We do a lot of crisis communications work at my PR agency. Most of the clients who hire us for these matters aren’t publicly announced, but annually, we bill over $1 Million in crisis communications. We do crisis communications work for people who have (or are concerned they will be) indicted or arrested, or corporations who are concerned a certain issue may hit the media, providing damage control and the like.  As such, we deal extensively with producers for programs such as Dateline, 20/20, 48 Hours and others.  I have spoken with Robert “Joe” Halderman, and worked with countless other reporters and producers on these programs, including the famed Martin Bashir.

I stand as one who wasnt surprised to learn of Halderman’s extortion attempt.  It was bound to happen – dealing with producers for these programs, we have found a select few of them to be non-stop and at times vengeful. They operate with their own set of rules, and realize the power a negative story on their programs can do to one’s life. Their power is tremendous and can ruin lives.

We have had clients threatened, cursed, lied to and worse, and it was simply a matter of time before a Producer asks for millions to not have a story aired. The fact that this was David Letterman makes this an even larger issue.

Ronn Torossian
5WPR

As I get older and mature into adulthood, I find myself becoming increasingly more religious and certainly more spiritual. This brings me increased inner peace and, I believe, many blessings including business and financial success.  It’s enjoyable and gives me a natural high.

Last night, my Rabbi hosted a pre Rosh Hashanah (Jewish New Year) service.  I had the opportunity to join nearly 1,000 men for special blessings from the Rabbi.

·        Exchanged business ideas with one of NYC’s “social staples” and a very prominent business person as we waited an hour or so for the Rabbi.  This individual (who I have admired via the media for a long time) shared some spiritual secrets in balancing life and business commitments.

·        Sat with a South American who moved here last week with his 3 children and a “war-chest” of $200 Million to invest in real estate in the next year.  He told me that although he had made one major mistake last year with a purchase, he believes fortunes will be made in the next 2 years.

·        Listened to some fascinating stories from the Bible and practiced some ancient, and modern traditions.

Increasingly, I find that these practices allow me to focus more in every aspect of life, of course including business.  Entrepreneurs and business people of all walks of life need to find their escape and serenity.  After leaving the synagogue, I worked until after midnight cleaning up e-mails and organizing some necessary work for the morning.

I heard Jay Z’s inspiring new album playing via Youtube.  Empire State of Mind is an amazing song, and is wholly on a different level.

As a New Yorker and entrepreneur owning a PR firm, the lyrics are really a source of inspiration to me: “In New York, concrete jungle where dreams are made of, There’s nothing you can’t do, Now you’re in New York, these streets will make you feel brand new, the lights will inspire you, lets hear it for New York, New York, New York.”

Escape and serenity of a different sort.

Ronn Torossian

5WPR

Anyone who’s spent more than 30 seconds next to me knows of my intense blackberry addiction; I have slept with my blackberry next to my bed for years.  If that need for instant communications wasn’t enough, I recently joined Twitter (pre CNN, Oprah and Ashton’s high-profile media).

As 5WPR matures along with the industry, we have expanded our leadership and focus in emerging and social media campaigns for our clients. 

This continues to be an important space for PR and communications.  As the Public Relations industry evolves and our firm continues to grow, I invite you to follow me on Twitter to engage in a greater conversation about public relations.  And while you are at it, friend me on Facebook.

Ronn Torossian

5WPR

This week, I read one of the most absurd articles I have seen in a very long time in The Wall Street Journal.  A quarter of a page was devoted to – stop the presses! – $25,000, the amount that CVS spent on golf outings for its top executives. Using that amount of ink on a non-story like this is simply absurd. If this environment continues, many businesses will simply not be able to function.

Every single day, businesses hold conferences and conventions, entertain clients, and even golf with them. In the year 2009 (and for quite a while before that), business isn’t conducted 9 to 5, and relationships are often built in non-traditional ways. What’s the big deal? Twenty-five thousand dollars? How many deals does that close? Two summers in a row, during different economic times, I rented a luxurious house in the Hamptons (at a significantly larger fee than CVS paid for their bigwigs to golf) to entertain clients, allow employees a getaway, etc. It was good for business and garnered many relationships that had a return well beyond the summer rental fee. I would venture that CVS receives ROI from perks.

The media and the government need to stop this craziness. Sponsorships aren’t bad, marketing isn’t bad, and perks aren’t bad. They are necessary in business, and not allowing them will cause the economy to suffer even further.

Ronn Torossian
5WPR

I attended a major movie premiere last week and found it to be amazingly well organized. Between the after party and the attention to detail, the event must have cost hundreds of thousands of dollars – a major spend for a studio. I enjoyed myself because I had the chance to view influencer marketing at its finest. They really reached key people.

I am a huge proponent of influencer marketing – talking to people who talk to people –for consumer brands, B2B and many additional purposes. Clearly, influencer marketing varies when it comes to Facebook and other forms of social media, but little compares to being in front of someone who talks to many others. It is worthwhile on many fronts.

That said, while I was at the movie premiere, I couldn’t help but wonder why public relations gets the short end of the stick. Events are held costing tens of thousands of dollars, advertisements are placed costing hundreds of thousands (or even millions) of dollars, but in general, the largest companies in the world don’t spend more than $1 million a year with PR agencies. It is a fact that ANY PR firm in the U.S., regardless of its size, would chase after a $500K RFP like there was no tomorrow.

Such an RFP would be front page news in every PR trade magazine. For any PR firm, a major budget is considered to be $15-$25K a month. That’s considered next to nothing to ad agencies. Time and again, PR seems to get short shrift. Because the industry is relatively immature, despite talk to the contrary, it is not given enough financial share or deserved emphasis. Too many companies fail to see the true value of PR, and that is to their detriment. I am sure my colleagues share this viewpoint with me.

Ronn Torossian

5WPR

Every day this week, I walked one block south of our offices to the tents at Bryant Park. Out on the street in front of the Fashion Week tents, lights were flashing and people were gawking. But while some were there for the fashion, I was there to people watch. As a marketer, I’m always inspired by the creative street theater and guerrilla marketing events saturating the Bryant Park sidewalk during Fashion Week. People watching allows me to see trends and make observations first hand. Reading a media report is a far cry from the palpable excitement on the street.

This morning, for instance, I encountered a few cross dressers promoting the Janice Dickinson show swarmed by photographers and a crowd of people. It’s a great example of a low cost, high impact way to capture influencers.

While I won’t reveal here the many successful stunts 5WPR executed for Fashion Week, I can say that street theater and guerrilla marketing are amazing ways for brands to capture mind share and media share at huge events, without incurring huge costs.

If you’re open to big ideas and have a entrepreneurial mindset, you can always find a way to incorporate your brand into the mecca of huge events, without having to pay the multimillion dollar price tag. Whether Fashion Week, The Superbowl or Sundance, 5W PR always finds creative ideas and angles to enter the media landscape, permeate the discussion and penetrate the tastemakers who attend. Brands need to seek creative, winning concepts… and winning sometimes means being outside rather than inside the box. Those who take the biggest risks with their brand often reap the biggest rewards. And by far the most attention.

Ronn Torossian

5WPR

Yesterday’s arrest of Kanye West at LAX was surprising to me primarily because it doesn’t happen more often.  West was arrested for suspicion of vandalism after confronting paparazzi media and allegedly smashing their  cameras.  The struggle between celebrities and the paparazzi is an issue that high profile people must deal with on a day-to-day basis, and it is extremely trying on both physical and emotional levels. It is incredible that today, even after the death of Princess Di, celebrities still have very little protective barriers between them and an intrusive swarm of prying media. Yes, people in the public-eye lose their right to complete privacy when they perform, appear in movies, or get rich by possessing rare athletic ability, but does that mean that there should be no boundaries whatsoever?  Should their children be endlessly subjected to flashing lights? Should they not be allowed to lead somewhat normal lives?

5W has worked with countless celebrities.  I vividly remember walking out of court with Lil’ Kim after she was sentenced in her perjury trial a few years ago. We were managing her crisis communications, and as we walked out the front door, we (Lil’ Kim, one security escort, two attorneys, two of her family friends and I) encountered at least 100 members of the media all jockeying for a shot or a comment.  It was a wall of reporters and photographers, flashbulbs blinking in her face. To say it was a mob scene is an understatement.  After the paparazzi got their pictures, they still wouldn’t move.  There was no choice but to push forward for the two blocks we were required to walk.  It was a very dangerous situation, and in LA, this happens every single day.

Managing the media for corporate clients is far different than managing celebrity-driven paparazzi media.  Every type of public relations, whether crisis-based or paparazzi, consumer or technology, requires different skills and a completely different set of “rules.” I don’t believe for a second that today’s incident between Kanye West and a swarm of paparazzi is an isolated occurrence, nor will it be the last time we read about a celebrity fighting for his privacy with paparazzi.

Ronn Torossian

5WPR

Reporters surrounded Lil Kim

I always tell clients involved in court cases that there are two courts – the court of law and the court of public opinion.  With the changing nature of media today, a forum doesn’t exist where the media doesn’t play a major part.

This past week provided ample opportunity to study this theory in action, with high-profile celebrity affairs and divorces receiving almost continuous attention.  NYC coverage of Christie Brinkley and Peter Cook’s divorce proceedings was truly great media. 

One colorful quote I saw from Brinkley included that she needed to settle on that particular day because she had run out of outfits to wear.  Brinkley was determined to use the court of public opinion to her own advantage, countering Cook’s claim for custody with a terse, but loaded, strategy: “Well, I’m going to let the world know what you’re all about,” according to Stephen Steinberg in the New York Times.  And she wasn’t lying, as you’d be hard-pressed to find someone who wasn’t privy to Cook’s now-public indiscretions.

There are plenty of PR agencies and firms hired both openly and quietly to influence judges and juries of all sorts.  And with the recent success rate, I suspect that it won’t end anytime soon.

Ronn Torossian

5WPR

Today’s unrelenting, 24/7 tabloid media is a concern for any business person at any level, which is why I found a recent Village Voice article detailing the contents of Harvey Weinstein’s trash to be somewhat concerning and amusing at the same time.  Having met Harvey Weinstein on a few occasions, I found him to be a very blunt and direct person. Seems his trash is no exception.  There are just so many different things going on in any successful person’s office at any second; it’s somewhat surprising to me this sort of thing doesn’t happen more often.

Media is everywhere, omnipotent and a constant cause for concern…

Ronn Torossian

5WPR

I am an immense fan of Mark Cuban for many, many reasons. Having interacted with him on a few occasions (admittedly on the basketball court), I find him to be brutally honest and the quintessential entrepreneur - smart, focused, fun, accessible and real.  For that reason, I often read his blog.  Recently, I found his brother’s blog post about Evander Holyfield’s bankruptcy to be especially interesting.

Over the years, we’ve worked with many high profile athletes and entrepreneurs, from Sean Combs to Pamela Anderson to Roy Jones.  In the process, I’ve learned the truth behind many misconceptions of celebrity wealth, so I don’t find Holyfield, Tyson or other bankruptcy examples surprising. I’ve met many celebrities who aren’t wealthy in the least, for many reasons:

* Stars usually have very short career spans, without proper financial planning for when they are no longer relevant and large checks no longer appear. 

* Becoming a celebrity creates basic lifestyle changes.  A sex symbol from a single movie may suddenly need constant security (which they pay for themselves), or a black car to chauffer them, since public transportation poses a threat or a nuisance.  As a star of a humongous HBO movie recently told me – “many changes.”     

* Celebs often lack the desire to really work. They pay a ton of lip service, but often refuse to show up on time, take advantage of interviews, and focus on important decisions that need to be made about their businesses, careers, etc.  

* Everyone wants to make a dime off them.  I can’t tell you how many cold calls my entertainment staff and I receive from pariahs who seek or want something from these folks.  The dozens of money managers who cold call me wanting to manage celebrity finances, or sell them something, is unreal.  I have on occasion asked them, “Why not chase my countless entrepreneurial CEO’s who have less people around them, are easier to sell and more likely to hire you?” 

Articles like this are one of the reasons why 5W has built a tremendously successful business of athlete-entrepreneurs who are smart, focused and realize that there is a life after professional sports.

There is a tremendous need for better managers and better advisors who will be straight with these folks.  Additionally, these stars need to realize that on-air, on-court antics are one thing, but the same behavior won’t fly when it comes to doing business with corporate America.  Many stars who are infamously difficult are in fact a charm when it comes to marketing or sponsorship deals.  At the same time, those regarded as charming are, in fact, sometimes dishonest. This is another reason why stars need calculating managers to help them make decisions and need brands off the court or off the screen.

We have worked very hard to build a niche in the arena of being “cool enough to work with the stars/athletes, but buttoned up enough to work alongside decision makers in corporate America.”  It’s a fine balancing act.

Ronn Torossian

5WPR