Green Lights, Yellow Lights, and Red Lights: How to Spot the Right Vendor Before You Sign

I’ve watched too many business owners sign contracts they regret. Not because they didn’t do their homework, but because they didn’t know what signs to look for until it was too late.
After 20+ years of watching vendor relationships go right—and go very wrong—here’s what I’ve learned about spotting the difference before you’re locked in.

Green Light: The Experts (Go)

• These are the vendors you want on your team. They:
• Deliver what they promise and follow through consistently
• Ask thoughtful questions about your business before proposing solutions
• Provide clear, specific proposals with defined deliverables and timelines
• Communicate proactively—before and after you sign
• Show adaptability: they’re flexible, curious, and respond calmly when things change
• Tell you when something won’t work for your situation, even if it costs them the sale
• Admit when they don’t know something and either figure it out or refer you to someone who can
• Often add value beyond what was originally contracted

These are true partners invested in your success. Their reliability builds confidence that your investment will pay off. You never wonder if they’re still working on your project or what you’re actually paying for.
Green light phrases to listen for:

• “Let me make sure I understand what you need…”
• “Here are a few ways we could approach this…”
• “We’ll figure it out together”

These are the vendors you want to build with.

Yellow Light: The Unaware (Caution)

These vendors say yes to everything—even when they shouldn’t. They don’t know what they don’t know. They:

• Claim expertise in too many unrelated areas (SEO, web design, branding, paid ads, social media, email marketing, copywriting… the list goes on)
• Say “I can do that” before fully understanding what you need
• Submit vague proposals without clear deliverables or timelines
• Get evasive when you ask specific questions about their process
• Rely on you to lead, define next steps, or tell them what to do
• Are often resistant to feedback or suggestions for improvement
• Create gaps that lead to costly rework and missed opportunities

Here’s the thing: they’re usually not trying to deceive you. They’re just in over their heads, winging it, or genuinely believe they can figure it out as they go. They seem fine at first, but those gaps add up.

Real example: A web developer who promises “full SEO optimization” but can’t explain keyword research. Or an SEO consultant who offers to “redesign your site” without any design portfolio to show. Or a marketing consultant who needs YOU to tell them what to do next at every turn.

The problem? You end up paying for their learning curve—or worse, managing them through a project they should be leading.

Proceed with caution—they’re not malicious, but they can hold you back.

If you’re considering this vendor: Verify their experience in the specific area you need. Ask for concrete examples of similar work. Press for clarity on their process. And if they can’t provide it, find someone who can.

 

Red Light: The Smoke & Mirrors Sellers (Stop)

These vendors know they can’t deliver—and don’t care. They:

• Make flashy promises with no substance (“First page rankings guaranteed!” “Triple your traffic in 30 days!”)
• Push you to sign quickly, creating artificial urgency
• Submit vague proposals and deflect when you ask for specifics
• Speak negatively about past clients, blaming them when things went wrong
• Deflect responsibility when issues arise, pointing to algorithms, competitors, or you
• Talk at you, not with you—more focused on closing the deal than understanding your needs
• Make you feel pressured, dismissed, or uneasy

These are costly detours that erode trust and drain resources. The warning sign here is pressure and blame. A trustworthy vendor will never rush you, silence your questions, badmouth former clients, or make you feel foolish for asking.

Stop before you sign—these vendors put your business at risk.

A Quick Reality Check

Before we go further, ask yourself:
“Have I ever ignored a gut feeling about a vendor—and what did it cost me?”

Most of us have. The goal isn’t perfection; it’s paying attention earlier next time.

How to Protect Yourself
Before you sign anything, pay attention to how vendors show up before the contract:

Green lights:

• They ask clarifying questions instead of making assumptions
• They’re responsive, curious, and engaged
• Their proposals are specific with clear deliverables
• They speak in terms of collaboration: “we’ll figure it out together”
• You feel comfortable asking questions—and they welcome them

Yellow lights:

• Their expertise seems scattered across too many unrelated areas
• They’re vague about process, timelines, or deliverables
• You find yourself leading the conversation or defining their next steps
• They’re resistant to feedback or questions
• Something feels off, even if you can’t name it

Red lights:

• You feel rushed or pressured to decide
• They deflect your questions or talk over you
• They blame past clients for failed projects
• Promises sound too good to be true
• Your gut tells you something’s wrong

Final Thought

Choosing the right vendor isn’t just about price or portfolio. It’s about protecting your business, your time, and your peace of mind.

Not sure if a vendor passes the test? Ask yourself:

• Do I feel rushed?
• Are they genuinely curious about my business, or just pitching?
• Can they explain their process clearly and specifically?
• Do I feel comfortable asking questions?
• Do they take responsibility, or blame others?

If any answer raises concern, that’s your signal to slow down—or find someone else.

The right vendor won’t just deliver a service. They’ll help you see what you actually need and give you confidence that it’s getting done right.

Thinking about hiring a vendor—or questioning whether your current one is delivering?
Let’s talk. In 30 minutes, we’ll review your situation, give you an honest assessment, and help you figure out the right next step—no pressure, just clarity.