As startups grow and prepare to launch their products and services nationwide, a key question arises: should they hire an external PR firm to handle communications, media relations and publicity or try to do PR in-house? There are pros and cons to both approaches that startup founders need to carefully weigh.
PR firms can provide tremendous value, but they also come with hefty price tags, often charging upwards of $20,000 per month. For early-stage startups still finding their footing, that’s a huge chunk of change that could potentially be better spent on product development, hiring engineers or building out the sales team.
On the other hand, experienced PR professionals have the connections and know-how to get press hits in tier-1 publications, which can drive brand awareness and customer acquisition. They understand what journalists are looking for and how to craft compelling pitches and narratives that capture media attention. For startups that have achieved product-market fit and are ready to scale aggressively, the right PR firm may be worth the high cost to rapidly grow their reach and user base.
Startups have to critically assess whether their messaging and positioning is clear enough for a PR firm to effectively communicate their value proposition to the media. Without a crisp, compelling story and concrete examples of traction, it can be difficult for PR reps to land major coverage in targeted publications. The onus is on startups to develop crisp narratives that get to the heart of their ‘why’ and demonstrate a path to success.
Some founders opt to try handling PR in-house at first, since it allows their internal team to start building relationships with journalists and influencers. This can pay dividends down the road, as reporters will already be familiar with the startup’s story and be more inclined to cover future news. The risk is that in-house PR teams may not have the same breadth of media relationships and experience as a high-end agency. Landing stories in mass-market consumer outlets or influential trade journals requires working those beats for years.
For well-funded startups with $3 million or more in capital, the smartest move may be hiring an agency for a short-term engagement, perhaps six months. The goal would be securing high-impact coverage to build credibility and drive user adoption. After that, bringing PR in-house allows the company to maintain those press relationships.
Cost should not be the only determining factor, however. Startups must also look at the agency’s track record with companies at their stage and in their industry. Have they repeatedly gotten clients featured in target publications? What kind of network do they have with the reporters and journalists that the startup cares about reaching? Chemistry is also key – founders want a PR partner that understands their vision and can tell their story in a way that resonates.
While the costs are steep, a top-tier PR firm has the potential to accelerate growth and increase the startup’s chances of success. Earned media exposure can drive brand awareness, new user sign-ups, recruiting leverage and improved access to future funding. For well-positioned startups, it may provide a worthwhile return on investment. But the messaging and positioning need to be in place first before any agency, no matter how skilled, can deliver results.
Ultimately there is no one-size-fits-all answer on PR for startups. The needs of a fledgling pre-seed stage startup are very different from a Series B company gearing up for rapid expansion. Founders have to realistically assess their current traction, internal capabilities and growth goals. With the right self-awareness of strengths and weaknesses, startups can determine whether an outside PR firm is the right strategic choice for their business at the present moment or if they are better served by keeping PR in-house. The decision can be revisited and recalibrated as the business grows and evolves.
