Follow Us

In-House vs. Outsourced: Why You’re Probably Paying Too Much for Too Little

In-House vs. Outsourced: Why You’re Probably Paying Too Much for Too Little

Ever feel like your marketing budget is a bottomless pit that just keeps swallowing your hard-earned dollars? You’re not alone. And if you’re managing an in-house marketing team, you might be paying way too much for too little in return. But here’s the good news—outsourcing could be the lifeline that finally stops the free fall.

The Sticker Shock of In-House Marketing

Let’s get to the bottom of what makes in-house marketing so costly. First off, salaries. Competitive salaries. Because apparently, digital marketing managers don’t survive on good vibes alone. According to SHRM research, the average cost of hiring a single employee is $4,700, with additional onboarding and training expenses amounting to around $1,071 per learner.

Add benefits, office space, those fancy ergonomic chairs, oh, and the endless subscriptions to tools that promise to revolutionize your SEO but mostly just send confusing reports, and your costs can quickly spiral. Recruitment, onboarding, and ongoing training also add layers of expense. Let’s dig deeper.

The Hidden Costs

dollars in the shape of a bird. origami.

The hidden costs of in-house marketing go beyond salaries and benefits. There are also expenses related to constant upskilling, maintaining software subscriptions, and upgrading tools.

Not to mention, time lost in meetings, internal reviews, and workflow delays add to the financial burden. Training sessions, conferences, and keeping up with ever-evolving marketing trends are often overlooked but heavily impact the budget.

And, there is the emotional cost of burnout and turnover, which disrupts team dynamics and productivity. These hidden costs accumulate quietly but significantly, making in-house marketing a more expensive endeavor than initially anticipated.

The Recruitment and Retention Headache

Recruiting top marketing talent is not just time-consuming but painfully expensive. Posting job ads, using recruiters, and conducting multiple interview rounds take both time and money. Once hired, retaining talent is another battle: regular salary increments, perks, and flexible work policies become mandatory to prevent poaching.

And let’s not forget the morale dip when a key team member leaves, along with the institutional knowledge lost. The retention game is a financial strain that many businesses underestimate, and the constant turnover can wreak havoc on your marketing strategy and budget.

Case in point: A five-person in-house team could set you back over $500,000 annually. And no, that’s not Monopoly money. Recruitment costs, training expenses, and the soul-crushing realization that your top marketer just got poached by a startup can add to the chaos.

Outsourcing: The Wallet-Friendly Power Move

woman working at computer, doing design. Marketing team member.

Enter outsourcing, the hero we didn’t know we needed. Think of it like switching from manually crunching numbers in a spreadsheet to using real-time analytics—faster, smarter, and delivering real results.

Outsourcing isn’t just cost-effective; it’s a strategic game-changer. It provides expertise across marketing channels, from social media to PPC, to ensure that your business stays competitive. There’s also the benefit of scalability, adapting quickly to market changes without the hassle of hiring.

Additionally, outsourcing can bring you industry insights and proven strategies that reduce trial-and-error costs. Outsourcing can also streamline processes, improve campaign efficiency, and offer fresh perspectives that in-house teams might overlook.

Cost-Effectiveness and Flexibility

Outsourcing means no more worrying about salaries, benefits, the unpredictability of employee retention. The right outsourcing solution can bring an army of experts to the table, from SEO wizards to content gurus, all for a fraction of the cost of maintaining an in-house team.

Access to Specialized Skills and Tools

Outsourcing also gives you access to top-tier talent and cutting-edge tools without blowing your budget. Let your outsourced partner invest in the latest software and training, so you don’t have to.

Scale With Ease

Outsourcing your marketing can be a game-changer when it comes to scaling your business with ease. This approach allows you to focus on your core business activities while the external team handles everything from strategy development to execution across various channels. Plus, the flexibility of outsourced services means you can scale your marketing efforts up or down as needed, ensuring you have the right resources at the right time to drive growth and achieve your business goals.

Quick Checklist: In-House vs. Outsourced Marketing

Factor In-House Marketing Outsourced Marketing
Cost High (salaries, benefits, software) Lower, pay for what you need
Flexibility Limited, fixed overhead Scalable based on business needs
Specialized Skills Limited to in-house expertise Access to diverse expertise
Technology & Tools Must invest in own tools Agencies provide advanced tools
Scalability Challenging, hiring delays Easy to scale up or down
Speed and Execution Dependent on internal bandwidth Faster execution with agency support

Case Studies: Real-World Success Stories

marketing team working together. Checking laptop, notes, charts, etc.

Several companies have successfully leveraged outsourced marketing to achieve significant cost savings and improved efficiency:

Sony shows the magic of outsourcing specialized skills. When they wanted to build a customer database, sell services, and market high-end products through their Sony Style site, they realized they didn’t have all the expertise in-house. So, instead of reinventing the wheel, they turned to outside experts. This helped them get the job done quickly, without the cost and time of hiring and training a whole new team

Allstate’s success is a perfect example of how outsourcing can boost efficiency. By outsourcing lead management, they doubled the number of leads each agent received. That’s some serious productivity! It’s proof that when you partner with the right experts, you can streamline operations and see a direct impact on the bottom line.

And then there’s Best Buy, which went all in on outsourcing. They didn’t just hand over database management—they also outsourced marketing analysis and full-on program execution for their business and high-end customer segments. By tapping into specialized expertise, they were able to fine-tune their marketing efforts, ensuring they targeted the right customers with precision. Pretty clever, right?

The Best Outsourced Alternative: CODESM’s Marketing-as-a-Service

Videocall. five persons doing a digital meeting.

Clearly, outsourcing has distinct benefits when compared to in-house marketing. But, traditional outsourcing (like with a traditional agency) comes with its own set of frustrations—slow response times, rigid retainers, and agencies that don’t fully understand your brand.

You could end up hiring a freelancer on top of your agency costs if your marketing strategy changes to include an approach not included in your agency contract. Or, a last-minute ad campaign might be impossible to implement on an agency’s slower timeline. Plus, agencies can also suck money from your limited business wallet with high monthly fees or long-lasting contracts that commit you to expenses even after the agency’s services have stopped meeting your needs.

But, what if you could get the expertise of a full marketing team for less than the cost of a single in-house hire—without the inefficiencies of either option?

That’s exactly what CODESM delivers. Our Marketing-as-a-Service (MaaS) model gives you an entire team of experts — strategists, designers, copywriters, and ad specialists — all for less than the cost of a single in-house hire — for a flat monthly fee. Unlike traditional agencies, we integrate seamlessly into your business and work as a true extension of your team.

With full transparency and accountability, you’ll know exactly where your marketing dollars go:

  • A set number of hours a month dedicated to YOU.
  • A dedicated account manager for seamless communication
  • Month-to-month contracts so you can always access what you need, when you need it.
  • Phone, email, and SMS support—real-time, real people
  • A Project Management Platform for full visibility
  • Rapid turnaround times—as little as 12 hours with a team across 7 time zones
  • 50+ marketing specialists covering every discipline

And forget about inefficiencies. We’ve already tested the hit-or-miss freelancers and the overpriced agencies. The result? A better way to do marketing—one that provides flexibility, expertise, and results, all without the bloated costs.

With CODESM, your managed marketing company, you’re not just outsourcing—you’re upgrading to a faster, more flexible, and more accountable subscription marketing service. No hidden fees, no long-term commitments—just results.

Make the right choice with a Marketing Expert

Making the right choice between in-house and outsourcing requires careful consideration of your business size, budget, and long-term marketing goals. Evaluate your need for flexibility, the complexity of your marketing tasks, and your internal capacity.

And, if you’re ready to stop overpaying for too little — whether in-house or with a traditional agency — let’s talk about how CODESM can take your marketing to the next level. With a highly-skilled, on-demand marketing team of 50+ marketing pros across 11 time zones, we plug right into your team like we’ve been there all along. Let’s talk and see how we can make great things happen together! 

Recent Posts

Top