Marketing Agency Horror Stories Episode 5: Retainers Pt. 2

In Episode 5 of our Marketing Agency Horror Stories series, and part two of our discussion on retainers, we are covering general marketing retainers. While part one focused on the technology side, this episode addresses the broader relationship between a business and its agency partner, and what that relationship needs to look like to actually produce results.

GENERAL MARKETING RETAINERS

A general marketing retainer is what most companies enter into when they bring on an agency partner to execute across multiple areas of marketing. The goal is to fill capability gaps the company cannot address in-house, and to drive its marketing strategy forward over time. That scope can span a wide range of disciplines: content development, SEO, digital advertising, social media, PR (including press release writing and distribution, media relations, and crisis communications), email marketing, and more. These engagements have a higher ceiling for value, but also a higher ceiling for what can go wrong.

Get the Scope in Writing

The most basic requirement for any general marketing retainer is a clearly defined scope of work. Without it, there is no accountability for what is being done, how long it is taking, what it costs, or what results are expected. That ambiguity benefits the agency, not the client.

Before signing any retainer agreement, the scope needs to spell out specifically what work will be performed, at what frequency, and how success will be measured.

Match the Firm to Your Industry and Your Needs

The agency you select needs to have both experience in your industry and the actual capabilities to execute across the disciplines your marketing program requires. These are two separate things, and both matter.

Horror Story: We have seen clients who came to us after working with an agency that simply was not equipped for their industry. One specific example involved a client in a highly technical field working with an out-of-state firm that lacked both the industry knowledge and the execution capabilities to produce results. Part of the problem was an undefined scope. The other part was that the firm was never the right fit to begin with.

Be Cautious of One-Program Firms

Some agencies have built their business around a single proprietary program or methodology. They present it as a proven system, and sometimes it works well. The problem arises when it does not. A firm that has one approach and no meaningful alternative is a risk for any client whose business does not fit neatly into that model.

If you look at an agency's website and everything points to a single program or framework as the answer to every client's needs, that is worth scrutinizing carefully before signing a long-term agreement.

Make Sure the Contract Includes Reasonable Cancellation Terms

This applies to all retainer types, not just general marketing retainers. Any retainer contract should include a cancellation clause that allows either party to exit with reasonable notice. Thirty to sixty days is a standard and fair range. If a provider is unwilling to include reasonable termination language, that is a red flag worth taking seriously before the contract is signed.

Strategy Has to Come First

A general marketing retainer should be built on a foundation of strategy. That means the agency needs to understand your business: how it is differentiated, who your ideal customers are, what your growth objectives look like, and how marketing can support the company in reaching them.

Agencies that focus primarily on producing deliverables and executing tasks without that strategic foundation tend not to drive real results. The work may look productive on paper, but if it is not aligned to how the business grows, it will not produce the outcomes your company needs.

Reporting Is Non-Negotiable

If your marketing partner is not providing regular, substantive reporting, you have no way of knowing whether the retainer is working. Monthly reports should cover key metrics and, most importantly, the conversion actions that matter most to your business growth.

Reporting is not just about data delivery. It should include analysis of what the numbers indicate, what the agency is seeing, and how they plan to improve results going forward. That conversation, reviewed together with your agency each month, is what separates a retainer that drives growth from one that simply costs money.

A NOTE ON SOCIAL MEDIA RETAINERS

There is no shortage of options when it comes to social media management. Freelancers, boutique agencies, and large firms all offer it, and the range in price is wide. That range in price often reflects a range in capability, and that gap matters depending on what your company is trying to accomplish.

Capabilities Before Cost

The central question to ask before selecting a social media partner is not how inexpensive the option is. It is whether that provider has the capabilities and capacity to help your business drive results. A freelancer may offer a lower price point and attentive service, but the more important question is whether they can move the needle for your business in a meaningful way.

Tie It Back to Business Outcomes

Social media management should be evaluated the same way any other marketing investment is: against your company's actual goals. What are you trying to accomplish, and does this provider have a realistic path to help you get there?  If that alignment is not present, the retainer is unlikely to deliver what your business needs regardless of how active or consistent the posting is.

WHAT TO CONFIRM BEFORE SIGNING A GENERAL MARKETING RETAINER

A marketing retainer represents a real investment of time and money. The companies that get the most out of those relationships are the ones that evaluated their agency carefully, set clear expectations upfront, and held their partners accountable to results. The ones that struggle are usually missing one or more of those things from the start.

Before committing to any agency for a broad marketing retainer, make sure you can answer the following:

• Is the scope of work clearly defined, including deliverables, timelines, and success metrics?
• Does the agency have verifiable experience in your industry and the capabilities to execute across the disciplines you need?
• Is the agency's approach adaptable, or are they built around a single program or methodology?
• Does the contract include reasonable cancellation terms, with no more than 60 days notice required?
• Is strategy central to how the agency works, or are they primarily focused on production and execution?
• Will they provide monthly reporting that includes analysis, not just data?

If you have questions about what a well-structured marketing retainer should look like, reach out to us directly. We are glad to help you think through it.