I believe that the best clients for Public Relations firms are those who seek counselors, people to whom they can turn to for guidance and advice. 

It’s important to constantly remember this in client relations. There’s a lot of noise out there and you cannot be paralyzed by fear (of the economy or the situation of the moment). The smartest folks are the ones who make confident decisions, decisions they can defend and, in many senses, are the “boss” of the client. This is essential in order to do great work.

As one of my favorite former client CEO’s says: Play to win, don’t play not to lose.  The smartest and most creative people these days are challenging clients, leading them, and refusing to be drones.  Challenge your clients when you believe in a concept or idea. Take ownership – they hire us for counsel and leadership, not to be bean pushers. 

You will win, and it will certainly be more fun. The eyes and ears of a PR agency.

 Ronn Torossian

5WPR

For better or for worse, I have always been brutally honest.  I am hard working, I don’t know any other way. I only take on clients we can do great work for, treat people well and expect the same in return.  It’s sometimes painful being brutally honest in the service industry. 

Over the past 45 days, we invested perhaps 75 hours of work pitching a major company’s PR work.  The CEO personally approached me; we held countless meetings, and were continually promised that an agreement would be forthcoming. Then came two weeks of no replies and a meek email apologizing for budget constraints (which was of course the first question I asked when we got the initial call).  Nevertheless, the CEO promised we would build a relationship and that he had plans to work with us in the future. I built a relationship with these folks (or so I thought), carried out some impressive presentations and devised a strategy for them. The work was enjoyable and I felt I learned a lot from it.

That said, today was approached by a client who wanted to collaborate on a project with these folks. I said sure, I’d be happy to call and help establish a connection. I immediately got the CEO on the phone, who quoted me a price…which was more than what we had been quoted by a sales person who was unaware of a preexisting “relationship.”  Needless to say, we won’t be collaborating with these people…and I feel they took complete advantage of us.

In the service industry, time is money, and too often we don’t receive value for our time.  It’s not fair, and it’s not good business.  All we have is time and we value it. It’s how we make our living.  Value your own time in the PR business.

Ronn Torossian

5WPR

As many have noted over the years, despite the industry axiom, the customer isn’t always right. In fact, as I learned from a previous mentor, “My PR agency isn’t right for you if you always want to be told yes, and always want to be right.” We challenge clients, and appreciate debate and challenge.

That said, I was appreciative to read this piece in AdAge by Marc Brownstein, which really spoke some painful and real truths of working in the service industry during these challenging times. The following sentiments relayed in the article reflect some of my own recent experiences and accurately convey the current state of affairs in the industry…

-Individuals (client contacts) you’ve been accustomed to doing business with for years now behave in erratic ways

-Clients pushing your agency  so low on fees that making a profit is out of the question

-Just keeping the client becomes the rationale; not paying invoices until your accounting department escalates the situation, and then challenging the invoices.

Clients need to be appreciative in times such as these we also have to pay our employees, have vendors, and a business to run as well. Our best and favorite clients have always been fair people, people who are honest, keep their word, and for whom we very much want to do great work.

Clients referred to above are thankfully very much in the minority, but required reading for all staffers here (and I wish could push more clients to read) is The No Asshole Rule: Building a Civilized Workplace and Surviving One That Isn’t (Hardcover) by Robert I. Sutton.

Difficult times absolutely require harder work, and more intensity… but it can be done in a fair way (and I say this having fielded a call from 1 of my favorite clients @ 7 AM as I was leaving the gym this AM).

Ronn Torossian

5WPR

Winning new business in any economy, and especially in this economy, is an urgent and constant necessity for any agency.  Of course, servicing existing business should always take precedence over chasing new business, and it should be noted that there is always a cost to pitching, writing proposals and pursuing new business.

It is imperative that agencies take a long hard look on what the potential client is asking of you. In this economic climate, it is easy to see any “New Business” opportunity as something to vigorously pursue; but make no mistake, that ‘pursuit’ can often be costly and an ineffective use of time.

Case in point: While we have signed some great new business recently, have also seen and heard from some really “out there” potential clients, on which we passed.

A few examples:

An entity which asked us to write a very lengthy PowerPoint proposal, to be bound, color collated, 15 copies and presented in person by the whole account team… for a annual $70K budget (We cant spend 10% of an annual budget on the proposal alone)
 

A call just this morning requesting an RFP… which also went to 20 other agencies from whom they are requesting proposals (but won’t do meetings because of the time required for face to face meetings) 

A big brand, which asked for 3 client CEO references prior to disclosing budget or timelines
 

We respectfully passed on each of these pieces of business, and I believe its also important to say no on new business. Not all new business is good business, and in this economy, I believe there are brands who are taking advantage of agencies. 

A good client, and a good prospect is one who is respectful of an agencies time and expenses, and is up front and honest about requirements, budgets, and the process.  They are in the majority… but don’t always say yes when asked to pitch, in any business.

Ronn Torossian

5WPR

For those of us in the heart of the beast, public relations isn’t a social exercise or an academic debate – it’s business.   And like all businesses, we focus on the bottom line.   Lately, we’ve spent a lot of time discussing social media with prospects and clients, but the fact remains that very few are willing to spend any real money on social media.  There’s a lot of talk, and publicly they say otherwise, but this AdAge article expressed the reality, and for me wasn’t a surprise at all.   It reveals that, “three-quarters of those surveyed who knew their budgets said they allowed for $100,000 or less for social media tools over a 12-month period, according to the report.”

Less than $100K (which for most brands I bet is under $25K in reality) to manage twitter accounts, dabble on blogs, create facebook pages, and tap all of the other various social media communities.  Those budgets include agency fees, so how much work can an agency, or anyone for that matter, really do when budgets are that tiny?

Clients need to spend more – much more – on social media to succeed.  We do have a number of clients for whom we have succeeded tremendously in this arena at low cost, but it does take some money.  Here’s to hoping that brands don’t just do interviews lauding social media, but actually spend money on it, allowing for success.

Ronn Torossian
5WPR

O’Dwyers, a leading PR trade magazine, just published its annual ranking report of the largest independent PR firms.  I am very happy to report that 5W Public Relations was ranked as the 21st largest independent PR firm in the U.S., with $11,919,546 in revenues in only our 6th full year of operations.

I am so proud of our accomplishments and thankful to our clients, partners and employees.  Being an entrepreneur is challenging, but also incredibly rewarding.  As much as I fondly recall starting this agency, these times are just as exciting.

I am proud that we have and will continue to achieve success.   It’s exciting to be one of the 25 largest PR agencies in the country.  Onward and upward.

Ronn Torossian

5WPR

Why is the whole media business consumed with NYC’s snow today (and really, every snow day)?  It always amazes me – inches and inches and columns of space on the weather.  Snow will fall and blow around, and schools will be cancelled, airports delayed and the commute will take a few more minutes.  What else is new?  Is it really that major a story every time it snows?

Separately, whenever it snows there is a unique opportunity for PR pros to place “talking heads” on media and live TV shows, as pre-booked guests may be snowed in.  Chaos because of the weather means you may be able to slip on a guest on who wouldn’t have otherwise been on the air.  Take advantage whenever you can – rapid response public relations.

Ronn Torossian

5WPR

We are in the midst of a new economy that is still being defined.  A new economy where years of wealth have been lost, where a debate on Fox News I saw this weekend asked if all banks should be government operated, and where bailouts are the most popular form of financing.

I had breakfast yesterday at The Loews Regency, one of my favorite NYC breakfast locations and a 5W client.  An older couple there, playing with their grandkids, told me that in 28 years of owning their own business, they had never before had layoffs.  But now, they’ve already had two rounds, and they’re worried about whether or not their business will survive.  In the gym that afternoon, an entrepreneur who rented a new, 6,000-square-foot office six months ago told me he’s closing his company and giving his landlord back his keys.  Scary times.

5WPR’s answer?  We are looking at many new hires and ways in which we can invest in our clients’ businesses and our business.  We’re looking at items (and people) that don’t require ramp up time.  We’re demanding more from employees.  We’re delivering more to clients.  We’re conserving cash, but investing in the future as we believe we will be one of the few PR agencies to emerge from this recession stronger than we went into it.

We also continue to look at PR firms, or one- or two-person PR consultant operations, that may want to stop running their own business and be absorbed by a larger agency.  We have had many discussions, made some offers and will emerge stronger.  Are you a small PR agency with a client base?  Let’s chat. Email me directly at ronn@5wpr.com

It’s a new economy, and the rules have changed.  As an employee, look around and realize what needs to be done today.  As an entrepreneur, it’s war.  And I only continue to learn what this new economy means: the unemployed financial executive who just accepted a 200k job, even though he previously earned in excess of 700k, or my countless friends in real estate who aren’t doing even 10 percent of the deals they used to do.

It’s a new economy, and the rules have changed.  Without knowing when it will change back, everyone needs to adapt to the new rules and change accordingly.  I continue to be focused on continuing to grow and hopefully change the PR industry.  The line from The Notorious B.I.G. movie (which I saw this weekend) epitomizes it: “You can’t change the world until you change yourself”.

Ronn Torossian

5WPR

Owning a PR agency makes the second half of December an incredibly busy and difficult time for me.  Every year, the last few weeks of this month are absolutely hectic, without fail.  I admit that this year I thought it might be different, with the economy what it is.  But the week is barely three days old, and I haven’t left the office before 10 p.m.  Exhausting.

Separately, I had lunch yesterday with a colleague from the Public Relations industry at a well-known, mid-tier midtown restaurant.  When the bill ($100 for lunch for two) arrived, we were surprised to find a simple $10 gift card along with it.  No explanation – nothing other than the card.  It’s a very clever marketing tactic to use during a time when many are cutting back on dining out.  Essentially, for the price of an appetizer, this lunch venue may secure my repeat business.  Smart marketing (and both of us noticed it).

Ronn Torossian

5WPR

One would think from the state of the recent global media reports that capitalism has become a four-letter word. What has become of simple entrepreneurship?

This weekend, I spent an evening with a nightlife impresario and after we visited a number of nightclubs, was simply amazed at how packed they were. (I haven’t been spending much time out in the past few months; I need the extra minutes at the office.) I made a note of the crowded spaces especially because most of my closest friends are similarly young and successful entrepreneurs — people who generally spend a lot of “leisure” money but, like me, have cut back tremendously on leisure spending due to the state of the economy. As I looked around the clubs, I instantly noticed that almost all of the patrons were “millenials,” members of Generation Y – a young age group that has recently joined the workforce. Even stranger, these clubs, which I generally frequent, are usually filled with people in their 30s and 40s — the men, at least. I will admit that one of the few people I saw of that “older” generation that evening was Jay-Z.

Throughout the work week, I often marvel at the millennial generation’s behavior, which is so much different from my mentality even though I missed the age cutoff by only a few years. The millennials seem to make freedom a number-one priority and are always searching. It’s almost like a generation of young Europeans. I found this article educational.

And, separately, to quote this Forbes.com post.

“Morley Winograd and Michael D. Hais, who co-wrote Millennial Makeover: MySpace, YouTube and the Future of American Politics, have observed that millennial “mellowness” can be traced to child-rearing patterns marked by feel-good toddler shows like Barney (”I love you, you love me”, etc.) Moreover, they add, millennials seem devoid of an impulse to fight and prove their superiority over others — not a surprising outcome when everyone gets a trophy.”

Owning a business is a constant adventure – a continual learning process that never ceases to be fun and different.  Millennials, huh?
Ronn Torossian

5W PR