PUBLIC POLICY ADVOCACY FEE STRUCTURES

There are a number of alternative fee structures that can be agreed between a public policy advocacy consultancy and a client.

1. Retainer : An agreed monthly or quarterly fee payable in advance for an agreed programme of public policy advocacy activities. A retainer fee is not usually based on a contract of less than six months.

2. Retainer plus hours: An agreed fixed minimum charge per month or quarter, payable in advance covering a specific amount of executive public policy advocacy activity. An additional charge is levied when the time input exceeds that agreed with the retainer. Additional charges are normally invoiced on a monthly basis.

3. Project Fee for Retained Client: If the client needs a project undertaken that falls outside the agreed programme of activities the consultancy will agree an additional specific project fee with the client.

4. Hourly Charge: Fees are based entirely on time input by the consultancy and charged at the end of each month. These fees may be structured to reflect input by directors, senior exectutives, junior executives and administration staff. The consultancy will pre-agree hourly rates for each of these levels with client in advance.

5. Once-Off Project: An agreed fee for a clearly defined activity within a pre-determined timescale. Depending on the duration of the project the consultancy may invoice the complete fee in advance or may agree a system of charges to be paid on a regular basis.

6. Service Charges: All third party activities conducted on behalf of client and billable to the consultancy are subject to an agency service charge. This charge applies to all purchases or contracted services where the consultancy assumes responsibility for the supply of that material or service on behalf of client and is the contractor of the materials of service involved. The consultancy also assumes financial responsibility for payment to the third party on terms agreed between the consultancy and the supplier. The service charge paid by client is in line with this contractual and financial responsibility. The consultancy should indicate the standard rate of service charge to client on initiation of the public policy advocacy programme.

7. In-House Charges: In-house charges incurred by the consultancy in the normal operation of service to client will be billed to client, usually on a monthly basis. This range of in-house chargeable costs include: photocopying, fax, telephone, postage, travel, printouts and other materials.

8. Additional Specialized Services: The consultancy may be in a position to offer the client specialized in-house services rather than contracting third parties for the same. In these cases, an additional fee for the supply of those services may be charged. Such services may include design, media monitoring, research, audio-visual production and issue monitoring. Fees for these services should be pre-agreed between client and consultancy.

Important

Public policy advocates do not work on a commission, percentage, bonus, contingency or success fee basis. Consultant must not receive or agree to receive or agree that another person is to receive a success fee for the lobbying of a public official.  It is unethical to accept percentage-base compensation only. This standard is also asserted by the major public affairs consultancies, which have set the norms in our field. Percentage-based compensation can encourage abuses, imperils the integrity of our profession, and undermines the very values on which our independence is based. Percentage-based payments are not in the best interest of clients, nor are they consistent with the trust that clients are expected to place in our professionalism. The payment of agreed fees to compensate our public policy advocacy services is an appropriate way to balance a client's evaluation of risk and affordability with the public policy advocate's integrity and competence.

In addition to ethical issues, paying for public policy advocacy services when performed acknowledges the value and merits of the services public policy advocates provide. The fixed fee concept recognizes the value of the public policy advocate's professional advice and achievements independently of client's ultimate success, which of course public policy advocates cannot guarantee. As outside and independent consultants, we cannot rely on the quality and capability of a client's management, its employees, its financial strengths, value proposition etc.. aspects we have no control over. No matter how well we as public policy advocates do our job, clients still have to do theirs. Public policy advocates cannot wait and have their remuneration depend on a client's capability to perform. Public policy advocates cannot run the risk that they financially suffer is their client's business fails.

The success fee concept originates from the legal field where sometimes attorneys take a case on a ‘no cure, no pay basis, though only if such a case will bear fruits rapidly. However, in the field of public policy advocacy, public policy advocates cannot be responsible for the eventual attainment of their clients’ success.

Public policy advocates not only offer pre-determined deliverables and results to clients, but they also help develop their clients’ strategic communications for many years to come. Some believe that if no immediate benefits are achieved, then nothing has happened. This is far from reality. Public policy advocates provide access to decision-makers, representation, policy advice, strategic counselling . They connect their clients to decision-makers so that they can learn about legislative and regulatory developments that are likely to impact their business and their clients are given an opportunity to voice their concerns.

Last but no least, public policy advocates cannot take assignments on a “buy now, pay later” basis because their own business and living costs, like those of their clients need to be paid when purchased.