What are the two main factors you consider when you need to complete a project? In most situations, they are the quality of the end product and the cost to get there. Depending on circumstances one can be weighted more heavily but, ideally, we want the best quality for the lowest price available. It is no different when finding the right people to run your marketing operations. There are, however, several factors to consider to avoid overpaying, while receiving exceptional service.
A first glance at a marketing agency’s hourly rates, often starting at around $200 an hour, immediately cause concern. These figures, however, require deeper analysis to get to a true reflection of the financial cost. You are not just paying for one person in this scenario, you get to make use of a team of efficient, highly experienced professionals with access to the latest technology versions.
Agencies are certainly the more expensive option, but by lower margins than what the face value of these costs will indicate. The salary of a full-time marketing professional can be as little as 40% of their total cost to the business. When you consider the process of recruiting, training and paying benefits and taxes for that employee, the cost to hire jumps considerably. Time spent by management delegating and supervising must be factored in, along with the associated opportunity costs. On top of that, you have to pay for time off, plus sick days and bonuses. Then there’s the time they are at work but not working, this can easily be 1-2 hours a day according to Salary.com.
These costs are a non-factor when using an agency. Agreements are made upfront about the work that will be done and the time that it will take to complete. This gives assurances of your money being utilized by busy workers, with the agency responsible for proving that targets are being met. The best agencies are confident of not making costly mistakes and, for the sake of their reputation, make up for lost time by utilizing their arsenal of resources. Employees taking leave is no longer your problem to solve. Where time is an issue, a replacement can be sourced from within the agency to carry the project forward. The other option being to wait for your consultant to return to work, without incurring any costs during that time.
Internal hire perks
When a final decision must be made, there can be a mountain of information to assess. Ultimately, answering the questions below should provide the clarity you need.
There is no single solution as organizations have different goals and objectives. The resources available within a marketing agency provide a substantial advantage but there are companies who would see better ROI from an internal hire.