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Hiring an ads agency vs running ads yourself

An honest framework for small businesses deciding between DIY ads, a freelancer and an agency, including the cases where hiring anyone, us included, is the wrong call.

By Nick Yushchenko · Test Ads · November 10, 2026 · 8 min read

Hiring an ads agency vs running ads yourself

Every few weeks a store owner or a local business tells us the same story: "We tried running Facebook ads ourselves, spent a couple of thousand dollars, and we are not sure if it worked." Sometimes the honest answer is that they should keep doing it themselves, just differently. Sometimes an agency or a freelancer would save them money. This guide is the framework we would use if we were in your seat, including the cases where hiring us, or anyone, is the wrong call.

What you are actually buying from an agency

Running ads is not one skill. When you hire help, you pay for some mix of four things, and it helps to know which ones you are missing:

  • Setup and tracking. Ad account structure, pixel and Conversions API, conversion events, lead form or landing page connections. Done wrong, every number after it is wrong.
  • Testing discipline. Deciding what to compare, how much budget each variant needs, and when to cut or promote. This is where most DIY budgets leak.
  • Creative volume. New angles, hooks, images and videos every few weeks, because ads wear out.
  • Time and attention. Someone checking the account several times a week, reading the numbers, and reacting before a bad week becomes a bad month.

If you already have two of the four in house, you probably need a narrow kind of help, not a full-service agency. If you have none of them, doing it yourself will mostly buy you an education, which is fine as long as you budget for it as one.

When running ads yourself is the right call

We tell people to do it themselves more often than you might expect. DIY usually wins when:

  • Your monthly ad budget is small. If you plan to spend a few hundred dollars a month, a management fee can take a large share of the total, and the account does not generate enough data for an expert to do much with. You are better off learning the basics and keeping the money in the ads.
  • Your offer is simple and local. A salon with a first-visit price or a contractor with a free estimate in one city can get a long way with one well-built lead campaign and fast follow-up. Our step-by-step local setup covers exactly that.
  • You enjoy it and have the hours. Learning a platform properly takes weeks, not an afternoon. If you will genuinely spend a few hours a week on it, you will understand your customers better than any outsider.
  • You are still finding product-market fit. If the offer, price or product changes every month, nobody can optimize ads for it. Fix the offer first.

What we would avoid is the middle ground most owners end up in: pressing "Boost" on posts between other jobs and judging the result on likes. If that is your current setup, read why boosted posts rarely book jobs before deciding anything else.

When outside help usually pays for itself

Hiring makes sense when the cost of mistakes is bigger than the fee. In our experience that happens when:

  • Spend is meaningful. Once you spend enough per month that a 20 to 30 percent improvement in cost per lead or per purchase is worth more than the fee, the math starts to work in your favor.
  • You have hit a ceiling. The account worked at $50 a day and falls apart at $150. Scaling without killing performance is a learnable skill, but it is where most self-run accounts stall.
  • Tracking is the problem. Ads Manager says one thing, your shop or CRM says another. Until that is fixed, you are optimizing toward noise.
  • There is a deadline. A product launch, a new location, a project that has to sell units by a date. Learning by trial and error is expensive when time is the constraint.
  • Your time is worth more elsewhere. If an hour of your time closes a sale or delivers a job, spending five hours a week in Ads Manager is a cost, even if it does not show on an invoice.

Compare the true cost of both options

Most owners compare the agency fee to zero. That is the wrong comparison. Put both options on paper with all their costs:

CostDIYAgency or freelancer
Ad spendSameSame
Management feeNoneMonthly fee, a share of spend, or both
Your timeSeveral hours a week, more while learningRoughly an hour a week for calls, approvals and lead feedback
CreativeYour phone, your evenings, or a designerSometimes included, sometimes extra; ask
Learning costBudget spent on tests that could not give an answerLower, but not zero: every new account still needs a test
Tracking setupYour time or a developerUsually part of onboarding; ask

Then compare outcomes, not fees. The question is which option gets you a lower cost per qualified lead or per sale after all costs. If you do not know your break-even number yet, work it out first with our break-even ROAS guide. Without it, neither you nor an agency can tell whether a campaign is working.

Not sure which option fits your budget? Talk it through with Nick. Book 30 minutes with Nick. You leave with a concrete 7-day ad test, whether you hire us or not.

Book a free call →

How agencies charge, and what each model rewards

Pricing varies a lot between agencies, countries and service levels, so treat any number you read online as a rough reference. What matters more is what each model encourages:

  • Percentage of ad spend. Simple and common. The catch: the agency earns more when you spend more, whether or not the extra spend is profitable. Ask how they decide when to recommend a lower budget.
  • Flat monthly retainer. Predictable for you. Check what is included: number of campaigns, platforms, creative, reporting, calls.
  • Performance-based fees (per lead, per sale, share of revenue). Sounds ideal, but it often rewards volume over quality. A pay-per-lead deal can fill your inbox with leads nobody qualified.
  • Project or test fee. A fixed price for setup and a first test period, after which you decide whether to continue. This is the lowest-risk way to find out if someone is good.

Also ask about minimum terms, minimum ad spend and notice periods. A long lock-in before anyone has seen a single result is a warning sign.

Eight questions to ask before you hire anyone

  1. Whose ad account and pixel will this run in? It should be yours, with the agency added as a partner in your business portfolio. If you leave, the account, the data and the audiences stay with you.
  2. What will the first two weeks look like? You want a concrete answer: what gets tested, on what budget, and what decision gets made at the end.
  3. What metric will you judge success by? Cost per qualified lead, booked call, or purchase confirmed in your shop. Not reach, clicks or "engagement".
  4. Can I see results from a business like mine? Real case studies with numbers and a client name, not a portfolio of nice-looking ads.
  5. Who actually works on my account? The person on the sales call, or a junior you will never speak to?
  6. How often will I get a report, and what is in it? Weekly, in plain numbers: spend, cost per result, sales or qualified leads.
  7. Who makes the creative? And how often will new ads be produced?
  8. What happens if the test does not work? A good answer names the likely causes (offer, price, landing page, follow-up) rather than promising "we just need more budget".

Red flags we would walk away from: guaranteed ROAS or guaranteed lead numbers before anyone has seen your account, an ad account opened in the agency's name, reports that only show impressions and clicks, and anyone who wants a large budget before a small test has proved anything.

The middle options most people skip

It is not a binary choice. Three hybrids work well for small businesses:

  • A one-off audit. Someone experienced reviews your account, tracking and creative, and gives you a written list of fixes. You keep running it yourself. Good when you are close but something is off.
  • Setup plus handover. An agency builds the structure, fixes tracking and runs the first test, then hands over a documented account you can run yourself.
  • Managed testing, owned creative. You produce the photos and videos (you know the product and customers best), and the agency handles structure, budgets and testing decisions.

Whichever route you choose, size the first test so it can actually give an answer. Our guide on how big your first ad test budget should be has the formula and worked examples.

How we work, so you can compare

For transparency, here is what we do, so you can hold us to the same questions as anyone else. Campaigns run in your ad account. After a 30-minute call about your offer, margins and current numbers, campaigns go live within 72 hours. The first 7 days are a test across 2 to 3 audiences and several creative angles, and budget then moves only to the winners. Reports are weekly, in plain numbers.

What that looks like over time: for GI Super Service, a logistics company in Illinois, the best campaigns delivered $6 to $9.36 per action and held that range while budgets scaled through peak season. For Biocoiff, an organic hair-care brand, we tested 28 campaigns, cut 9, and scaled the best 4 by about 20% a month, reaching up to 8x ROAS on purchase campaigns.

Full breakdown for the logistics account: GI Super Service case study.

And for the hair-care brand: Biocoiff case study.

A quick way to decide

Answer these honestly:

  1. Do you know your break-even cost per lead or per purchase?
  2. Does your tracking match your real sales or booked jobs?
  3. Will you spend at least a few hours a week on ads for the next three months?
  4. Can you produce new creative every few weeks?
  5. Is your monthly ad budget small enough that a fee would eat a big share of it?

Mostly yes: run it yourself, and consider a one-off audit after your first month. Yes to question 5 but no to the others: start small and learn; outside help will not have enough budget to work with yet. No to questions 1 to 4 with a meaningful budget: hire help, start with a short paid test rather than a long contract, and judge the result on qualified leads or real sales.

More on how we run tests for online stores: e-commerce ads.

And for local service businesses: local business ads.

FAQ

Is it worth hiring a Facebook ads agency for a small business?

It is worth it when your ad spend is large enough that a better cost per lead or per sale outweighs the fee, or when tracking, scaling or a deadline makes mistakes expensive. With a very small monthly budget, running ads yourself and paying for an occasional audit is usually the better deal.

How do ads agencies charge?

The common models are a percentage of ad spend, a flat monthly retainer, performance-based fees per lead or sale, and fixed project or test fees. Each rewards different behaviour, so ask what is included, the minimum term and what happens if the first test does not work.

Should the agency own my ad account?

No. Campaigns should run in your own ad account and business portfolio, with the agency added as a partner. That way the account history, pixel data and audiences stay with you if you change agencies or bring ads in house.

Not sure which option fits your budget? Talk it through with Nick. Book 30 minutes with Nick. You leave with a concrete 7-day ad test, whether you hire us or not.

Book a free call →

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