Understanding the Cost of Taking on the Wrong Clients
In episode 339 of PPC Live The Podcast, Kirk Williams, a seasoned PPC professional and founder of the micro-agency Zato, shares a crucial lesson from his career: the biggest mistake isn’t a bidding error or platform issue, but rather taking on clients who simply aren’t a good fit.
Often driven by the pressure to grow quickly, manage client churn, or weather economic challenges, agencies might overlook red flags during client onboarding. The result? Short-lived relationships that consume valuable time, drain team morale, and reduce profitability.
- Emotional tax: Team members face ongoing friction and tension.
- Time tax: Extra calls, explanations, and conflict resolution drain resources.
- Financial tax: Agencies may refund fees or accept reduced profitability to exit bad relationships.
These hidden costs compound over time, distracting agencies from clients where they can truly deliver value.
Red Flags to Spot Early in Client Discussions
Reflecting on past experiences, Kirk highlights several early warning signs that agencies should take seriously:
- Emotionally immature or reactive communication during discovery.
- Aggressive or defensive responses to pricing conversations.
- Lack of respect for the agency’s boundaries as a separate business entity.
- The belief that the agency exists solely to serve the client, rather than collaborate.
These behaviors often foreshadow unrealistic expectations and persistent conflict down the line.
Fit Is More Than Just Personality
Good client fit isn’t simply about being “nice.” Even pleasant contacts can pose challenges if their expectations don’t align with the realities of PPC performance.
Kirk stresses that when clients expect PPC campaigns to single-handedly drive all growth—ignoring the roles of brand, conversion rate optimization, or other channels—the relationship is set up to fail. No amount of optimization can bridge the gap between unrealistic expectations and what PPC can deliver.
Industry-Specific Fit and the Importance of Knowing Who You Don’t Want
Some industries naturally align better with certain agency styles. For example, Kirk avoids legal clients not because they are “bad,” but because their typical communication style and expectations clash with his team’s way of working.
Recognizing who you do not want to work with is as vital as knowing the ideal clients. This clarity protects agency culture and promotes sustainable growth.
Transforming the Discovery Process into a Detective Exercise
To avoid costly mismatches, Kirk revamped his discovery process to prioritize understanding over selling. Key questions probe:
- Why the prospect is seeking an agency now.
- How they see PPC fitting into their overall marketing mix.
- Awareness of trade-offs between scaling and efficiency.
- What they liked and disliked about previous agency relationships.
One standout question is, “What’s something you liked about your last agency?” An inability to answer often signals unrealistic expectations rather than poor past performance.
Better Questions Lead to Better Sales and Stronger Partnerships
Contrary to some beliefs, deeper discovery conversations don’t hurt sales—they improve them. Prospects sense genuine curiosity and alignment, reducing rushed decisions and failed engagements. By the time pricing is discussed, both parties often already know if the partnership will work.
The payoff is fewer conflicts, stronger long-term relationships, and healthier team morale.
PPC as Part of a Broader Marketing Ecosystem
Both Kirk and host Anu Adegbola emphasize that PPC should not be treated as a standalone growth strategy. Paid search performs best when integrated with brand-building, product excellence, customer experience, and complementary marketing channels.
Expecting PPC to carry the entire business load is a structural mistake, not a performance failure.
Final Thoughts: Vetting Clients Protects Your Team and Business
The key takeaway is that client vetting is as much a mental health strategy as it is a business one. A strong discovery process protects agencies, consultants, and in-house teams from burnout, resentment, and constant uphill battles.
Learning to say “no” early on is often healthier and more profitable than saying “yes” to the wrong opportunity.
By focusing on fit, agencies can dedicate their energy to clients where they can truly make an impact and build lasting, successful partnerships.