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The Real Cost of a Bad Lead Gen Contract

Long contracts and setup fees quietly kill ROI. We break down what to look for before signing with any agency.

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Elena Cho

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May 20, 2026

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Setup fees are a red flag

If an agency needs a large upfront payment before proving results, that's a sign the risk is being pushed onto you.

What good contracts look like

  • Pay-per-lead or performance-based pricing
  • No long-term lock-in
  • Clear lead qualification criteria defined upfront
  • Transparent reporting you can audit anytime

Ask any prospective partner to show you exactly how a lead is qualified before it lands in your inbox.