Why Small Businesses Struggle with Marketing Agencies (And How to Avoid It)
My first role after uni was with a small marketing consultancy working with local businesses. This was back in the day when advertising meant a spot on the radio or a quarter-page in the local newspaper. Businesses were more likely to splash out on a fancy brochure than a website. And if they did have a website—was it mobile responsive? Like heck it was!
The thing is, back then, small business owners understood how advertising worked. It was straightforward. Buy an ad. Run it in the local rag. Maybe pop a jingle on the radio. Job done.
Fast forward 15 (cough... okay, 20) years, and the whole game has changed. Audiences are online, platforms are evolving faster than you can say “algorithm update,” and marketing has become a labyrinth of acronyms and dashboards.
From Big Budgets to Small Biz Realities
When I moved to the bright lights of Sydney and started working in agencies with big-brand clients, it was a different world. These companies had robust marketing teams — often several people deep — and many had worked with agencies before. They knew the drill. Campaign briefings, monthly reporting, performance reviews... nothing was foreign.
But for small business owners? That’s a whole different story.
Most don’t have a dedicated marketing department — some don’t even have one marketing person working inside their business. So stepping into the world of digital marketing and working with an agency can feel like landing on another planet. And while they’re absolute pros in their own fields — whether that’s landscaping, law, or local retail — they’re not necessarily experts in Google Ads, SEO, or how to vet an agency partnership. Why would they be?
The Same Stories, Over and Over
About five years ago, I found myself working with small businesses again. Over and over, I heard the same frustrations about marketing agencies. At first, I thought it was just a few unlucky clients. Then I thought, “Maybe it’s a local thing?” But after chatting with industry peers across Australia, the UK, Ireland, Canada, and the US — it turned out, the issue was global.
Here are some of the most common issues I saw first hand:
- Flat monthly fees with no visibility on where the money goes
- Agencies refusing to hand over access to their ad accounts or data
- Poor targeting or no targeting at all
- Zero reporting or insight into return on investment
- Agencies claiming ‘clicks’ as leads (spoiler: they’re not)
- Google Ads pointing to homepages with no conversion strategy
- And honestly... the list goes on
So, why do these problems keep popping up?
6 Common Issues Small Businesses Face with Marketing Agencies
1. Lack of Transparency or Education
Why it matters: Many small business owners are diving into digital marketing for the first time.
The issue: Agencies can overwhelm with jargon, underdeliver on explanation, and fail to connect the dots between their work and actual business results.
2. Poor Communication
Why it matters: Small businesses often rely on fast feedback and direct contact.
The issue: When agencies are stretched thin or prioritise bigger clients, smaller accounts can get left in the dark.
3. Budget Mismatches
Why it matters: Agencies often build pricing and packages for bigger clients.
The issue: Small businesses can’t always commit to high retainers, expensive tools, or long-term contracts. Sometimes they’re sold services they don’t need—or worse, can’t afford to sustain.
4. One-Size-Fits-All Strategies
Why it matters: What works for a national chain doesn’t always work for a local plumber or niche e-commerce shop.
The issue: Agencies may recycle cookie-cutter strategies that completely miss the mark for a smaller brand with a unique audience.
5. Misaligned Expectations
Why it matters: Every dollar counts for small businesses, and they often need faster returns.
The issue: Agencies sometimes promise the world, but results like SEO and content take time. Without proper expectation-setting, disappointment is inevitable.
6. Limited Resources on the Business Side
Why it matters: Most small biz owners wear every hat—sales, customer service, finance, admin... and now marketing.
The issue: Without the time or capacity to review assets, provide content, or collaborate consistently, agency work can stall or lose impact.
Final Thoughts: It’s About the Right Fit
It’s not that agencies and small businesses can’t work together. In fact, when the fit is right, it can be magic. But it takes the right approach, mutual understanding, and a whole lot of communication to make it work.
If you're a small business owner considering agency support—or if you've been burned before — don’t be afraid to ask questions, demand transparency, and trust your gut.
Talk to me about Agency Insider Secrets BEFORE hiring a marketing agency.
Got a story about working with a marketing agency—good or bad?
I’d love to hear it. Let’s keep the conversation going.
