Fees
For comprehensive PR based on a set of given activities it is customary to arrange for a base fee remunerating the following services:
- Providing know-how and personnel
- Consulting on an ongoing basis
- Preparing an annual programme and budget
- Branch and media monitoring and human relations
- Meetings
- Administration
In addition to this fees are paid for individual activities. These are either settled upon completion of a project or, in the case of long-term contracts, are paid in instalments. As an alternative it is possible to settle the annual budget (base plus activities fees) in monthly instalments on a pro rata basis.
Programmes subject to external influences, as well as pure consulting services are frequently remunerated on the basis of time actually expended. Payment is effected monthly at the end of each month on the basis of time actually expended and a performance report furnished by the agency.
Concept – compensation fees – rights of use
Fees for PRVA agencies are calculated on the basis of time expended for the client. As a result large-scale PR concepts are also subject to fees. The time and costs expended in preparing these largely depend on the complexity of individual requirements and must be remunerated accordingly. In the event that a contest decides against the concept submitted compensation fees as agreed in advance become due. Once a client decides to cooperate with an agency concept preparation is usually charged as part of the overall budget. Compensation for rights of use must be agreed separately at any rate.
Refusing immoral fees
PRVA members subscribe to voluntary self-restriction and do not accept fees as might become effective in the context of transaction businesses in the public sector and that would be determined by the purchase/sales price achieved –irrespective of the efforts and time expended by the PR professional/the PR agency.