How to Effectively Work with a Performance-Based Marketing Agency

Have you ever worked with a marketing agency and felt unsure if your investment was really paying off? You’re not alone. But what if you only had to pay for the outcomes that actually matter to your business—like leads, conversions, or sales? That’s where performance-based marketing comes in.

According to recent surveys, 80% of businesses are looking to invest in marketing strategies where they can see clear, trackable ROI. On top of that, 72% of companies say their top marketing challenge is aligning their spend with measurable business outcomes. It’s no wonder performance-based marketing is gaining popularity!

Here are just a few reasons why businesses love working with performance-based marketing agencies:

• Pay for Results: You only pay when your goals are met, whether it’s an increase in sales, leads, or website traffic.
• Accountability: The agency is incentivized to drive real, measurable success, not just impressions or reach.
• Transparency: You get to see exactly where your investment is going and how it’s translating into business growth.

In a previous article, we discussed the pitfalls of working with a performance-based agency. However, in this article, we’ll dive into how you can make the most of your partnership with a performance-based marketing agency – if you do want to work with one.

Before Talking With An Agency, You Need to Understand Your Goals

Before jumping into a partnership with a performance-based marketing agency, it’s crucial to have your goals crystal clear. This is one of the biggest factors that will determine whether or not you get real value from the relationship. Without a defined target, how can anyone hit the bullseye?

Start by asking yourself: What do I really want to achieve? Do you need more leads, more sales, or perhaps increased traffic to your website? Maybe you’re aiming to boost your brand’s visibility in the market or improve conversion rates. No matter the case, identifying specific goals gives both you and the agency a clear roadmap to follow.

Here’s a tip: Keep your goals SMART—specific, measurable, achievable, relevant, and time-bound. For example, instead of saying “I want more traffic,” you might say, “I want to increase website traffic by 20% over the next three months.” This way, the agency knows exactly what they’re working toward, and you have a clear way to measure success.

Stats show that businesses with well-defined goals are 50% more likely to achieve higher levels of performance compared to those that don’t have a clear direction. When you share specific objectives with your marketing agency, it allows them to tailor their strategy directly to what matters most to you.

Do Your Homework on the Agency

Once you’ve got your goals locked down, the next step is finding the right performance-based marketing agency to help you achieve them. This is where doing a bit of homework can save you a lot of time—and money—down the road. Not all agencies are created equal, so it’s essential to dig in and find one that’s a good fit for your business.

Look for these key factors when researching an agency:

• Case Studies & Success Stories: A reputable agency will showcase their past successes. Look for real-world examples of how they’ve helped other companies reach their goals.
• Reviews & Testimonials: What are other businesses saying about their experience? Positive reviews and testimonials from satisfied clients can be a good indicator of reliability and performance.
• Industry Experience: Have they worked with businesses in your industry before? An agency with industry-specific knowledge will understand your market and challenges more deeply.

Did you know that 89% of businesses say they trust reviews as much as personal recommendations? Checking an agency’s reviews on their site and third-party platforms can give you a better picture of what working with them is really like.

And here’s a pro tip: Ensure the agency is transparent about their processes. Ask them how they measure success, what reporting tools they use, and how often they’ll communicate updates. You want to work with a team that keeps you in the loop, explains their strategy clearly, and provides easy-to-understand performance reports.

Define Success Together

Once you’ve chosen your performance-based marketing agency, the next step is to get on the same page about what success looks like. Start by sitting down with the agency and discussing your expectations openly. What are the specific outcomes you want to achieve? Whatever it is, make sure these objectives are measurable so you can track progress along the way.

Key performance indicators (KPIs) are your best friend here. These are the numbers that will tell you if you’re on the right track or need to adjust course. Some common KPIs to consider include:

• Cost per lead (CPL): How much are you paying for each new lead?
• Website Traffic: How much incremental traffic was generated by channel?
• SEO Rankings: Prioritize high-impact keywords you want to rank for. One thing that performance-based agencies typically do is choose keywords that are not valuable or long-tail that don’t provide traffic value – make sure this is not happening.
• Conversion rate: What percentage of your visitors or leads are becoming paying customers?
• Return on ad spend (ROAS): How much revenue are you generating for every dollar spent on marketing?
• Customer lifetime value (CLV): How much revenue do you expect from each customer over the lifetime of their relationship with your business?

According to recent studies, companies that regularly review their KPIs with their marketing agency see up to 30% higher returns on their marketing spend.

Make sure you also discuss timelines and benchmarks. Are you looking for quick wins in the next three months, or is this more of a long-term strategy? It’s important to set realistic expectations for when you’ll start seeing results.

 Maintain Open Communication

One of the most important aspects of working with a performance-based marketing agency is keeping the lines of communication open. When you first start working with the agency, set up a clear communication plan. How often will you meet? Will it be weekly check-ins, monthly updates, or something else? Agreeing on a regular schedule helps everyone stay on the same page. Don’t just leave communication to emails—jump on calls or video chats to discuss progress, challenges, and new ideas.

A study found that businesses with regular communication between teams and external partners see a 20-25% improvement in overall performance.

Here are some tips to make communication with your agency smooth and productive:

• Be clear and direct: When discussing your goals, feedback, or concerns, be as specific as possible. If a campaign isn’t meeting expectations, explain why and what you’d like to see instead.
• Ask for regular reports: Request detailed reports on how your campaigns are performing. This should include KPIs, trends, and any changes they’ve made based on the data.
• Stay open to feedback: The agency might suggest adjustments to your strategy based on what’s working or what needs improvement. Being open to their recommendations helps you get the most out of your investment.
• Share your insights: You know your business better than anyone. If you notice trends in customer behavior or seasonal changes in sales, share that information with the agency. This collaboration helps them fine-tune campaigns in real-time.

Pro tip: Don’t hesitate to ask questions. If there’s something you don’t understand in the performance reports or if you want to dive deeper into a specific metric, speak up! A good agency will always take the time to explain things in a way that makes sense to you.

Be Open to Change and Adaptation

In the world of performance-based marketing, flexibility is key. Marketing is not a set-it-and-forget-it game—it’s more like a living, breathing thing that requires constant monitoring, tweaking, and adjusting to get the best results. Being open to change and adaptation can be the difference between a mediocre campaign and one that delivers outstanding results.

Here’s why adaptation is important:

• A/B Testing: One of the most powerful tools in a marketer’s toolkit is A/B testing. This involves running two versions of an ad, webpage, or email to see which performs better. By comparing the results, the agency can optimize your campaign based on hard data, not just guesses.
• Changing Market Conditions: The marketing landscape can shift quickly. Whether it’s a new competitor, changes in consumer behavior, or a platform algorithm update, the agency needs to adjust strategies to stay ahead of the curve.
• Customer Insights: As your agency gathers more data on your target audience, they’ll learn more about what resonates with your customers. This could mean changing the messaging, tweaking the design, or shifting the budget to higher-performing channels.

In fact, according to marketing research, 80% of successful campaigns undergo significant changes based on real-time data and performance tracking. Pivoting and adapting based on what’s working and what’s not is a natural part of the process.

Evaluate Performance Fairly

Now that you’re working with a performance-based marketing agency, it’s time to evaluate how things are going. But here’s the thing: it’s important to evaluate performance fairly, especially when working in a results-driven environment. Not every campaign is going to show immediate, game-changing results, and that’s okay. The key is understanding how to assess progress and measure success over time.

Research shows that businesses that invest in long-term marketing strategies see up to 60% higher returns over time compared to those chasing quick fixes.

A good rule of thumb is to review results monthly or quarterly, depending on the type of campaign.

When you review your performance, make sure to:

• Look at trends, not just single data points: A single week of slow results doesn’t mean the campaign isn’t working. Look at how the metrics are trending over time—are they steadily improving?
• Factor in external influences: Not all marketing results are within the agency’s control. Seasonality, market shifts, and even unexpected events (like economic changes) can impact performance.
• Evaluate your role: A marketing campaign is a two-way street. Are you providing the agency with the right resources, feedback, or insights they need to adjust the campaign? Collaboration is key.

Collaborate, Don’t Just Delegate

Working with a performance-based marketing agency isn’t about handing over tasks and hoping for the best. To get the most value, you need to be an active participant in the process. When you collaborate closely with your agency, you provide essential insights that help them fine-tune their strategy and create campaigns that resonate with your customers. Simply put, the more you’re involved, the better the results.

Here’s how you can foster a collaborative relationship:

• Share your business insights: Do you have new product launches coming up? Have you noticed a shift in customer behavior? Maybe there’s a seasonal trend that always impacts your sales. Sharing these insights allows the agency to adjust its strategy in real-time.
• Be open to brainstorming: Whether it’s developing new ideas for ads, content, or promotions, participate in brainstorming sessions with the agency. Collaboration often leads to creative ideas that neither of you would have come up with on your own.
• Provide feedback quickly: When the agency sends you drafts, reports, or concepts, respond with feedback as soon as possible. Delays can slow down the campaign’s progress, and timely feedback ensures the campaign stays on track.
• Communicate your brand’s voice and values: Make sure the agency understands the tone and messaging that aligns with your brand. Are you aiming for a friendly and conversational tone? Or do you prefer a more formal, professional approach? The better they understand your brand, the better they can craft campaigns that resonate with your audience.

Stats show that companies that collaborate closely with their marketing partners experience up to a 30% improvement in campaign performance. Why? Because collaboration leads to campaigns that are more targeted, personalized, and reflective of your unique business needs.

Stay Focused on ROI

At the end of the day, everything comes down to return on investment (ROI). When you’re working with a performance-based marketing agency, it’s all about ensuring that every dollar you spend is driving results.

Here’s how you can ensure you’re maximizing ROI with your agency:

• Track key metrics: Keep a close watch on important metrics like cost per lead (CPL), customer acquisition cost (CAC), and return on ad spend (ROAS). These figures will help you understand whether your campaigns are efficient and driving real results.
• Ask for regular performance reports: Your agency should provide regular reports that detail how your campaigns are performing. Look for clear data on what’s working and what isn’t. If something isn’t performing, discuss it with the agency and adjust the strategy as needed.
• Focus on quality, not just quantity: It’s tempting to focus on the number of leads or clicks you’re getting, but remember—quality matters just as much as quantity. For example, generating 100 leads is great, but if only 10 convert into customers, you’re not maximizing your ROI. Always ask the agency about the quality of leads and conversions.
• Look at long-term value: It’s easy to get caught up in short-term wins, but don’t forget to consider the long-term value of your customers. Are you gaining repeat customers who will continue to drive revenue? Customer lifetime value (CLV) is a key metric for understanding the long-term impact of your marketing efforts.

According to a recent study, businesses that consistently track and adjust their campaigns based on ROI data see an average of 25% higher profits.

Conclusion: Making the Most of Your Partnership

We rarely offer performance-based campaigns to our clients – however, under rare conditions, we have. Working with a performance-based marketing agency can be a game-changer for your business, but like any partnership, the value you get depends on your effort. By following these steps—setting clear goals, doing your homework, defining success together, keeping communication open, staying adaptable, evaluating performance fairly, collaborating closely, and focusing on ROI—you’re setting yourself up for success.