Avoiding Agency Hostage: A Guide for Growing Business Owners

When you are growing a business,  you will need to be aware of what Agency hostage is and what you can do to avoid it. To help you understand what Agency Hostage is and how to prevent it we interviewed the CEO of Big Red Jelly, Josh Weber, to gather his advice and experience for your benefit. 

What is “Agency Hostage”?

“Agency hostage is a situation where your marketing or branding agency will embed themselves into parts of your business’s digital assets, like your website, domain, or data, and hold them or part of them hostage. Agency hostage is a problem that you may not know you have until you try to part ways with the agency and find yourself unable to fully access or control your digital assets. For example: a marketing agency keeping your domain name when you split ways, because they were the ones that bought it. We see this all the time and it is an issue that is prevalent, particularly among small to mid-sized business owners. Agency hostage is serious and it can severely hinder your business operations and growth.”

What are Some Questions a Business Owner  Should Ask an Agency BEFORE Signing a Contract

To avoid potential agency hostage situations, here are ten essential questions to ask before signing a contract:

1. Ownership and Access: Who owns the intellectual property (IP) created during the engagement? How will I access and retain full ownership of these assets if we part ways?
2. Data and Analytics: Who owns the data collected during the engagement? Will I receive complete, unfiltered access to this data in a usable format?
3. Platform Access: What platforms will you be using on our behalf? Will I have independent access to these platforms, or will access be restricted?
4. Termination and Transition: What happens if we decide to terminate the contract? What is the process for transitioning our assets, data, and platforms to a new agency or in-house team?
5. Confidentiality and Non-Compete: How will you protect our confidential information? Are there any non-compete clauses that would prevent us from working with other agencies or competitors in the future?
6. Performance and Measurement: How will you measure and report on the success of our campaigns? What are the key performance indicators (KPIs), and how often will we receive reports?
7. Transparency and Communication: How will you communicate with us throughout the engagement? Will we have a dedicated account manager, and how often will we receive updates?
8. Fees and Payment Terms: What are the fees for your services, and how are they structured? Are there any hidden fees or charges? What are the payment terms?
9. Dispute Resolution: How will we resolve any disputes or disagreements that may arise during the engagement? Is there a mediation or arbitration clause in the contract?
10. References and Case Studies: Can you provide references from other clients who have worked with you? Can you share case studies that demonstrate your success in achieving similar goals to ours?

How to Recognize When It’s Happening to You: Red Flags to Look For?

Being aware of the signs of agency hostage can help you act before the situation escalates. Here are some red flags we recommend you look out for: 

1. You have Limited Access: You do not have owner or admin-level access to your website backend, Google Analytics, social media accounts, or domain. 
2. There are Threats of Cancellation: If the agency threatens to shut down your website, withdraw access, or charges you fees when you express dissatisfaction or wish to cancel a service. 
3. Vague Agreements: A lack of detailed and thorough statements of work or master services agreements increases the risk of a hostage situation. 
4. Resistant Cooperation: your agency ignores requests for data exports, ownership transfers, or access credentials. 

Victim of an Agency Hostage Situation?

If after you read our questions you think you may have fallen victim to an agency hostage, do not lose hope. These are three things you can do to help you regain control. 

1. Stay Cordial: You want to maintain a professional relationship but you also want to play your cards close to your chest. 
2. Make Incremental Requests: Ask for owner access to specific tools or assets. Once you have access to those, gradually request admin level access. Take inventory of the digital assets you have access to and slowly make requests to those you do not.
3. Seek Professional Help: If you need help assessing your current digital asset ownership, reach out to us here at Big Red Jelly. We will do a free review and help you identify who is in control of your digital assets and or help you negotiate your way out of your hostage situation.

Big Red Jelly: Your Partner in Marketing Success

At Big Red Jelly we want every business owner to be comfortable, confident and autonomous with everything that is designed and built for them. We believe this is what every marketing agency and freelancer should do. If you have concerns or doubts about your standing in an agency hostage situation, reach out to us and we can tackle this together!