| I did Adwords for 1 person mom shops and bigger companies in industries ranging from tourism and general aviation to jewelry and software development. It was all profitable. Ad agencies are borderline scammers - they measure traffic and clicks as performance, which makes you to spend more money to increase "performance" and pay more agency fees. Sometimes I burned $15000 before first conversion, but ROI was always positive in the end. People launching ads without any experience, redirecting people to homepage and loosing money are the same kind of people trying trade stock market and loosing money, creating their own amateur e-commerce shop and loosing money getting zero customers, hiring high-school nephew for company website etc etc. You need experience, and before that - knowledge. First, manage your ads in-house. Agencies have no reason to work for your conversions, that's not their business model.
Second, don't treat ads like "we'll slap users with our ad and see what happens". Prepare user flow, conversion funnel, dedicated landing pages, drip campaigns, remarketing etc. Adwords and Facebook are fully-fledged promotion channels and they have to be treated as such. It's a craft which consultants make huge money from - because they know how to bring profits. |
A percent of media model isn't perfect, but if a client isn't seeing results, the relationship won't last long, and word gets around.
Now, there are scammy agencies out there, but it is hardly the norm. I loved stealing business from them because it was shooting fish in a barrel with all the problems on those accounts.
Be careful about making such broad, and highly inaccurate statements... They really don't help paint you in the best light.