The Growth Den
Straight answers · Logan Ice

Who owns strategy when you outsource execution? Usually nobody, and here's how it goes wrong

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When an agency runs the ads and the founder runs the company, strategy falls into the gap between them. The agency optimizes its channel, the in-house team tracks Shopify, finance tracks the P&L, and no single person owns the blended number. Here is what that looks like from inside, why one accountable seat fixes it, and how to set that seat up whether or not you hire me.

What the gap looks like from inside

I've seen this from every side, and it always looks the same. The agency sends a monthly report showing a 4.2 ROAS and asks for more budget. The e-commerce manager sees Shopify revenue flat and quietly doesn't believe the report. The CFO sees marketing spend up 30% and revenue up 8% and wants to know who signed off on that. The founder, who is technically the head of marketing, is in three of those meetings and makes a decision based on whoever spoke last.

Nobody is lying. They're measuring different things. And the one thing nobody is measuring is the only one that matters: total revenue against total marketing cost, and what's left after margin.

Why it happens

Execution is easy to outsource because it's easy to describe: run the ads, send the emails, produce the creative. Strategy is hard to outsource because it depends on knowing the whole business, and the people who know the whole business are busy running it.

So strategy gets split. The agency has an opinion about strategy inside their channel. The founder has an opinion about strategy at the level of "we should grow." The in-house team has an opinion about what's realistic. None of those is a strategy. A strategy is a decision about where the next dollar goes and how you'll know if it was right, and someone has to own that decision.

The structural problem with letting the agency own it

Agencies are good at a lot of things, and I've hired and managed good ones. But an agency can't own your blended strategy, for two reasons that aren't about talent.

First, their fee is usually a percentage of the spend they manage, so every strategic recommendation they make is made by someone who gets paid more if the answer is "spend more here." Second, they see one channel's data with that channel's attribution, and that attribution is generous by design. Ask any agency for their ROAS and Shopify's total revenue side by side and you'll see the gap.

This isn't a reason not to use agencies. It's a reason not to ask them to grade themselves.

One accountable seat

The fix is boring: one person owns the blended number and the decisions that move it. That person sets the MER target from your contribution margin, decides the budget by channel, grades every partner and every in-house buyer against the same scorecard, and has the authority to move money.

That seat can be a full-time head of growth if you have the work and the budget for one. It can be a founder who commits real time to it, with the right dashboard. It can be a fractional lead, which is what I do. What it can't be is a committee, and it can't be a vendor.

How I set the seat up on an engagement

In the first two weeks I get finance to agree the contribution margin number and I turn it into a break-even MER and a target. That goes at the top of a weekly scorecard that leads with what to do, not with charts.

Then I bring every partner onto the same scorecard. The agency keeps reporting their ROAS if they like, but they're graded on their contribution to blended MER. The in-house team gets the same. Disagreements about which dashboard is right stop, because there's one number everyone is arguing about, and it can't be gamed.

After that the job is mostly deciding where the next dollar goes and making sure the tests to find out are actually run. Most weeks that's a 45-minute session and a list.

If you're not going to hire anyone

Do the first two steps yourself. Write down your contribution margin before marketing. Divide one by it; that's your break-even MER. Put blended MER at the top of whatever report you look at weekly, above every platform number. Tell your agency that's how they're graded from now on. You'll have a strategy owner by the end of the month: you.

Questions people ask

Who owns strategy if I hire an agency for execution?

In practice, usually nobody. The agency optimizes its channel and reports its own ROAS, and nobody reconciles that with the business. Assign one seat to own blended MER and contribution margin and grade everyone against it.

Can an agency own our marketing strategy?

Not well, and not because of talent. Their fee usually grows with your spend, and they see one channel's attribution. Use them for what they're good at and keep the blended decision in-house or with a fractional lead who is paid a flat fee.

What's the difference between a strategy owner and a media buyer?

A media buyer makes the channel perform. The strategy owner decides how much money that channel should get compared with everything else, and how to tell whether it was the right call. A good media buyer wants a strategy owner above them.

How do I reconcile Meta's numbers with Shopify's?

You mostly don't. Use blended MER (total revenue over total marketing spend) as the grade, and use each platform's numbers only to diagnose what to change inside that platform.

Can a founder be the strategy owner?

Yes, with two conditions: a scorecard that leads with MER and contribution margin, and a real weekly hour to make decisions from it. If the founder can't protect that hour, that's the seat to fill.

Work with Logan

I'm a fractional growth advisor for growth-stage DTC and e-commerce brands. I handle strategy and take execution off your plate, in whatever seat you need, from $7,500 a month.

Let's see if we're a fitSee the seats →

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