I spend an increasing amount of time debating the merits of retainers versus the project fee so I thought it time to step out of the PR closet and address it head on.

To do so, I’m afraid I’m going to have to utilise a few of the most overused and trite phrases that have ever been coined – please bear with me.

You see, we’re in an ‘economic crisis’ (told you) and in the ‘current climate’ of a potential ‘double-dip recession’, cash is king.

This means that companies are ‘tightening their belts’ and keeping a ‘firm hold of the purse strings’ (ok enough now) and whilst investing in communications is finally recognised as an essential contributor to bottom line, how it is being embraced seems to have changed.

Ever more frequently, clients seem keen to free themselves of their monthly PR retainers – they don’t want to cut off PR completely (we all know that would be crazy!) they just don’t want the financial commitment of a regular monthly fee.

I understand that during difficult trading times costs need to be stripped back and as we’re a flexible agency, we are always prepared to accommodate our clients’ changing circumstances. We’re in it for the long haul.

But nine times out of ten, clients end up spending more.

It’s the first thing I warn clients about when they move from working on a retained basis to project-by-project. You see, they have become accustomed to the level of service the good old retainer allows and when this has gone, they find that we actually do deliver an awful lot for the monthly fee. Media relations, social media, experiential marketing and not to mention crisis communications are all vital to ensuring companies maintain their glowing reputation with customers and stakeholders and if you have to pay for it bit by bit, costs start to rise. At the same time, it is no longer having the same impact because it isn’t being strategically planned in advance or delivered in the timeliest manner. So now you’re paying more and achieving less. The only option remaining is for you to reduce the level of PR activity being provided – and when consumer spend is frugal and competition is fierce, this is definitely Not. A. Good. Plan.

I know what you’re thinking. If costs are increasing, why don’t agencies just keep schtum and reap the financial benefits? Well firstly, as an ethical and honest agency this doesn’t sit well with us, and secondly the retainer enables us to forward plan activity so we can manage workloads accordingly. Let’s face it, deadlines are challenging in this PR game and anything we can do to prevent further pressure compromising a hard working campaign, means that as a client, you always get a better return on your investment.

So what’s the solution? Budgets are being cut and efficiencies need to be made somewhere, after all cash is king and currently, there isn’t a lot of it about.

Well this is the thing, hasn’t cash always been king? The way we run our business is no different to if the UK wasn’t in debt by one trillion pounds – keeping a close eye on overheads and ensuring profit margins don’t fluctuate too dramatically. Cash flow, always a sticky wicket, is monitored as if it were the blood coursing through my veins. It doesn’t mean we don’t invest in areas that add value to our business or service offer. It just means that we very carefully consider what we spend and who with, so that we’re given a competitive advantage and provided with maximum benefit.

There are clearly occasions when a retainer simply isn’t appropriate, such as when businesses are in their infancy or when a client needs a specific one-off project to compliment their existing marketing communications. We work with all manner of clients in this way and on projects of varying sizes. It’s not the project with which we take umbrage; it’s those occasions when we know a retainer really would make so much more sense.

So, drawing to a conclusion, if you have faith in your PR agency and are confident they are delivering you true value and a real return on your investment, listen to them and take their advice. They know what they’re talking about.

Spend wisely certainly, but don’t stop spending. That’s what’s causing this country’s financial mess in the first place.

Trust me, I’m telling the truth. It’s all in the name.

Lisa French is Managing Partner of Truth PR.

Manchester-based Truth: the design, creative and PR agency, has extended its client portfolio in the mum-market, as it celebrates another win in the baby sector with global media parenting business, Treehouse Group (TGL).

The brand creation brief comes on the back of Truth’s successful brand and campaign work for north west based Kids Allowed and Bounty, the UK’s largest parenting club.

Truth has worked closely with the directors of TGL to develop a brand positioning, strategy and identity, which will support its vision to become the global expert in parenting and media.

Truth Design’s Managing Partner, Jo Scott, said: “The challenge in creating a parent brand that could behave in a meaningful way, without knowledge of what businesses would be acquired or invested in globally proved interesting. We have been able to use our industry knowledge to create a brand positioning that has flexibility both strategically as well as visually, and will support the longterm commercial objectives of the business.”

Truth’s work has proved critical in supporting the global network’s investment in New York-based brand Our365. Now working with both the UK team and the stateside operation, Truth is developing a brand and marketing strategy to build on the successful baby portrait business by developing commercial opportunities through relationship marketing to US moms.

A TGL spokesperson said: “Truth has demonstrated its knowledge of the parenting arena to a high standard. We’re extremely pleased with the work they’ve produced for TGL. I enjoy their collaborative approach and am confident that they will deliver again to support the growth ambitions of Our365 and help with our longer term acquisition plans to increase our presence in new global territories.”

Truth’s work for Our365 is due to launch mid 2012.

To read this article as featured in How-Do click here.