A performance-based partnership can fail even when both sides work hard and act in good faith. The usual cause isn't the quality of the work; it is a gap in what was agreed. Something ambiguous at the start becomes a disagreement months later, when money depends on it. Here are the seven patterns we see most often, with the written terms that prevent each one.
1. Nobody agreed what a result was
The symptom: two people produce two different numbers for the same month. One counts quotes, the other counts invoices. One includes repeat customers, the other doesn't. The partnership stalls because the review meeting turns into a reconciliation exercise.
The fix: a written definition for each measure, naming the exact report in the exact system, with exclusions listed. Test it before the partnership starts by having two people calculate last year's figures independently. The shared growth scorecard exists for this.
2. The baseline was unfair
The symptom: one side feels cheated by the arithmetic. If the baseline came from an exceptionally strong year, the business looks like it's shrinking even as the partner's work succeeds. If it came from a weak year, the owner pays for a recovery that was already coming.
The fix: build the baseline from at least two years of like-for-like months, remove one-off events, and write down every adjustment. Our guide to building a trustworthy baseline works through an example.
3. Attribution was left vague
The symptom: arguments about who deserves credit. A large client signs during the partnership. Did the partner's work bring them in, or was your sales director already talking to them? A long-standing customer doubles their order. Does that count?
The fix: before work begins, agree and write down:
- a cut-off date for enquiries that existed before the partnership
- named accounts that are excluded because they were already in progress
- whether referrals and repeat orders count, and under what conditions
- how results from channels the partner doesn't touch are treated
There's no single right answer. The point is to have one answer, written down, applied every month.
4. The business couldn't absorb the growth
The symptom: enquiries rise, but results don't, because nobody can serve the new demand. Calls go unanswered, quotes go out late, and installers or staff are booked weeks ahead. The partner did their part; the business couldn't convert it.
This one is uncomfortable because it isn't anyone's fault. It is also common in Canada's seasonal sectors, where demand arrives all at once: a Calgary roofing firm after a hailstorm, a Prince Edward Island accommodation business in July, a Toronto accounting office in April.
The fix: check capacity honestly before starting, during a readiness review, and agree in writing what happens if capacity becomes the constraint. That might mean pausing demand work, shifting focus to higher-margin customers, or adjusting the measures.
5. The owner stopped making decisions
The symptom: recommendations pile up unimplemented. The website change waits for approval, the price review never happens, the new follow-up process is "on the list". Results don't move, and both sides grow frustrated.
The fix: name in the agreement who makes decisions on each area, and how quickly. Keep a short written log of decisions at each review. If a recommendation is declined, record it, so nobody later blames the partner for a change that was never made.
6. The business changed underneath the agreement
The symptom: the numbers stop meaning what they used to. You open a second location, discontinue a product line, acquire a competitor or raise prices by 15%. The baseline and the measures were built for a business that no longer exists.
The fix: the agreement should list events that trigger a restatement of the baseline, and say how it is restated. Both sides sign the new version. This is routine, not a sign of failure; growing businesses change.
7. Nobody planned the ending
The symptom: a messy exit. The arrangement runs its course, or one side wants out, and suddenly there are questions nobody answered at the start. Who holds the ad account logins? Are results that arrive next month counted? What about content created during the term?
The fix: write the ending into the beginning:
- the term, any renewal process and notice periods
- how results after the end date are treated
- a handover list for accounts, data and assets
- confirmation that everything created belongs to your business
A pre-signing checklist
Before you sign any performance agreement, confirm that each of these is in writing.
| Item | Written down? |
|---|---|
| Definition of each result, with exclusions | |
| Source system and report for each result | |
| Baseline, with method and adjustments | |
| Attribution rules and excluded accounts | |
| Capacity assumptions and what happens if exceeded | |
| Decision-makers and response times | |
| Events that trigger a baseline restatement | |
| Payment calculation and timing | |
| Term, review points, notice and ending | |
| Ownership of accounts, data and assets |
Have your own lawyer and accountant review the agreement before signing. We provide business and marketing consulting, not legal or tax advice, and a well-drafted agreement should welcome that scrutiny.
The early warning signs
Most breakdowns announce themselves months in advance. Watch for review meetings that start with "which number is right?", recommendations that sit unanswered for weeks, growing confusion about who owns which account, and a sense that either side is keeping score privately. Any one of these is a prompt to stop and fix the agreement or the routine, not a reason to end the partnership. Caught early, each is usually a short conversation.
How we try to avoid these failures
Most of the process behind the Growth Partner Program exists to close these gaps before work starts. The readiness review tests records, capacity and decision-making. The scorecard fixes definitions and the baseline. The written agreement, with its terms agreed case by case, covers attribution, changes and the ending. It's slower at the beginning than simply signing up, and that is deliberate. If you'd like to talk through a past arrangement that went wrong, or one you're considering now, get in touch through the contact page.
Frequently asked questions
What is the most common cause of disputes?
Attribution: disagreement about which results the partner actually influenced. It is almost always avoidable by writing down attribution rules before work begins.
Should a partnership have a trial period?
Many owners find an early review point useful, where both sides can assess progress and decide whether to continue. Whether and how that works is something to agree and write into the agreement.
What if my business changes during the partnership?
Major changes, such as opening a location, selling a division or changing prices sharply, should trigger a written restatement of the baseline. The agreement should say how that is done.
Can a partnership end amicably?
Yes, if the ending was planned at the start. Clear notice terms, a handover process for accounts and data, and rules for late-arriving results make a clean exit much easier.