This is a post I have wanted to write for years. It is about something that frustrates me deeply about the agency industry — the widespread use of long-term lock-in contracts that trap clients in relationships that are not working.

I will be direct: we do not use lock-in contracts at Pea Soup Digital. We never have. We believe that if we are doing good work, our clients will stay. And if we are not doing good work, they should be free to leave. That is how we would want to be treated as a client, and it is how we treat ours.

This article explains why we think lock-in contracts are bad for clients, bad for the industry, and — counterintuitively — bad for the agencies that use them.

The problem with long-term agency contracts

The standard agency contract in the UK ecommerce space looks something like this: a twelve-month minimum term, sometimes six months, with automatic renewal unless you cancel within a narrow window (often thirty days before the renewal date). If you miss that window, you are locked in for another term.

On paper, this looks reasonable. In practice, it creates a deeply unequal relationship. The agency has guaranteed revenue regardless of performance. The client has no leverage to demand better results, no easy way to exit if the relationship deteriorates, and no mechanism to hold the agency accountable beyond writing increasingly frustrated emails.

I have seen this pattern dozens of times. A brand signs a twelve-month SEO contract. By month three, it is clear the agency is not delivering meaningful results. The monthly reports are filled with vanity metrics — "We built 47 backlinks this month!" — but organic traffic is flat or declining. The brand wants to leave but cannot without paying out the remaining nine months of the contract. So they stay, pay, and grow increasingly resentful.

A contract should protect both parties. The moment it only protects one — and that one is the agency — it stops being a contract and starts being a trap.

Why lock-in contracts exist (the agency perspective)

To be fair, agencies have legitimate reasons for wanting commitment. Let me steelman the argument before I dismantle it.

Argument 1: "Results take time"

This is the most common justification. SEO takes six to twelve months to show full results. Email marketing takes three to six months to build a mature flow set. Conversion optimisation requires months of testing. If clients leave after two months, the agency never gets to show what they can do.

This argument has merit. SEO genuinely does take time. But a twelve-month contract is not the solution to this problem. The solution is clear milestones, transparent reporting, and demonstrating progress (not just results) from month one. If an agency cannot show meaningful progress in three months — ranking improvements, traffic trends, technical fixes — the issue is not timing. It is competence.

Argument 2: "We need revenue predictability"

Running an agency requires predictable revenue to pay salaries, invest in tools, and plan capacity. Lock-in contracts provide that predictability. Without them, revenue is uncertain and planning is difficult.

This argument is valid from the agency's perspective but irrelevant from the client's. A client should not subsidise an agency's business model at the expense of their own flexibility. If an agency needs to trap clients to maintain revenue, the problem is not the client's commitment level — it is the agency's value delivery.

Argument 3: "It aligns incentives"

The argument here is that a long-term commitment allows the agency to invest more deeply in the client's success, knowing the relationship will last. Without commitment, the agency might not dedicate senior resources or invest in understanding the client's business.

This is the weakest argument, and it actually reveals a red flag. If an agency only invests in your success when you are contractually obligated to pay them regardless, that tells you exactly how they prioritise client outcomes versus client revenue.

What goes wrong when clients are locked in

I have spoken with hundreds of brand founders over my twenty years in ecommerce. The stories about lock-in contract experiences are remarkably consistent:

Quality drops after the contract is signed

The pitch was brilliant. The first month was responsive and energetic. By month three, the senior person who led the pitch has disappeared and the work is being done by a junior team member you have never met. Your monthly calls get shorter. The reports get more generic. The results plateau. But you have nine months left on the contract.

This is not an accident. It is a structural incentive problem. When an agency has guaranteed revenue, the economic incentive to maintain quality is weaker than the incentive to redirect senior resources to winning new business. New clients generate new revenue. Existing locked-in clients generate the same revenue regardless of effort.

Communication becomes one-directional

In a healthy agency relationship, communication is two-way. The client shares business context, goals, and feedback. The agency shares strategy, progress, and recommendations. When a client is locked in, the dynamic shifts. The client's feedback becomes less powerful because the consequence of ignoring it (the client leaving) has been removed. Communication becomes the agency telling the client what was done, rather than the agency asking the client what is needed.

Innovation stops

Locked-in clients get last year's strategy. New clients get innovation. Why would an agency invest time developing new approaches for a client who is already committed? The economic logic does not support it. The smartest minds in the agency are focused on winning new clients, not serving existing ones who cannot leave.

The exit is painful

When a lock-in contract finally ends, the separation is often messy. The agency has little incentive to make the transition smooth. Code ownership is disputed. Data access is restricted. Knowledge transfer is minimal. The client is left starting from scratch with a new agency, having lost months and thousands of pounds.

How our model works instead

We operate on a simple model: 30-day rolling agreements for ongoing services. Here is what that means in practice:

For project work (store builds, migrations)

Project work has a defined scope, timeline, and price. You pay a deposit upfront (typically 30%), a progress payment at design approval (40%), and the balance at launch (30%). There is no lock-in because the project has a defined end point. If we are building your Shopify store, you know exactly what you are paying and when the project will be delivered.

For ongoing services (SEO, email, retainer)

Ongoing services like SEO, Klaviyo email management, or development retainers run on 30-day rolling agreements. You can cancel with 30 days' notice, for any reason. No exit fees. No penalty. We will even help with the transition to a new provider if you choose to leave.

What this means for us as an agency

It means we have to deliver results every single month. We cannot coast. We cannot deprioritise existing clients in favour of new business. Every client is, in effect, a new client every month — and we have to earn their continued business through demonstrable value.

Is this scary? Yes, sometimes. Is it good for our clients? Absolutely. And in practice, it is good for us too.

Why no lock-in is actually better for agencies too

This is the part that most agencies have not figured out yet. Removing lock-in contracts does not reduce retention — it increases it. Here is why:

Better clients stay longer

When clients choose to stay because they want to, not because they have to, the relationship is fundamentally healthier. They are more engaged, more collaborative, and more likely to expand the scope of work. Our average client tenure is significantly longer than the industry standard twelve-month contract cycle, because clients who stay by choice are invested in the partnership.

Bad-fit clients leave early (which is a good thing)

Not every client-agency relationship works. Sometimes the fit is wrong — different communication styles, misaligned expectations, or simply different priorities. Without a lock-in contract, these relationships end quickly and amicably. With a lock-in contract, they fester for months, consuming energy, creating frustration, and damaging both parties' reputations.

Referrals increase

Clients who stay by choice are clients who recommend you. Clients who are locked in are clients who warn others. Our strongest source of new business is referrals from existing clients. That referral pipeline exists because our clients genuinely value the relationship, not because they are contractually obligated to stay.

Team motivation improves

Our team knows that every client can leave at any time. This is not a source of anxiety — it is a source of pride. When a client renews month after month, the team knows it is because their work is genuinely valued. That motivation drives better work, which drives better retention, which drives more referrals. It is a virtuous cycle.

What to look for in an agency contract

Whether you work with us or another agency, here are the contract terms you should insist on, and the ones you should push back against:

Insist on

  • Clear scope of work: Every deliverable should be documented. Not "SEO services" but "Technical audit, monthly on-page optimisation of X pages, monthly content brief, quarterly review." As we explain in our guide to choosing a Shopify agency, vague scope always resolves in the agency's favour.
  • Defined reporting: What metrics will be reported, how often, and in what format? Reporting should be proactive, not something you have to chase.
  • 30-day (or shorter) cancellation notice: You should be able to leave with reasonable notice. 30 days is standard and fair.
  • IP ownership: Any code, designs, or content created for you should be owned by you. If the agency retains IP, you are locked in even after the contract ends.
  • Data portability: If you leave, you keep your data — analytics access, email lists, customer data, everything. An agency that restricts data access on exit is holding your business hostage.
  • No exit fees: If you are paying for a monthly service and you give proper notice, there should be no additional fee for leaving.

Push back on

  • 12-month minimum terms without a break clause or performance review option.
  • Automatic renewal clauses that require you to cancel within a specific window (often buried in the small print).
  • Exit fees that penalise you for leaving, even with proper notice.
  • Vague scope that gives the agency discretion over deliverables.
  • Proprietary systems that create technical lock-in (the agency uses tools or frameworks only they can maintain).
  • Restricted access to your own accounts, analytics, or data.

For a complete checklist of what to evaluate when scoring potential agencies, see our scorecard guide.

The case for fair initial commitments

I want to be balanced here. There is a legitimate case for a short initial commitment — and it is different from a lock-in contract.

For services like SEO, a 90-day initial period is reasonable. It takes time to conduct an audit, implement technical fixes, begin content work, and see initial ranking movements. A client who leaves after 30 days has not given the strategy enough time to demonstrate value. A 90-day initial commitment, followed by a 30-day rolling agreement, is a fair compromise.

Similarly, for email marketing, a 90-day initial period allows time to set up flows, begin campaign testing, and establish performance baselines. After 90 days, you should have enough data to decide whether to continue.

The distinction is important: a 90-day initial commitment is a handshake that says "give us enough time to show you what we can do." A 12-month lock-in contract is a handcuff that says "you cannot leave regardless of what we do."

Our promise to clients

Here is what we commit to, contractually and culturally:

  • 30-day rolling agreements for all ongoing services, after any initial commitment period.
  • You own everything. All code, designs, content, and data. If you leave, it comes with you.
  • No exit fees. Cancel with 30 days' notice and that is it.
  • Full account access. You always have admin access to Shopify, Klaviyo, Google Analytics, Search Console, and every other tool we use on your behalf.
  • Transition support. If you choose to leave, we will spend time briefing your new agency or in-house team. We want the transition to be smooth, because how we handle exits is a reflection of our values.
  • Monthly performance reporting with real metrics, honest analysis, and actionable recommendations.

We do this because we have been on the other side. Before founding Pea Soup Digital, I ran ecommerce brands. I have been the client stuck in a contract that was not working. I know how frustrating it is, and I know how much it costs — not just in fees, but in lost growth while you wait for the contract to expire.

The best retention strategy is not a contract. It is results. We would rather keep clients because we are indispensable than because they are contractually obligated.

Andrew Simpson, Founder

The real cost of lock-in contracts

Let me put some numbers to this. A brand paying £3,000 per month for an agency that stopped delivering value at month four has a remaining contract cost of £24,000 (eight months at £3,000). But the real cost is higher. The opportunity cost of not working with a better agency during those eight months — in lost revenue growth, missed SEO opportunities, and stagnant email performance — typically exceeds the contract cost by two to three times.

For a brand doing £1M in annual revenue, eight months of stagnant growth could mean £80,000 to £160,000 in lost revenue growth. Add the £24,000 in wasted agency fees, and the total cost of a lock-in contract that is not working exceeds £100,000.

That is an expensive lesson. And it is entirely avoidable.

A note to other agencies

If you are an agency reading this, I will say something that might be uncomfortable: if you need lock-in contracts to retain clients, the problem is not your clients. It is your work.

Drop the lock-ins. Commit to earning the relationship every month. Your best clients will stay longer. Your worst clients will leave sooner. Your team will be more motivated. Your reputation will improve. Your referral pipeline will grow. The short-term revenue uncertainty is real, but the long-term business health is dramatically better.

The agencies that thrive in the next decade will be the ones that compete on value, not contracts. The market is moving in this direction. Brands are getting smarter about what they sign. The agencies that adapt first will win.

If you have been burned by a lock-in contract and are looking for an agency that operates differently, start a conversation with us. We will be transparent about what we can deliver, what it will cost, and how long it will take. And you can leave whenever you want. Because we believe that is how it should be.