The business is growing, and the owner realizes there’s no longer time for marketing on top of everything else. The first thought is usually: let’s hire a marketer. The job ad lists social media, articles, PPC campaigns, product photography, and “occasional” website updates, and the search is on for one person who does it all. In this article, we’ll go through what an in-house marketer really costs you, when it makes sense, and when an agency or a combination of both is the better deal.
Hunting for a unicorn
A job ad saying “looking for a talented all-round marketer” sounds reasonable. Someone in the office, under your control, for the whole workday. In practice, though, you’re looking for someone who is a copywriter, designer, photographer, analyst, ad specialist, and website manager all at once.
People like that are very rare. And when you find one, few of them stay long for the salary a small business can offer. An experienced person with that range of skills usually finds a better-paid job fast or starts their own business.
The Swiss Army knife problem
Marketing isn’t one profession, but a set of several crafts:
- a copywriter can write, but may not be able to design graphics,
- a designer can create visuals, but doesn’t understand analytics,
- a PPC specialist, meaning the person who runs paid ads on Google Ads or Facebook, loves spreadsheets but won’t write an engaging post,
- a web developer can fix your website but won’t write sales copy.
A jack-of-all-trades will be good in one area and average in the rest. The result is “some” posts and “some” ads. An agency has a specialist for each area, and you pay only for as much of their time as you actually need.
The hidden costs of an employee: it’s not just the salary
For a fair comparison, you can’t just put the gross salary next to the agency’s monthly invoice. On top of the salary, you need to add:
- employer contributions, which push the real cost of labor above the gross salary,
- tools: design software, an SEO tool, an email marketing platform, a stock photo library, a post scheduler. An agency spreads these costs across several clients,
- equipment and a workspace: a computer, a phone, licenses, office space,
- training: ad platforms and algorithms change constantly, and anyone who stops learning falls behind fast,
- hiring and onboarding: months before a new person understands your business, and the risk that they leave after a while and you start over,
- vacation and sick days: when your only marketer is out, your marketing stops.
A simple calculation for your business
- Calculate the employee’s annual cost of labor: salary plus employer contributions.
- Add the annual costs of tools, equipment, and training.
- Estimate how many months hiring and onboarding will take and how many days a year they’ll be out.
- Write down which tasks they’ll handle really well and which ones you’ll need a freelancer for anyway.
- Compare the total with an agency’s annual price for the same scope of work.
Only then do you get a number worth comparing. Don’t forget that either way, you also need a budget for the ads themselves. Our recommended budget calculator will help you estimate it.
Operational blindness
When you work at the same company for years, with the same products and colleagues, you lose perspective. You start assuming customers know as much about your product as you do, and you write copy that only your team understands.
An outside view brings experience from other industries. What works in hospitality can often be used in construction too, and an idea from a fashion e-shop can work for selling services. An in-house person who only ever sees one company doesn’t have that advantage.
When an in-house hire pays off
Let’s be fair: there are situations where an employee is the better choice.
- You need content straight from the business every day. If your strategy relies on regular videos from production or your premises, you need someone on site with a phone.
- Your communication requires instant responses. For example, when comments and messages need answers in the evening or on weekends too.
- You have a very specialized product. If an outsider would need months to learn your field, an in-house person with expert knowledge has a head start.
- There’s enough marketing to keep a whole team busy. Then it pays to build your own department and use an agency for specialized tasks.
A combination often wins
For many small and medium-sized businesses, a hybrid model works. An in-house person, even a junior one, handles day-to-day work: taking photos, gathering materials, coordinating with colleagues, and answering customers. The agency handles strategy, ad campaigns, analytics, and the technical side. The in-house person is the hands; the agency brings experience and a system.
To make it work, the in-house person needs to know what they’re doing. You can send them to training or have them learn on the job while working with the agency.
Another interesting middle ground is a part-time outsourced marketing director. We write more about this model in The end of full-service agencies: fractional CMOs and micro-teams.
What you’re really buying: time or results
With an employee, you mainly pay for time. From an agency, you should get results and be able to end the relationship when they don’t come. That’s why, when choosing one, pay attention to whether the agency shows you numbers you understand and whether the ad accounts are registered to your company. A certification such as Google Partner can also help you check quality.
So the question isn’t just “how much does it cost,” but “how much does it cost me when a jack-of-all-trades learns on my dime.”
Frequently asked questions
Is an agency always cheaper than an employee?
Not always. For a smaller scope of work, it’s usually the better deal; with a large volume of daily work, your own team may pay off. Decide based on total annual costs and the skills you need, not just the size of the salary.
How do I start working with an agency without losing control?
Agree on clear goals, regular reports, and access. Your ad accounts, analytics, and website should all be registered to your company, so you keep them even after the partnership ends.
Can a junior handle marketing on their own?
Day-to-day tasks, yes; the whole strategy and technical setup, hardly. A junior without guidance learns on your money. With a more experienced partner by their side, though, they can be very useful.
How long does it take an agency to understand my business?
It depends on the field and on how well you involve them at the start. A kickoff meeting, access to data, and a person at your company who answers questions all help.
If you’re weighing whether to handle marketing in-house, with an agency, or with a combination, get in touch. We’ll look at your goals and budget and tell you honestly which model makes sense.
