Nearly a decade after its last national billing and rates survey, PRSA’s Independent Practitioners Alliance (IPA) conducted a new online survey last fall that was expanded to include other business practices, including hours worked, billing methods, services provided, subcontracting and benefits (retirement planning, health care, etc.)
The results were first released at a section webinar in late January. Here’s a quick overview:
Hours worked and billing rates
The majority of participants reported working 31-40 hours per week (28 percent), 21-31 hours per week (24 percent) and 41-50 ho
urs per week (23 percent). A very small percentage (7 percent) work part time, 11-20 hours.
- Nearly 60 percent of time was spent in the practice of public relations, with administrative tasks (13 percent) and new business development (12 percent) making up the next largest use of time.
- The average number of hours billed monthly was 79.5 hours.
- The average hourly rate among the 108 respondents was $131 per hour. (As participation grows in future years, IPA hopes to be able to derive regional averages.)
Billing practices
Nearly 50 percent of respondents bill clients using a combination of hourly rates, retainer arrangements and project fees. Of those three methods, hourly billing is most popular (23 percent), followed closely by retainer (18 percent).
Nearly 60 percent offer a discount (average 20 percent) for non-profit clients. Only 36 percent indicated they charge a premium for certain services, most often for crisis communications, strategic counsel and rush projects.
Billings and income
In terms of annual billings, responses were evenly distributed from under $40,000 (12 percent) to over $160,000 (18 percent). When respondents were asked their annual net income, the largest group fell within a range of $60,000–$79,000 (23 percent).
Retirement planning and health care
IPA has identified this area to further explore in future surveys, especially as health insurance markets and services continue to be affected by major legislative overhauls.
To view the full article, which appeared in Public Relations Tactics, go here.
