You know you need to market–but how? It can be difficult to know exactly what you need, and where you should get it from. Deciding whether to hire an agency, build a team in-house, or utilize a hybrid model comes down to revenue, industry specificity, and if marketing is a core competency.

Back of the Napkin Math

Like so many things in business, the bottom line is revenue. Revenue determines marketing spend, and that budget tells you where your dollars should go.

According to an estimate from MarketerHire, a marketing team suitable for a mid-sized, growing company including a manager, content creator, data analyst, and ad specialists carries an annual cost of $450,000 to $550,00o. This factors in salaries, benefits like retirement and health insurance, overhead, continued education and software tools.

Depending on retailer and project fees, contracting with an agency would cost $60,000 to $180,000 annually. This cost disparity might make the answer feel like a no-brainer, but an in-house option has many long-term benefits.

Guidelines

Agency

Agencies give your brand access to cutting edge specialists, software, and industry insights, without the payroll burden. Instead of hiring eight people, you can contract for exactly the work you need–ramping up for busy months and scaling back for slow ones, or supporting new launches. The flexibility and triability of an agency might be worth it, even for a company with a higher revenue and a larger marketing department. Agencies can fill the gaps of busier seasons, preventing bottle neck and allowing for growth and content creation.

Agencies can also be on retainer, and an average monthly cost of $10,000 covers cutting edge software, continuing education and consistent results, without the hassle of managing it yourself– agencies are your only hire. You don’t have to worry about recruiting talent, benefits, or building a team. Your team comes pre built, meaning you can launch a campaign in a matter of weeks, not months.

Agencies aren’t without their downsides. Unlike an in-house team, your brand is not an agency's only priority. Additionally, you run the risk of content that doesn’t stand out and a strategy is not fully aligned with your brand and goals.

Hybrid

An efficient marketing budget means that an in-house team would eat up the vast majority of marketing dollars, never mind the cost of making and promoting content! This is the sweet spot: there’s enough room in the budget to hire a marketing coordinator to pair with an agency. An internal marketer provides consistency, organization, and cohesiveness, while an agency brings experience, scalability, and rapid campaign launches.

A hybrid strategy allows companies to outsource content creation and marketing strategy, while maintaining control of brand identity and posting. This functions as an embedded partnership rather than vendor-style outsourcing.

Relying on one or two key internal marketing players leaves a company vulnerable, an employee can quit, leaving a company scrambling to fill the knowledge and man-power void left behind.

In- House

With less budget, there’s only room for a few generalists. These generalists are often less efficient, less skilled–not to mention the team takes months to build. An in-house team starts to make sense in niche fields where marketing is a differentiating factor. Companies with large marketing budgets can afford to hire a graphic designer, SEO specialist, content creator, senior strategist, etc. With such a large budget, fixed costs are proportionately lower, and internal coordination is required for complicated, long-term strategies.

In-house means more control, more dedication, and consistency when building brand identity over many years. However, an in-house team might still be the best choice for your company if your marketing spend is smaller if marketing strategy is one of your core competencies. The dedication, specificity, and cohesion might make dedicated employees worth it, despite the proportionally higher fixed costs.

Key Takeaways

As your company evolves, so should your internal marketing strategy. Keep these best practices in mind to make sure you recognize when a strategy no longer serves you.
Not all agencies are created equal. Choose an agency with expertise in your industry, a proven record, and a compatible company culture.
Agencies might be marketing experts, but you’re the expert on your company. Make sure the content and strategy aligns with your brand identity, mission, and long-term goals.

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