You should only hire an ad agency to solve your actual problem.
That sounds obvious, but it’s where most law firms get it wrong.
A lot of agencies bolt things on to increase their perceived value. They add coaching. They add software. They add CRMs, dashboards, “consulting,” and other extras.
But the primary job of an ad agency is to generate leads… or build your brand while generating leads.
If you get other things on top of that, fine. That’s your choice. But an ad agency’s core function is advertising.
A Real Client Story (And Why This Matters)
A client came to me recently and said, “I’m thinking about hiring a new ad agency. What do you think?”
So we looked at the facts.
The real issue was clear: leads had fallen off.
Year over year:
2022 → 2023: down 10%
2023 → 2024: down 30%
2024 → 2025: down 40%
Most of their leads were referrals, but the owner was the one generating them. As the firm grew, he had less time to nurture referrals, and they dried up.
So he brought me the agency proposal.
What was the solution?
Replace their CRM (which was already working fine), move them to a “proprietary” CRM built on GoHighLevel, add consulting, coaching, and sales training.
None of that solved the problem.
CRMs convert leads. They do not generate them.
This firm already had sales systems in place.
What they needed was simple: more leads.
Instead, the agency packaged unnecessary services to justify a higher monthly fee.
I didn’t tell the client not to hire the agency.
I told him to go back and say, “I don’t need this, this, or this. I just want to generate more leads. How much for only that?”
Specify what you need support with:
- Social media brand
- Google LSAs
- SEO
- Website management
- Social media ads
Pay them well. Let them make money. Just don’t buy what you don’t need.
Why Agencies Bolt Things On
Advertising = lead generation
Sales = converting those leads
Branding = the byproduct of doing both well, consistently, over time
Your brand doesn’t exist in a vacuum. You don’t “build a brand” separately from leads and sales. You build a brand by generating leads, converting them properly, and delivering a good experience.
When an agency calls itself a “marketing agency,” it subtly suggests they’re going to do all of this for you.
They’re not. They’re going to do some of it, mostly lead generation.
But in business, there are only two ways to grow revenue:
- Get more clients
- Add more value and charge more
Agencies struggle to do the first consistently, so many try the second.
That’s why you see:
- Area exclusivity agencies charging $5k-$10k/month
- Budget agencies charging $800-$1,000/month using overseas labor
- Flat-fee pricing instead of hourly billing
At the end of the day, an agency is a labor swap. They put X hours into your account, you pay Y dollars.
If they billed hourly, most would need to charge $150-$200/hour to survive. Instead, they charge flat fees and try to maximize output with minimal hours.
However, most law firm agencies don’t make more than 10% profit. Some massive agencies in the legal space aren’t profitable at all.
So what do they do?
They bolt on coaching and other services you may not actually need.
Hire The Right Agency for The Right Reason
When choosing an agency, select one that solves the problem you actually have.
In most cases, law firms hire agencies to generate leads… not to provide consulting, sales training, or other add-on services. Agencies offer those extras to increase revenue or attract more clients, not because they are the core solution.
If your agency is generating leads and you’re not converting them, the problem usually isn’t the leads.
I’ve been doing this for 15 years.
Most legal leads are roughly the same quality. Yes, some practice areas have more noise, but conversion is almost always the issue.
Once those leads are coming in, you must ensure you have a sales system in place to convert them. If you do not, and the agency can legitimately help with that, then consider it, but handle the lead generation problem first.
Hire the right agency for the right reason. Make sure their services are clearly defined and priced appropriately. And make sure they are producing leads at a cost that makes financial sense for your firm.
If you do that, you will be far more satisfied with the outcome.
If you don’t have a sales conversion machine in place, don’t blame the agency.
There are no wrong answers, only wrong matches.
Agencies aren’t bad. Bolt-on services aren’t bad.
Buying the wrong solution for the wrong problem is bad.
Choose the right ad agency. Build a real lead machine. Lock in your sales conversion system.
And you’ll scale your firm the right way, one smart agency decision at a time.
