There is no universal monthly PR retainer or revenue percentage that fits every small business. A restaurant opening a second location, a software startup explaining a complex product, and a local service company managing customer questions have different audiences and costs. Start with the outcome you need, the work required to reach it, and the amount your business can afford to risk while testing a plan.
Set the objective before the number
Write one observable objective: for example, help a defined local audience understand a new service, secure qualified enquiries after a launch, or make accurate information available during a change. Then list the work: research, writing, design, media outreach, distribution, monitoring, and the time a company representative must spend answering questions. A low-priced distribution package and a retained agency are not interchangeable scopes.
Business Development Bank of Canada describes marketing percentages as rules of thumb that vary by sector and business objectives; its published figures are about overall marketing, not a mandatory PR allocation. Use such comparisons as a sense check, not a prescription. A new company with uneven revenue may budget against cash runway and a fixed campaign instead. A firm with an established internal communications team may need only specialist support for a defined event.
Price the full work
Internal time
Count staff hours for interviews, approvals, outreach, replies, and reporting even if no invoice is issued.
Outside support
Ask a freelancer or agency for deliverables, revision limits, outreach method, and ownership of the resulting materials.
Distribution and assets
Include a wire fee only if the audience and announcement justify it; budget for images or a landing page if they are needed.
Measurement
Define what you will track before the launch. Clip totals and impressions alone do not show business impact.
Test, review, and adjust
For a limited campaign, write down the spending ceiling and what a useful result would look like. Check whether the intended audience understood the story, whether enquiries were relevant, and whether the organization could answer them. AMEC's framework distinguishes communication activity from outcomes, which helps prevent a budget conversation from collapsing into the number of releases sent.
No responsible provider can guarantee independent editorial coverage or a specific sales return from PR. Compare proposals on the work and evidence they offer, including reporting and correction procedures. If the business is under financial pressure, preserve essential operations first and scale communications to a manageable test. This page is a planning framework, not a financial recommendation or a current price quote from a particular vendor.