What's That Buzz I Hear?

By Joel Stein

Money is tacky in Silicon Valley. Equity is always a better way to go. It shows you have faith in the future, belief in your partners and, most important, guts. So it makes sense that p.r. executives--who are as powerful in Silicon Valley as they are in Hollywood--demand stock in their clients' start-ups. But even stock may not be enough. Simone Otus, 39, co-founder of p.r. firm Blanc & Otus, takes on only companies that offer status. "We want to pitch the really hot companies to build our own brand value," she explains from her ancillary San Francisco office overlooking the Bay Bridge. "We look like we're cool because we have TiVo," she adds, referring to the new digital VCR company.

Each week 25 new companies audition to become Blanc & Otus clients. Otus picks up six a year, because even though she pays $70,000 a year to 28-year-old account executives, she cannot import them from the Midwest fast enough to handle the business. "We could make $4 million more in business each year," she says.

Niehaus Ryan Wong, a hot shop in South San Francisco, has got as many as 121 inquiries from prospective clients in a week, even though it can take only two a month. Chairman Bill Ryan says he would like to take on more clients, but can't keep enough employees on staff. The dot.coms offer too much money and stock.

Otus has another problem. The women she does hire--and they are mostly women--tend to be well dressed and attractive. And sometimes that leads to romance with wealthy male clients. "If you've got executives and attractive single women, they're going to get together," she says. "Steve Ballmer of Microsoft married his p.r. person, and Ken Jacobs at Oracle married the head of p.r. for his company." It's another beautiful virtuous cycle.

--J.S.