamour" clientele like high-tech companies, a
major regional employer, or an organization with high brand name
recognition.
Your job is to find those non-glamour companies and take advantage
of the opportunities they present. More often than not, you'll
have to impart a highly effective case on why your communications
capabilities will benefit their organization. After all, the
company has been rather successful without PR help until now. On
the other hand, there's a reason that their business is not
considered "glamorous" locally, and strategic PR planning is most
likely part of it.
There are many examples of companies that fit the "non-glamour"
stereotype. The first model is the so-called ‘runner ups’ who are
the #2 of their industry and complacent with their position. Think
“Avis” without the “We try harder.”
To give a real-world example, here in San Diego, Sony is
considered a "glamour" company. The organization's presence in the
county is very well pronounced. However, a very similar company
with similar means and selling to similar markets is also based in
the area but gains hardly any notoriety: Sanyo.
In other cases, whole market segments are ignored by agencies,
simply out of habit. Normally, this involves companies whose
products and services are never glamorous: tax preparation,
funeral homes, garbage companies, and the like. In an economy like
this, an agency can make a choice—either A) eat some humble pie
and seek the funeral home as a client or else B) just not eat.
IDEA #3: THINK GLOBALLY, ACT LOCALLY.
A final strategy worth considering is looking at large, nationally
recognized brands who have a local presence that can be leveraged.
This can include retailers (CompUSA, Macy's, Home Depot) and
service organizations (AT&T, H&R Block, Sears Home Painting) who
are looking to build rapports with local customers and turn those
into long-term, recurring relationships.
There are successful models where boutique PR agencies have
established $2,000-$4,000 monthly retainers with large
organizations simply for serving as a local Rolodex who's well
plugged into local media and do nothing else than pitch stories
tailored to their market.
On the low end of the scale, these services have revolved around
re-packaging client-developed stories. On the high end of the
scale, they center on building local campaigns oriented towards
the individual needs and interests of the community, e.g. helping
the local Boy Scouts earn a technology merit badge at a company
selling computer training, teaching prospective home buyers about
the tax advantages of home ownership by a tax preparation firm,
etc...
CONCLUSION
While it sounds cliché, there really are plenty of PR
opportunities for PR agencies willing to think 'outside of the
box' and adopt some unconventional PR strategies. The good news is
that such practices are both financially rewarding and can inspire
creative tactics that can be applied to more traditional PR work
once business the economy picks back up.
Submit
your question for March's newsletter--contact LACP.
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