Wanna Partner Up? The Best Agency Subcontracting Tips That Actually Work

What makes agency subcontracting successful, and what makes it crash and burn? If you’ve ever been burned by a flaky freelancer, micro-managed into madness, or partnered with an agency only to realize you’re speaking two different languages, this one’s for you.

In a recent episode of Strategy Talks, I sat down with Adam Wormann, owner of Wormann Consulting, a digital marketing agency based in New Jersey. Adam has built his business around strategic partnerships with other agencies and freelancers, especially in the paid media space. We talked about what works, what doesn’t, and how to avoid the big pitfalls in subcontracting relationships.

Have you ever considered white labeling your services or needed to outsource to a freelancer? If so, let's discuss the top takeaways.

The #1 Agency Subcontracting Tip

I didn’t expect this answer from Adam, but it makes total sense:

“We have to like working with you. If we don’t, we’re not compelled to.”

That’s right.

Before diving into contracts and deliverables, Adam’s team asks themselves a basic human question: Do we click? Because no matter how much experience someone brings to the table, if the relationship feels tense or defensive, it’s a no-go.

He explained that when the chemistry is off, everyone operates from a place of fear instead of strategy.

“You always feel like, wait, are we going to get fired? Are they trying to push us out?”

This is your reminder: partnerships that feel good usually perform better. It’s not fluffy. It’s strategic.

Trial Projects Are Your Friend

You can vet and reference-check all day, but nothing beats a small test project.

“99% of the time, we’ll give it a shot,” Adam shared. “Unless there are major red flags, we do a trial to see how it goes.”

He recalled a failed partnership where the agency’s approach was basically “Death by Excel spreadsheet,” with dozens of conflicting files, unclear expectations, and zero SOPs. “It went sideways fast,” he said.

In the end, they finished the project, but not the relationship.

Lesson? A trial lets you test compatibility in workflows and communication styles before going all-in.

Who’s Driving the Bus? Define Roles Early

One of the best agency subcontracting tips I can give you is this: figure out who’s in charge before the project starts.

As a freelancer, I’ve joined tight-knit agency teams where I’m clearly expected to plug into their systems. In other cases, I lead strategy and execution. Both can work. What doesn’t work is playing tug-of-war over who gets to steer.

Adam’s team adapts based on the type of agency. If it’s a brand or design agency, they’ll often take the digital lead. If it’s a digital shop bringing them in for overflow, they follow the agency’s lead.

“We try to be flexible,” he said, “but we need alignment on how the work gets done.”

Subcontractors Are Not Employees, So Stop Treating Them Like One

I had to say it during our chat:

“If you’re hiring a freelancer and treating them like an employee, you’re doing it wrong.”

Freelancers are business owners. They pay their own taxes. They take on risk. They cover their own tools, health insurance, and vacation time.

Adam totally agreed.

“They’re not on your clock. They’re going to get the work done. You’re paying for results, not hours.”

He added that his agency avoids hourly pricing altogether. “We price by project. If I get it done in an hour and you net $30K, does it matter how long it took?”

This mindset shift can save you both time and headaches, and lead to much more respectful, successful collaborations.

When Not to Subcontract: Red Flags to Watch For

Not every agency is ready to bring on a subcontractor. Here’s how to know when not to partner:

• You’re not comfortable letting go of control

• You micromanage your own team

• You haven’t clearly defined your SOPs or expectations

• You’re looking for cheap labor instead of skilled partners

“Hiring a partner is like hiring an employee,” Adam said. “If you can’t trust them to run with the work, you’re either not ready, or you made the wrong hire.”

One of the biggest pitfalls Adam’s seen? Agencies treating freelancers like junior interns, then wondering why they can’t retain top talent.

How to Protect Your Revenue from Feast-or-Famine Fluctuations

We all know the agency world can be up and down. One month, you’re drowning in client work. The next, crickets. Adam’s advice?

“When you have the feast, don’t get too big for your britches. Save up. Build a safety net. Don’t buy the Corvette just yet.”

He also emphasized the importance of diversifying partnerships. His team works with agencies in multiple states, so if one slows down, others often ramp up. And when you treat partners well, they stick around.

Bonus Agency Subcontracting Tip: Specialize to Collaborate Better

Adam doesn’t try to be all things to all clients. His agency doesn’t build websites. Instead, they focus on pay-per-click and digital strategy. That specialization makes him a better partner.

“If someone asks for something we don’t do, we refer it out,” he said. “I want the client to get the best work possible.”

Same here. I focus on content and organic social strategy. And that’s why our partnership worked so well, I stayed in my lane, and Adam stayed in his.

Ready to Subcontract Smarter?

Whether you're an agency owner scaling without hiring, or a freelancer exploring white-label work, the key takeaway is this:

Strategic subcontracting is a relationship business. It’s about trust, chemistry, clear roles, and mutual respect.

So before you sign your next contract, ask yourself: Would I enjoy working with this person, even if things get tough?  If the answer is no, keep looking.

10 Smart ChatGPT Prompts to Explore Agency Subcontracting Tips

Use these prompts to brainstorm or implement smarter partnerships:

• “Give me a checklist for onboarding a subcontractor to my agency”

• “What questions should I ask before partnering with another agency?”

• “Help me write a subcontractor trial project scope of work”

• “Draft a partnership agreement for an agency-to-agency collaboration”

• “What are red flags when hiring a freelancer for digital marketing?”

• “Compare hourly vs. project-based pricing for agency subcontractors”

• “What are the pros and cons of white labeling services?”

• “Create SOPs for managing freelance subcontractors in a remote team”

• “What tools help manage communication between agencies and freelancers?”

• “How do I explain to clients that part of the work is subcontracted?”