CED is continuing its "Ask the Expert" series for readers to interact with local experts who write guest columns for CED. In CED's bi-weekly e-newsletter, we are asking readers to email questions on the topics covered in that week’s guest column to "expert@cednc.org." Select answers will then be featured in CED's blog.
The featured expert this week is Shawn Ramsey, founder and president of Raleigh-based Crossroads PR. Here are three select questions, with Ramsey's answers:
QUESTION: What should an entrepreneur look for in a PR agency? How do you decide whether to hire an in-house public relations professional or to outsource public relations efforts?
ANSWER: I have been on both sides of the fence, in-house and in-agency. Based on that experience, I think a hybrid team works best. The agency team needs a point of contact within the company to ensure that they get the information they need to do their job, that they have access to company executives and spokespeople, and that they understand the strategic impact of their PR efforts. Keep in mind that no agency will ever know your products/services as well as you do. But, they will know how to effectively tell your story to the media. They can offer a fresh outside perspective and elevate your value proposition beyond the latest features and functions.
When you go to look for agency, don’t think you need a big name agency to get results. Look for an agency that has relevant experience that you can benefit from, a proven track record of results/success, and a solid reputation in your community and/or industry. Talk to other clients of that agency and if possible speak with media that have worked with them. Make sure you meet the agency team members that will support your account. It is important to know that you can work together with those individuals, since they will serve as extensions of your team. It boils down to determining what you want to accomplish with PR and finding the right agency to help make that happen.
QUESTION: How should an early stage company decide what percent of its budget to spend on public relations?
ANSWER: I wish there was a magic formula I could share with you, but it is different for each company. It depends on how much money you are spending on other marketing initiatives (in addition to PR) and how much money needs to be dedicated to other efforts including R&D, M&A or employee recruitment. If you are not sure, start out small (perhaps a limited retainer for a three month period) to see what impact PR can have on your company. Once you see the positive impact PR can have, grow that investment accordingly with growth in revenue, funding, etc.
QUESTION: How can you be proactive in your media relations efforts while remaining on a limited budget?
ANSWER: I would say that building a successful PR program requires more time and effort than money. If you have the time and resources to dedicate to PR, you can accomplish a lot. It takes quite a bit of time but you can cost-effectively build a targeted media list using free online resources including Google, Yahoo!, media web sites and competitive web sites. Using email and cost-effective wire distribution services, you can get a press release out to a large number of people. And, you can pick up the phone to speak a reporter about an upcoming editorial opportunity and how your company can serve as a resource.
It obviously costs money to hire an agency, but you are primarily paying that agency for their time, expertise and even media relationships. If you don’t have the time to dedicate to PR, or if you don’t have the skill set to create the infrastructure needed to support PR (i.e. press release, case studies, etc.) you might want to consider making that investment.