PR Retainers Are Long Gone. Aren’t They?

Client demands for accountability, stringent cost-cutting and pay-only-for-placement scenarios have killed traditional PR agency retainers, haven’t they?

Not really.  Surveys of independent PR firms continue to show that approximately one-half of clients are on some type of retainer. So why would a client agree to a retainer? The better question is: Why wouldn’t a client want a retainer agreement?

Here are seven ways the client can benefit from a retainer agreement:

1. The retainer ensures that the client has access to a prescribed amount of work, intellectual attention and manpower capacity each month, and a consistent effort by a dedicated agency team.
2. The retainer encourages both the client and the agency to invest in a mutual commitment, makes their work together a priority, and encourages a more stable and fruitful relationship. Less effort and time is spent on chasing partners, which enables more focus on accomplishing the client’s goals.
3. The retainer sparks, supports and rewards long-term, strategic thinking by the agency. This kind of thinking typically doesn’t come in a project-by-project relationship, as few agencies will risk offering big ideas and opportunities without being compensated. (Remember: Free ideas are worth every cent they cost!)
4. The retainer protects the client by eliminating any potential agency conflicts of interest. With a retainer, the client has the right to expect that the agency would not accept work from the client’s direct competitors. Project clients who haven’t made a long-term commitment, on the other hand, have little right to expect an agency to turn down other work.
5. The retainer provides the client immediate access to the firms’ services, especially in case of emergencies and crises. Project clients in a jam are often at the agency’s mercy – in terms of both timing and cost.
6. The retainer ultimately generates better results more cost-effectively, as it enables the agency to know and understand the client better — providing savings in time, effort and stress for both the client and the firm over the long haul. It also amortizes the start-up costs over a longer engagement for greater efficiencies, as compared to project-based activities which start and stop.
7. The retainer helps to ensure agency stability and success, by providing a steadier and more predictable cash flow. Most clients want some assurance that the agency and a stable, talented team will be there next week or next month when they are needed. And often, the client’s financial folk  appreciate and prefer a steady, predictable spend of the PR budget.

There are a number of retainer arrangements.  One we often use is a hybrid retainer which sets a minimum monthly service fee (ensuring a predictable, consistent level of activity on the agency’s part) yet allows for additional work to be billed as over-hours to meet certain peaks in the client’s needs.

Whatever the form, the strength of the retainer derives from commitment, stability and predictability. And with an upfront agreement on mutual expectations, goals and housekeeping (what’s covered and what’s not, payment timing, etc.), downstream surprises and issues are avoided … and efforts are focused on the client’s goals rather than unneeded distractions.

Now, don’t get me wrong, working on a project basis can be a wise choice in some select situations. In fact, many of our long-term retainer clients of 10 – 15 years started out with projects — limited engagements with limited risks — and then grew into retainer relationships — like dating before getting married.

An introductory project can help the client and the agency determine if the chemistry is right for a potential long-term relationship. But ultimately, if you’re seeking steady, long-term results and a fulfilling relationship, rather than a disjointed series of sporadic hits, some type of retainer relationship is usually the best way to go.

 What has been your experience with PR retainers?