PR companies can charge anywhere from a couple hundred to thousands of dollars. It all depends on what you are looking for and the services you require. If you just want a simple press release and it distributed to the major wires you are looking at a few hundred (the wire services charge a fee based on the length or number of words in your release). Contrary to popular belief you do not need a PR company to get your press release on the wires. Where a PR company can be helpful with press releases is to get major reporters to cover your story. They do this typically through preestablished connections with those reporters.

While press releases are not the only service PR companies offer they are a good part of it. Many PR companies offer additional services such as website review (functionality & design), copy editing for your website, media training, and help with your overall marketing efforts.

As I said before costs can range from a few hundred to several thousand, but most PR companies will want you to engage them with a monthly retainer. The retainers for reputable firms can run from $10-20K a month.

For startups I would highly recommend against engaging a PR company. Everything you will need as a startup you can do yourself or by hiring a college student to handle for you. Your main concerns in a startup environment typically will be to make sure your website makes sense and is clear, building connections with bloggers who have an interest in your space, and utilizing those connections to get the word out. The wire services are a waste of time really. Your story is not going to make it in the NY Times are Washington Post by releasing a press release on the wires.

In my experience, PR companies help with messaging more than press releases. They help your company to have a cohesive message so when you talk to press, it is very clear what your comapny is doing. This can be very helpful as it can be difficult to explain technical concepts to a general audience. They give media training to prepare executives to talk to the press. They also draft speaking and awards submissions for your company.

Pricing varies and sometimes they charge retainers and other times they charge hourly fees. It can be a big expenditure for a startup, but PR companies often have relationships with reporters that can help get your name out there.

I worked in PR at a boutique agency between 2004-2006. We charged clients between $5000-$15000 per month, billing at about $100/hour.

With this kind of service, the agency will define your target media and create a media list, create messaging and operational strategy, call reporters and pitch stories about you, and report to you on the stories that are placed about you.

You might also get services like media training for interviews, ghost-writing of articles to place in magazines, research on competitors media placements, and maybe even something like a PR emergency plan if you are a large business or in a business with high media risk.