If communications professionals don't understand the following business reality, Armageddon is upon us: The PR industry has been commoditized in the years following the turn-of-the-millennium economic downturn, prompting the ratio of senior to junior executives to change dramatically. Here's why: For a company to be profitable, it must maintain an approximate 3.5 multiple, or the "salary" versus how much business it brings in. For example, if a company spends $1 million on employee salaries, then those employees must bring in at least $3.5 million in business - otherwise, that ship is destined to sink.
Commoditization of PR: Redefining The Standard Agency Billing Rates
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