Could you benefit from hiring a PR firm? To justify hiring an agency, you should be generating $3-$50 million in annual sales. Under $3m you really can't afford a PR agent, and over $50m, you need an internal PR supplemental staff.

To help me define what a really great PR agent should be able to do, I enlisted the aid of two experts: Danny Frank, Danny Frank Productions, New York (212-595-7741) and Aaron Biller, Biller Communications, New York (212-663-9319). Together we've generated an excellent check-list for hiring and managing a PR firm.

WHEN TO HIRE A PR FIRM
Ask yourself these three basic questions: How will I benefit by promoting my firm to the general public? Can I clearly define my target buying audience? Am I looking to increase sales, promote a brand identity, generate good will, or generate personal publicity?

ADVERTISING vs. PUBLIC RELATIONS
Advertising is subjective hard-sell, PR is objective soft-sell. You pay for advertising, you earn PR. Very few small PR agencies can do both. Two-thirds of all PR agencies have three or less people, mostly run by senior folks with big agency experience who have developed an entrepreneurial streak. Look for these priceless specialists!

Most large PR agencies are owned by major advertising agencies. They offer a complete spectrum of advertising, PR and marketing services, but are usually priced too high for the small business. If you do use one of these, beware of being assigned the still-wet-behind-the-ears-fresh-out-of-school kid who uses you to learn how to do PR. You want a media specialist, not just an account manager!

DUTIES OF A PR FIRM TO YOU
The agency must enhance or make a contribution to the goal, agenda or mission of your business, then provide details as to how they will accomplish this. Ask for named references in the media (television, radio, magazines, newspapers and internet), then check these out.

They must help you develop the message you wish to promote, design a plan, identify the specific media outlets they would use, and state exactly why these are the best for you. They should assist your staff in producing effective communication tools: brochures, sales materials, letters, point-of-purchase material, and similar items.

They must communicate regularly (2-3 times a week) and participate as a consulting member of your management team at the highest level. They also should keep your employees aware of what is going on. Finally, they must point to specific results of their actions within the first month, and continue to improve this on a regular basis.

HOW MUCH YOU SHOULD PAY A PR FIRM
Pay ranges between $2000 and $10,000 a month, depending on what you want done, the timeframe and how many people the agency will assign to your task. When you hire an agency, you are buying their expertise and their time. Ask how many hours they will budget for your account, based on the proposed fee, and how much of that involves senior people.

Billing is typically at the beginning of the month for that month's services. Make sure you are not being charged 'partner' fees for 'clerical' work. Avoid a firm that nickels & dimes you with nit-picky copying fees, postage, etc. Pay outside service providers directly, to avoid the cost mark-up (17% average) on services such as photography, special events, video monitoring, and reproductions.

Half up front and balance upon completion is okay for specific tasks, but never give an advance over 30 days for on-going services.

ACTUALLY SELECTING AN AGENCY
Your most effective tool is referrals. Ask for three in your general industry, then follow up. Question whether the agency reached their stated goals, how well they worked with the firm, when first results were evident, and the overall bottom line results.

Ask how many clients are on their roster. Avoid being the smallest account. Ask about tenure of both accounts and employees and avoid agencies with high turnover of either.

Meet the people who will be assigned to your account before you sign. Ask how often you will have access to the top agency people. Don’t assume the people you meet initially are the ones who will work on your account. Ask for credentials (resumes) before you sign. Demand an account structure indicating who is in charge and who is your daily contact. Don't accept a rookie 'account counselor', insist on an experienced agent.

A FEW ROCKY ITEMS TO DIGEST
Beware of the 'boilerplate college term paper' approach with platitudes and a flowery phrase presentation. You want a simple and specific plan. Don't expect crystal ball predictions, but the agency needs to refer to past successes.

Ask for successful case studies or programs involving a client from your field. If you’re a high-tech company marketing to similar companies, you want to see their approach to business-to-business programs. This will provide a feel for their command of hi-tech and the appropriate media. Anyone can promote Tom Hanks or Disney, but you need to make realistic comparisons.

Some weak firms will send out frivolous mail, press releases and other things not appreciated by the media. This wastes your money and leaves a bad taste. Watch for overuse of video, special events, photography, etc. Ask for samples of news releases and other material. Do they know how to write? Is this really how you want to be represented? . Ask: "Why?" a lot!

ESTABLISHING TENURE
Six months is required to produce bottom-line results with twelve months the maximum. Longer contracts are not good the agency, nor you. Ask for a timetable: "When is the first placement, the first event?"