How to Choose a Lead Gen Agency: 7 Red Flags That Could Cost You Clients

Lead generation sits at the heart of business growth, but doing it well demands resources, skill, and focus. Outsourcing is often the smarter and more cost-effective option; the challenge is finding the right partner.

From agencies with slick websites but little substance, to Upwork freelancers promising 1000 leads for $10, to premium firms that feel out of reach – how do you choose a lead gen agency you can trust to represent your brand and grow your pipeline?

While the right choice depends on your needs and budget, there are some warning signs you shouldn’t ignore.

Here are 7 red flags to watch for:

🚩 1. Guarantees like “Book 50 meetings” or “Sign 10 clients"

No lead gen agency can predict the future. There are too many variables outside of their control to guarantee a specific numbers of qualified leads which will be generated.

Goodhart's Law: when a measure becomes a target, it ceases to be a good measure. When the focus is on hitting arbitrary numbers, quality takes a backseat to quantity.

Look for an agency that emphasizes quality and tailors their approach to your specific goals. Results come when they are deeply invested in understanding your business, audience, and market. Not from empty promises before they even know who you are.

🚩 2. They talk about themselves, instead of asking about you

If an agency doesn’t ask detailed questions about your business, goals, audience, sales cycle – run. One-size-fits-all doesn’t work in lead generation and will damage your brand reputation.

A good agency will spend time learning about:

• The problem that your service/product solves

• Your ICP (Ideal Client Profile) and their pain points

• Your industry and competitive market

• Your brand voice

Don’t settle for less.

🚩 3. High-pressure sales tactics

The way they sell to you is a preview of how they’ll represent your brand to your prospects.

Nobody likes being pushed, especially in sales. It’s a shortcut to damaging relationships and leaving a bad impression.

Choose an agency that prioritizes understanding your needs over rushing to sign you up.

🚩 4. Success fee or commission-only fee structure, without a retainer

The quality of the input dictates the quality of the output, especially so in lead generation.

You need to invest time and energy to understand the market. Conduct thorough research to identify the most relevant prospects. Source and verify their contact info. Craft thoughtful, personalised copy. Execute the campaigns consistently across multiple channels.

TLDR: Good lead generation requires upfront resources, time, and expertise. That doesn’t come for free.

Moreover, paying solely per meeting/lead means the focus will be on the volume of "leads", rather than quality and fit.

🚩 5. Poor or no examples of past work

A credible agency should have no problem showing you real-life examples of successful campaigns or at least mock-ups of what they’d do for your business.

Ask to see a sample email, a campaign strategy, or metrics from past projects. This isn’t just about results – it’s about seeing how they communicate and whether their style aligns with your brand.

If they dodge the question or only offer vague answers, it’s a red flag. If they’re proud of their work, they’ll happily share it.

🚩 6. Overreliance on volume and automation

Automation has its place in sales, but it comes with risks. AI lacks nuance. It can’t capture the authenticity and empathy needed to represent your brand effectively.

Volume sacrifices quality. Your market isn’t infinite – blasting generic mass emails burns through potential leads and can damage your reputation.

The best prospecting is human-led, with technology used to enhance, not replace the personal touch. The focus needs to be on meaningful engagement, not volume.

🚩 7. Avoiding transparency about their process

If an agency can’t clearly explain how they source, qualify, and engage leads, it’s a red flag. Vague answers like “We have a proven system” often mean they’re cutting corners or using unethical tactics.

You should know where your leads are coming from, how they’re vetted, and how the outreach aligns with your goals.

A good agency will walk you through their process step-by-step and welcome your questions.

Picking the right lead gen partner takes care and attention – watch for these red flags, and you’ll be set up to work with an agency that respects your brand, understands your audience, and helps your pipeline grow.

If you want to explore a thoughtful, human-led approach to lead generation – send us a DM, and let's have a chat.