Right now there’s a multi-million-dollar con being played on employees, investors and founders of startup companies — and they don’t even realize it.
In a dying media world where quality coverage has become invaluable to a rising startup, public relations agencies charge startups anywhere from $10,000 to $100,000+ per month for their services. Unfortunately, these “services” involve a lot of smoke and mirrors that are designed to bilk startups.
And in a startup world that is already hard enough to navigate, every dollar counts. So by swiping precious dollars from these young companies, PR agencies are effectively killing them before they even have a chance.
To understand the conspiracy, you need to understand how these bad agencies work.
PR agencies are like great white sharks when it comes to freshly funded startups. The minute a startup receives a new round of funding, it’s like blood in the water — PR agencies start circling the water to get the opportunity to take a chunk of flesh right out of them. Once one of these bad agencies wins an account, they agree to a monthly retainer and sign a contract, which usually has a 30-day out (strategically very important as a part of the bilking).
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