Written by Evgenii Kuznetsov, founder of CATCH Tech and CMO at affiliate marketing agency 2QL Corp
Even data-driven marketers make calculation mistakes sometimes, and in our case, it was a mistake worth $300,000.
As a marketer with a tech background, I’ve always believed that a numbers-first approach to marketing campaigns, ensuring measurable customer conversions, is the only possible one. That’s why at CATCH Tech, we often work on a cost-per-sale model. But not all misstep comes from the marketers’ side; a miscalculated budget at the outset can lead to disappointing results and tense conversations. That’s exactly what happened to us.
In early 2025, we faced a $300,000 setback due to an oversight in marketing economics calculations and performance metrics. The situation was further complicated by gaps in communication with the client – a customer relationship management platform for email marketing – which made resolving the issue more challenging.
Here’s how the situation developed and what we learned along the way.
The client
In January, we signed an offer agreement for traffic acquisition services with a SaaS company that provided a full suite of email marketing solutions. As one of many contractors, our job was simple on paper: bring high-quality leads, each verified by a completed contact form on the client’s side. Our payment wasn’t tied to strict KPIs – as long as the client’s feedback was positive, we kept running campaigns.
All acquisition channels were set in advance: content sites, push notifications, email, and affiliates. Here’s a catch: when you hire a contractor, it’s critical to factor in everything that could impact performance – traffic costs, expected conversion rates, even seasonal trends. Skipping those calculations can come back to bite you, as we soon found out.
Evgenii Kuznetsov
After a short trial, we started from scratch, and the results looked great. Starting from 531 leads in January, we tripled that to 1,645 in February, and by March were closing in on 3,000. Reports went out, the client’s feedback was positive, and everything looked smooth. But in hindsight, there were early warning signs we should have paid closer attention to.
The problems
The first red flag should have been the client’s refusal to implement bot detection. Managing multiple contractors without traffic filters is like flying blind – especially when more than half of today’s internet traffic comes from bots. The risk of wasting budget and attracting malicious traffic is simply too high. Even after we warned them about the potential consequences, the client chose not to act.
The real trouble came at the end of the quarter, just as our payment was due. After three months of smooth collaboration and consistent positive feedback, the client suddenly shifted gears, claiming they were dissatisfied with the results, and then cut off all communication. Every attempt we made to clarify or resolve the issue was met with silence.
Eventually, they resurfaced. But instead of opening a dialogue, they sent over a revised terms sheet. This new document gave them the right to block contractor payments without explanation, effectively nullifying our previously signed agreement. Despite repeated attempts to re-establish communication, nothing changed. Our $300,000 was lost for us.
Based on our experience, when multiple contractors were involved and no bot protection was in place, we suspect that it opened the door to unethical behavior that could distort results – and not in our favor. The fact that our leads were fully qualified through contact forms, and that no negative feedback was given during the process, supports this assumption.
We could chalk this up to miscommunication, or even deliberate fraud. But instead, we treat it as a case study and a reminder of why accurate marketing economics, clear ROI tracking, and strong safeguards matter – and how overlooking them can lead to costly mistakes.
Marketing economics mistakes and how they could have been avoided
Here are five costly mistakes we made and the lessons learned:
Attribution Errors
More traffic doesn’t always mean more conversions. Spikes of activity can hide irrelevant leads or bot activity, often from ads, affiliates, or referrals. As a result, a successful campaign on paper blows real marketing budgets with little to no benefit.
To avoid it, use separate analytics systems and maintain full transparency on traffic sources to keep metrics accurate and clean.
Oversimplified KPIs
We were measured only on cost per acquisition. Ignoring traffic quality, conversion rates, and lifetime value meant the campaign failed to meet business goals. As a contractor, educate your client and define layered KPIs upfront – from strategy to operations. Multiple metrics give a fuller picture and help catch issues early.
Ignoring Fraud
Fraud, bots, and inflated traffic can quietly drain budgets and distort ROI. Without proper filters, even strong campaigns deliver little real value. Use bot tracking, secure sources, and monitor traffic quality with tools like device fingerprinting or IP analysis.
No Testing Period
Jumping straight into a full contract adds risk. A short trial could have revealed traffic quality and ROI potential before scaling. To avoid potential losses, start with a test period to measure conversion rates, customer acquisition cost, and engagement. Use that data to optimize and reduce exposure.
Lack of Clear Communication
Finally, the biggest failures aren’t always technical – they’re human. When agencies and clients don’t align on expectations, tolerance ranges, or contract terms, disappointment is inevitable, and it’s far harder to fix than broken campaigns. Discuss all critical points upfront and carefully review contract terms.
Conclusion
Losing $300,000 was painful, but the bigger cost would have been failing to learn from it. If you’re a contractor, don’t rely on handshake optimism. Protect yourself with layered KPIs, strict testing, fraud checks, and airtight contracts. If you’re a client, honor transparency with transparency. And, of course, educate your clients – otherwise, by the payment due date you may end up with a conflict and a zero on the balance.