If you know who Alex Hormozi is, then chances are you might be familiar with his bestselling book $100M Offers.
In the book, Hormozi details how you can craft irresistible offers. Performance PR leverages the principle of guarantees — meaning you don’t pay for PR unless your brand receives a certain amount of views, publications, or impressions, depending on the contractual agreement.
This business model fosters a win-win environment where the PR agency is motivated to deliver optimal results to secure its fee, and the brand can invest with confidence, knowing that they are promised a predetermined level of success.
But that’s just the beginning.
This article will cover the differences between normal PR and performance PR, the exact model performance PR uses, and the benefits of performance PR.
What is performance PR?
Performance PR is a results-driven PR model where brands pay only for achieved, predefined results, mitigating risks and fostering a mutually beneficial agency-brand relationship. It’s a way for brands to garner attention and grow their brand knowing they’ll get the impressions they pay for.
“After working with hundreds of tech and web3 clients, performance-based PR just seemed to make sense. It offers much more flexibility and efficiency than your standard retainer model which forces companies to spend thousands even if work isn’t needed.
Performance PR works extremely well with tech companies because of the odd cycles their businesses typically have.
Big launches, updates, and marketing pushes demand flexibility and agility, and I believe this model delivers that perfectly.”
– Kim Than, founder of the PR Genius
This model operates on a small, refundable monthly retainer covering the costs of copy, pitching, and strategy. It’s a risk-free engagement where brands can reclaim the retainer if no opportunities arise within a month. During onboarding, a list of approved target outlets is compiled to facilitate swift action upon confirmation, eliminating delays and fostering efficiency.
The service range is extensive, encompassing editorial articles, organic interviews, press releases, and TV and podcast opportunities. Furthermore, pricing is transparently broken down into three tiers, varying based on the authority of the outlets targeted, giving clients a clear view of the potential costs and outcomes.
What makes performance PR a standout option is its inherent flexibility and dynamic approach. For instance, tech companies often face uneven business cycles characterized by massive launches and updates requiring agile PR responses.
Performance PR adjusts to the changing needs while steering PR efforts in a direction that brings tangible results.
Additionally, the model introduces a new era of trust and cooperation between brands and agencies. By aligning the agency’s rewards with the brand’s success, it ensures a collaborative endeavor aimed at achieving the best outcomes.
It revolutionizes the traditional PR landscape, shifting from an uncertain, upfront heavy financial commitment to a results-guaranteed, risk-mitigated strategy, creating a scenario where both parties are vested in a fruitful outcome.
Why does performance PR work?
Performance PR has revolutionized the PR landscape, aligning the goals and incentives of both the brand and the PR agency, which fosters a collaborative and highly motivated working dynamic. Agencies are propelled to meet and exceed expectations, cultivating a true partnership grounded in mutual success. This inherently creates a pathway where strategies are continuously optimized to achieve the shared objectives.
A standout feature of this model is its data-driven approach. Strategies are not built on assumptions but are carved out meticulously based on analytics and hard facts. This ensures that every move is calculated and directed towards achieving concrete, predetermined goals, facilitating an environment where decisions are always informed and purposeful, and yield the highest chances of success.
Additionally, performance PR stands tall as a cost-effective solution, especially for startups and growing businesses. It avoids the pitfalls of traditional PR models that require substantial upfront payments without guaranteed results. Instead, it introduces a system where you pay for the tangible results achieved, ensuring a judicious use of resources and maximizing the return on investment.
By focusing on shared goals, leveraging data, and promoting cost-effectiveness, performance PR not only guarantees results but builds relationships grounded in trust and reciprocal growth. It’s a strategy that speaks the language of modern business, offering a robust and reliable pathway to success.
Traditional vs. Performance PR
While public relations (PR) can be fast-paced, ever-changing, and often overwhelming, the differences between traditional and performance PR remain the same.
Here they are:
Traditional PR
Traditional PR has long been the stalwart in the PR domain, offering brands an avenue to enhance their reputation and visibility through media placements, events, and relationships. However, this comes with a significant caveat — the financial commitment.
Traditional PR agencies generally operate on a retainer model, meaning brands must pay a hefty sum upfront, often without the assurance of specified, tangible results. While this model has prevailed for decades, it’s based on trust and open-ended objectives, leaving brands to hope rather than expect guaranteed outcomes.
For companies that rely upon attention in order to generate revenue, this PR model doesn’t give them the guaranteed benefits they’re looking for. Whether it’s a target audience mismatch or the central ideas of the PR campaign not resonating with viewers, there’s a higher margin for error.
And that’s where performance PR shines.
Performance PR
On the flip side, performance PR builds on the foundational principles of PR but with a results-driven approach. This type of PR lives up to its name, centering on performance and results grounded in definite numbers. Be it impressions, lead-captures, or publications, you pay only for tangible results, outlined clearly in the contractual agreement.
What sets performance PR apart is the security and confidence it offers to brands. Agencies are propelled to work proactively, striking a win-win scenario where the brand gets guaranteed exposure while the agency secures its fee after delivering the agreed results. This not only mitigates the risk for brands but encourages PR agencies to go the extra mile, creating a mutually beneficial relationship.
Why performance PR is essential for growth
In a fiercely competitive business landscape, establishing a potent brand presence is not just a luxury, but a necessity.
Increased ROI
One of the standout merits of adopting a performance PR strategy is the assured return on investment (ROI). This is an absolute game-changer for emerging tech startups grappling with budget constraints. Here’s how it works:
Imagine a new tech startup moving towards its first major product launch. By enlisting a performance PR agency, the startup engages in a risk-free partnership where payments are due only upon achieving the agreed milestones in terms of impressions or publications. This strategic approach prevents the squandering of valuable resources, assuring that every dime spent is tied to a tangible result, thereby amplifying the ROI.
Moreover, this model fosters a scenario where the PR agency becomes a genuine partner in the startup’s growth, diligently working to achieve real, meaningful outcomes that resonate with the target audience.
Strategic adaptability
The fluidity of the performance PR model is another shining asset, especially when it comes to companies that are seasonal. Consider a new e-commerce brand stepping into a volatile Christmas decoration market with seasonal demand.
With this example, you could ramp up the PR campaigns (and marketing) during September, October, and November, maximizing the value of the campaigns. And in the other months, you could tone down the PR to maximize your ROI.
If an initial PR strategy revolves around a particular product feature that does not resonate as anticipated with the audience, a performance PR agency can swiftly re-calibrate the strategy to focus on a different, more appealing aspect, keeping the campaign fresh and relevant.
Additionally, consider a crypto PR firm’s approach to blockchain projects, using crypto PR best practices. Year-round PR is effective, but in a bull market? The ROI of campaigns would be exponentially higher than when the crypto market is down.
Focused and Tailored Campaigns
A key benefit of performance PR is its ability to create campaigns that match exactly what a brand needs at any given time. It’s like having a custom-made suit, compared to a one-size-fits-all outfit.
For example, suppose a company specializes in organic health products. With performance PR, the agency can create a campaign focused solely on the unique benefits of their products, spotlighting seasonal offerings like a special winter immune-boosting tea.
A strategy such as this one ensures that the message reaches the right people at the right time, catching potential customers when they are most likely to be interested in what the brand is offering.
This focused approach cuts through the noise, reaching the audience in a way that is direct, relevant, and impactful, without any wasted effort.
Mitigated Risks
Working with a performance PR agency means significantly reducing the risks that come with traditional PR campaigns. Companies know exactly what they are getting because they only pay for what is delivered.
Perhaps a local restaurant is looking to increase its visibility in the community. They can work with a performance PR agency to create a buzz through positive reviews in local magazines, features in the local newspaper, or appearances on local TV shows. If the agency doesn’t deliver, they don’t get paid, reducing the financial risk for the restaurant.
This model creates a safety net for businesses, allowing them to venture into PR without the fear of losing money on strategies that don’t yield results.
Your next steps to take action
In a market where every dime counts, Performance PR stands tall as a strategy delivering guaranteed results. No more vague promises. You pay only for the tangible results achieved. It means agile strategies adapting in real-time, campaigns tailored just for you, and a safety net protecting your budget.
For brands big and small, it’s a partnership model that brings higher ROI and strategic dynamism to the fore, fostering a win-win scenario for both agencies and businesses.
Ready to take your brand to the next level?
Reach out to The PR Genius for our Authority Package and discover the full potential of performance-based PR, where your success is the only measure of ours. It’s not just PR, it’s Performance PR.
Let’s grow together, with results that speak volumes, using essential crypto PR strategies for all types of companies.
