This is #3 in a 5-part series of posts that discuss the "Five Evils of Agency PR." Specifically, the 5 prevailing reasons (in no particular order) for firing a PR agency.#1 - Employee Churn.
#2 - Measurement Misunderstanding
#3 - Budget Flux
Most agencies prefer what’s known as the "Time & Materials" model (T&M). Simply put, clients are paying for the agency’s time and expenses. This model motivates the agency to load-up on time-consuming tactics regardless of what the client may really need.
Even if an agency has rock-solid ethical standards, the variability of month-to-month budgeting leads to disheartening discussions about $$$ every few weeks, and, the inconsistency of this system makes it hard for clients to create realistic budget forecasts.
SHIFT offers only one financial model: a flat-rate, expenses-included retainer. Clients get the same bill, every month. No surprises, no monthly chit-chats about money.
Yes, we often lose money on this arrangement, but yes, we keep our clients for a long, long time. It evens out over time.