I work as Vice President in one of India's leading Public Relations firms -
LINOpinion (an IPG agency). We charge clients a flat retainer fee.
I was previously with Ogilvy PR (part of WPP) where we used to invoice on
the basis of time...most of my clients then were happier paying a flat fee
rather than have a varying cost component on their budget sheets.
If it is training or coaching, it is possible to estimate the time spent for
the assignment and hence you can easily arrive at an assignment fee.
However, it becomes difficult when you are consulting or undertaking a
sustained PR campaign that includes consulting and implementation...time
input then fluctuates with developments in the company (some of which are
planned and some unplanned).
Here are 2 options that have worked for us consistently:
1. Flat fee that covers only counsel
Go with a base retainer fee that covers only counsel...define the number of
hours that the client will get for a certain flat monthly fee.
Implementation (media relations, media content development, collateral
development etc.) are charged on a project fee basis.
2.Flat fee that covers counsel and implementation
Go with an all encompassing PR retainer flat fee...for this you will have to
define the intensity of the campaign (some of this pure guesstimation and
judgment). What helps is if you and your client could map the activity plan
(atleast 6 months) at the beginning of the contractual period. Then you
work backwards to arrive at the time input that would be required from the
agency.
Most of my clients prefer option 2.
The positive of a flat fee model for an agency is that the client is liable
to pay the flat fee irrespective of whether he has used the service/s or
not.
Parallely for the client it means that he is clear on his annual PR cost and
it is up to him to use his agency's services to the maximum possible.
Good luck to you!
Best regards,
Kavita Lakhani
Vice President
LINOpinion
The Lintas Public Relations Division
Phoenix Complex, B Wing, 4th floor
Senapati Bapat Marg, Lower Parel
Mumbai 400 013, India
Tel (Brd) : +91 22 2493 5477
Tel (Dir) : +91 22 2495 3673
Fax : +91 22 6660 2731
Cell : +91 98202 02637
Email : kavita.lakhani@lintasindia.com
Url : www.linopinion.com
Visit us at www.lintasimag.com
----- Original Message -----
From: "Deon Binneman" <deonbin@icon.co.za>
To: <prpoint@yahoogroups.com>
Sent: Saturday, January 19, 2008 5:02 AM
Subject: [prpoint] Retainer Agreements
> This request was shared on one of the lists that I belong to . What are
> your thoughts about this?
>
> Do any of you have specific examples of how to structure a retainer SLA?
>
> " Hi Everyone,
>
> I am curious ... do any of you offer retainer fee options for your
> corporate/executive clients?
>
> One of my goals this year is to move away from a "time based" fee
> arrangement - whether it be training, coaching or consulting - and move
> toward a value based fee arrangement. Part of that would include retainer
> options.
>
> If you offer retainer, how do you structure it? What do you charge? Do you
> offer more than one option? Any restrictions on # of hours per
> month or times/days for calls? what if client doesn't use service one
> month, do they just lose that time? Do you have a special agreement
> for retainers? Any other suggestions to make win/win?
>
> Thanx!
>
>
> Deon Binneman
> Reputation Management Consultant, Speaker & Trainer
> REPUCOMM
> ----------------------------------------------------------
> P.O. Box 3285, Honeydew, Johannesburg, South Africa, 2040
> Johannesburg, South Africa
> Phone: (27)011 475 3515 / Mobile: 083 425 4318
> Fax: 0866 129 566
>
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