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Memo — and a Challenge — to PR Folks: Stop Running Away From Pay-on-Performance By David Oates, President, Stalwart Communications, Inc.

It’s been just about three and a half years since I launched Stalwart Communications. I naturally expected that other PR firms would take exception to our Pay-on-Performance model at the outset. I must admit, however, that I was surprised by the degree to which I was accosted for wanting to be held accountable for actually delivering results like securing positive press, industry awards, speaking opportunities and new leads. One competitor even went so far as to call my business “unethical” and “the equivalent of a used car salesman” not long after I put out my shingle.

All that being said, I believed back then I would come across more direct competition by this time in our business life. I thought this was a sure thing a little more than a year ago as the recession forced most other agencies to cut back operating expenses, including head count and office space, while we grew by nearly 30 percent last year. I reckoned that agencies would take our lead and put their money where their mouths were as a matter of survival, if for no other reason. Instead, their objections have only grown more vocal and adamant. Just last month, well-respected San Diego-based PR professional Rachel Kay posted a piece on her blog about why she thought pay-on-performance firms might be a bad idea, saying those in the industry do far more than generate press coverage.

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