Let me say the quiet part out loud: if an agency agrees to only get paid on performance, you should ask yourself who’s actually in control, and whose growth they’re optimizing for. Because here’s the truth — performance-only deals sound founder-friendly, but in practice, they’re a trap. They misalign incentives, limit innovation, and often leave both sides frustrated.
As the founder of a marketing agency that’s scaled thousands of brands, I get this objection weekly: “If you’re so confident, why won’t you work on commission?”
It’s a fair question. But it’s also the wrong one.
Let me flip it. If your brand is so strong, why haven’t you doubled revenue yet? The answer is probably the same: growth takes capital, time, and strategy, not just hustle.
The Commission Mirage
The appeal is obvious. You think, “If they don’t deliver, I don’t pay. Risk-free.”
But no deal is ever truly risk-free. Performance-based agreements shift the risk; they don’t eliminate it. And in most cases, they transfer all of it to the agency — without granting the control needed to de-risk your business.
That’s the paradox. If you’re only paying when something works, your agency will default to what’s safe. They’ll chase what’s predictable and short-term. And that means tactics over strategy, optimization over brand-building, and gimmicks over real growth.
Even worse? It builds in a self-destruct button.
While a performance-based model sounds great in theory, it eventually punishes us for doing our job well. That 10% of revenue might feel reasonable when you’re pulling in $10K a month. But what happens when we help you scale to $100K, $500K, or beyond? That same deal becomes a pain point. We become “too expensive,” not because we failed — but because we succeeded.
And when that happens, founders pull the plug. So ironically, the performance model disincentivizes long-term success.
The Real Cost of “Only When It Works”
Let’s dig deeper into what you’re actually sacrificing in a pure commission deal:
- Strategic Vision: Agencies won’t invest in innovation. Why test new creative, new channels, or brand campaigns if there’s no guaranteed payout?
- Creative Integrity: Performance-only shops default to spammy tactics. Think: email blasts, endless promos, heavy discounts. These may spike conversions, but they cheapen your brand and erode customer trust.
- Customer Lifetime Value: The focus becomes the click, not the customer. No one’s thinking about how to build LTV, increase loyalty, or boost repeat purchases. It’s all about getting that first sale.
- Channel Diversification: If Meta works, they’ll stay glued to it. No one’s incentivized to build a sustainable omnichannel strategy when payout depends on today’s dashboard.
I’ve seen brands get trapped in this cycle — killing long-term momentum just to squeeze a few extra points of ROAS in Q2.
Why the Best Partners Don’t Work for Free, They Work for Freedom
Let me be clear, accountability matters. Transparency matters. But that’s not the same as demanding your agency operate on a commission leash.
The best partners want a growth-aligned structure, not a dependency model. They want the freedom to push bold ideas, test unproven channels, and build long-term value.
In our experience with over 5,000 brands, the ones that win big are the ones who understand this. They look for partners who operate like fractional CMOs, not affiliate marketers.
They ask better questions:
- How do we structure incentives that encourage strategic investment?
- What early signals should we measure before revenue follows?
- Where do we double down — and where do we take smart risks?
Ask This Instead
Don’t ask, “Will you work on performance?”
Ask:
- How do you stay accountable while still investing in the long-term?
- What does sustainable growth look like in the first 90 days?
- How do you decide when to optimize vs when to innovate?
- What’s your framework for LTV vs CAC tradeoffs?
- How do you handle creative and strategic risk?
Any agency can chase short-term efficiency. Very few can build sustainable momentum. And fewer still will tell you the truth when the best strategy isn’t the easiest one to measure.
Final Thought: You Don’t Need Mercenaries, You Need Builders
There’s a reason smart founders don’t compensate their CMO purely on MQLs. Marketing is art, science, timing, and gut. You’re not paying for clicks — you’re paying for compound strategy, brand reputation, and business elevation.
So no, great agencies rarely work just on commission.
Because great agencies aren’t betting on a single return.
They’re betting on your legacy.
