Do You Get Paid Per Hit?

December 4, 2007

We just came across this question on LinkedIn:

My business, <name removed> has been working with a small PR firm for the past 2 years on a ‘fee per placement’ agreement. I have a line of new products and they would like to change this structure to a monthly retainer. Does moving to a monthly retainer make sense and how do I know what is reasonable to pay on a monthly basis?

Ok, so asking how much a monthly retainer one should pay, based on scope of work needed, is a totally reasonable question. But, we always cringe when we hear of firms who offer a “pay per hit” arrangement.  What would you say when put in this situation?  Tell the potential client to skee-daddle, sign ’em up, or somewhere in between?