In-House vs. Outsourced Marketing Pros and Cons. Which Strategy Works Better? How to Decide.
A definitive guide for new business owners.
Here's a statistic that should stop you in your tracks.
The U.S. Bureau of Labor Statistics reports that 20.4% of businesses fail in their first year, and 49.4% fail in the first 5 years. One of the top reasons cited is ineffective marketing or lack of visibility.
I'm not saying this to scare you. It's to get you thinking about the importance of marketing and some of the early decisions you must make—particularly whether you will build an internal marketing team or hire outside help.
But which marketing strategy is right?
By the end of this article, you'll have a clear understanding of the pros and cons of each approach and will be able to pick the option that makes sense for you.
What's the difference between in-house and outsourced marketing?
People tend to toss these terms around like everyone already knows what they mean, and you might not. Let’s clarify.
In-house marketing
In-house marketing means you hire employees to handle your marketing strategy and campaigns. These people work for your company, either full-time or part-time, and are on your payroll. They're responsible for your brand's voice, messaging, content, campaigns, and anything related to reaching your audience and helping convert them to customers.
These marketers are embedded in your day-to-day operations, sit in on team meetings, and know your business inside and out. You might start with one person who does some of everything and eventually build a small team covering strategy, online, email, design, and analytics.
Outsourced marketing
Outsourced marketing is when you choose to work with outside help. That could mean hiring a freelancer to manage your social media accounts, bringing in a consultant to help with strategy, or working with a full-service marketing agency that handles everything from branding to SEO to content creation.
These people are not employees and are not on your payroll. They're individual contractors or firms you pay for specific deliverables. Some are hired for a single project, while others can stay on for months or years.
The core difference is that in-house marketers are part of your business. Outsourced marketers support your business from the outside.
Both models have their benefits and drawbacks.
Pros and cons of in-house marketing.
If you're thinking, "It would be so much easier if someone just sat here and handled this," that’s the in-house approach.
Having your own team under your roof, or virtually if you're remote, can seem like the most logical path. But it's not without its challenges, especially when you're just getting started.
Pros of in-house marketing
You control the direction and alignment.
With in-house marketing, you don't have to constantly explain your vision over and over again like you do with outside contractors. Your team lives and breathes your brand. They understand the business' vibe and know your customers and values. That knowledge and deep immersion in the brand shows in the work they do. Every campaign, every ad, everything they produce is consistent and feels like you.
There's easier and more efficient collaboration.
When your marketing person or team is part of your everyday operations, business relationships become closer, and feedback is quicker. You can brainstorm ideas or make important decisions on the fly. You don't have to wait for an agency or freelance contractor to fit you into their busy schedule two weeks from now. Internal communication is faster and more flexible, which helps you make decisions more quickly.
You’re building a foundation of expertise for the future.
Building an in-house team means you’re developing internal expertise and capabilities. Your staff grows with the organization, develops knowledge over time, and implements systems that remain with and benefit the business. It's not just about doing marketing. It becomes about everyone working together to build a successful business you can all be proud of.
You have full ownership of data and processes.
Your marketing team manages the tools, tracks the analytics, and controls the data so you're not reliant on someone else to give you reports or access to information. That is critically important as your business scales and your marketing gets more complex.
Cons of in-house marketing
It's time-consuming to build the right team.
Finding one great marketing professional to hire is hard enough. Building an entire team with the right blend of skills takes time, and that's time you might not have if you're trying to generate leads right now. Hiring, onboarding, and getting everyone working in sync can take months. Besides, the time it takes you to write a job description, make it available online, sort through applications, and conduct interviews is time away from your primary responsibilities.
There are higher upfront costs.
Salaries, benefits, software tools, and training all add up. Even one full-time marketer can be a significant investment when you're watching every dollar. And if you need more than one person to cover all the marketing bases, that gets expensive quickly.
There's usually a skill gap.
Marketing skills include strategy development, content writing, design, social media management, data analysis, and more. Most people aren't experts in all of it. So, unless you can afford to hire a whole team, you may end up with gaps that slow your growth or limit results.
You run the risk of conforming to one way of thinking.
When everyone works in the same business daily, it's easy to all think the same way and lose touch with what's happening outside your walls. An outside perspective offers a fresh shot of reality. A marketer with no stake in your business will be more likely to tell you the truth rather than what you want to hear.
When to consider in-house marketing.
Here's when it makes sense to consider building an internal marketing team.
If you consistently need content, campaigns, and other marketing work.
If marketing is a regular part of your business operations, having someone internal ensures you're not always starting from scratch or re-explaining your business to a new provider.
If you can afford salaries, benefits, and ongoing staff training.
Deciding to take the in-house or outsourced route is a financial decision as much as a strategic one. Hiring full-time employees, and even part-time ones, comes with added costs.
But, if your budget allows for it, investing in internal marketing talent is a long-term investment focused on growth. You're not just paying for program execution. You're building knowledge, systems, and strategies inside your business to help you succeed.
If you want tighter control over your brand's voice and marketing priorities.
No one will ever care about your brand as much as you and the other people who work in your business. As a result, no one will work harder to shape and protect your messaging and values than your internal marketing staff.
Internal marketers also better understand shifting business priorities, product changes, or internal politics that can affect how some things need to be communicated.
If you're building a long-term marketing strategy that requires internal alignment.
Marketing doesn't exist in its own silo. It touches sales, customer service, and product development. If you're building out a long-term plan that requires coordination across multiple business areas, having someone in-house who can sit in on meetings and make connections across all departments is incredibly valuable.
Building an in-house team might be the right path if you're committed to growing steadily, have financial resources, and need close alignment between marketing and the rest of your business. But it's not your only option. Let's discuss outsourced marketing and why it might be a better fit, especially if you're just starting out.
Pros and cons of outsourced marketing.
Outsourcing marketing is effective for many new businesses, especially when resources are tight and you need to move quickly.
But just like in-house marketing has benefits and trade-offs, so does outsourcing.
Pros of outsourced marketing
You have access to more skills and expertise.
Marketing requires design, content, SEO, strategy, email funnels, social media, and more. When you outsource, you have access to people who live and breathe this work every day. You're not just relying on one person to do everything but tapping into a team (or individual specialist) with focused expertise.
It's more cost-effective in the short term.
Hiring an agency or freelancer often costs less than hiring a full-time employee when you include that employee's salary, benefits, and overhead. This can be extremely helpful when you're just starting out and every dollar counts. You want to pay for the marketing deliverables, not the new hire's learning curve.
Your marketing efforts can scale up or down more quickly and easily.
You can start small, give your agency or freelancer one project or campaign, and grow from there. Not only does this enable you to be flexible by hiring them only when you need a specific job done, but you also get to know how well you both work together, if they meet deadlines, if the quality of their work is good and much more. You can scale back when no work is required and up during your busy season or you launch a new product. It's up to you. This is a great way to test their work without a long-term commitment.
You get a fresh perspective.
Sometimes, you're too close to your own business to see things clearly. Outside professionals bring objectivity and creativity. They can offer insights and angles you may not have considered. They may also spot opportunities faster because they're not bogged down in the day-to-day minutia of your business.
Marketing tools and systems are usually included and cost less to you.
Modern marketing platforms and analytics dashboards are necessary no matter what decision you make. A technically skilled marketing partner will not only enable you to see results more quickly but, because they have multiple clients and can spread the technology's cost across all of them, the benefit you get from using the technology cost less than if you purchased a cloud subscription or actual software for your office.
Cons of outsourced marketing
You have less control.
When outsourcing, you trust someone outside your business to represent your brand. That can be worrying, especially when their creative choices don't hit the mark. You'll need to spend more time clarifying your vision, not just approving their output.
Communication can be challenging.
Even though video conferencing tools like Zoom have brought us closer together, communicating with external marketing professionals takes time and is a collaborative effort. This can feel frustrating if you're used to fast, face-to-face collaboration.
Outsiders are not as emotionally invested.
Any agency or freelancer wants to do a good job, but they're not constantly thinking about your business like a team member would. It's not that they don't care. They have multiple client projects they're working on at the same time. Their level of commitment will naturally be different than someone working inside your business every day.
Quality varies widely.
Not all marketing providers are created equal. You may have to go through a trial and error phase to find someone who understands your business and can execute well. That can cost time and money.
Retrieving your documents after a breakup can be challenging.
If all your original marketing files are held by one agency and you part ways, you could be left scrambling to pick up the pieces. Some agencies will happily give you all your files and data without asking, others will wait until you specifically ask for your materials back, and a few may withhold the materials until you make a legal demand through an attorney. Without a proper transfer of original files, you lose momentum and sometimes access to critical data. During initial conversations, always ask how they handle offboarding and documentation transfer.
Outsourcing can be a game-changer, especially if you're just getting your business off the ground, have a small budget, and need expert help immediately. But it's essential to go into it with eyes wide open, knowing what you'll need to manage along the way.
When to consider outsourced marketing.
There are certain moments in your business journey when outsourcing isn't just helpful, it can be a strategic benefit. Here's how to know if you're at that point.
If you need to move fast.
Marketing speed matters to a successful business, especially if you're launching a new product, rebranding, or just trying to get your name out there. Outsourcing lets you hit the ground running with people who already have expertise in the areas where you need help.
If you're working with a limited budget.
It seems counterintuitive, but outsourcing can save money, at least in the short term. Instead of hiring a full-time staff and paying for salaries, benefits, software, and training, you can retain a specialist for a specific task or project. It's a way to get the initial job done without overcommitting financially.
If you need specialized expertise.
Whether it's custom email automation development, search engine optimization (SEO), or online advertising, if the subject is new to you, don't try to DIY your way through it. Outsourcing lets you borrow someone else's expertise to learn, improve, and get better results without the frustration of trying to learn on your own.
If your in-house person is swamped.
You may already have a marketer on staff, but they're maxed out and can’t take on any more responsibilities. Outsourcing something like email marketing or website development can free up time and ensure every aspect of your marketing plan is looked after effectively.
If you want to test the waters before making a long-term commitment.
You may not be ready to hire a full-time marketing staff member, but you need to get your marketing campaigns moving. Outsourcing is a great interim step. You can implement specific programs, learn what works and doesn't, and understand what marketing support your business needs before making a bigger investment.
The bottom line? If you're looking for flexibility, speed, affordability, and access to professional-level marketing without the pressure of building an in-house team right away, outsourcing can be a valuable resource.
So, which is better? Outsourcing or building an in-house marketing team?
If you came to this article hoping for a clear-cut answer as to which option is better, I'm sorry to tell you that I don't have an answer for you. That's because the idea of one strategy being "better" depends entirely on your business goals, budget, resources, and growth stage.
The correct answer for one business might be entirely wrong for you.
It may help if we look at two real-world examples. When reading these, consider your specific needs and where you are currently in your business’ development.
Example 1: A new mindfulness business started selling stress-relief products one month ago. They have a tight budget and no marketing experience. They're focusing on creating a website and building a social media community to generate interest and buzz. To get visibility fast, they've outsourced this work to two freelancers specializing in online and social marketing. The business doesn't need a whole team yet. They need momentum. As the company expands, it will have the ability to change its marketing approach easily.
Example 2: A small commercial construction company has the challenges of a long sales cycle and more complex marketing requirements. They often need people onsite during building construction to take photos and drone videos of the project and to work closely with engineers and architects to create digital images of what the finished building will look like.
Since marketing activities must often be done on short notice, and a lot of time is spent with marketing and engineering working closely together, it makes sense to hire an in-house marketing person. They’ll start with one marketer on staff but can expand the team as the business grows and requirements increase.
If neither option sounds quite right, there's something else to consider. You can also take a hybrid approach.
Advantages of hybrid marketing.
Do you want an in-house team's focus but need the skills, flexibility, and less costly outsourcing option?
If that's the case, a hybrid model may be just what you want. It blends the best of both worlds. You can hire an in-house marketing generalist or marketing coordinator who understands your business, positioning, and messaging and then work with outside professionals like a freelance writer and digital advertising agency to focus on specialist programs.
Here are two hybrid examples to get you thinking.
Example 1: The owner of a mobile bike repair business that serves customers by going directly to their home or workplace for tune-ups, repairs, and seasonal maintenance has a lot of mechanical know-how but no marketing knowledge.
They hire a part-time marketing assistant, a college student, to handle the basics like responding to online reviews, mailing service coupons, and posting new social media photos and reminders. This in-house marketing assistant then outsources the writing of informational blog articles to a freelance copywriter and the creation of branded car graphics and brochures to a professional graphic designer.
Example 2: A boutique clothing business wants to make a name for itself in the highly competitive fashion industry. Based on their goal of quickly becoming a well-known, high-end brand, they hire one internal marketing specialist who has worked in the fashion industry for ten years and knows it intimately. Based on her insider knowledge, her job is to interact directly with influencers and the fashion press, but other marketing tasks like graphic design, paid advertising, and event coordination are outsourced. This approach offloads the tactical responsibilities but enables the business to control the brand's positioning within the industry.
You can see why this hybrid model works so well. You to scale smartly. As your needs grow, you can slowly bring more talent in-house or shift more responsibilities to outside resources, depending on what works best for your business.
How to make the right marketing decision.
When making your decision, remember…
Don't just focus on your budget.
A tight budget might push you toward outsourcing, and that's perfectly fine. But think beyond the cost. Ask yourself, "Do I need the flexibility of freelancers, or do I need a person who will be invested in my business for a long time?”
Decide what's more important, strategy or execution.
Do you need to develop a comprehensive marketing strategy that aligns with your business goals or simply need someone to execute the already established marketing plan?
Don't be afraid to evolve and change course.
As your business grows, your marketing strategy and approach will need to evolve, too. What worked in the beginning might not work a year or two down the road.
Revisit your decision regularly.
I encourage you to regularly reassess your decisions. This ensures your marketing aligns with your business' direction. You want to be sure you're constantly adapting, growing, and serving your business needs.
The best marketing approach.
Whether you build an in-house team, outsource to specialists, or go the hybrid route, the goal is to attract the right customers, build a strong foundation, and focus on things that will move the needle for your business.
It’s easy for new business owners just starting out to get stuck in analysis paralysis. My advice is to analyze your current business needs, understand the benefits and drawbacks of each marketing option, as I've discussed them here, and move on.
The decision you make today will serve you well.
But things change. Your business will transform. That doesn't mean you have to stick with your original in-house or outsourced decision or that the original decision was wrong. It was correct for the time. Now, things are different, and you must pivot.
The best approach is to be flexible and adapt to changing needs. It's simply part of the journey to create a thriving business.
