How to Choose an SDR Agency: 5 Red Flags to Avoid
The short answer
The biggest red flags when choosing an SDR agency are picking the cheapest option, vague answers about metrics and reporting, hidden call recordings and work, no plan for the first month and broad promises with no set goals or minimums. Ask what metrics they track, how much experience callers have, how often you’ll get reports and what the goals are. A good agency shows you calls, connects, conversations, meetings, feedback and recordings in the first 30 days.
I’ve talked to more than 5 companies who worked with cheap agencies and ended up paying 4X more with their next agency because they wanted results.
Because the cheap one got them nothing. No results over 3 to 6 months, and nothing to show for it.
In one extreme case, no results in a year of working together. A few meetings set, but less than 10 qualified… over a year!
If you’re about to hire an SDR agency, here’s what to watch for so that’s not you.
Red flag 1: Picking the cheapest option
This is the big one.
Founders go with the lowest price they can find because obviously saving money is important. What you get is offshore callers, inexperienced reps and nothing to show for it.
It feels like the safe bet. It’s usually the one that costs the most.
You lose 3 to 6 months, you burn through part of your market, and then you pay more to start over with someone who can actually book meetings. (I broke down what outsourced cold calling really costs here.)
Red flag 2: Vague answers about metrics and reporting
Ask an agency what they track. If the answer is fuzzy, ask for more details.
Time and time again I speak to founders whose agencies left them in the dark. No numbers, no updates, no idea what was happening on the phones.
You want to know how many dials are being made, connect rate, conversation to meeting rate, show rates, ask all this. If an agency doesn’t know off the top of their head, they clearly haven’t been doing this long enough.
I’m all about transparency. You’re paying for outbound, you should be able to see it.
Red flag 3: They hide their work
A good agency shows you everything. A bad one hides it.
If you can’t listen to call recordings, you have no idea how your company sounds to buyers. That’s your brand on every call.
A good agency shares how many dials they make. Who expressed interest. Who wanted more information. They share call recordings and ask for feedback. Transparency is most important in the first 30 days.
The goal isn’t to book as many meetings as possible, it’s to figure out what will work.
Red flag 4: No plan for month one
Month one is really about building repeatable systems. Testing the script, finding which buyers respond and figuring out what books meetings consistently.
Following months will give you the insights you need for how many meetings to expect monthly.
It takes time. Anyone who says it doesn’t has either done this for years and can execute quickly, or they’re lying.
If an agency can’t tell you what the first 30 days look like, they’re going to wing it on your dime. (Here’s what the first 90 days should look like.)
Red flag 5: Broad promises with no goals or minimums
This is the #1 thing to never accept.
“We’ll fill your pipeline.” “We’ll get you in front of decision makers.” Sounds great. Means nothing.
If there are no set goals or minimums, there’s nothing to hold anyone to. You find out six months later that “pipeline” meant three meetings.
Have them outline what you can expect over a month.
What should you ask an SDR agency on the first call?
- What metrics do you track?
- How will I get reports, and how often?
- Can I listen to the call recordings?
- What are the set goals or minimums?
- What happens in the first 30 days?
- Who is actually making the calls, and how long have they been doing it?
- What do check-ins look like?
Good agencies answer these fast and specifically. If you have to drag it out of them, that’s your answer.
What should a good agency show you in the first 30 days?
| What you should get | Why it matters |
|---|---|
| Number of calls | Proves the work is actually happening |
| Connects | Shows whether the list is any good |
| Conversations | Shows whether the opener is working |
| Meetings | The outcome you’re paying for |
| Overall feedback and challenges | What buyers are saying and what needs to change |
| Call recordings | How your company actually sounds on the phone |
A bad agency hides this. A good one sends it without you asking.
Want to see what that looks like in practice? One client stayed with me after working with three agencies before, mostly because of the reporting. It’s on the results page.
Frequently asked questions
What are the red flags when hiring an SDR agency?
The biggest red flags are choosing the cheapest option, vague answers about metrics and reporting, no access to call recordings, no plan for the first month and broad promises with no set goals or minimums.
What should I ask an SDR agency before hiring?
Ask what metrics they track, how and how often you’ll get reports, whether you can hear call recordings, what the set goals or minimums are, what happens in the first 30 days and who will actually make the calls.
What should an SDR agency report in the first month?
Calls made, connects, conversations and meetings booked, plus overall feedback, challenges and call recordings. Month one is about building repeatable systems, and a good agency shows you all of it.