Trying to decide between setting up an in-house agency versus hiring a retainer agency can be a tricky one.
Take owning a puppy for example. Most love playing fetch with puppies, cuddling it, and teaching it commands. But most, too, don’t enjoy picking up after them, talking them out for multiple walks, or dealing with their rambunctiousness.
Pet-based analogy aside, choosing the right marketing support is crucial for any business, and the decision between building an in-house team and hiring a retainer agency is a significant one. Both options offer distinct advantages and disadvantages, particularly when it comes to cost. This article breaks down the cost implications of each approach to help you make an informed decision.
In-House Marketing Team: The Breakdown
Building an in-house marketing team involves hiring full-time employees with specific skill sets. This offers greater control and integration within your company culture. However, the costs associated with an in-house team are a major consideration. Consider:
Salaries and Benefits
This is the most obvious cost. Salaries for marketers vary widely depending on experience, location, and specialisation (SEO, content creation, social media, etc.). Don’t forget to factor in benefits like medical coverage, paid time off, and other perks.
Recruitment Costs
Finding and hiring qualified marketers takes time and resources. Consider expenses related to job postings, recruiter fees (if used), and the time spent by your HR department conducting interviews.
Training and Development
The marketing landscape is constantly evolving. Budget for ongoing training, workshops, and certifications to keep your team’s skills sharp.
Software and Tools
Marketers rely on various tools, from analytics platforms and social media management software to design programs and CRM systems. These subscriptions can add up.
Infrastructure
Providing office space, equipment (computers, software), and other resources for your marketing team contributes to overhead costs.
Retainer Agency: The Breakdown
A retainer agency provides marketing services for a fixed monthly fee. This offers access to a team of specialists without the overhead of full-time employees. Here’s a cost analysis of this model:
Retainer Fee
This is the primary cost. Retainer fees vary based on the scope of services, the agency’s experience, and the complexity of your marketing needs. Clearly define deliverables and expectations in your contract.
Project-Based Fees
Some agencies might charge extra for specific projects outside the scope of the retainer agreement. Clarify this upfront to avoid surprises.
Onboarding Costs
While often less than hiring in-house, some agencies might charge a one-time onboarding fee to get acquainted with your business and set up campaigns.
Cost Comparison: In-House vs. Retainer
How do the two measure up when it comes to cost? Here’s a general comparison:
Short-Term Projects
For short-term, specialised projects, a retainer agency might be more cost-effective. Hiring a full-time employee for a short-term project is usually not financially sensible.
Ongoing Marketing Needs
For ongoing, comprehensive marketing strategies, the long-term cost of an in-house team can be significantly higher. Consider the combined expense of salaries, benefits, and overhead for multiple specialists: designers, copywriters, creative directors, and marketing strategists. A retainer agency offers access to this same expertise, often for a more predictable and potentially lower monthly investment.
However, if you require constant, dedicated attention and integration with other departments, an in-house team might be a better long-term investment.
Scalability
Scaling up or down is often easier with a retainer agency. You can adjust the scope of your retainer as needed, whereas adjusting an in-house team requires hiring or layoffs, which can be complex and costly.
Expertise
Retainer agencies often have a diverse team of specialists, providing access to expertise that might be difficult or expensive to replicate in-house.
The Bottom Line
Understanding your company’s unique needs is paramount. Factors like budget, the desire for a consistent team for extended campaigns, and your preferred working style all play a role. And if you’re intrigued by the potential of collaborating with a skilled agency, consider…
I Concept. The Right Choice for Your Brand.
We at I Concept are a fully integrated creative agency specialised in helping your brand reach hearts and minds, not just in the AI space, but in the digital sphere as well. Our expertise ranges from branding in Singapore, digital marketing, web design and development, digital copywriting, logo design for the company, ecommerce development, and more, making up a comprehensive range of services to help businesses thrive in today’s competitive landscape.
Plus, with the support of government initiatives like the Enterprise Development Grant and Productivity Solutions Grant (PSG), businesses can access funding to invest in innovative marketing campaigns. Apply for the PSG now to kickstart your digital marketing journey with I Concept.
Contact us today!
