Any business, small or large, is always looking at cost. How much does it cost to hire new people? Add new equipment? Continue to build a profitable business? While this is financially important so the books stay balanced and profit margins remain steady, if not on the rise, it’s important to look at the value of what you’re getting for that cost.
There are reasons why the same type of product can charge more than others and most of it has to do with the quality of what’s being offered. Same goes for hiring an agency for your marketing initiatives versus employing an in-house team. Yes, it’s an added expense to your year-over-year costs, but the value gained could be worth the investment, if the more expensive option equates to an increase in revenue; something an in-house team could not achieve on their own due to lack of resources and tools.
Three Examples of Cost-Effectiveness
When it comes to hiring the right team to take on your marketing plans, an agency does all the legwork so you don’t have to spend money on job ads, background checks, and onboarding. Adjusted salaries, benefits, and bonuses all build up and these are already “built-in” when you hire an agency.
Plus, you don’t have to worry about absorbing the cost of a bad hire, which has been reported to be anywhere from $25K-$50K. Ouch.
An agency team is an agile machine that can work collaboratively, but each person has been hired for their specific strengths. Rather than having one in-house person stretched thin to take on multiple jobs they may or may not be well-versed in, you can rest assured an agency has the right people in the right positions to get the job done.
Bottom line: Cost-effectiveness comes into play when you have resources properly covered.
Agency Buying Power
There are hundreds of industry tools used for all parts of marketing, which can quickly add up if you’re trying to buy these a la carte in-house. Often, these programs will offer business partnerships or discounts to agencies they work with; plus, agencies use the tools for all their clients, which makes it more cost-effective.
What it all boils down to: Agencies can afford to test new tools and have access to using multiple at once to see which work best.
The value from these cost savings is a more superior quality of work and expertise, constant immersion into the news tools and trends of the industry, and a dedication reflective of building a relationship with clients.
Consider the long-term value received from an agency team and the benefits of working together to achieve your marketing goals.
View our full infographic for The Cost of Hiring a Digital Agency vs. an In-House Team.