How to Hire a DTC Marketing Agency: What to Look For

Hiring the right DTC marketing agency requires evaluating red flags like guaranteed ROAS promises, understanding pricing models (performance vs retainer), asking about creative production capacity, and reviewing portfolio case studies for brands at your revenue stage with measurable results.

The wrong agency partnership can burn through $50k-100k and 6 months before you realize it's not working. The right agency becomes an extension of your team, driving predictable growth while you focus on product and operations.

After vetting hundreds of agencies on behalf of founders and analyzing what separates winners from pretenders, we've distilled the exact framework for making this critical hire. Whether you're at $100k or $10M in revenue, this guide will help you avoid expensive mistakes.

Last updated: February 2026

Table of Contents

• When to Hire an Agency vs Building In-House
• Red Flags to Watch For
• Essential Questions to Ask
• Pricing Models Explained
• Performance-Based vs Retainer
• How to Evaluate Portfolios
• Team Structure and Expertise
• Trial Periods and Contracts
• FAQ

When to Hire an Agency vs Building In-House

Before evaluating agencies, confirm you need one—many brands hire too early or when in-house makes more sense.

Hire an agency when:

• You're spending $10k+/month on ads and need specialized expertise
• You lack in-house media buying experience
• You need creative production capacity (10+ ads per week)
• Your team is maxed on product/ops and can't dedicate 20+ hours/week to ads
• You want to scale quickly (6-12 months to $50k+/month)

Build in-house when:

• You're below $5k/month in ad spend (agencies struggle to be profitable here)
• You have a strong marketing hire available full-time
• You want maximum control and intimate product knowledge
• Your CAC/LTV margins support 1-2 full-time salaries
• You're in a highly specialized niche requiring deep product expertise

Hybrid approach: Many successful brands start with an agency to scale from $10k to $50k+/month, then bring media buying in-house while keeping the agency for creative production and strategy. This maximizes efficiency at scale.

According to MHI Media's analysis of 200+ DTC brands, the optimal inflection point to hire an agency is $8-15k/month in ad spend. Below that, agencies struggle to deliver ROI. Above $100k/month, in-house often makes more sense for cost efficiency.

Cost comparison:

• Agency (retainer model): $3-8k/month + 10-15% of ad spend
• In-house media buyer: $60-90k/year salary + benefits ($7-10k/month total)
• Freelancer: $2-5k/month (typically part-time, limited capacity)

At $20k/month ad spend, agency costs ≈ $5-6k/month vs in-house ≈ $8-10k/month. Agency is cost-effective until $50k+/month spend.

Red Flags to Watch For

These warning signs indicate an agency will waste your time and money:

Red Flag 1: Guaranteed ROAS or Revenue Promises

What it sounds like: "We guarantee 4x ROAS or your money back" or "We'll get you to $1M in 90 days." Why it's a red flag: No ethical agency guarantees outcomes. Performance depends on your product, pricing, landing pages, retention, and market conditions—variables outside their control. What to look for instead: "Based on similar brands, we typically see 2.5-3.5x ROAS in the first 90 days, scaling to 2.0-2.5x as we increase spend. Results vary by product and market."

Specific ranges with context = realistic. Blanket guarantees = red flag.

Red Flag 2: One-Size-Fits-All Approach

What it sounds like: "Our proven system works for every DTC brand" or detailed pitch without asking about your business. Why it's a red flag: Every brand has unique unit economics, customer psychology, and market positioning. Good agencies ask dozens of questions before proposing strategy. What to look for instead: Discovery calls where they spend 60%+ of the time asking questions: AOV, LTV, CAC targets, customer demographics, retention metrics, competitive landscape.

Red Flag 3: No Creative Production Capacity

What it sounds like: "You'll need to provide all the creative assets" or "We handle media buying; you handle creative." Why it's a red flag: Creative is 70-80% of ad performance. An agency that doesn't produce or advise on creative can't drive results—they're just budget operators. What to look for instead: "Our creative team produces 15-30 assets per month for you, including UGC, founder content, and static ads. We also provide creative strategy and performance feedback."

Red Flag 4: Black Box Reporting

What it sounds like: "We'll send monthly reports" with no access to your ad account. Why it's a red flag: Your ad account should remain YOURS. Agencies that restrict access are hiding poor performance or want to lock you in. What to look for instead: "You'll have full admin access to your Meta/Google accounts. We'll set up view-only access for us. We provide weekly Slack updates and monthly deep-dive calls with full transparency."

Red Flag 5: No Portfolio Case Studies

What it sounds like: "We've worked with hundreds of brands" but can't share specifics or results. Why it's a red flag: Legitimate agencies have 5-10 detailed case studies with metrics. If they can't share (even anonymized), they likely don't have wins. What to look for instead: "Here are 5 case studies from brands similar to yours: Brand A scaled from $15k to $80k/month in 6 months at 2.4x ROAS. Brand B reduced CAC by 35% while increasing LTV 22%."

Red Flag 6: Long-Term Contracts with No Exit

What it sounds like: "12-month commitment required, non-negotiable." Why it's a red flag: Good agencies earn retention through results, not contracts. Long lock-ins suggest they struggle to keep clients. What to look for instead: "We recommend 90 days minimum to see results, then month-to-month with 30-day notice. Most clients stay 12-24 months because of performance."

Red Flag 7: Over-Reliance on "Proprietary Systems"

What it sounds like: "Our secret algorithm" or "Our proprietary AI tool." Why it's a red flag: Meta and Google's algorithms do the heavy lifting. "Proprietary systems" are usually just standard practices rebranded to sound impressive. What to look for instead: "We use best-in-class tools like TripleWhale and Northbeam for attribution, combined with hands-on optimization and creative testing. No magic bullets—just disciplined execution."

Red Flag 8: Junior Team Managing Your Account

What it sounds like: "You'll work with our account manager" (who has 6 months of experience). Why it's a red flag: You're paying for expertise. If a junior employee is running your account with minimal oversight, you're not getting what you're paying for. What to look for instead: "You'll work directly with [Senior Strategist Name], who has 5+ years in DTC and has scaled 50+ brands. They'll handle strategy and optimization, with support from our creative and analytics teams."

Essential Questions to Ask

Use this scorecard during agency interviews. Agencies should answer 80%+ of these confidently and specifically.

Questions About Experience

1. "How many DTC brands have you scaled past $50k/month in ad spend?"

• Good answer: Specific number (10+, 30+, etc.) with examples
• Red flag: Vague ("many") or deflection

2. "Can you share 3 case studies from brands in my vertical or at my revenue stage?"

• Good answer: Detailed case studies with metrics, timelines, challenges
• Red flag: "We can't share specifics" or only massive brands far beyond your stage

3. "What's your typical client tenure?"

• Good answer: 12-24+ months average, with reasons why clients leave
• Red flag: Under 6 months average or evasiveness

4. "How many clients have you lost in the past year, and why?"

• Good answer: Honest answer (3-5 clients, specific reasons: business closed, moved in-house, budget cuts)
• Red flag: "We never lose clients" or defensiveness

Questions About Process

5. "Walk me through your first 90 days with a new client."

• Good answer: Detailed week-by-week plan: audit (weeks 1-2), foundation setup (weeks 3-4), testing phase (weeks 5-8), initial scaling (weeks 9-12)
• Red flag: Generic platitudes or no structured onboarding

6. "How do you approach creative production?"

• Good answer: "We produce 15-30 assets monthly: UGC (40%), static ads (25%), founder content (20%), product demos (15%). We test concepts, scale winners, and refresh every 21-28 days."
• Red flag: "You provide creative" or vague promises

7. "What tools and platforms do you use for attribution, reporting, and optimization?"

• Good answer: Specific tools (TripleWhale, Northbeam, Rockerbox, etc.) with reasoning
• Red flag: Only Meta's native reporting or vague "we have dashboards"

8. "How often will we communicate, and who will I interact with?"

• Good answer: "Weekly Slack updates, bi-weekly calls, monthly strategy reviews. You'll work primarily with [Name], supported by [creative team]."
• Red flag: "Monthly reports" only or no clear point of contact

Questions About Strategy

9. "What's your philosophy on scaling: aggressive or conservative?"

• Good answer: Depends on your goals, CAC/LTV, and cash flow—no one-size-fits-all
• Red flag: Only one approach regardless of business context

10. "How do you handle performance dips or plateau?"

• Good answer: "We audit creative fatigue, audience saturation, landing page performance, and market conditions. Typically introduce new creative concepts, test new audiences, or pause increases to stabilize."
• Red flag: "That doesn't happen with us" or no clear troubleshooting process

11. "How do you think about multi-channel strategy? Should we expand beyond Meta?"

• Good answer: Honest assessment based on your stage—e.g., "Master Meta first at $20k+/month, then layer in Google or TikTok at $40k+/month"
• Red flag: Pushing expensive multi-channel immediately or ignoring other channels entirely

Questions About Pricing

12. "Explain your pricing structure and what's included."

• Good answer: Clear breakdown—retainer, percentage of spend, creative production, reporting, strategy calls
• Red flag: Confusing fee structures or hidden costs

13. "What results should I expect in 90 days?"

• Good answer: Conservative, realistic benchmarks based on your starting point
• Red flag: Overpromising ("3x your revenue") or vague ("significant growth")

14. "How do you measure success beyond ROAS?"

• Good answer: LTV, CAC payback period, contribution margin, retention cohorts, incrementality
• Red flag: Only ROAS or revenue

Questions About Team

15. "Who specifically will work on my account, and what's their experience?"

• Good answer: Names, bios, years of experience, portfolio highlights
• Red flag: Unnamed "team" or recent hires

16. "How many clients does each team member manage?"

• Good answer: 5-8 clients max per media buyer (ensures attention)
• Red flag: 15+ clients per person (spread too thin)

Pricing Models Explained

Agency pricing varies widely. Understanding each model helps you negotiate and compare apples-to-apples.

Model 1: Flat Monthly Retainer

Structure: Fixed monthly fee regardless of ad spend Typical range: $3,000-$10,000/month What's included: Strategy, media buying, reporting, creative direction (production sometimes extra) Pros:

• Predictable cost
• No incentive to overspend
• Good alignment if agency is conservative with budget

Cons:

• Agency makes same fee whether they deliver results or not
• May under-invest in scaling opportunities

Best for: Brands with predictable, stable ad spend ($10k-$30k/month) who want cost certainty. MHI Media pricing example: $5,000/month retainer for brands spending $15-25k/month, including strategy, media buying, monthly creative production (15-20 assets), and weekly reporting.

Model 2: Percentage of Ad Spend

Structure: X% of total monthly ad spend (typically 10-20%) Typical range: 10% for large accounts ($100k+/month), 20% for smaller accounts ($10-20k/month) What's included: Usually full-service (strategy, buying, creative, reporting) Pros:

• Scales with your budget
• Agency incentivized to scale spend (alignment if you want aggressive growth)
• Cost-efficient at higher spend levels

Cons:

• Can incentivize overspending
• Gets expensive at lower budgets (20% of $10k = $2k, but same work as $30k account)

Best for: Brands with growing ad spend who want agency to scale aggressively. Example: At $30k/month ad spend with 15% agency fee = $4,500/month.

Model 3: Hybrid (Retainer + % of Spend)

Structure: Base retainer + smaller percentage of spend Typical range: $2-5k retainer + 5-10% of spend What's included: Full-service Pros:

• Balances predictability with scalability
• Base retainer covers core work, percentage covers scaling effort
• Agency has baseline income but incentive to grow

Cons:

• Slightly more complex to track
• Total cost less predictable than flat retainer

Best for: Most DTC brands—offers best balance of alignment and cost structure. Example: $3,000 retainer + 10% of spend. At $20k/month spend = $3k + $2k = $5k total. At $50k/month = $3k + $5k = $8k total.

Model 4: Performance-Based (Revenue Share or ROAS Bonus)

Structure: Low/no base fee + % of revenue generated or bonus for hitting ROAS targets Typical range: 5-15% of attributed revenue OR base fee + bonus for exceeding targets Pros:

• Agency only makes money if you make money (strong alignment)
• Low upfront cost

Cons:

• Rare (most agencies avoid due to attribution complexity and risk)
• Can lead to short-term thinking (prioritizing quick revenue over LTV)
• Attribution disputes common

Best for: Established brands with clear attribution who want maximum risk-sharing. Example: 8% of attributed revenue. If agency drives $100k/month in revenue = $8k agency fee. MHI Media insight: We occasionally offer performance-based for established brands ($1M+ revenue) but require 90-day baseline retainer to cover setup costs. Pure performance deals rarely work for either party due to attribution and LTV complexity.

Model 5: Project-Based

Structure: Fixed fee for specific deliverables (e.g., account audit, campaign build, creative production) Typical range: $2,000-$15,000 per project Pros:

• Defined scope, no ongoing commitment
• Good for testing agency capabilities

Cons:

• Not true partnership—agency not invested in long-term performance
• Doesn't include ongoing optimization

Best for: One-time needs (audit, campaign setup) or trial before committing to retainer. Example: $5,000 for comprehensive Meta account audit + 30-day optimization plan.

Performance-Based vs Retainer

The eternal debate: Should you pay for results or pay for service?

Performance-Based Pricing

The pitch: "We only make money when you make money." Reality check: Performance-based pricing sounds ideal but creates misaligned incentives and attribution nightmares. Why most agencies avoid it:

• Attribution is messy: Is a purchase from a Meta ad, email, or organic? Multi-touch attribution tools disagree 20-30%.
• LTV takes time: An agency might drive $100k revenue in Month 1 that costs $120k in CAC, but those customers are profitable over 12 months. Who eats the loss?
• External factors: Product quality, landing pages, checkout flow, retention—all impact results but are outside agency control.

When it works:

• Established brand with bulletproof attribution system
• Long-term partnership (12+ months) so LTV can play out
• Baseline retainer to cover costs + performance bonuses on top

When it fails:

• New brands with unclear attribution
• Short-term partnerships (agency optimizes for quick wins, ignoring LTV)
• Pure rev-share with no baseline (agency can't sustain team quality)

MHI Media's take: We prefer retainer or hybrid models because they allow us to make long-term strategic decisions (testing, creative investment, LTV optimization) rather than chasing short-term attributed revenue. For brands with 12+ month commitment and strong attribution, we'll add performance bonuses on top of base retainer.

Retainer Pricing

The pitch: "Predictable cost, strategic partnership." Reality check: Retainers align incentives for long-term growth but require trust that the agency will deliver. Why we prefer it:

• Strategic freedom: We can test bold ideas, invest in long-tail creative, and optimize for LTV—not just immediate ROAS.
• Predictable resourcing: We staff your account appropriately without worrying about fluctuating revenue.
• Transparency: You see all spend, all performance—we succeed or fail together.

The risk: Agencies can coast on retainers if there's no performance accountability. Combat this with:

• 90-day performance reviews with clear KPIs
• Month-to-month terms after initial commitment
• Regular reporting cadence (weekly, not just monthly)

Best practice: Retainer with performance milestones. Example: $5k/month retainer. If we hit 2.5x ROAS target 3 months running, bonus $1-2k/month. Encourages excellence without attribution complexity.

How to Evaluate Portfolios

Portfolio review is where you separate real agencies from pretenders.

What to Request

Ask for: "Please share 3-5 case studies from brands similar to ours (revenue stage, vertical, or product type) with specific metrics, timelines, and challenges overcome." What you should receive:

• Brand name (or anonymized description: "Supplement brand, $500k annual revenue")
• Starting point (revenue, ad spend, ROAS)
• Timeline (6 months, 12 months, etc.)
• Specific results (revenue growth, ROAS, CAC reduction, etc.)
• Challenges and how they were solved
• Visuals (creative examples, dashboards, before/after metrics)

Red Flags in Portfolios

Red flag 1: Only massive brands If every case study is "$5M brand scaled to $20M," but you're at $500k, they lack relevant experience. Ask: "Do you have case studies from brands at my stage?" Red flag 2: Vague metrics "Increased ROAS significantly" or "Drove substantial growth" = meaningless. Look for specific numbers: "Scaled from $12k to $68k/month at 2.3x ROAS over 9 months." Red flag 3: Short timelines with massive claims "Tripled revenue in 30 days!" is usually cherry-picked or unsustainable. Real scaling takes 6-12 months. Red flag 4: No creative examples Case studies without showing actual ads suggest they don't do creative work or don't have permission to share (bad client relationships). Red flag 5: All results from 2+ years ago Ask: "What have you done in the last 12 months?" The landscape changes quickly.

Good Portfolio Signals

Green flag 1: Brands at your stage Case studies from $300k-$1M brands if you're at $500k. Relevant experience > impressive but irrelevant wins. Green flag 2: Detailed storytelling "Month 1-2: Audited existing campaigns, found creative fatigue and poor audience targeting. Month 3-4: Launched 20 new UGC ads and rebuilt campaign structure. Month 5-6: Scaled from $15k to $35k/month at 2.4x ROAS." Green flag 3: Honesty about challenges "We hit a plateau at Month 7—CPMs spiked 40% heading into Q4. We pulled back spend, doubled down on creative production, and recovered by Month 9." Green flag 4: Visuals and receipts Screenshots of dashboards, creative examples, performance charts. Verifiable proof. Green flag 5: Client testimonials Direct quotes from founders: "Agency X took us from $20k to $90k/month in 10 months. Communication was excellent, and they felt like part of our team."

Questions to Ask About Portfolio

• "Which case study is most similar to my brand, and why?"
• "What was the biggest challenge in [specific case study], and how did you overcome it?"
• "Can I speak with 2-3 current or past clients as references?" (If they say no, red flag)
• "What's a client that didn't work out, and what happened?" (Tests honesty and self-awareness)

Team Structure and Expertise

You're not hiring an agency—you're hiring specific people. Understand who will work on your account.

Ideal Team Composition

For $10-30k/month accounts:

• 1 senior media buyer (5+ years experience)
• 1 creative producer/strategist
• 1 account manager (client communication)
• Access to wider team for specialized needs (analytics, design, etc.)

For $30-100k/month accounts:

• 1 senior strategist overseeing
• 1 dedicated media buyer
• 1-2 creative producers
• 1 analyst (attribution, reporting)
• 1 account manager

For $100k+ accounts:

• Full dedicated team (strategist, 2 media buyers, creative team, analyst)

Roles Explained

Media Buyer: Builds and optimizes campaigns, monitors performance daily, adjusts budgets, kills/launches ads. What to look for: 3+ years DTC experience, managed $500k+ in lifetime ad spend, strong analytical skills. Creative Strategist: Develops creative concepts, briefs producers/designers, analyzes creative performance, plans refresh cadence. What to look for: Understanding of direct response psychology, portfolio of successful ads, experience with UGC/founder content. Analyst: Manages attribution tools, builds dashboards, identifies trends, forecasts performance. What to look for: Experience with TripleWhale, Northbeam, or similar tools; strong Excel/Google Sheets skills. Account Manager: Your day-to-day contact, coordinates team, delivers reports, schedules calls. What to look for: Responsive communication, organized, proactive with updates.

Questions About Team

• "Who specifically will work on my account daily?" (Get names and bios)
• "How many other clients does my media buyer manage?" (Under 8 is ideal)
• "What happens if my main contact leaves the agency?" (Should have backup/transition plan)
• "Will I ever interact with junior team members, and in what capacity?" (Junior support is fine; junior decision-makers are not)

Experience Benchmarks

MHI Media team structure: Every client at $15k+/month gets a senior media buyer (5+ years experience), a creative producer (100+ ads produced), and an account strategist (8+ years experience). We cap each media buyer at 6-8 clients to ensure attention and responsiveness.

Trial Periods and Contracts

Protect yourself with smart contract terms.

Recommended Contract Structure

Phase 1: 90-day initial commitment

• Long enough to see real results (30 days isn't enough)
• Short enough to exit if things aren't working
• Includes onboarding, audit, campaign build, and initial testing

Phase 2: Month-to-month with 30-day notice

• Renews automatically unless you cancel
• Allows flexibility without constant renegotiation
• Agency earns retention through performance

Avoid: 6-12 month contracts with no performance clauses or exit options. You're locked in even if results are terrible.

Performance Milestones

Build milestones into contracts:

Example milestones for a $15k/month ad spend brand: Exit clause: If ROAS falls below 1.5x for 2 consecutive months (excluding seasonality), you can exit with 15-day notice instead of 30.

What Should Be in Your Contract

Must-haves:

• [ ] Ownership of ad accounts (you own, they have admin access)
• [ ] Ownership of creative assets produced (you own IP)
• [ ] Termination terms (notice period, exit clauses)
• [ ] Deliverables (# of creatives per month, # of calls, reporting frequency)
• [ ] Performance expectations (not guarantees, but targets)
• [ ] Confidentiality/NDA (protects your data and strategy)

Red flags in contracts:

• [ ] Agency owns your ad accounts or pixels
• [ ] Long lock-in (12+ months) with no exit clauses
• [ ] Vague deliverables ("ongoing optimization")
• [ ] Non-compete clauses preventing you from running ads yourself later
• [ ] Hidden fees (ad spend minimums, overage charges, etc.)

Trial Projects vs Full Engagement

Option 1: Paid trial project

• Pay $2-5k for 30-day audit + strategy + sample creative
• Low risk, tests agency thinking and deliverables
• Doesn't test execution or ongoing partnership quality

Option 2: 90-day trial engagement

• Full onboarding at standard rates
• Clear performance milestones
• Exit clause if milestones not hit

MHI Media approach: We offer a $3,500 paid audit + 30-day optimization project for brands who want to test us before committing to full engagement. Includes full account audit, strategy roadmap, 10 custom creatives, and 30 days of hands-on optimization. 70% of trial clients convert to full engagement.

FAQ

How much should I expect to spend monthly on an agency?

Budget 15-25% of your ad spend for agency fees. At $20k/month ad spend, expect $3-5k in agency fees. At $50k/month, expect $6-10k. This includes strategy, media buying, and creative production. One-off creative projects or specialized services may cost extra.

Should I hire an agency or a freelancer?

Freelancers work well for smaller budgets ($5-15k/month) and simpler needs (media buying only). Agencies provide full teams (media buying, creative, analytics, strategy) and are better for scaling ($20k+/month). Freelancers average $2-4k/month; agencies $4-10k/month. If you need 20+ creatives monthly and multi-channel management, agencies have the capacity freelancers typically don't.

How long until I see results from a new agency?

Expect 60-90 days for meaningful results. Month 1 is onboarding and setup. Month 2 is testing and optimization. Month 3+ is scaling and refinement. Agencies promising results in 30 days are overpromising. Judge performance at the 90-day mark, not week-by-week during ramp-up.

What's the difference between a DTC-focused agency and a general digital marketing agency?

DTC-focused agencies specialize in direct-to-consumer ecommerce with deep expertise in Meta, creative testing, CAC/LTV optimization, and retention. General agencies may dabble in ecommerce but lack specialized knowledge. DTC agencies understand unit economics, subscription models, and performance creative. For ecommerce brands, DTC-focused agencies outperform generalists 90% of the time.

Can I work with multiple agencies for different channels?

Yes, but coordination is critical. One agency for Meta, another for Google, another for creative can work if they communicate. Risk: fragmented strategy and duplicated efforts. Better approach: one primary agency handling strategy + media buying, with specialist partners for specific needs (email, CRO, SEO). MHI Media partners with specialized email/SMS and CRO agencies to provide holistic growth without channel silos.

What if the agency I hire doesn't perform?

Exit quickly if performance doesn't meet milestones by 90 days (excluding legitimate external factors like market crashes). Wasted months cost more than agency fees. Red flags by day 90: ROAS below baseline, declining week-over-week performance, poor communication, or blame-shifting. If you see these, cut ties and find a new partner. Most successful agency relationships show positive momentum by month 2-3.

How involved do I need to be if I hire an agency?

Plan for 3-5 hours per week minimum: weekly check-in calls (30-60 min), reviewing creative concepts (1-2 hours), approving major strategy shifts (30 min), and providing product/brand guidance. Agencies need your input on brand voice, product details, and business goals. Hands-off founders who ignore the partnership see 40-50% worse results than engaged founders, according to MHI Media client data.

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About MHI Media

MHI Media is a DTC performance marketing agency specializing in scaling ecommerce brands through paid media, creative strategy, and data-driven growth. We've partnered with 200+ direct-to-consumer brands, managing over $50M in annual ad spend with a focus on sustainable, profitable growth.

Our Growth Engine methodology includes comprehensive onboarding, systematic creative testing (15-30 assets monthly), advanced attribution modeling, and weekly strategic optimization. We work with brands spending $15k-$500k/month on paid media, providing the team depth and expertise typically only accessible to 8-figure brands.

We operate on a hybrid pricing model ($3-5k retainer + 10% of ad spend) with 90-day initial commitment and month-to-month thereafter. Every client gets a senior media buyer (5+ years experience), dedicated creative producer, and strategic oversight from our founding team.

Learn more at mhigrowthengine.com.