12 Mistakes to Avoid with Outsourced Lead Generation Agencies

Here’s the hard truth: 20 to 25% of all outsourcing relationships fail within two years, and 50% fail within five.

After:

• speaking to well over 1,000 companies myself about their outsourcing experience — the good, the bad, and the kind of bad that makes you want to change your name and move to a cabin in the woods
• working with a bunch of agencies (as a client and as a collaborator)
• and starting three of my own, I can say that those numbers are even higher.

Around 60% of the companies that reach out to us come disappointed and cautious, expecting more of the same.

Some lost money. Some lost time. Some just lost faith in the whole idea.

But here’s the kicker — it’s rarely the model that fails. It’s the execution.

And that’s why we’re here.

I’m giving you a roadmap for avoiding the traps that cause most outsourced lead generation partnerships to crash and burn — so you can skip the regret phase and go straight to the results phase.

Top 3 Mistakes When Choosing a Partner

#1 You didn’t ask the right questions upfront

Before launch, you should be crystal clear on:

• How they source and verify leads
• What their outreach sequences look like
• How they handle bounced emails or low response rates
• What happens if leads aren’t converting

If you’re not asking these questions, you’re basically buying a mystery box — and hoping for gold instead of a pile of junk.

Examples:

• You focused on “How many meetings can you guarantee?” instead of “How do you define success?”
• You ignored questions around integration, strategy, experimentation, and culture.

Check out these few ideas on how to identify if your future partner is worth it:

Pro tip: If you’re outsourcing any kind of outreach, including call center work, make sure you understand the model.

#2 You picked the wrong size/type of agency

Size really does matter here, just not in the way people think.

An enterprise partnering with a boutique agency? You’re likely looking at compliance risks, limited capacity, and a team that may not have the processes or playbooks to handle your scale. On the flip side, a five-person startup working with a massive agency might get lost in the shuffle.

With hundreds of lead generation agencies on platforms like Clutch, it’s easy to pick one based on ratings. But the sweet spot is finding a partner that matches your complexity and goals:

• Big clients need integration, scalability, proven processes, playbooks, and systems.
• Smaller clients need more agility and dedicated attention.

What can go wrong:

• SMBs hiring big-box agencies that don’t specialize in their market = misaligned speed, tone, expectations.
• Enterprises going with boutique agencies = compliance risk and limited capacity.
• Mid-sized companies working with generalists = nothing’s tailored, everything’s templated.

What to do instead:

• Match your company size, growth stage, and expectations to the agency’s real strengths.
• Ask how they tailor services per client type (spoiler: not all of them do).
• Ask for client references in your size bracket — not just their “greatest hits” case studies.

Pro tip: Ideally, look for the full-funnel agencies that know their specialization and have success stories with particular company size and industry. 

#3 You went for the cheapest option

We get it — budgets matter. But in outsourced lead gen, paying bargain-basement rates usually means bargain-basement results.

The “cheapest” vendor might cut corners with scraped lists, generic templates, and unvetted contacts. This can tank your sender reputation and bury your domain in spam folders before you even notice.

A slightly more expensive partner delivering qualified, sales-ready leads will save you far more in the long run.

What goes wrong: Rock-bottom prices usually mean rock-bottom strategy, lead quality, and data hygiene.

How to avoid it: Instead of negotiating the price, negotiate value — more onboarding support, strategic involvement, or extra services.

Pro tip: Don’t ask for discounts. Ask for better brains on your account.

Top 3 Mistakes When Launching

#1 You skipped the strategy phase

If your first conversation with an agency jumps straight into “how many emails can we send this month?” — that’s a no-no.

You need to talk about buyer personas/dream clients, value proposition, messaging frameworks, sales handoff processes, and success metrics before anything goes live.

Skipping this stage is like building a house without blueprints. Sure, you’ll have walls. Just maybe not in the right places.

Mistake: Agencies are not mind readers. If you skip defining your ideal customer profile (ICP), unique selling proposition, buyer journey, and other key elements — expect a train wreck.

How to fix it:

• Nail your go-to-market fundamentals first, or hire an agency that helps you build them.
• Make sure your partner understands your messaging, product-market fit, and ideal persona before they hit “send.”

Pro tip: Before any campaign starts, align on your ICP and tactics and explore proven lead generation strategies that work for your audience.

#2 Starting without a crystal-clear ICP

One of the biggest killers of outsourced campaigns? Targeting the wrong people from day one.

If your ICP is fuzzy (“mid-market companies in healthcare-ish spaces”), you’re giving your agency a guessing game, and they’ll most likely guess wrong.

Your ICP should be specific enough that someone new to your industry could identify a good prospect in under 30 seconds. That means:

• Industry/sub-industry
• Company size
• Key decision-maker titles
• Trigger events that signal readiness to buy

What can go wrong:

• Agencies waste months targeting the wrong market segment.
• Outreach lands with people who will never buy, burning your domain reputation and patience.
• Messaging stays generic because no one knows exactly who they’re talking to.

How to avoid it:

• Build your ICP before the first campaign kickoff.
• Share detailed buyer personas, past win/loss data, and examples of high-value clients.
• Test your ICP internally before outsourcing. If your sales team can’t use it effectively, an external partner won’t either.

Pro tip: A good agency will pressure-test your ICP before launch. If they just nod and move on, that’s a red flag.

#3 You over-automated everything

Automation is great — until it turns you into a robot.

We’ve seen companies automate every touchpoint: AI-written emails, canned LinkedIn messages, pre-recorded voicemails. It saves time, but prospects can smell the lack of human touch a mile away. And once they clock you as “just another sales bot,” you’ve lost them.

Instead, use automation for efficiency, not for replacing personalization. Let your agency scale the grunt work but keep room for thoughtful, high-value touches.

What this looks like:

• AI-generated follow-ups. One-size-fits-all templates. Robotic messaging.
• Prospects feel it. They ignore it.

What to change:

• Use automation to scale, not to replace personalization.
• Prioritize relevance over generic personalization hacks.

Check out these templated phrases that kill your outreach and what your users see:

What a human would actually say:

• “Hi Sarah, your post on patient engagement tech got a lot of nods from my team. Curious if you’ve tested anything beyond EHR integrations?”
• “Hey Alex, you mentioned on LinkedIn you’re rolling out in 3 new regions. We’ve seen other SaaS teams hit a roadblock there — want me to share what worked for them?”
• “Morning, James — saw you were hiring for 2 new Clinical Ops Directors. If scaling that team is the priority, we might have a way to shorten your ramp-up.”
• “Hi Priya, loved your webinar on post-discharge follow-up. If you’re open, I can send you the case study I mentioned. The numbers surprised even us.”

Pro tip: Whether you’re using cold email or LinkedIn outreach (or both), your strategy should balance scale with authenticity.

Top 3 Mistakes When Working Together

#1 You never aligned on what success looks like

A surprising number of partnerships fail not because of execution, but because both sides were aiming at different goals the whole time.

You’re thinking: “We need pipeline coverage in 60 days.”

They’re thinking: “Let’s A/B test messaging and channels for 90 days.”

No one’s technically “wrong,” but without shared expectations, frustration is guaranteed.

What can go wrong:

• Campaigns are judged by different (and sometimes conflicting) metrics.
• One side focuses on booked calls; the other cares about qualified opportunities.
• Timeline pressure builds, trust erodes, and no one feels like it’s working.

Fix:

• Define success collaboratively before launch — and write it down.
• Align on how success will be measured (meetings? opportunities? pipeline value?).
• Set short-term and long-term milestones so both sides know what to expect — and when.

Pro tip: Revisit your success definition monthly together with your outsourced agency. Priorities evolve, and your goals should too. For example, our team schedules weekly feedback loops and monthly strategy sessions to align with the client’s overall strategy.

#2 You gave up too much control

Yes, you hired experts. No, that doesn’t mean you should disappear from the process.

Stay involved enough to guide, but not so much that you micromanage. Think “steering wheel,” not “backseat driver.”

What goes wrong:

• You hand off lead gen entirely, then act surprised when things go off the rails.
• Off-brand messaging, targeting misfires, inconsistent tone.
• KPIs that look good on paper but mean nothing for your business.

Here’s how to fix it:

• Join onboarding sessions.
• Review messaging and weekly/monthly KPIs.
• Think of your agency as your extended GTM team, not an isolated vendor.

Here’s an example of how you can share responsibilities:

Pro tip: Even with such a responsibility distribution, it doesn’t mean you can’t ask questions about how things are going. Again, 30-min weekly or biweekly syncs can save you out here. It’s short enough not to waste time, but long enough to catch small issues before they snowball into a quarter’s worth of off-target leads.

#3 You blame the leads, but it’s your follow-up to blame

Your agency’s job is to get qualified leads to your door — not to walk them into a signed contract. If you don’t have a fast, consistent follow-up process in place, even the best leads will wither.

We’ve seen companies lose millions simply because sales reps took too long to respond or never followed up more than once. If you’re spending money to generate leads, treat them like gold from the moment they land in your CRM.

What happens:

• Leads go “bad” not because they’re wrong, but because you ghost them.
• No handoff process. No personalization. Sales team unprepared = 💸

Fix:

• Have a clearly defined, step-by-step follow-up plan before launch.
• Build a fast and clear handoff process.
• Track no-shows, long gaps between response and meeting, pipeline conversion, and so on — not just booked meetings.

Bonus Mistakes to Avoid

#1 You don’t treat the agency like a real partner

Insert budget, expect meetings — that mindset kills collaboration. The best results come when you treat your agency like a strategic partner, not a one-way service.

Fix:

• Invite them into your sales process. Share data. Review results together.
• Build a relationship: feedback loops, Slack chats, mutual accountability.
• Make them a part of your team — not just a name in your inbox.

#2 You’re too rigid to change

Some companies refuse to test new messaging, ICPs, or outreach strategies, even when results stagnate. Flexibility is the lifeblood of iteration, and iteration is what fuels ROI.

Solution:

• Be open to testing. Try new channels, new sequences, even new ICPs.
• Agencies need flexibility from you to adapt and improve.

#3 You gave up too early

Outsourced lead gen isn’t magic, it’s momentum. Expecting instant wins within 4 weeks is like judging a fitness trainer after one workout.

You need time to build, iterate, and optimize. Quite often, the first 3 months are all about evaluating the team, not the numbers.

Timeline advice:

• Month 1–3: evaluate curiosity, speed of execution, adaptability
• Month 4–6: optimize benchmarks
• Month 7+: scale results and set KPIs

You Don’t Need Perfection, You Need a Lead Generation Plan

Outsourced lead generation can either feel like rocket fuel or like lighting your budget on fire. The difference? It’s not just who you hire. It’s how you set the foundation, collaborate, and adapt over time.

Success doesn’t come from plug-and-play execution. It comes from real alignment, feedback loops, and shared accountability between you and your agency.

Here are some key points for you to keep in mind:

• The most successful partnerships are part strategy, part execution — and a whole lot of collaboration.
• You can’t “set and forget” your agency. Stay involved, but don’t micromanage.
• A clear, specific ICP and a fast follow-up process will make or break your results.
• Lead gen isn’t magic. It’s momentum. Judge the process before the numbers.
• Start with alignment, stay flexible, and give it time — that’s how good campaigns turn great.

Because at the end of the day, outsourced lead gen isn’t about handing off the work. It’s about multiplying your impact without losing your direction.

About the Author

Michael Maximoff

Michael Maximoff is the Co-founder and Managing Partner at Belkins, an award-winning appointment-setting agency. With over a decade of experience in B2B sales and marketing, Michael is passionate about building teams and driving impactful growth. He pioneered multiple proprietary SaaS solutions and services and is a serial entrepreneur and investor at heart. He is the author of the "From Zero to Agency Hero" newsletter and hosts the Belkins Growth Podcast, where he shares insights on building service companies and scaling businesses.

See full profile