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Advice before signing a contract with a digital agency

AboveStandard

05 Dec 2024

AboveStandard

Choosing to work with a digital agency can be a big decision with a direct impact on your business growth and marketing. Unfortunately, many companies end up trapped in long engagement periods where results don’t live up to expectations.

Here are some tips to avoid pitfalls and ensure a healthy and productive partnership.

1 . Beware of long commitment periods

One of the biggest red flags for digital agencies is long retainers. Commitment periods of 12, 18 or even 24 months may seem appealing with promises of lower costs or extra services, but they can quickly become a trap if the collaboration doesn’t work out. Make sure the agreement has flexible cancellation terms so you’re not stuck with an agency that doesn’t deliver value.

2 . Understand what you’re paying for

Many agencies offer packages with complex services, but it can be difficult to understand what you’re actually getting for your money. Ask for a detailed list of what’s included and what results you can expect. Also, be sure to ask if the agency works with fixed prices or performance-based models.

3 . Read the contract carefully

Take the time to review the contract carefully before signing. Pay special attention to:

  • Commitment periods
  • Termination terms
  • Ownership of data and campaign materials
  • Any additional fees

If anything seems unclear, ask about it – or get a legal advisor to review the agreement.

4 Avoid agencies that overpromise

If an agency promises unrealistic results in a short period of time, you should be sceptical. Digital marketing requires time and strategy to create sustainable results. Choose an agency that is honest about what can be achieved and can explain how they will measure success.

Good collaboration is built on trust, not coercion – avoid long-term commitments and choose the freedom to adapt and act when necessary.

5 . Check experience and references

Research the agency’s previous work and results. Ask for references from other clients and read reviews. A trustworthy agency will have case studies or examples of successful projects to share.

6 Prioritise flexibility

Working with a digital agency should be customisable to your business needs, which can change over time. Make sure the agreement allows you to adjust services, budgets or strategies without being locked into a rigid framework.

7 . Have clear expectations from the start

A good deal starts with clear expectations. Discuss your goals, KPIs and success criteria with the agency before signing the contract. When both parties agree on what needs to be delivered, it minimises the risk of conflict later on.

Final advice

Working with a digital agency can yield great results, but you need to choose wisely. Be critical of long contracts, ask questions and make sure you understand all aspects of the contract. Remember, a good agency should work for your success – not keep you trapped in a deal you can’t get out of.