If you’re in the process of researching lead generation agencies or already have a few in mind, there are some things you should know before signing up. Unfortunately, many lead gen agencies have a reputation for charging high fees without delivering on their promises. This leaves many B2B companies, especially small businesses, burned by lead gen services and believing that they simply don’t work.

These missed opportunities can result in businesses falling behind in competitive markets, where a well-chosen lead gen partner could have added significant value to their sales funnel. Before you dismiss lead generation altogether, let’s explore what separates great agencies from mediocre ones and how you can make an informed decision.

4 Things to Consider When Hiring a Lead Gen Agency

1. Identify Your Goals 

Before engaging with sales reps from any lead generation agency, it's crucial to understand why you’re considering hiring one. Are you looking to improve your outbound sales process, reduce your customer acquisition cost (CAC), or scale your sales funnel?

Identifying the specific areas of your sales process that need improvement will help you evaluate whether outsourcing lead generation is the right move. It also helps hold agencies accountable to your specific needs, ensuring you get the service tailored to your business.

You also need to ask yourself:

• Is your offer validated? A lead gen agency can’t magically fix an unproven offer.
• Are you focused on meeting-ready leads or just interested in testing positive responses?
• Do you want the agency to manage your inbox and book meetings, or would lighter inbox management suffice?

If you’re unsure of your needs, you may end up sinking funds into an agency that isn't able to truly serve you.

2. Understand Their Pricing 

One of the biggest mistakes businesses make is assuming higher costs lead to better service. Many agencies charge retainer fees that can be astronomical, only to deliver bad-quality leads - or worse, not deliver at all.

Instead of focusing on price alone, look for agencies that offer performance-based pricing models. This means you’ll only pay for qualified leads, and the agency has the infrastructure to back up their claims with data.

Run the math backward to see if the numbers make sense. How many leads do you need, and what’s the cost per lead? If the agency can’t explain its costs clearly or justify its pricing structure, consider that a red flag.

3. Evaluate Their Level of Service

Every client deserves personalized attention, clear communication, and a proactive approach to campaign management. A reputable lead gen agency should provide these things from day one:

• Timelines: You should know the exact timeline from onboarding to campaign launch. Regular progress updates are a good indicator that things are on track.
• Dedicated Account Manager: A dedicated customer success or account manager should be in touch with you at least once a month to discuss performance. This ensures there’s someone accountable for your results.
• Performance Improvements: The agency should be upfront about how they’ll improve underperforming sequences, whether it’s optimizing copy, improving deliverability, or refining lead lists.

If you’re not getting consistent communication, performance updates, or proactive solutions, it’s likely a sign of trouble ahead.

4. Have They Serviced Your Industry?

While it’s tempting to sign up with an agency that promises big results, it’s crucial to find out if they’ve actually serviced your industry. Agencies with industry-specific experience tend to generate better ROI because they understand your target market and can create tailored strategies that resonate with your prospects.

That said, a lack of experience in your industry isn’t always a deal-breaker, but it does mean the agency may need more time to deliver the same level of performance.

Should You Build In-House or Outsource?

Now that you know what to look for in a lead gen agency, the next question is whether you should build a lead gen team in-house or outsource. 

Building Lead Gen In-House

If you have a validated offer and enough revenue to hire a team, building in-house might be the better option. Here are two things to consider: 

• Automation: Automating tasks like scraping contact information and email outreach allows you to streamline the process.
• Control: You have full control over the lead gen process, which can lead to better results if done correctly.

However, building in-house requires time, technical know-how, and a significant upfront investment.

Outsource

If you don’t have the resources to build an internal lead gen team, outsourcing can help you get leads without the overhead of hiring an entire team. Lead gen agencies often have the tools and expertise to generate leads more efficiently, especially for small to mid-sized businesses.

Just make sure the agency specializes in your industry or channel and has a pricing model that aligns with your pocket.

What Sets The Best Lead Gen Agencies Apart?

The best lead gen agencies offer more than just leads. Here’s what to look for:

• Authority: Are they experts in list building and email deliverability? This is key for successful cold outreach in 2024.
• Support: Do they have a dedicated account manager and a clear outline of how they’ll support you at every step? ‍
• Client Reviews: What is their track record with clients? Do they have video testimonials or case studies you can review?

Choosing the right lead gen agency can be overwhelming but by knowing your own needs, evaluating pricing models, and assessing the agency’s level of service, you’ll be able to make a more informed decision. Don’t fall into the trap of thinking lead gen doesn’t work. Find the right partner and you’ll quickly see the value lead gen can add to your sales funnel.

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