There are plenty of signs a marketing agency is wasting your money. But four of them are absolute red flags: you can't see your own ad account, your report is full of fluffy metrics, nobody can show you your tracking, and the numbers in the report don't match your bank account.
We get asked about this all the time. If your agency fails even one of these checks, the money you're spending on that agency and on those ads deserves a much closer look. Here's what to look for and what to ask.
Key Summary
- You should always have access to your own ad account. If everything sits in an agency account you're not allowed to see, that's red flag number one.
- Your report should show sales and enquiries, not reach, clicks and impressions.
- A good agency can open up your tracking and walk you through it. A bad one changes the subject.
- If the leads in your report aren't turning into paying customers, something is wrong.
- Expect only 10–30% of Meta leads to become customers for a service-based business.
- Whether you hire an agency or do it yourself, you need to understand your numbers.
Red Flag 1: You Can't See Your Own Ad Account
Start with the simplest question. Can you see your own ad account?
Some agencies centralise everything under their own agency account. You're not allowed to see it. You're not allowed to have any say over it. You only get data out when they run a report for you.
That's the number one red flag. It's your money and your ads, so you should be able to log in and see what's happening whenever you like.
Red Flag 2: Your Report Is Full of Fluffy Metrics
Next, look at what your report actually shows you. Does it show sales and enquiries? Or does it show reach, clicks and impressions?
If it's the second one, that's a massive red flag. Those fluffy metrics have no bearing on your bottom line. Worse, they're the numbers that hide what's really happening.
A big reach figure feels good. But it doesn't pay the bills.
Red Flag 3: They Change the Subject When You Ask About Tracking
Ask your agency when they last checked your tracking. This is a hill we'll happily die on, because so many agencies get it wrong.
Some do it incorrectly. Others think they've done it correctly but have missed a fundamental step in the process. Either way, the data you're making decisions on can't be trusted.
So ask them to show you. A good agency will open it up and run you through it. They'll know it inside out, upside down and back to front.
A bad agency will change the subject. They'll steer you onto something else and pretend you never asked. Don't be bamboozled.
Red Flag 4: The Report Doesn't Match Your Bank Account
Last but certainly not least: does the report match what you're seeing in your bank account?
Are the leads actually turning into paying customers? If they're not, and your agency disagrees, there's definitely something wrong.
Your bank account is the one report that can't be dressed up. If your ads look great on paper but your revenue isn't moving, trust the bank account.
How Many Meta Leads Actually Become Customers?
Say Meta tells you you've got 50 leads. How many will turn into actual customers?
Unfortunately, it's usually fewer than you'd hope, especially for service businesses. A standard service-based conversion rate sits somewhere between one in ten and three in ten. That's 10–30%.
Part of the reason is that Facebook likes to count every interaction as a lead. Someone fills out a form, clicks your phone number or takes some other action on your website, and it's counted. But that doesn't mean they'll become a paying customer. So the real question is: out of those 50, how many are real people ready to buy?
There are two ways to find out. The first is to have tracking in place so you can see what happens at the other end, in your other systems. The second is simpler. Your customers will often tell you. They'll mention they saw your Meta ad, your Google ad or any other ad you're running. You can draw a dotted line back from there.
What matters is that you have a basic understanding of which leads end up in your bottom line. That becomes the basis of your attribution costs. You don't want to pay for fancy numbers in the platform that actually mean nothing.
If 50 or even 100 leads in Meta turn into just one paying customer, and that doesn't work for your numbers, it really doesn't work. So go back to basics. Use a spreadsheet, handwrite it down or check back in your book.
Should You Hire a Marketing Agency or Learn to Run Ads Yourself?
This is another question we get all the time. Should you hire an agency, or just do it yourself? And if you do it yourself, how do you learn it all? It can be a steep learning curve.
DIY, hiring someone and outsourcing to an agency all have their pros and cons. The short answer is this: if you're spending under $5,000 on paid ads, you can honestly start doing it yourself.
But before you jump in, ask the real question. Who understands your numbers? Who can interpret what's happening in your ad account and make smart decisions without simply following Facebook's push to spend more money?
Even if you hire, you still need to know your numbers. If you don't, you're flying blind in every aspect. You hire experts because they know what they're doing. You wouldn't hire a concreter who had no idea what he was doing. And you need to know enough to tell the difference.
You can learn this yourself. That's what we do at Hedgehog: we upskill people to run their own marketing. Whether you work with an agency, learn it yourself or train with us, knowing your numbers is the fundamental.
Frequently Asked Questions
Do I need a certain personality or tech skills to learn how to run ads?
Definitely not. We've taught so many different personalities, business sizes and levels of tech-savviness. If you want to learn and you're passionate about your business, that's all you need to get started. We've had every level of the spectrum, and everybody has gone away able to run their own Meta ads.
How much should I be spending before I hire an agency?
If you're spending under $5,000 on paid ads, you can honestly start doing it yourself. Whatever you spend, make sure someone understands your numbers. That someone should ideally be you.
What counts as a lead in Meta Ads?
Facebook likes to count every interaction as a lead. That includes filling out a form, clicking your phone number and other actions on your website. A lead in the platform isn't the same as a paying customer.
What's a normal Meta ads conversion rate for a service business?
Usually somewhere between one in ten and three in ten leads, or 10–30%. That's fewer than most business owners hope for. Track what actually ends up in your bottom line so you know your real numbers.
What should I do if my agency won't show me my tracking?
Treat it as a red flag. A good agency will open your tracking up and walk you through it without hesitation. If they change the subject or steer you elsewhere, don't be bamboozled.
Know Your Numbers, Whoever Runs Your Ads
The four red flags are simple. Can you see your ad account? Does your report show sales and enquiries? Can your agency show you your tracking? Does the report match your bank account?
Run through those checks this week. And whether you stay with an agency or take your ads in-house, learn your numbers. You just have to want to. We can help with the rest.
This guide is written by Hedgehog, a DIY digital marketing consultancy specialising in small and medium businesses in Australia. We offer digital marketing consulting, coaching and training.
