MIND TWEAKSTHE OFFICIAL RAINE DIGITAL BLOG
Whether you’re a scrappy startup looking to hire your first marketing position or a long-established business considering expanding your entire in-house marketing team, the question of outsourcing your marketing endeavors or using your own in-house team is an important consideration. If you’re weighing these options, you’re probably asking yourself things like:
Will my marketing objectives be better achieved through the expertise of an agency, or with an in-house team, closely aligned with my company culture?
Is it worth it to fund the development and training of an in-house team, or does having external manpower make more sense?
Which is more cost effective, agency or in-house expert?
These are questions that you must consider when making your decision on where to put your marketing resources. While there are situations where having an in-house team can be beneficial to certain companies, hiring an agency can prove to be a smart and practical decision for most businesses.
Marketing is a complex beast and it is nearly impossible for one person to master all channels. More often than not, marketers have a particular skill set that is their fundamental focus. Some may be authorities on paid search, some are social media masters, while others may be SEO wizards, but you’ll be hard-pressed to find an individual possessing mastery in all of these areas.
So which expert(s) do you hire?
How do you know which will be most effective for your business?
What happens if you hire a social media specialist and realize that your competition is having greater success on a different marketing channel?
Most companies, and especially startups, don’t have the financial resources to hire a full in-house marketing team to manage full-service marketing. A smart compromise is to partner with an agency with individuals on their team who can address various areas of focus. In turn, your company has the opportunity to utilize a full marketing strategy that is adaptive and scaleable.
A five-year employee of a marketing agency has roughly 10,000 hours of experience, and most likely in a focused area like social media, graphic design, copywriting, web development, etc. You may be touching all these things a bit each day!
Agencies are involved with all different types of businesses. In order for an agency to produce results for all of their clients, they need to be willing to partner with their clients and provide a variety of expertise for traditional and modern marketing tactics. Many marketing agencies now have social media experts, content developers, SEO/SEM masters, web designers, email marketing geeks, mobile geniuses, and more. This wide range of skills added to your already talented in-house marketing team (if you have one) can produce big results and keep your marketing results ahead of the competition.
FRESH IDEAS AND DIFFERING PERSPECTIVES
An immense benefit of partnering with an agency is the fact that you have access to an entire team of people with differing perspectives and ideas. This is where collaboration can prove to be an invaluable resource for your business. Agencies are comprised of many different types of people, from the edgy graphic designer to the energetic account manager.
Not only do these people have expertise and differing perspectives, they also haven’t been working for your company, stuck in the day-to-day tasks. Having an outside perspective can produce new, invaluable insights regarding your brand, positioning, messaging, overall image, and marketing strategy. Additionally, agency staff are always keeping an eye on the marketplace, so they know what’s working and what isn’t. This broader approach allows for a more informed, up-to-date, data-driven, competitive strategy that aligns your brand with your ideal audience.
THE NUMBERS DON’T LIE
Partnering with an agency like Raine Digital will cost you substantially less than hiring your own in-house team. While there isn’t a precise industry standard, the average rate to partner with an experienced agency in the U.S. can range from $3,000 to $10,000 per month, depending on a number of factors. That’s anywhere from $36,000 per year to $120,000 per year.
Now, let’s compare this with the average U.S. cost of hiring only the most critical members of an in-house team.
- Marketing Manager: $66,090 – $175,060/year
- Digital Marketing Strategist: 50,000-79, 000/year
- Social Media Manager: $41,577 – $108,800/year a year
- Entry-Level Content Writer: $26,203 – $101,816/year
- Marketing Data Analyst: $40,201 – $84,175/year
- Marketing Technology Manager: $89,000 – 120, 000/year
- Creative Marketing Manager: $33,026 – $83,191/year
Total Salary Cost of an In-House Marketing Team: $346,000 – $853,858.
This doesn’t include additional costs like benefits, training and development, etc.
Additionally, agencies have access to robust tools and resources that are imperative for creating and measuring the effectiveness of your marketing efforts. Considering these expenses, an in-house team can easily exceed 10 times the cost of an agency. From that perspective, the value is undeniable.
SO, WHICH IS BEST FOR YOUR BUSINESS?
The choice of partnering with an agency vs. building an in-house team should largely depend on your company’s needs and resources. There are advantages and disadvantages to both routes, both financially and strategically. Therefore, it’s important to research and analyze the best pathway to reaching your company goals.