![How to plan and track the budget of your public relations agency [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-9_5eb51a32-8268-4d4f-b7aa-8725a81679cb.png?v=1715856334&width=1100)
If you don’t plan and track your PR agency's budget properly, you're setting yourself up for failure.
When we developed our strategy pack for PR agencies, we saw a lot of agency owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial client contracts.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your PR agency's finances around and set you on the path to success!
Get the budget tracker tailored for PR agencies
Most public agency owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for PR agencies
Here is an example of a (very) detailed budget for a public relations (PR) agency, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office space | $4,000 | $48,000 |
| Electricity | Power consumption for office equipment | $500 | $6,000 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $200 | $2,400 |
| Waste Removal | Garbage and recycling services | $50 | $600 |
| Insurance | Property and liability insurance | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| PR Director | 1 | $6,000 | $6,000 | $72,000 |
| Account Managers | 2 | $4,000 | $8,000 | $96,000 |
| PR Specialists | 3 | $3,000 | $9,000 | $108,000 |
| Content Writers | 2 | $2,500 | $5,000 | $60,000 |
| Administrative Assistant | 1 | $2,500 | $2,500 | $30,000 |
3. Client Services & Tools
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Media Monitoring | Subscription to media monitoring tools | $500 | $6,000 |
| Press Release Distribution | Services for distributing press releases | $300 | $3,600 |
| Graphic Design Software | Licenses for design tools | $200 | $2,400 |
| Client Management Software | CRM tools for managing client relationships | $150 | $1,800 |
| Research Tools | Subscriptions to industry research databases | $250 | $3,000 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, LinkedIn Ads, etc. | $400 | $4,800 |
| Social Media Management | Managing social media accounts | $600 | $7,200 |
| Print Advertising | Brochures, flyers, magazine ads | $300 | $3,600 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Special events and promotions | $300 | $3,600 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Office Supplies | Stationery, pens, printer ink, etc. | $150 | $1,800 |
| Professional Development | Training programs and materials | $300 | $3,600 |
| Licenses & Permits | Business licenses, software licenses, etc. | $100 | $1,200 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Client Entertainment | Meals, events, and gifts for clients | $400 | $4,800 |
Some PR agencies make 5x more profit than you!
We have studied the strategies of the best PR agencies in the world. Replicate them now!
What are the biggest expenses for a public relations (PR) agency?
Be mindful of these critical expenses. Here are five major costs every PR agency owner needs to consider, along with some tips on how to manage them effectively.
- Client Acquisition CostsSecuring new clients can be a significant expense. This includes the cost of marketing, networking events, and proposal development. To keep these costs in check, focus on targeted marketing strategies, build strong relationships within your industry, and streamline your proposal process. It's easy to overspend by chasing every potential client instead of focusing on those that align with your agency's strengths.
- Employee Salaries and BenefitsYour team is your greatest asset, but their salaries, benefits, and ongoing training can be costly. This expense is always high because you need skilled professionals to deliver quality service and maintain client satisfaction. Optimize labor costs by hiring versatile employees, offering competitive but sustainable compensation packages, and investing in professional development. However, be cautious not to underpay or overwork your staff, as this can lead to high turnover and decreased morale.
- Office Space and UtilitiesPrime office locations can be expensive, but they can also enhance your agency's image and accessibility. Utilities like electricity, internet, and water are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient office equipment. Overspending often occurs when you choose a space that's too large or luxurious for your current needs.
- Marketing and AdvertisingPromoting your PR agency is crucial, but advertising can be costly, whether it's through online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our guide. Overspending can happen if you invest in high-profile campaigns without a clear strategy or measurable return on investment.
- Technology and SoftwareThis includes everything from PR management tools to communication platforms. These are essential for efficient operations and client satisfaction. Optimize by investing in reliable, scalable technology and regularly reviewing your subscriptions to ensure you're not paying for unused features. You can overspend by opting for the latest high-tech solutions that don't significantly improve your workflow.
How to spend less with your public relations agency?
Here are practical tips to help you, as a PR agency owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Client Acquisition | Leverage networking events and online platforms like LinkedIn to connect with potential clients at minimal cost. |
| Staff Salaries | Utilize project management software to streamline workflows and ensure efficient use of staff time. |
| Office Utilities | Switch to energy-efficient lighting and appliances to reduce utility bills. |
| Marketing | Run social media campaigns and collaborate with industry influencers for organic reach. |
| Software Subscriptions | Regularly review and consolidate software subscriptions to eliminate redundant tools. |
| Equipment Maintenance | Maintain a log for regular checks and servicing of office equipment to extend their lifespan. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider a co-working space to reduce overhead costs. |
| Insurance | Review insurance policies annually to ensure they meet current needs and compare rates for the best deal. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital tools. |
| Client Meetings | Opt for virtual meetings to save on travel expenses and time. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and utilize free online resources for skill development. |
| Technology | Invest in multi-functional office equipment and utilize PR management software for client relations and project tracking. |
| Travel Expenses | Plan travel routes efficiently and book in advance to take advantage of discounts. |
| Licensing and Permits | Stay up-to-date with industry regulations to avoid fines and costly renewals. |
| Transportation | Use ride-sharing services or public transportation to reduce travel costs. |
| Client Gifts | Opt for personalized, cost-effective gifts that leave a lasting impression without breaking the bank. |
| Inventory Management | Use inventory management software to track office supplies and reduce waste. |
| Event Planning | Partner with local vendors and venues to negotiate better rates for client events. |
| Subscriptions | Regularly review and cancel unused subscriptions to save on recurring costs. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best PR agencies in the world!
There are PR agencies that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a public relations (PR) agency
Yes, some expenses for your PR agency are just unnecessary. They don't contribute to increasing client satisfaction or improving your agency's performance.
| PR Agency Expense | Reason It's Useless |
|---|---|
| Luxurious Office Space | High-end office spaces can be a significant drain on your budget without necessarily attracting more clients. |
| Premium Software Subscriptions | Unless you are utilizing all features, expensive software subscriptions can be an unnecessary expense. |
| Excessive Client Entertainment | Over-the-top client entertainment can be costly and doesn't always lead to better client relationships. |
| High-End Office Furniture | Luxury furniture is not always appreciated by clients and can be a significant expense. |
| Printed Marketing Materials | Traditional printed materials often have a lower return on investment. Don’t include them in the marketing strategy of your PR agency. |
| Multiple Branding Initiatives | Having various branding initiatives can dilute your brand message and increase costs without adding significant value. |
| Overstaffing | Having more staff than necessary leads to higher labor costs without necessarily improving service quality. |
| Exclusive Industry Reports | Expensive industry reports often contain information that can be found through more affordable or free resources. |
| Costly Client Gifts | High-end client gifts can inflate costs and are not always appreciated as much as thoughtful, less expensive options. |
| Custom Office Decor | Personalized office decor is a minor detail that most clients overlook, and it can be expensive. |
| Unnecessary Software Features | Paying for software with features you don’t use is a waste of resources. |
| Premium Office Supplies | Most employees are content with standard office supplies, making expensive options unnecessary. |
| Extra Office Space | Maintaining more office space than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Frequent Office Renovations | Constantly updating office decor and layout can be costly and disrupt operations. |
| Expensive Office Plants | Elaborate office plants are often ignored by clients and add to the cost. |
| Luxury Office Equipment | High-end office equipment is prone to damage and expensive to replace, often going unnoticed by clients. |
| Excessive Team Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Frequent Rebranding | Constantly redesigning your brand is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Event Equipment | Specialized event equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your public relations agency!
Managing a budget for a PR agency when funds are tight can feel like a nightmare. It's like being trapped in a cycle where any unexpected expense can throw your entire operation off balance.
This constant pressure makes it nearly impossible to invest in growth initiatives, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, cutting corners and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more flexibility and more resources to invest in your agency's future.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of PR agencies just like yours. Get them now!
Make your public relations agency more profitable
We have studied the strategies of the best PR agencies in the world. All their tactics are explained in our pack!
