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How to Tell If Your Marketing Agency Is Actually Working

Quick checklist: Are they worth your time?

Before you dig into reports, use this 60‑second checklist. If you answer "no" to two or more, you have a problem.

  • They set clear goals that you agreed on (leads, sales, traffic, or brand awareness).
  • You get regular, understandable reports (monthly at minimum).
  • You can see how marketing connects to sales or revenue.
  • They update campaigns based on results (not just send more ads).
  • You have one main contact who explains progress in plain language.

Start with the right goals

Agencies can be great at tactics. But tactics without the right goals look impressive and do nothing for your business. Pick one primary goal for the next 3 months:

  • Get X qualified leads per month (example: 20 leads that match your target customer).
  • Increase sales from online channels by Y% (example: 15% more online orders).
  • Lower cost per lead to Z (example: $50 per qualified lead).

Write that goal down and get the agency to confirm it in an email. If they don’t commit, they’re not aligned.

Metrics that matter (not vanity numbers)

Ask your agency to report these each month. If they say they can’t, that’s a red flag.

  • Leads: Number of new, contactable leads that match your ICP (ideal customer profile).
  • Lead quality: % of leads that become sales conversations or qualified by you.
  • Cost per lead (CPL): Total ad/agency spend divided by leads.
  • Conversion rate: Visitors → leads and leads → customers.
  • Revenue or sales tied to marketing: $ or % increase compared to baseline.
  • Return on ad spend (ROAS) or return on marketing investment (ROMI): Revenue generated / marketing spend.

How to read a report — three simple rules

  1. If leads went up but sales didn’t, ask: Did lead quality fall? (Bad leads = wasted money.)
  2. If clicks or traffic rose but conversion rate fell, ask for landing page or funnel fixes.
  3. If cost per lead rose steadily, ask for a plan to reduce it within 30–60 days or pause the channel.

Monthly meeting checklist

Run a 30-minute meeting with this agenda. If your agency can’t run it in 30 minutes, they’re unprepared.

  • 30‑day summary: One sentence on whether we hit the main goal.
  • Top 3 metrics: Leads, CPL, and revenue linked to campaigns.
  • What worked / what didn’t (2 bullets each).
  • Action plan for next 30 days with owners and deadlines.
  • Ask for one quick test you can approve right away (A/B, new audience, different creative).

Simple decision rules

Use these to decide whether to keep, change, or fire the agency.

  • Keep: You’re getting 70% or more of your goal (e.g., 14 of 20 leads) consistently for 2 months and CPL is within your target.
  • Change scope: You’re at 40–70% of goal OR CPL is slightly above target. Ask for a written 60‑day recovery plan with milestones.
  • Fire quickly: Under 40% of goal, no plan, or constant excuses after 2 months. Also fire if they can’t show lead-to-sale tracking.

Red flags that mean trouble

  • Reports full of impressions, likes, or followers but no leads or sales data.
  • They refuse to link marketing stats to your sales numbers.
  • No testing. If every month looks the same, they’re guessing, not optimizing.
  • Frequent staff turnover on your account with no handover notes.
  • Long response times (>48 hours) for basic questions.

Practical examples

Example 1 — Local HVAC company:

  • Goal: 30 booked service calls per month.
  • Agency report: 120 leads, but only 10 booked calls. Decision: Lead quality problem — change ad targeting and call-to-action to drive booking form. If no improvement in 60 days, switch agency.

Example 2 — Online retailer:

  • Goal: Increase monthly online revenue by 20% with a $4,000 ad budget.
  • Report: Revenue up 18% and ROAS = 4. Decision: Keep and run a small test to push to 22% (new creative). If CPL increases above target, pause underperforming ads.

Practical checklist to hand your agency today

Send this list by email and ask for written answers within 5 business days:

  1. Confirm our primary goal for the next 90 days (be specific).
  2. Provide last 3 months’ numbers: leads, CPL, conversion rate, and revenue from marketing.
  3. List three changes you will make next month and measurable outcomes for each.
  4. Share the tracking setup (UTM rules, CRM connection) so I can verify data.
  5. Confirm our monthly meeting time and a single point of contact.

Final quick rule

If the agency can’t answer your checklist clearly in writing or refuses to tie work to your sales, treat them as an expense with no business value. Move on or require a 60‑day improvement plan with milestones.