Contributors:
Amol Ghemud Published: February 9, 2026
Summary
Before hiring a performance marketing agency, ask these critical questions: Can you show me 3-5 case studies from my industry with specific metrics? What is your team structure, and who will manage my account? What reporting cadence and dashboard access do you provide? What is your pricing structure, including all fees? How do you approach testing and optimization? What channels do you specialize in and why? How do you measure success and define KPIs? What is your average client retention rate? Can you provide 3-5 client references I can call? What happens if we do not hit performance targets?
According to a 2023 Gartner survey, 68% of marketers who thoroughly vet agencies before hiring report better outcomes and longer partnerships.
In This Article
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You are about to spend ₹1 lakh to ₹5 lakhs per month on a performance marketing agency. One wrong hire wastes 6 months and burns capital you cannot recover.
Most founders ask surface-level questions. They accept vague answers. Then they sign contracts and discover problems too late.
This guide provides 10 specific questions to ask before hiring any performance marketing agency. These questions reveal expertise, uncover hidden costs, and expose red flags early.
Question 1: Can you show me 3-5 case studies from my industry with specific metrics?
This is the most important question. It reveals real experience and results.
Generic case studies from unrelated industries prove nothing. You need proof that the agency understands your vertical and customer psychology.
Green flags: Shows 3+ case studies from your industry. Includes specific metrics (CAC, ROAS, conversion rates). Provides before/after data with timelines. Offers client contact for verification.
Red flags: Generic case studies from unrelated industries. Vague metrics like “increased traffic.” Refuses client contacts. Cannot explain the methodology.
Ask: “What were the starting metrics? How long to achieve results? What attribution model? Can I speak with this client?”
Question 2: What is your team structure, and who will manage my account?
Agency sales teams oversell. The junior staff handle execution.
You need to know who actually works on your campaigns. Team stability matters, high turnover means constant onboarding.
Green flags: Introduces specific team members by name. Shows LinkedIn profiles with relevant experience. Commits to senior involvement. Discusses low turnover.
Red flags: Vague answers about “our team.” Cannot introduce the account manager. High turnover. Junior staff handling strategy.
Ask: “Can I meet my account manager before signing? What is your team’s average tenure? How do you handle transitions?”
Question 3: What reporting cadence and dashboard access do you provide?
Transparency separates good agencies from bad ones.
Monthly PDF reports hide underperformance. You need real-time visibility.
Green flags: Provides access to a live dashboard. Weekly performance snapshots. Bi-weekly strategy calls. Direct ad account access.
Red flags: Only monthly PDFs. Refuses dashboard access. Vague about cadence. Reports vanity metrics (impressions) instead of business metrics (CAC, ROAS).
According to a 2024 HubSpot report, 73% of businesses prefer real-time dashboards over monthly PDFs.
Ask: “Can I see a sample dashboard? Will I have an ad account login access? Response time between calls?”
Question 4: What is your pricing structure, including all fees?
Hidden fees destroy budgets. Get complete transparency upfront.
Why this question matters
Many agencies quote low retainers and then add setup fees, creative costs, and platform fees later. Your ₹1 lakh monthly budget increases to ₹2 lakh.
What to look for in their answer
Green flags:
Provides a detailed pricing breakdown in writing.
Clearly separates retainer from ad spend budget.
Lists all included services and excluded add-ons.
Explains setup fees, creative costs, and any platform charges.
Transparent about contract length and termination terms.
Red flags:
Vague about total costs (“it depends”).
Refuses to provide written pricing before the contract.
Mentions “setup fees” not disclosed earlier.
Auto-renewal clauses without a clear opt-out process.
Early termination penalties exceeding 1-2 months’ fees.
Common hidden fees to clarify
Fee Type
What to Ask
Setup fees
“Is there a one-time setup fee? What does it include?”
Creative production
“Are ad creative and landing pages included or extra?”
Platform fees
“Do you charge for tools like analytics or reporting software?”
Reporting fees
“Are performance reports included in the retainer?”
Termination fees
“What happens if I cancel early? Any penalties?”
Question 5: How do you approach testing and optimization?
Great agencies test constantly. Average agencies set campaigns and forget them.
Performance marketing requires continuous testing. Agencies not tested systematically underperform.
Green flags: Describes specific testing methodology (A/B testing). Explains testing cadence (new tests every 2 weeks). Shows past testing examples. Commits a minimum of tests per month.
Red flags: Vague “ongoing optimization” answers. Cannot explain the methodology. No testing examples. Treats optimization as reactive.
Ask: “Walk me through a recent test and learning. How many creative variations do you test? What determines statistical significance?”
Question 6: What channels do you specialize in and why?
Specialized agencies outperform generalists.
Agencies claiming expertise in “all channels” usually excel at none. You want deep expertise in 2-3 core channels.
Green flags: Focuses on 2-4 core channels. Explains why specific channels work for your business. Shows certifications (Google Partner, Meta Business Partner). Recommends channel mix based on audience.
Red flags: Claims expertise in 10+ channels. Cannot explain channel fit. No certifications.
Ask: “What percentage of clients use [channel]? Show me campaign examples. What makes you different?”
Want to see how upGrowth scales campaigns across industries? Explore our case studies across SaaS, eCommerce, D2C, and service businesses.
Question 7: How do you measure success and define KPIs?
Agencies and clients must agree on success metrics upfront.
Without clear KPIs, agencies report whatever makes them look good.
Green flags: Asks about your business goals before proposing KPIs. Focuses on business metrics (CAC, ROAS, qualified leads). Proposes realistic benchmarks. Defines primary and secondary KPIs.
Red flags: Focuses on vanity metrics (impressions, clicks). Proposes unrealistic targets (5x ROAS in 30 days). Resists specific numeric goals.
Discuss primary KPI upfront: For B2B SaaS (cost per qualified lead), E-commerce (ROAS), Lead gen (CAC), App installs (CPI).
Question 8: What is your average client retention rate?
Retention rate reveals client satisfaction better than anything else.
High retention means clients get results. Low retention means clients leave unhappy. Industry average is 12-18 months. Top agencies retain clients 3+ years.
Red flags: Refuses to share retention data. Average under 12 months. No long-term references.
Ask: “What percentage renew after 6 months? Longest client relationship? Can I speak with a 2+ year client?”
Question 9: Can you provide 3-5 client references I can call?
References reveal what sales pitches hide.
Current and past clients tell you about real performance, communication, and problem-solving. Agencies refusing references are hiding something.
Green flags: Immediately provides 3-5 references with contact info. Offers a mix of current and past clients. References match your industry.
Red flags: Refuses references (“confidentiality”). Only 1-2 references. Only unrelated industries.
Ask references: How long have they been working together? Results and metrics? Communication quality? Missed deadlines? Problems and handling? Would you rehire?
Question 10: What happens if we do not hit performance targets?
This reveals accountability and risk-sharing.
Agencies must have skin in the game. You need contingency plans for underperformance.
Green flags: Describes clear optimization protocols. Offers reviews at 30, 60, 90 days. Discusses flexible contracts. Proposes pilot periods.
Red flags: Blames clients for underperformance. Locks into long contracts. No accountability plans.
Ask: “If we do not hit KPIs in 90 days, what changes? Can we include performance clauses? What is the early termination policy?”
Final Takeaway
Hiring the right performance marketing agency can make or break your growth. Ask the right questions upfront to uncover expertise, transparency, and accountability. Use case studies, pricing clarity, team structure, reporting, and KPI alignment as your guide, and don’t settle for vague answers or red flags.
At upGrowth, we answer every question on this list transparently, provide industry-specific case studies with verifiable metrics, offer pilot programs to prove results before long commitments, and maintain dashboard access and weekly reporting for all clients.
If you are evaluating performance marketing agencies and want honest answers to these questions before making a decision, book a free consultation with our team.
FAQs
1. What should I ask a performance marketing agency before hiring?
Ask for 3-5 industry-specific case studies with metrics, team structure and account manager introduction, reporting cadence, and dashboard access details, complete pricing breakdown including all fees, testing and optimization methodology, channel specialization and expertise, KPI definition and success metrics, client retention rates, 3-5 references you can call, and contingency plans if targets are not met.
2. How do I evaluate an agency’s ROI promises?
Ask for case studies proving past ROI achievements with specific metrics, timelines, and attribution methodology. Request client references to verify claims. Avoid agencies guaranteeing exact ROI percentages without understanding your business. Realistic agencies provide benchmark ranges based on industry data and past performance, not guarantees.
3. Which questions reveal hidden fees?
Ask: “What is your complete pricing structure, including all fees?” “Is there a setup fee and what does it include?” “Are creative production and landing pages included or extra?” “Do you charge for tools, reporting, or platform fees?” “What are termination fees if I cancel early?” Demand a written pricing breakdown before signing.
4. How do I check an agency’s expertise across ad channels?
Ask what channels they specialize in and why those channels fit your business. Request channel-specific certifications (Google Partner, Meta Business Partner). Ask for campaign examples and case studies from each channel. Inquire what percentage of clients use specific channels. Avoid agencies claiming expertise in 10+ channels without proof.
5. What questions uncover team experience and stability?
Ask: “What is your team structure and who will manage my account?” “Can I meet my account manager before signing?” “What is your team’s average tenure?” “How do you handle transitions if my manager leaves?” “How much senior strategist involvement will I receive?” Request LinkedIn profiles of team members to verify experience.
6. How do I assess agency communication before signing?
Evaluate their sales process responsiveness. Ask: “What reporting cadence do you provide?” “Will I have dashboard access?” “How quickly will you respond between scheduled calls?” Judge communication quality during sales; if responses are slow or vague before signing, they will be worse after.
7. What tools should agencies be using?
Agencies should use Google Analytics 4 or Mixpanel for analytics, Supermetrics or Funnel.io for data aggregation, Google Data Studio or Tableau for reporting, proper conversion tracking and attribution platforms, project management tools like Asana or ClickUp, and testing platforms for creative and landing page optimization.
8. Which KPI questions reveal true performance?
Ask: “How do you measure success and define KPIs?” “What metrics matter most for businesses like mine?” “Can we define primary and secondary KPIs upfront?” Focus on business metrics (CAC, ROAS, qualified leads, revenue), not vanity metrics (impressions, clicks, traffic). Avoid agencies resisting specific numeric goals.
9. How many case studies should I ask for?
Requesta minimum of 3-5 case studies from your industry or similar verticals with specific metrics (starting numbers, ending numbers, timeframes), attribution methodology explained, client contact information for verification, and dashboard screenshots when possible. Generic case studies from unrelated industries prove nothing.
10. How do I know if an agency is aligned with my business goals?
Assess whether they ask about your business goals before proposing solutions, recommend channels based on your audience behavior, not their preferences, propose realistic KPIs aligned with your growth stage, show understanding of your customer journey and conversion funnel, and offer flexible contracts allowing adjustments as goals evolve.
For Curious Minds
You must demand case studies that mirror your specific industry, as generic examples from unrelated verticals prove little about their ability to navigate your market. An agency's true expertise is revealed not by vanity metrics but by concrete business outcomes they have achieved for clients like you. Look for detailed accounts that clearly outline the starting point, the strategies implemented, and the final results with a specific timeline.
To properly vet their experience, insist on seeing the following:
Before-and-After Data: The case study must show baseline metrics before the agency started and the improved metrics after their engagement. This should include key performance indicators like Customer Acquisition Cost (CAC) and Return on Ad Spend (ROAS).
Specific Timelines: Ask how long it took to achieve the reported results. A 3x ROAS in one month is very different from achieving it over a year.
Attribution Model Clarity: They should be able to explain the attribution model used to measure success, proving they understand how to assign credit to different touchpoints in the customer journey.
Ultimately, the goal is to see a repeatable process, not a one-time lucky campaign. A willingness to provide client contacts for verification is the ultimate green flag, showing confidence in their work and results. For a deeper dive into separating real proof from empty claims, continue reading the full guide.
Uncovering hidden fees requires moving beyond the initial retainer quote and demanding a complete, itemized breakdown of all potential charges in writing. Agencies often use a low base fee to get you in the door, only to add costs for setup, creative, or software later, which can inflate your budget significantly. Your primary strategy should be to secure total cost transparency before any contract is signed.
To avoid surprises, directly question these common hidden fee areas:
Setup Fees: Ask, "Is there a one-time setup fee, and what specific onboarding activities does it cover?"
Creative Production: Clarify if ad copy, images, video, and landing page development are included in the retainer or billed separately.
Platform and Tool Fees: Inquire if they pass on costs for analytics, reporting dashboards, or other third-party software.
Termination Clauses: Understand the penalties for early contract termination. Red flags include penalties that exceed one to two months of fees.
By forcing this conversation early, you can assess an agency's transparency and ensure your projected ₹1 lakh monthly spend does not unexpectedly become ₹2 lakh. Explore the full article for a complete checklist of fees to ask about.
Understanding an agency’s team structure is vital because the success of your campaigns depends entirely on the expertise of the people executing them, not the sales team that signed you. A common bait-and-switch involves senior partners handling the pitch while junior, less-experienced staff manage the actual account, leading to poor performance and wasted ad spend. You must verify who will be responsible for strategy and execution on a daily basis.
To ensure you get the expertise you are paying for, take these steps before signing:
Request Introductions: Ask to meet the specific account manager and any key specialists who will be assigned to your account.
Review Experience: Look up their LinkedIn profiles to verify they have relevant, hands-on experience in your industry and with the required ad platforms.
Inquire About Team Stability: Ask about the agency's average employee tenure. High turnover is a major red flag, as it means you will be constantly re-onboarding new team members who lack historical context for your account.
Securing a commitment to senior-level involvement is non-negotiable for a significant investment. Read on to learn more tactics for guaranteeing you get the A-team, not the B-team.
Direct dashboard access provides a critical strategic advantage by offering real-time visibility into campaign performance, enabling agile and informed decision-making. Monthly PDF reports are static, often outdated by the time you receive them, and can be curated to hide poor performance. This transparency is a key differentiator between a true partner and a black-box vendor.
A recent **HubSpot** report found that 73% of businesses prefer real-time dashboards, highlighting a market shift toward data immediacy. This access allows you to:
Monitor Key Metrics Continuously: Track essential business drivers like CAC and ROAS daily, not monthly, so you can spot trends or problems as they happen.
Foster Proactive Strategy Calls: Weekly check-ins become more productive when both you and the agency are looking at the same live data, allowing for quicker pivots and optimizations.
Maintain Full Ownership: Insisting on direct ad account access ensures you own your data and campaign history, which is crucial if you ever decide to switch agencies or bring marketing in-house.
Refusal to grant dashboard access is a significant red flag, suggesting an agency may have something to hide. Discover more questions that expose an agency's commitment to transparency in our complete guide.
An agency's client portfolio and team tenure are strong leading indicators of the stability and strategic focus you can expect as a client. High employee turnover signals internal chaos and means your account will likely be passed between junior managers, disrupting momentum and knowledge continuity. Similarly, an agency that cannot retain its clients is a clear warning sign that they fail to deliver sustained results or quality service.
When you ask about their team, listen for these green flags:
They introduce you to specific team members who will manage your account.
They can point to an average employee tenure of several years.
They have a clear process for handling transitions if an account manager leaves.
A stable, experienced team is more likely to provide the proactive, strategic guidance your startup needs to scale effectively, rather than just basic campaign execution. These questions help you look beyond the sales pitch to see the operational reality, a topic explored further in the full article.
To truly assess an agency's caliber, your initial inquiry must shift from generic questions to specific, evidence-based challenges that reveal their thought process. Instead of asking "Have you worked in my industry?" you should demand specific case studies with verifiable metrics like CAC and conversion rates. This approach forces them to demonstrate competence rather than just claim it.
Your goal is to turn the introductory call into a mini-strategy session by asking pointed questions that test their expertise and transparency:
Team and Accountability: "Who, specifically, from your team will be managing my account, and can I meet them before signing? What is your average team tenure?"
Reporting and Access: "Can you show me a sample of the live dashboard I will have access to, and will I receive direct login credentials for my ad accounts?"
Pricing Clarity: "Please provide a complete written breakdown of all fees, including any one-time setup charges, creative costs, or software fees, beyond the monthly retainer."
This direct line of questioning exposes red flags early and establishes a precedent for a transparent, results-oriented partnership. For a full list of ten such questions, continue reading the comprehensive guide.
A transparent pricing model is one where all costs are disclosed upfront in a clear, itemized format, leaving no room for future surprises. The fundamental distinction you must grasp is between the agency's retainer, which is their fee for services, and the ad spend, which is the capital that goes directly to platforms like Google or Facebook. Confusing the two can lead to severe budget miscalculations and cripple your growth potential.
This clarity is crucial because it directly impacts your ability to measure true marketing performance. For example, a ₹1 lakh retainer on ₹4 lakhs of ad spend yields a very different ROAS calculation than a combined, opaque fee. A trustworthy agency will always:
Provide a detailed pricing breakdown in writing before a contract.
Clearly separate the retainer from the ad spend budget.
List all included services and specify costs for any excluded add-ons, such as creative production or platform fees.
Insisting on this separation ensures you know exactly where your money is going and empowers you to make informed decisions about scaling your investment. Uncover more about navigating pricing discussions in the complete guide.
The most common mistake is failing to look past the sales team and vet the actual practitioners who will manage the account. Founders often accept vague answers about team structure and are impressed by a polished presentation, neglecting to confirm that the strategic minds in the pitch meeting are the ones doing the work. This disconnect between sales and execution is a primary driver of underperformance and wasted capital.
Stronger companies avoid this pitfall by systematically verifying expertise and accountability:
They Don't Assume: They explicitly ask to meet the dedicated account manager before signing any contract, assessing their specific experience and communication style.
They Verify Stability: They ask about team tenure, knowing that high turnover is a major red flag indicating a chaotic work environment that will negatively impact their account.
They Demand Senior Involvement: They get a commitment, in writing if necessary, about the level of senior oversight the account will receive, ensuring strategic guidance is consistent.
By treating the hiring process like recruiting a key employee rather than just procuring a service, you can prevent this common and costly error. Explore our guide for more strategies to identify an agency's true operational strength.
The industry's clear shift towards data immediacy means your long-term strategy must treat real-time analytics not as a luxury, but as a core requirement for any agency partnership. According to a 2024 **HubSpot** report, 73% of businesses now favor live dashboards, signaling that static monthly reports are becoming obsolete. Failing to adapt means you will be outmaneuvered by competitors who can analyze data and pivot their campaigns faster.
To align your strategy with this trend, you should:
Prioritize Transparency in Vetting: Make direct dashboard and ad account access a non-negotiable term in your agency selection process.
Build Internal Agility: Structure your marketing check-ins around weekly or bi-weekly reviews of live data, rather than waiting for a monthly summary.
Focus on Forward-Looking Metrics: Use real-time data to forecast trends and optimize for leading indicators, not just to review past performance like ROAS.
Integrating real-time data access into your core strategy transforms your agency from a simple service provider into a dynamic growth partner. The rest of our guide details how to build this modern, data-centric relationship from day one.
Differentiating between skill-driven results and luck requires you to probe beyond the headline numbers and dissect the agency's specific contribution and methodology. A flashy result from a well-known brand means little if the agency cannot articulate precisely how their actions caused the outcome. Your focus should be on understanding their process and its applicability to your business, which likely has different starting conditions.
To get to the truth, ask targeted follow-up questions about their showcase projects:
"What were the exact starting metrics, including baseline CAC and conversion rates, before you began work?"
"Can you walk me through the specific strategic changes you implemented and explain your rationale for each one?"
"What was the timeline for achieving these results, and what were some of the key challenges or failed experiments along the way?"
An agency with true expertise will welcome this deeper discussion and be able to detail their strategic thinking with confidence. Vague answers are a clear red flag. Find out more ways to test an agency's strategic depth in the full article.
The core purpose of a retainer fee is to pay for the agency's strategic expertise, time, and operational overhead, completely separate from the money spent on ads. For a founder investing significant capital, this distinction is critical for financial clarity and performance measurement. Without a clear scope, you risk paying a premium for a basic service or facing unexpected bills for work you assumed was included.
A properly defined retainer should cover specific services that justify your investment. You need a written agreement detailing what is included, which typically involves:
Strategy and Planning: Campaign architecture, audience research, and goal setting.
Execution and Management: Day-to-day campaign monitoring, bidding, and optimization.
Reporting and Analytics: Setting up tracking, providing dashboard access, and conducting performance reviews.
Crucially, you must also clarify what is excluded. Services like ad creative production, landing page design, and software subscription fees are common add-ons that can inflate your total cost. This understanding protects your budget and ensures your ROAS calculations are accurate. Learn how to secure this clarity in our full guide.
Operational data like client retention and employee turnover are powerful, often-overlooked indicators of an agency’s health and reliability. While case studies show past successes, these internal metrics predict future stability and quality of service. An agency that cannot retain its own talent or clients is unlikely to provide the consistent, high-quality partnership required for sustained growth.
High client retention directly suggests that the agency consistently delivers results and maintains strong relationships. Low employee turnover, a green flag for stability, ensures that:
Your account benefits from uninterrupted institutional knowledge.
You are managed by an experienced, motivated team, not a revolving door of junior staff.
The agency's internal processes are sound, leading to better campaign execution.
Asking about these metrics shifts the evaluation from past performance to the underlying health of the organization, giving you a more complete picture before you commit. The full article provides more non-obvious questions that reveal an agency's true character.
Amol has helped catalyse business growth with his strategic & data-driven methodologies. With a decade of experience in the field of marketing, he has donned multiple hats, from channel optimization, data analytics and creative brand positioning to growth engineering and sales.
Growth Strategy and Planning
