7 Signs Your Marketing Agency Is Failing Your Business (And What to Do About It)
You're spending $3,000 a month. Maybe $5,000. You get a PDF once a month that you half-read because you don't understand half the metrics in it. When you ask questions, you get jargon. When you ask for results, you get "give it another quarter."
Sound familiar?
We've been on your side of the table. The three of us spent over $200K on marketing agencies before we started PathOpt. Some of that money worked. A lot of it disappeared into "brand awareness" and "impression growth" that never turned into phone calls.
The worst part wasn't the money. It was the months we wasted before we admitted things weren't working.
This is the list we wish someone had handed us. Seven specific, measurable signs that your marketing agency isn't performing — and what to do about each one. Not vague "red flags." Specific tests you can run today.
---Sign 1: You Can't Explain What They're Doing in Plain English
Here's a test. Call a friend who knows nothing about marketing. Explain what your agency does for you each month.
If you can't do it in two sentences, there's a problem. Either your agency can't explain their own strategy clearly, or they don't have one.
We've sat through agency presentations loaded with terms like "omnichannel synergy" and "programmatic activation" and "holistic brand ecosystem." Not once did anyone say: "We're running Google ads targeting homeowners within 15 miles of your shop who searched for AC repair."
What good looks like: Your agency should be able to explain their strategy to a 12-year-old. What channels are we using? Who are we targeting? What's the expected result? How long will it take?
If the answer to any of those is "it's complicated" — it's not. They just don't want you to understand, because understanding leads to accountability.
Run this test today: Ask your agency to explain next month's plan in three bullet points, in plain English. No acronyms. If they struggle, you have your answer.
---Sign 2: Your Cost Per Lead Is a Mystery (Or Worse, a Lie)
Your agency tells you they generated 200 leads last month at $47 each. Sounds great. But here's the question they're hoping you never ask: how many of those "leads" actually became paying customers?
There's a massive difference between $47 per form fill and $470 per actual customer. And most agencies report the number that makes them look good.
We've seen agencies count every bot-filled form, every wrong number, every person who clicked by accident as a "lead." One agency we worked with was reporting a $32 CPL. When we actually tracked the numbers ourselves, our real cost per acquired customer was $890. They'd been padding the stats for six months.
What good looks like: Your agency should track — and share — the full funnel. Not just clicks and form fills. Cost per qualified lead. Cost per booked appointment. Cost per closed customer. If they only show you the top of the funnel, they're hiding the bottom.
Run this test today: Ask your agency for your cost per acquired customer (not cost per lead) for the last three months. If they can't answer within 24 hours, they're not tracking it. And if they're not tracking it, they're not optimizing for it.
---Sign 3: They Talk About Impressions Instead of Revenue
"Your impressions are up 340% this quarter!"
Great. Did the phone ring more?
Impressions, reach, follower count, engagement rate — these are what the industry calls "vanity metrics." They look impressive in a report. They're easy to grow. And they have almost zero correlation with whether your business actually made more money.
65% of agencies focus reporting on engagement metrics rather than revenue metrics. That's because engagement is easy to show growth on. Revenue requires them to actually perform.
Here's the math that matters: If you're spending $5,000/month on marketing, you need to know exactly how much revenue that $5,000 generated. Not impressions. Not clicks. Revenue.
What good looks like: Monthly reports that start with revenue impact. How many calls came in? How many booked? How much revenue closed? Then — and only then — the supporting metrics that explain why.
Run this test today: Open your last three monthly reports. Count how many times the word "revenue" or "sales" appears versus "impressions" or "reach." If the ratio is off, your agency is reporting what's easy, not what matters.
---Sign 4: You've Never Seen Your Ad Accounts
This one is simple and damning. Do you have admin access to your own Google Ads account? Your own Meta Business Manager? Your Google Analytics? Your Google Business Profile?
If the answer is no — or "I think so" — that's a problem.
Some agencies run ads through their own accounts, not yours. Which means if you leave, you lose everything. All your data. All your optimization history. All the audiences they built with your money. You start from zero.
47% of clients have ended agency relationships specifically over transparency issues like this.
It's your money. It's your data. You should own it. Full stop.
What good looks like: You have admin access to every platform. Your agency has manager access — enough to do the work, but you retain ownership of everything. If the relationship ends, you walk away with all your assets intact.
Run this test today: Try to log into your Google Ads account, Google Analytics, and Meta Business Manager right now. If you can't, email your agency today and request admin access. If they push back, that tells you everything you need to know.
---Sign 5: Their "Strategy" Is the Same One They Sell Everyone
Here's a question we ask business owners all the time: before your agency signed you, did they audit your business?
Did they look at your current lead sources? Analyze your competitors? Interview your customers? Review your sales process? Or did they hand you a proposal within a week of your first call?
Because if they didn't deeply understand your business before suggesting a plan, they didn't create a strategy. They pulled a template off the shelf and changed the logo.
An HVAC contractor in Phoenix and a family law firm in Atlanta have almost nothing in common. Different customers. Different buying cycles. Different competitive positions. Different conversion paths. If your agency is running the same playbook for both, neither is getting what they're paying for.
What good looks like: A strategy built on your actual numbers. Your close rate. Your average job value. Your competitive position. Your seasonality. An agency that asks these questions first and proposes a plan second.
Run this test today: Ask your agency what's different about your strategy compared to their other clients in your area. If the answer sounds generic — or if they change the subject — you're running on a template.
---Sign 6: You're Paying for Activity, Not Results
"We published 8 blog posts this month. We ran 3 ad campaigns. We sent 4 email blasts. We posted 20 times on social."
That's an activity report. It tells you what they did. It tells you nothing about what happened because of it.
Activity and results are different things. Posting 20 times on Instagram is activity. Generating 15 qualified inbound calls from Instagram is a result. Writing blog posts is activity. Ranking for keywords that drive traffic and leads is a result.
Many agencies charge monthly retainers tied to deliverables — a set number of posts, a set number of ads, a set number of emails. The problem is that deliverables aren't outcomes. You can hit every deliverable and still generate zero new business.
What good looks like: A report that ties every activity to a measurable outcome. "We published this blog post. It ranks #4 for [keyword]. It drove 340 visits and 12 form fills this month." That's accountability. Everything else is busywork with a price tag.
Run this test today: Look at your last invoice and your last report side by side. For every line item you're paying for, can you trace it to a business result? If most lines don't connect to outcomes, you're buying activity — not growth.
---Sign 7: They Disappear Between Monthly Reports
You send an email on a Tuesday. You get a response Thursday. Maybe Friday. You have a question about a campaign — you wait for the monthly call.
Meanwhile, your ads are running. Your budget is burning. And nobody is watching.
Real campaign management isn't a monthly check-in. It's daily monitoring, weekly adjustments, and monthly strategy reviews. If the only time you hear from your agency is when that monthly report drops — or when your invoice is due — they're running your account on autopilot.
The average marketing agency has 30% annual staff turnover. That means the person who built your strategy six months ago might not even work there anymore. And the person who replaced them? They're managing 20 other accounts and learning yours on the fly.
What good looks like: Proactive updates. "Hey, we noticed your cost per click jumped 18% this week — here's what we're doing about it." That kind of communication means someone is actually watching. If you only hear from them when it's time to present a deck, nobody is paying attention.
Run this test today: Send your agency a question about current campaign performance on a random weekday. How long does it take to get a substantive answer — not "I'll check on that," but actual data? If it takes more than a business day, your account isn't getting the attention you're paying for.
---When Should You Fire Your Marketing Agency?
Not today. But not "another quarter" from now, either.
Here's a practical framework:
Month 1-2: Set clear expectations. Define what success looks like — in numbers — before the work begins. If your current agency hasn't done this, do it now. Call them. Put it in writing. "In 90 days, I expect X calls, Y qualified leads, and Z in attributable revenue."
Month 3: First real evaluation. Are you seeing movement? More traffic, more calls, more form fills? If nothing has changed, it's time for a direct conversation. Not "give it time." A specific plan with specific milestones for the next 60 days.
Month 5-6: Decision time. If you set clear goals, gave them a fair runway, had the tough conversation, and still nothing changed — it's time to move on. Six months at $5,000/month is $30,000. That's not a rounding error for a small business.
Fire immediately if: They won't give you access to your own accounts. They can't explain where your money goes. They've misrepresented results. Trust is the foundation. Once it's broken, no amount of time fixes it.
---What to Look for Instead
Most business owners in this situation think the answer is "find a better agency." Sometimes it is. But sometimes the problem isn't the specific agency — it's the model.
Traditional agencies make money on retainers. The longer you stay, the more they earn — whether your business grows or not. That misalignment is baked into the structure.
That's why we built PathOpt as a growth partner — not an agency. Here's what's different:
This isn't for everyone. If you need someone to just post on social media, there are plenty of agencies for that. But if you're spending real money on marketing and you're not sure it's working — see where you're leaving money on the table.
---Frequently Asked Questions
How do I know if my marketing agency is doing a good job?
Track three numbers: cost per acquired customer (not cost per lead), revenue generated from marketing spend, and month-over-month trend in qualified leads. If your agency can't report these numbers clearly each month, they're not tracking what matters. A good agency ties every activity to revenue impact and communicates proactively — not just when the monthly report is due.
What should I expect from a marketing agency?
At minimum: admin access to all your accounts, clear monthly reporting tied to business outcomes (not vanity metrics), a documented strategy specific to your business, and responsive communication within one business day. You should be able to explain what they're doing and why in plain English. If you can't, they're not communicating well enough — or the strategy isn't clear enough to communicate.
How much should a small business pay for marketing?
Most small businesses with $500K-$10M in revenue spend between $2,000 and $8,000 per month on agency fees, plus ad spend on top. But the amount matters less than the return. A $5,000/month investment that generates $25,000 in new revenue is a bargain. A $2,000/month investment that generates nothing is a waste. Always evaluate spend against measurable results — not promises, not projections, not "brand awareness."
What does a good marketing agency report look like?
It starts with revenue impact — calls received, appointments booked, deals closed, and revenue attributable to marketing. Then supporting metrics that explain the "why" behind those numbers — traffic sources, conversion rates, cost per acquisition by channel. The whole thing should be understandable without a marketing degree. If your current reports are walls of acronyms and charts you can't interpret, ask for a plain-English version. If they can't produce one, the data may not say what they want you to think it says.
Why do marketing agencies fail their clients?
Three root causes: misaligned incentives (agencies profit from retainers regardless of your results), lack of accountability (vanity metrics like impressions replace real performance tracking), and the template trap (one strategy applied to every client regardless of industry or market). The agency model often rewards keeping clients comfortable enough to not cancel — which is a very different thing from pushing for growth.
When should you fire your marketing agency?
Give them a fair shot — typically 3-6 months with clearly defined, measurable goals set up front. But fire immediately if they won't provide access to your own accounts, if they've misrepresented results, or if they can't explain their strategy in plain English. After 6 months with no measurable improvement in revenue-tied metrics (not vanity metrics), the relationship isn't working. Don't let sunk cost keep you trapped. Every additional month is money that could go toward something that actually moves the needle.
