Should Tech and Web3 Companies Invest in Performance-Based PR?

Imagine you’re the executive of a cutting-edge Web3 company. Your new software could disrupt entire industries — but first, people need to know you exist.

You’re on a video call, split-screen between two public relations (PR) firms. Both are well-established agencies, but one offers a fixed retainer while the other uses a performance-based compensation model.

With the challenges ahead including an upcoming product launch, competitors gaining traction, and an evolving market, you need to gain attention and drive brand awareness. And perhaps attract partners and investors.

So where should you place your best to ensure the most effective and efficient boost in visibility? Especially during a time when entire industries are being shaken up by AI, PR included.

Pay-per-click advertising has low-profit margins, and search engine optimization (SEO) has a much longer turnaround time.

This is why performance-based PR might just be your best bet.

This article will cover how performance PR is a tech and Web3 company’s best bet in today’s market.

The key difference between traditional PR and performance PR

When it comes to PR, you'll often hear about the traditional model and its more modern counterpart, performance-based PR. Though they share the ultimate goal of enhancing a brand's reputation and visibility, how they go about it and charge for it sets them apart.

Traditional PR operates on a fixed retainer model. You pay a set amount each month regardless of the outcomes. This pays for a bundle of services, from media relations to crisis management.

But there's a catch: results are not guaranteed.

Your money could go into activities that don't necessarily yield immediate or significant returns, like building long-term relationships with journalists or crafting the perfect press release.

So what is performance PR and how does it differ?

With performance PR, you pay for what you get. Agencies that follow this model are compensated based on quantifiable results, be it impressions, placements in prestigious publications, or other Key Performance Indicators (KPIs) like social media verification.

For example, you might find a performance-based PR agency including guaranteed placements in publications like Forbes and a minimum of 900k impressions. If the PR agency doesn’t deliver, you don’t pay.

With a traditional PR agency, you’re simply paying for the services found in the packages, not the actual results.

How tech companies can benefit from performance PR

The unique demands of the tech sector make performance PR an increasingly attractive option for companies aiming to build their brand. Cash flow is a significant concern in this industry — a 2022 report shows that 44% of startup failures are due to running out of money.

Unlike traditional PR, where a substantial upfront cost is standard, performance PR allows companies to pay only for results. This financial structure can make a meaningful difference in capital efficiency, helping tech startups stretch their funding further.

Performance PR also offers the advantage of on-demand utilization. In the tech industry, activity often comes in bursts — like during a product launch or major software update. The traditional PR's ongoing retainer model doesn't always fit these sporadic needs, whereas performance PR lets you engage PR services exactly when needed, maximizing your PR efforts during critical phases.

Additionally, the data-driven focus of performance PR aligns with your tech company’s reliance on metrics. When you use KPIs to gauge success along with specific guarantees, you’re setting yourself up for success.

According to SEMrush, 97% of businesses used content marketing with success. Performance PR is perfectly positioned to make the most out of this because it often generates targeted content like press releases, editorials, and blog posts.

This integration between content creation and targeted placements amplifies the reach and effectiveness of your marketing strategy. Plus, it provides tech companies an edge in reaching their intended audience, building credibility, and generating engagement — all while adhering to a pay-for-performance model that ensures financial accountability.

Your next steps

In the ever-changing world of tech and new online companies, using old PR methods can feel like trying to jam a square peg into a round hole. Tech companies are all about quick growth, using data wisely, and changing plans when needed.

That's why performance PR is a better fit.

It's not just about spending money to get noticed — it's about getting the most out of every dollar. In an industry where attention and funding are hard to come by, using a performance-based PR approach is the best way for tech and Web3 companies to get attention on their product or service.