In 2022, we’ve given you the low-down on why newswires suck if you are a startup, how to do startup photography right, as well as information on media outlets, events, podcasts, and newsletters.
We’re expanding our startup advice series to include a lot more strategic guidance. In this post, we help you shop for a PR agency and look at ways to ensure the agency you are talking to gives you all the necessary information to make the right decision.
Make sure the agency has relevant experience working on similar projects
If you are a startup and you are talking to a PR agency that tends to work with corporates, public institutions, and NGOs rather than startups, then chances are they will provide you with a suboptimal outcome.
What you want to do is hire an agency that constantly plays the specific PR game that your startup will need to play. There is a huge difference between doing PR for an established brand and a brand-new startup. There are even enormous differences across startup verticals.
And make sure the agency actually means startups when they say it. Not every small company is a startup. There are infinitely more lifestyle businesses and SMEs than startups, and their PR needs are widely different. In other words, look for a PR agency that works with tech startups, not one that works with mom-and-pop shops.
There are always exceptions to the rule, of course. Some PR agencies might excel working with a number of different business types – corporates, startups, and even SMEs.
Ask for case studies
A way you can check for relevance is by asking for case studies. Say you’ve had your first call. Everything was great. Now, you want to ensure you can put a face (or, in this case, a logo) and a name to the agency’s relevant experience. For each case study, you’ll want to get a complete picture of the background of the task, as well as what was achieved.
Things you may want to look out for in the case studies: has the agency worked on projects that are similar to what we’re looking for (e.g. fundraise announcement)? Are our desired target outlets among those that the PR agency has already demonstrated it can get into? Was the startup from the case study at a comparable stage to ours?
Ask to speak to current or past clients
After seeing the case studies, you might still want further reassurance. Perhaps it’s your first time hiring an agency, and no one in your network can vouch for any of the options. In that case, it can be a good idea to contact one or two previous clients and ask about their experience with the agency. But be concise and keep it to email. Founders, CMOs and other startup peeps are busy people!
Check for personal chemistry and culture fit
Personal chemistry can be more important than you think when selecting an agency. PR agencies are selling a service that is impossible to provide without significant communication between them and the client. There will be chats, emails, calls, and more. There will be expectations, expectations management, check-ins, you name it. Your PR agency will need to come to you for new, original input. Regularly. Consider it a bit like communicating with your own teams, your own employees.
There are four main character traits in the business world – driver, analytical, expressive, and amiable. Most businesses are ready to flex to be compatible with others, but it’s not always the case. Does the agency you are talking to demonstrate they are able to communicate at the same level?
Realistically, considering all the above and that PR requires regular communication between parties, the experience will be better if you ‘click’ in your first exploratory calls. Did you talk to people you see yourself working with regularly? Were they pleasant human beings to communicate with? Did they listen and address concerns, or just sell? Was it a consultative approach?
Culture is something that can help boost collaboration. After all, companies involved in the startup game tend to be highly motivated in what they do, and are not (just) in it for the money. Does the PR agency adopt a startup-like mentality, in terms of that motivation? Do they have ‘startup energy’?
Ask what to expect results-wise
Everything seems to point in the right direction. They’ve worked with startups at the same stage or industry, or have been through similar situations before. They’ve listened to what you have to say about your needs, presented themselves and why they are a relevant partner. Now is the time to ask about potential outcomes.
Let’s remember we are talking about the the first calls. At this stage the answer won’t be scientific, or millimetric in terms of precision. However, do listen to their answers carefully. Are the estimations based on previous experiences? Do they explain why they believe those outcomes to be realistic? What are the timeframes for this? Do test each agency with some follow-up questions to see what they base their answers on.
The key here is that you are not looking for an answer that will make you happy about your startup. You are looking for an answer that is realistic, confident, and based on actual experience. If it’s not your own expected outcome, seek to understand why. And feel free to compare with other agencies you ask.
Ask about their way of working
There are a number of things that agencies will do in different ways. We spoke about chemistry before; this one is more technical. It relates a bit to how the agency structures their accounts. It has to do with that famous ‘admin’ stuff – how they communicate and how often, how they report, how they deal with urgent requests or how much attention they pay to important ones.
There are so many variables. But what is important? A starting point can be, how do they report? How do they check in? How regularly? How much of your time will they need? How do they see you best working together?
If you want to go into more detail: How do they ideate or brainstorm? What channels do they use to communicate? Through which lens do they see startup PR? Who is on their team? Who will work on the account?
What you should be looking for here is compatibility with the PR agency’s way of working.
Make sure you know who your primary account manager or point of contact will be
We hear this all the time from people who have hired some of the bigger agencies. You get sold the dream by a senior agency rep. You sign everything and start working together only to discover you have been assigned a junior team member as your account manager.
Each agency size has its advantages and disadvantages. Bigger agencies might have bigger networks, more tools, and capabilities. But smaller agencies have nimbler teams and can more readily give their senior team members access. And let’s not forget the solo PR freelancer. There is no single right answer. It will come down to a comparison of your shortlist based on your own specific needs.
Make sure the pricing fits
Finding your ideal PR agency is meaningless if you can’t afford it. Make sure you understand clearly what strategic role PR plays at your startup. What is its relevance within your marketing mix? Is it a priority channel for storytelling, or do you just need basic PR hygiene? Do you tend to have lots of news, opinions, or other PR-able material? Or will you struggle to get ROI out of your PR spend?
If you are unsure of how to think about budget then consider how much of your revenue or runway money it will represent. You don’t want to bet the farm on PR if there is another, more relevant channel you need to prioritise first. And if you think PR will get you sales, think again. Sales itself is what gets you sales (meaning, sales teams). A level above PR in terms of tangible conversions is performance marketing – digital advertising in social media or search, and others. If in doubt, go back to the basics and educate yourself on (startup) PR.
One more tip from us. Different agencies have different pricing models. You could be charged per hour or project. You may have numerous packages to choose from. Usually, you’d be doing well to stay away from those who get paid “by results.” Why? We are talking about earned media, not performance marketing. When you start hitting the tone in the media, you want to ensure you are not accumulating huge bills for media that are ‘earned’ and not ‘paid’.
Ask about the contract
This one is plain and simple. How easy (or bureaucratic) is the process to sign with them? Are there any strings attached? Could this be a reflection of what it’s like to work with them?
Most PR agencies like signing contracts for 6 or 12-month commitments, usually with a breakout clause. Increasingly, agencies are becoming more startup-friendly with Netflix-like monthly subscription alternatives (Black Unicorn PR included). It is true that PR objectives are best achieved with a long-term mindset. But startups are unique beasts. Unlike other companies, they are built to scale fast in a context of high uncertainty. So flexibility can be a plus.
Depending on your vertical and proprietary technology, you may require some form of an NDA or additional protection of your intellectual property. PR agencies working with startups are typically smaller and will not have extensive legal expertise. For that reason, we recommend that you provide your own documents to take care of that area. The PR agency should provide an SLA document outlining the direction of the collaboration from a PR point of view.
Consider doing PR in-house, or with a freelancer
We are by no means forcing anyone to look only at agencies. There are plenty of capable PR freelancers who have found their niche in the startup world. In some cases, they might be the better choice. Freelancers have fewer overheads and can offer competitive rates on projects they have a lot of experience with. Similarly, junior members of your team with good soft skills can provide good support to a founder-led DIY campaign. At the end of the day, it’s a question of what decision feels the best after going through a bit of a journey of education in the PR market.
