5 Red Flags Your Marketing Agency Is Wasting Your Money (And What To Do About It)

The Situation

You hired a marketing agency. You gave them a budget. You trusted them. You expected results.

But months later, you’re not seeing real business impact.

You’re seeing activity reports: “We posted 45 times, got 3,000 impressions, achieved 2% engagement rate!”

But customers? Revenue? Real business results?

Still waiting.

Here’s the uncomfortable truth: Most marketing agencies are optimizing for the wrong things.

They’re busy. They look busy. But are they making you money?

Let me show you how to tell.

WARNING SIGN #1: They Can’t Explain Your Strategy in One Sentence

You ask them: “Why are we doing this?”

They give you: A 15-minute answer filled with buzzwords. Social media engagement. Brand awareness. Organic reach. Synergy.

Honestly, you’re more confused than before.

Here’s what SHOULD happen:

You ask: “Why are we doing this?”

They say: “We’re targeting [specific people] with [specific message] on [specific platform] because they’re most likely to become customers.”

One sentence. Clear. Specific.

Real example of BAD strategy explanation:

“We’re building brand awareness across social media platforms through consistent engagement and authentic storytelling to maximize our reach and connect with potential customers.”

Translation: “I have no idea what we’re doing.”

Real example of GOOD strategy explanation:

“Women 40-55 in your area are searching for fitness solutions that don’t feel like torture. We’re creating social content showing fun, judgment-free workouts. 70% of your current members came from this approach.”

Translation: “We know exactly what we’re doing and why.”

Why this matters: If they can’t explain strategy simply, they don’t have one. They’re guessing.

WARNING SIGN #2: They Focus on Vanity Metrics Instead of Revenue Metrics

You get your monthly report.

They say: “Great news! Your social media followers grew 35%!”

You check your bank account: Revenue? Same as last month.

They say: “Traffic to your website increased 40%!”

You check your sales: New customers? Still the same.

They say: “Your Instagram engagement rate is up 20%!”

You think: “But are any of those people becoming paying customers?”

They probably don’t even know. Or they’ll tell you “it takes time” to measure ROI. No. No, it doesn’t.

Real business metrics they SHOULD be tracking:

• Revenue generated from this channel
• Customers acquired from this channel
• Cost per customer
• ROI (money back divided by money spent)

Vanity metrics they’re probably tracking:

• Followers
• Impressions
• Engagement rate
• “Reach”

Real example:

I had a client with an agency tracking:

• 500,000 monthly impressions (they bragged about this constantly)
• 2% engagement rate

But the reality was:

• Customers from this channel: 0
• Cost per impression: 0.002 cents

I asked: “How many customers came from this?”

Silence. Zero. Not one.

But they looked great on a PowerPoint.

Why this matters: If they’re not tracking real revenue, they’re not optimizing for revenue. You’re paying for a slow feedback loop.

WARNING SIGN #3: They Don’t Have a Clear Growth Timeline

You ask: “When will I see results?”

They say: “Marketing takes time.”

You ask: “How much time?”

They say: “It varies. Could be 3-6 months.”

Then 6 months pass. Still nothing. They say: “These things take longer. Usually 9-12 months.”

You’re now a year in and STILL waiting.

Here’s what SHOULD happen:

You ask: “When will I see results?”

They say: “Here’s the timeline:

• Week 1-2: Campaign setup and launch
• Week 3-4: First data on what’s working
• Month 2: We’ll have enough data to optimize
• Month 3: You should see 20-30% improvement in conversions
• Month 4-6: We’ll build on that to hit your revenue target”

Specific. Realistic. Clear milestones.

Real example of BAD timeline:

“Marketing is an ongoing journey. Results will come when they come. Trust the process.”

Translation: “If nothing happens, we have an excuse.”

Real example of GOOD timeline:

“Your campaign needs 30 days to collect enough data. By day 45, we’ll have clear metrics on ROI. We’ll optimize based on that and you should see 15-20% improvement by day 60.”

Translation: “Here’s what to expect and when.”

Why this matters: Without clear timelines, you never know if they’re succeeding or failing. That’s a red flag.

WARNING SIGN #4: They Don’t Understand Your Specific Industry

You tell them about your business. They give advice that could apply to ANY business.

• “Focus on your unique value proposition.”
• “Create a strong brand presence.”
• “Engage with your audience on social media.”

Wow. Revolutionary. Totally specific to your gym, coaching business, or salon.

Actually… no. This is generic advice that applies to literally every business.

Here’s what SHOULD happen:

You tell them about your gym business.

They say: “Okay. Gyms succeed by targeting one of three groups:

1. Transformation seekers who want before/after results
2. Community seekers who want accountability
3. Convenience seekers who just want close location Which are you?”

You say: “Community seekers.”

They say: “Perfect. Then our strategy is different. We focus on testimonials from long-term members. We show people getting to know each other. Different message than a transformation-focused gym.”

Now they understand YOUR business.

Real example of BAD industry knowledge:

“We’ll use Facebook ads to reach fitness enthusiasts.”

(Every gym hears this. It’s meaningless.)

Real example of GOOD industry knowledge:

“Gyms in your demographic have highest conversion on women ages 35-55 who are motivated by getting stronger (not just skinny). Your messaging should focus on strength gains, not weight loss.”

(THIS is specific to their situation.)

Why this matters: Generic advice is cheap. They’re supposed to earn their fee by knowing your industry better than you do.

WARNING SIGN #5: They Aren’t Transparent About What’s Not Working

You ask: “Which channels are underperforming?”

They say: “All channels are important. We’re giving everything time to work.”

Translation: “We don’t want to cut anything because that admits failure.”

Here’s what SHOULD happen:

You ask: “What’s working and what isn’t?”

They say: “Instagram is getting engagement but zero conversions. We should cut this or change the approach.

Email is converting at 3.2% which is solid.

Google Ads are getting 5 customers/month at $180 each. This is working.

Recommendation: Cut Instagram budget by 50%, reallocate to Google, and rebuild the email funnel.”

Honest. Data-driven. Willing to admit what’s not working.

Real example of BAD transparency:

“We’re pivoting to a new strategy because the market has shifted.”

Translation: “Our old strategy didn’t work and we don’t want to admit it.”

Real example of GOOD transparency:

“Your Facebook ads produced 0 customers in 3 months while spending $2,000. This isn’t working. Here are three reasons why… [reasons]. Here’s what we’ll try instead. If this doesn’t produce customers in 30 days, we should stop.”

Translation: “We’re tracking what works, killing what doesn’t.”

Why this matters: If they won’t admit what’s failing, they can’t improve. You’re stuck paying for underperformance forever.

The Uncomfortable Truth

Here’s what most agencies won’t tell you. Most agencies care more about keeping the contract than getting you results.

They’re afraid to:

• Cut underperforming channels (looks like they’re giving up)
• Admit a strategy failed (looks incompetent)
• Be specific about timeline (might miss deadline)
• Focus on revenue metrics (might not look good)

So instead they hide behind:

• Buzzwords (“organic reach,” “brand synergy”)
• Vanity metrics (followers, impressions, engagement)
• Vague promises (“wait and see,” “long-term play”)
• Generic advice (applies to every business)

Meanwhile, you’re writing checks and waiting for results that never come.

The 3 Questions That Separate Good Agencies from Bad Ones

Ask ANY agency these three questions. Their answers will tell you everything.

Question 1: “Show me an example of a campaign that failed. What went wrong and what did you learn?”

Bad answer: “All our campaigns succeed eventually. It takes time.”

Good answer: [Specific example of something they tried, why it didn’t work, what they changed, what resulted]

Why it matters: Good agencies are comfortable admitting failure because they learn from it. Bad agencies hide it.

Question 2: “For my specific business type, what metrics matter most?”

Bad answer: “We track all metrics. Followers, engagement, traffic, etc.”

Good answer: “For a [your business type], we track customer acquisition cost, revenue per channel, and customer lifetime value. Everything else is secondary.”

Why it matters: Good agencies know what matters for YOUR business specifically. Bad agencies have a generic playbook.

Question 3: “If results aren’t what we expect in 90 days, what happens?”

Bad answer: “Marketing takes time. We usually see results in 6-12 months.”

Good answer: “We give campaigns 30 days to collect data. If we’re not seeing positive signals by 45 days, we change strategy. If we’re not hitting our target by 90 days, we either change approach or discuss contract terms.”

Why it matters: Good agencies are confident enough to set timelines. Bad agencies hide behind vagueness.

What to Do If You Recognize These Red Flags

You have four options:

1. Have a Direct Conversation Show them this article. Ask: “Are we falling into any of these traps?” They might change. They might not. But at least they know.

2. Give Them 30 Days to Prove It Say: “I want to see clear ROI metrics by 30 days. Show me customer acquisition, revenue generated, cost per customer. If I can’t see these numbers, we need to make a change.”

3. Get a Second Opinion Bring someone in (like me) to audit what they’re doing. Sometimes an outside perspective reveals what you’re missing.

4. Make a Change If they won’t be transparent, won’t admit failures, won’t focus on revenue metrics, and won’t explain strategy clearly… it’s time for a different agency.

Life’s too short to pay for mediocre marketing.

The Machi Difference

Here’s how we do things differently:

✅ Clear, specific strategy You understand what we’re doing and why in one sentence.

✅ Revenue metrics ONLY We track customer acquisition, revenue, ROI. Not followers and impressions.

✅ Specific timeline Here’s what to expect in weeks 1, 2, 4, 8, and 12.

✅ Industry expertise We know YOUR business specifically, not generic advice.

✅ Radical transparency If something’s not working, we kill it immediately.

✅ Results accountability We tie our success to YOUR business results.

We’re not the cheapest. But we’re accountable.

Here’s What I Recommend

If you’re seeing these red flags with your current agency, you need to know what you’re actually getting for your money.

Let’s do a free audit of your current marketing situation.

I’ll review:

1. What they’re tracking – Are they measuring the right things?
2. What they’re producing – Is the work aligned with real business goals?
3. How transparent they are – Can they explain strategy and results clearly?
4. Whether they understand your business – Is advice generic or specific?

Then I’ll tell you honestly: Is this agency worth keeping, or should you make a change?

No sales pitch. Just honest assessment.

Ready to know what’s really happening with your marketing?

👉

(Takes 20 minutes, could save you thousands)

One More Thing

While you’re thinking about it, ask yourself: “Can I point to the exact revenue this agency generated last month?”

If not, why not? They should be able to answer this immediately. If they can’t, you know something’s wrong.

Let’s fix it.

FAQ

Q: “Are all agencies bad?” A: No. There are great ones. But most aren’t transparent about ROI. This article helps you tell the difference.

Q: “What if my agency says they need 6 months?” A: They might be right for some tactics (brand building). But they should have results showing by month 3. If nothing by 90 days, something’s wrong.

Q: “Is this about getting me to switch to Machi?” A: Not really. If your current agency answers the three questions well, you’re fine. This is about helping you spot BS.

Q: “What’s a good cost for a marketing agency?” A: Depends on what they do. Should be directly tied to results though.

Q: “Can I do this myself?” A: You can. It takes time to learn and execute. Whether that’s a good use of your time depends on your situation.

Next Steps

1. Ask your current agency the three questions above.
2. See how they respond.
3. Schedule Your Free Marketing Agency Audit Here if you want an outside opinion.

That’s it. See you soon.

—Michelle