Red flags when hiring a marketing agency

Most agencies are honest and some are very good. A few are not, and the signs are usually visible before you sign. Here are the ones to take seriously.

Promises nobody can keep

Be wary of guaranteed first-page rankings, guaranteed lead numbers or a promised return. Search results and ad auctions are not controlled by any agency. Honest agencies talk in ranges, assumptions and tests.

They will not show you who does the work

If the people in the pitch are not the people on the account, and the agency will not say who they are, you are buying a sales team.

You do not own your accounts

Ad accounts, analytics, domain and website should be in your name with you as administrator. An agency that insists on owning them can hold your business hostage when you leave. This is one of the clearest red flags.

Reports that avoid the bottom line

Pages of impressions, clicks and rankings with no mention of leads, customers or cost per customer usually mean the agency would rather not talk about results. Ask for the numbers that matter: leads, cost per lead and cost per customer. Our scorecard on the home page includes a question about reporting.

Pressure and long lock-ins

A discount that expires today, a long contract with heavy exit fees, or auto-renewal buried in the terms are all signs the agency expects you to want out. Good agencies are comfortable with short terms because they keep clients by doing good work.

Hidden markups

If the agency buys ads for you, ask whether you pay the platform's actual cost or a marked-up amount, and how that is shown on invoices. Some markups are fine if disclosed and agreed.

One-size-fits-all plans

If the proposal could be sent to any business with only the name changed, the agency has not thought about yours. Ask for specifics: your customers, your area, your competitors.

Cannot explain things plainly

Jargon is often cover. A good agency can explain what it is doing and why in terms you understand.

What to do

• Ask the questions in the 20-question list and note which answers are specific.
• Ask for a reference you can call.
• Start with a short, month-to-month arrangement or a small paid project.
• Keep the accounts in your name from day one.