Most founders we speak to have hired at least one marketing agency before they reach out to us — and most of them have one or two regret stories about that engagement. The patterns repeat. Wrong commercial structure. Junior team on the account while the senior team did the pitch. Ad accounts owned by the agency, not the client. Six-month minimum on a model that was never going to work. Almost every single failure could have been prevented at the contracting stage by asking the right questions before signing.
This is the list. Twelve questions, organised in four groups — commercials, execution, risk protection, and exit. If an agency can answer all twelve clearly and put the answers in writing, they're worth a real conversation. If they hedge or push you to "just sign and we'll figure it out as we go," walk away.
If you're already past this stage and locked into a contract that's not working, see also our breakdowns on performance vs retainer models and commission structures to figure out what to renegotiate at renewal.
The cost of the wrong agency engagement isn't just the fee. It's six months of missed growth while you waited for the model to start working.
Commercials — the four money questions
1. What's the exact commercial structure for this engagement?
Flat retainer? Percentage of ad spend? Revenue share? Pay-per-result? Hybrid? Get the model named, the rates put in writing, and the math worked through on a sample month so you can see exactly what you'd pay under different outcomes. Vague answers like "we'll work something out that's fair" mean either the agency hasn't standardised their commercials or they're hoping to charge differently to different clients.
2. What attribution methodology are you using?
This is the one most founders skip and most agencies are happy to keep vague. Last-click on Meta? GA4 last-non-direct? First-touch in your CRM? Same campaign can show three completely different revenue numbers depending on which methodology is used. Pick one, write it into the contract, and use it consistently for invoice reconciliation.
3. What's the minimum monthly ad spend you require?
Real performance agencies need a floor — usually Rs. 30,000-75,000/month — for the algorithms to have enough data to optimise. Below that, the unit economics don't work for either side. An agency that says "we can work with any budget" is either subsidising small accounts (unsustainable) or running them poorly (predictable).
4. How are invoices calculated and reconciled monthly?
If you're on a commission or per-lead model, the invoice should arrive with raw data — every lead delivered, attribution timestamp, qualification status. Not a summary. Not a PDF. Raw rows you can audit against your CRM. Agencies that send "invoice for Rs. 1,42,000 — services rendered" are hoping you don't check.
Execution — the four delivery questions
5. Who specifically will work on my account day-to-day?
The pitch team and the delivery team are usually different people. Get the senior person owning your account named, ask how many other accounts they're managing simultaneously (4-6 is healthy, 10+ means you'll get little real attention), and confirm whether you have direct access to them or only through an account manager.
6. How is creative production handled?
For paid acquisition above Rs. 1 lakh/month, you need 4-12 fresh creative variants every month. Is the agency producing them in-house? Outsourcing to a freelance team? Expecting you to provide them? Each model has trade-offs but you need to know which one you're signing up for, and what's included versus billed separately.
7. What's the reporting cadence and format?
Weekly metric snapshot (CPL, CPA, ROAS, spend pacing) is reasonable — and should arrive automated. Monthly results review on a 45-60 minute call is non-negotiable. Avoid agencies that send a beautifully designed PDF report and skip the call. The conversation, not the document, is where you find out what's actually happening on your account.
8. What does the first 30 days look like?
The honest answer is "we won't drive your best results in month 1 — we're learning your account and the algorithm is learning the conversion event." Agencies that promise immediate big wins are either oversimplifying or planning to optimise for short-term vanity metrics. Look for an answer that names the audit, the setup work, and the optimisation milestones realistically.
An agency that won't tell you who's actually doing the work has already told you who's doing the work.
Risk protection — the three safety questions
9. Who owns the ad accounts and conversion data?
You. Always you. Meta Business Manager, Google Ads, LinkedIn Campaign Manager, your analytics platforms — all owned by you, with the agency added as an authorised user. Agencies that insist on owning the accounts themselves are creating a switching cost — when you eventually leave, your campaign history, audience data, and conversion learning leaves with them. This is non-negotiable.
10. What's the exact qualification definition for leads/installs/purchases?
For pay-per-result models, this is the single most important clause. "Qualified lead" must be falsifiable and human-verifiable, not just "someone who submitted the form." Loose definitions mean the algorithm hunts for the cheapest form submissions, which are almost never your real customers. The disqualification process — how you flag bad leads, the dispute window, the resolution mechanism — all needs to be in writing.
11. Can I see two-three case studies with raw numbers and a reference call?
The good answer is "yes, here are screenshots from two account dashboards with the metrics, the date range, the spend, and the revenue or lead figures with attribution — and here's the contact info for those clients to confirm." The bad answer is a slide deck with logos and percentage uplifts but no source data.
Exit — the question nobody asks before they need to
12. What's the initial term, notice period, and transition support?
90 days initial term is fair. Monthly rolling renewal after that with 30 days notice is standard. Transition support — handing over creatives, audiences, conversion configurations, and any custom audiences — should be included in the contract, not a billable extra at exit. Agencies that require 6-12 month minimums on performance models or charge for transition are protecting themselves at your expense. Walk.
Red flags — when the answers don't match
- "We'll send you the contract once we've agreed in principle."The contract is the agreement in principle. Anything not in writing isn't an agreement. If they want a verbal yes before they share the actual terms, the terms are probably worse than what they said in the call.
- The case studies have logos but no numbers.Brand-name client logos are easy to display. Actual revenue, lead, or install figures from real engagements are harder. The absence of one when the other is loud usually means the engagement either didn't happen or didn't deliver.
- They want a 6-12 month minimum on a performance model.If they were confident in the performance model, a 90-day initial term would be enough. Long minimums are the agency hedging against their own performance.
- They're cagey about who will do the daily work.The senior team did the pitch. The junior team will do the execution. Knowing this in advance lets you negotiate; not knowing it means you'll find out month two.
- They oversimplify attribution."We use Meta's data" is not an attribution methodology — it's deferring the question. Real performance agencies have a defined attribution methodology and can explain it in plain language without hand-waving.
The 12-question checklist — print and ask
| # | Question | Group |
|---|---|---|
| 1 | What's the exact commercial structure? | Commercials |
| 2 | What attribution methodology will you use? | Commercials |
| 3 | What's the minimum monthly ad spend? | Commercials |
| 4 | How are invoices calculated and reconciled? | Commercials |
| 5 | Who specifically will work on my account? | Execution |
| 6 | How is creative production handled? | Execution |
| 7 | What's the reporting cadence and format? | Execution |
| 8 | What does the first 30 days look like? | Execution |
| 9 | Who owns the ad accounts and data? | Risk |
| 10 | What's the exact lead/install qualification definition? | Risk |
| 11 | Can I see raw-number case studies and a reference call? | Risk |
| 12 | What's the initial term, notice, and transition support? | Exit |
Frequently asked questions
In closing
The contracting stage is the cheapest and easiest place to protect yourself. Once you've signed, every weakness in the agreement gets harder to renegotiate — the agency knows you've already committed and the cost of switching feels higher every month. Front-loading these 12 questions costs you one extra meeting and saves you, in our experience, three to nine months of frustration with the wrong engagement.
If you're about to hire an agency, take this checklist into the next pitch call. If you're already engaged with one, run the questions retroactively — the gaps tell you what to renegotiate at renewal. And if you'd rather skip ahead and just look at what an honest performance engagement looks like, that's what our private audit covers.
At GUROB we run paid acquisition for app companies, B2C lead gen, D2C and ecommerce, and info product launches on hybrid commercial models. The audit (free) walks through what those models look like for your specific account.