PR retainers face reboot as clients demand proof

The monthly retainer has long been the bedrock of how PR agencies charge clients. But for many startups and mid-sized firms that model is under pressure today. The question that these founders are asking more often is simple: What exactly are we paying for?

The demand has shifted from activity reports to business outcomes. Founders want influence, not just impressions.

At a time when marketing spends are scrutinised more than ever, PR can no longer afford to be a black box. This shift has led to the rise of outcome-based models and it's forcing agencies to rethink how they structure, deliver, and prove value.

Retainers worked; until they didn't

There’s no denying that the monthly retainer once made perfect sense. It brought predictability to agency-client relationships, enabled teams to invest time in long-term planning, and helped absorb the unpredictable nature of media cycles. Clients got continuity and availability; agencies got cash flow stability.

But that logic is now being questioned. The perception has shifted. For many startup founders especially, retainers feel like flat fees for vague outputs—a report with some coverage and future plans—and often, not much else.

The discomfort lies in measurement. PR remains difficult to quantify compared to performance channels. Impressions and coverage volume alone don’t satisfy a founder who’s tracking CAC, conversion rates, and engagement metrics in real time.

Why outcome-based models are gaining traction

Several trends are accelerating this shift. Firstly, venture capital has slowed down. Startups are operating with tighter budgets and stricter accountability.

Secondly, lean internal teams need every partner to contribute to measurable business growth. Thirdly, performance marketing has raised the bar. If every rupee spent on ads can be linked to outcomes, why should PR be the exception?

These clients are no longer asking, ‘What have we done this month?’ Instead, their questions are more pointed. They’re asking, ‘What has this delivered?’

It’s not about discarding PR’s strategic value. It’s about aligning it to results that matter to business growth.

Not all outcome-based models are created equal

While the shift is necessary, not every performance-based approach is helpful. The most popular and often the most problematic is pay-per-placement.

On the surface, it feels efficient. Clients only pay when something gets published. But it commodifies storytelling, strips away strategic thinking, and incentivises low-effort placements.

In many cases, it leads to PR activity focused on quantity over quality. The nuance, the message control, and the relationship-building that make PR valuable are all sidelined.

Instead, agencies need models that ensure accountability without reducing the work to a line item.

Smarter alternatives to pay-per-placement

The future of outcome-based PR lies in models that balance strategic integrity with measurable progress. Some of the models gaining traction include KPI-tied hybrid retainers.

These models offer a fixed base retainer that covers strategic planning, messaging, and media engagement, along with a performance-based bonus for hitting key milestones for example, securing tier-1 interviews, founder profiles, or improving share of voice in a category.

Another one is milestone-based projects. These are especially suitable for campaign-based clients. It breaks down PR efforts into phases with payment linked to completion of key deliverables messaging workshop, media outreach, announcement execution, post-campaign report, etc.

And then there are shared dashboards and performance reviews. In this scenario, the agency and client mutually agree on qualitative and quantitative KPIs. Progress is tracked in shared dashboards, and quarterly reviews evaluate outcomes, refine strategy, and set forward-looking goals. This creates a healthy rhythm of collaboration and accountability.

These models also allow agencies to preserve strategic depth while being responsive to business needs.

The challenges of transitioning

While these approaches might sound utopian, outcome-based engagement is not without its challenges. One major issue that still remains is measurement.

Unlike ad clicks or leads generated, PR demand contextual interpretation. What qualifies as success? A mention in a key trade publication? A cover story? A strategic quote in a funding piece?

There’s also the risk of chasing metrics at the cost of message. Agencies that feel pressured to show results every month may begin prioritising easier, lower-value placements instead of building brand credibility over time.

Then there’s financial sustainability—flat retainers allow agencies to plan resources.

Performance-based models often lead to unpredictable revenue unless structured carefully. Cash flow management becomes harder when your billing is tied to outcomes outside your direct control.

Staying relevant

To thrive in this new environment, agencies need more than pricing tweaks; they need a mindset shift. They need to think like growth partners, not just service providers. Understand your client’s business goals and tailor stories to support them.

It is also time for PR agencies to invest in measurement tools and frameworks. If they skip getting in line with the reporting rigour of digital channels, they might well find themselves out of the game.

Moreover, it is important for agencies to educate clients about the value of strategic storytelling. Short-term wins matter, but so does reputation equity.

Given that almost all clients are now laser-focused on value and viability, agencies should consider offering modular, transparent pricing. Bu Build flexibility into engagements, enabling clients to feel in control of both investment and outcomes.

Ultimately, the agencies that blend creativity with clarity will build deeper, longer-lasting relationships.

The monthly retainer is not disappearing, but it’s being reinvented. Hybrid models, project-based scopes, and performance-linked components will shape the next generation of PR partnerships.

Clients are not rejecting PR they’re rejecting vague value. They want to see how media visibility moves the business forward. Agencies that continue to rely solely on time-bound retainers without demonstrating business impact will increasingly be seen as overhead, not investment.

The future of PR is about influence that translates into impact. If the industry can make that connection clear not just in decks but in dashboards the shift to outcome-based models will be a step forward, not a step back.

- Kriti Bansal, founder, PR Ways.