Blog Details

How Much Do Startups Spend on PR Percentage of Budget?

How Much Do Startups Spend on PR Percentage of Budget?

Introduction

If you are asking, “how much do startups spend on PR percentage of budget?” you probably want more than a number. You want to know how much you can put toward getting noticed without squeezing product development, sales or the cash that keeps your business running.

The answer starts with understanding which budget you mean. A PR allocation that takes 15% of your marketing budget could represent a much smaller share of total company spending.

We will separate those figures, explain the suggested ranges by startup stage and work through simple examples. That way, you can judge a proposed PR budget against the needs of your own business.

Quick Answer: What Percentage of a Startup Budget Goes to PR?

BMV’s pricing guide suggests allocating 10 to 20% of the marketing budget to PR at Series A, while NewswireJet’s budget guide offers a 3 to 7% guideline for early stage companies. These are planning recommendations, and the reviewed sources do not establish a reliable average across all startups. Your actual allocation should reflect the work you need, your available cash and the costs included in the budget.

Percentage of Which Budget? Get the Starting Number Right

How Much Do Startups Spend on PR Percentage of Budget?

Before choosing a PR allocation, finish this sentence: a percentage of what? The examples below use hypothetical budgets in US dollars to show why the answer matters.

PR as a Percentage of Marketing Budget

This measures how much of your marketing spending goes toward public relations during the same period. Divide the PR amount by the total marketing budget, then multiply by 100.

Suppose you have a monthly marketing budget of $20,000, including PR. Allocating $3,000 to public relations makes PR 15% of that budget.

Check what each figure includes before comparing it with another company’s percentage. If your marketing budget includes staff compensation, a calculation of total PR costs should include the appropriate share of PR staff compensation too.

Shared work needs care as well. Count content costs once, and check whether writing, research or reporting is already included in an agency’s fee.

PR as a Percentage of the Company Budget

Your company spending budget covers more than marketing. Depending on how you define it, it may include product development, payroll, software, office costs and other operating expenses.

Using the same example, suppose your total monthly company budget is $200,000, including the $20,000 marketing allocation. Your $3,000 PR budget represents 1.5% of company spending, even though it represents 15% of marketing.

Both percentages are correct because they describe different comparisons. Label the spending budget clearly and compare monthly figures with monthly figures, or annual figures with annual figures.

PR as a Percentage of Revenue or Funding

Revenue is the money your business earns from sales, not the amount it plans to spend. A PR percentage of revenue therefore answers a different question from a PR percentage of budget.

If you have no revenue, you cannot calculate a meaningful PR spending ratio against it. If sales are still very small, the percentage can look unusually large without telling you whether the spending is affordable.

Funding is different again. A hypothetical $2 million investment might need to support 18 months of hiring, product development and other commitments, so it should not automatically become the basis for one year’s PR budget.

Start with the spending plan approved for the period you are considering. Then work out how PR fits within that plan, while keeping enough cash for the rest of the business.

How Much Do Startups Spend on PR? Budget Ranges by Stage

How Much Do Startups Spend on PR Percentage of Budget?

The stage ranges below are recommendations from BMV’s June 2026 guide, not verified averages of what startups actually spend. Funding stage gives these suggestions context, but it does not tell you what your business can afford.

Bootstrapped and Preseed Startups

You do not need an agency simply because you have launched a startup. When money is tight, consider a focused approach that you can manage yourself, such as contacting a small number of relevant industry writers with useful information.

Occasional specialist help can fill a specific gap. You might pay someone to sharpen an announcement or prepare you for a media interview without committing to an ongoing retainer.

At this point, an affordable cash limit and a realistic time commitment may be more useful than a fixed PR percentage. Founder managed outreach still takes time away from building the product and finding customers.

Seed Startups

BMV suggests 15 to 25% of the marketing budget for seed startups. Treat that as a reference for planning, not a requirement to spend at least 15%.

A useful starting point is a clear product story backed by early evidence. That might be a customer result, a meaningful product launch or another development that gives your intended audience a reason to pay attention.

A high percentage does not necessarily mean a large budget. In a hypothetical $10,000 monthly marketing plan, a 20% PR allocation is $2,000, which sets a spending ceiling rather than guaranteeing enough money for an agency retainer.

Series A Startups

BMV’s suggested Series A allocation is 10 to 20% of marketing spend. Before applying that range, ask whether you have enough relevant material and internal capacity to support ongoing PR work.

For example, you could build a communications schedule around customer evidence, product improvements and useful commentary from your leadership team. Each activity should have a clear audience and purpose, rather than existing only to keep the calendar busy.

An ongoing program also needs someone inside the company to supply information and approve materials. Include that commitment when deciding whether a retainer fits your resources.

Series B and Later Startups

BMV suggests 8 to 15% of marketing budget at Series B and 5 to 10% at Series C and later. A smaller percentage does not automatically mean less money for PR.

Consider a hypothetical startup whose monthly marketing budget grows from $50,000 to $150,000. Its PR allocation could fall from 15% to 10% while the actual PR budget rises from $7,500 to $15,000 a month.

That larger amount could support a broader program, but the extra work still needs a reason. Check whether additional markets, audiences or communications responsibilities justify the spending instead of increasing it simply because the company has raised another round.

How to Calculate Your Startup PR Budget

How Much Do Startups Spend on PR Percentage of Budget?

Turn the Percentage Into Dollars

Start with your approved annual marketing budget. Then apply this formula:

Annual marketing budget × chosen PR share = annual PR budget.

In a hypothetical example, $240,000 × 15% = $36,000 a year, or $3,000 a month. The 15% is an example, not a recommendation for your startup.

See How the Same Spending Produces Different Percentages

Let’s keep that hypothetical PR spend at $3,000 a month. Changing the comparison base gives us three different percentages.

Comparison baseMonthly amountPR share
Marketing budget$20,00015%
Total company spending budget$200,0001.5%
Revenue$100,0003%

These figures describe the same PR spending from different angles. The company spending budget already includes marketing, while revenue is a separate comparison base. Do not add the percentages together.

What Should Your PR Budget Include?

Founder Time and Internal Staff

Separate cash costs from the time your team needs. If you include staff compensation, allocate the share connected to PR consistently, without counting it twice elsewhere.

Unpaid founder time is an opportunity cost because outreach takes time away from other work. Record those hours when assessing capacity, but do not invent an extra cash expense.

Freelancers, Agencies and Project Campaigns

A freelancer can handle a specific task, such as refining your story. A defined project can cover a launch, while an ongoing retainer can support regular communications.

BMV’s guide lists freelancer fees of $3,000 to $7,500 monthly and boutique agency fees of $7,500 to $15,000 monthly. These are agency guide examples, not universal minimums or complete PR budgets. See BMV’s pricing guide.

Research, Content, Tools and Distribution

Allow for relevant research, creative assets, media monitoring, distribution and campaign expenses. Check what your provider already includes so you do not budget for the same content twice.

Paid release distribution circulates your announcement; it does not establish independent editorial coverage. Record sponsored placements separately from earned reporting so the cost and type of exposure remain clear.

What Changes the Right PR Percentage for Your Startup?

How Much Do Startups Spend on PR Percentage of Budget?

Your Goal and Audience

Customer trust, technical understanding, recruitment and partner interest call for different stories. Ask who needs to hear yours and what a useful response would look like. A buyer requesting a demo and a candidate applying for a role need different measures of success.

Your Industry and Geographic Reach

Specialist knowledge, crowded media coverage, internal approvals and additional markets can increase the work involved. Translation or local expertise may also affect the price. Being a fintech, healthcare or AI startup does not automatically require a higher PR percentage.

Your Timing, Readiness and Cash Reserves

A credible launch or expansion may justify a temporary project budget. An unfinished product, weak evidence or changing positioning may mean your team needs more preparation first.

Check your runway: how long available cash can support the business at expected spending and income levels. If cash is tight, a smaller scope or later start may be more practical.

How to Set a PR Budget You Can Actually Afford

Choose one business goal and define the work needed to support it. For example, reaching potential buyers around a launch might require a customer story, a focused media list and interview preparation.

Set a cash ceiling, then compare founder managed work, freelance support and agency proposals. Include delivery expenses and internal capacity before calculating what percentage the plan represents.

Before committing, check the contract length, extras, cancellation terms and review date. If the full commitment exceeds available cash, narrow the scope or change how you deliver it. A suggested percentage creates no obligation to spend.

How Do You Know Whether Your PR Budget Is Working?

How Much Do Startups Spend on PR Percentage of Budget?

Track Relevant Coverage and Audience Response

Look at whether coverage reaches your intended audience and explains your message accurately. Then track response signals that match your goal, such as referral visits, qualified enquiries or changes in awareness. Record a starting point before the campaign wherever possible.

Review Business Contribution Before Increasing Spend

AMEC’s Barcelona Principles 4.0 distinguish outputs, outcomes and longer term impact. For your startup, these might mean coverage published, changes in audience attitudes or behaviour, and eventual contribution to customer growth. AMEC also rejects advertising value equivalents, which assign coverage a value based on advertising prices. Read AMEC’s principles.

Neither publicity volume nor an advertising price proves return on investment. A new enquiry may follow several encounters with your business, so avoid crediting PR with the entire result. Schedule reviews around the campaign and sales cycle, without promising a fixed deadline for results.

Common Startup PR Budgeting Mistakes

Copying another startup’s percentage can leave you funding the wrong scope. Mixing monthly fees with annual budgets, or comparing proposals with different inclusions, can hide the real commitment.

Question distribution purchases that have no clear audience purpose. Treat guaranteed coverage claims carefully and establish whether the offer concerns independent reporting or a paid placement.

Frequently Asked Questions About Startup PR Budgets

Is 10% of My Marketing Budget Enough for PR?

It depends on the dollars available and the work required. Use the calculation above, then check that amount against the full costs in the budget section. Ten percent alone cannot tell you whether a campaign is affordable.

Should a Startup With No Revenue Spend on PR?

It can consider an affordable project or founder managed outreach when there is a clear purpose. Use available cash and time to assess the plan because a revenue percentage is unhelpful before sales exist. Spending remains optional.

Can a Startup Do PR Without an Agency?

Yes, with founder expertise, useful evidence and a focused list of relevant journalists. Research, pitching and follow up still take time. Occasional freelance help can fill a specific gap without requiring an agency retainer.

Should PR Come Before SEO or Paid Advertising?

Choose according to your immediate problem and audience. PR may suit a credibility goal, SEO may address poor search visibility, and paid advertising may support a controlled customer acquisition test. Prioritise the work that fits your current goal and budget.

Does Paying for PR Guarantee Media Coverage?

No, paying a PR professional covers agreed work such as research, writing and outreach. Buying a sponsored placement is a separate arrangement. Independent editorial decisions belong to the publication and cannot be promised by your startup or provider.

Conclusion: Choose the PR Budget Your Startup Can Support

How much should your startup spend on PR as a percentage of budget? The reviewed guides do not establish a reliable average across all startups. BMV’s 10 to 20% reference applies to Series A marketing budgets, with different suggestions for other stages. See BMV’s stage guidance.

Define the goal, price the work, check affordability and evaluate the response. Use the resulting percentage to understand your plan, then adjust spending as your needs and evidence change.

Read More From Eadoz

As you plan your PR spending, consider how customers can also find you through organic search. Continue with our latest Eadoz guide on how to improve website rankings without spending on ads.

Leave A Comment