A familiar scenario: You’re scrolling through LinkedIn, seeing competitors crushing it on social media while your accounts sit neglected. You know you need help, but you have a significant decision to make. Should you hire a social media marketing agency or build your own team?
If you’re a founder whose social media has taken a backseat to other priorities, this decision feels overwhelming. Let’s discuss what this decision means for your company’s daily operations, budget, and results. No fluff, just practical insights to help you make the right call for your business.
The Real Cost Equation
When looking at costs, organisations often compare a social media marketing agency to an in-house team. They usually only think about agency fees and employee salaries. However, complete financial picture includes several other factors:
Agency Investment
A social media marketing agency usually provides steady monthly payments or project fees. This setup avoids extra costs for employee benefits or HR expenses. Furthermore, it allows you to adjust service levels based on seasonal needs. Agencies also provide access to premium tools by spreading software costs across multiple clients, and eliminate recruitment expenses associated with finding specialised talent.
In-House Investment
Building an internal team costs more than base salaries. Benefits typically add 25-40% to compensation expenses. This can differ based on roles, experience, and location. For instance, in Australia, the annual salary for a Marketing Analyst Specialist is approximately AU$105,000, while a Chief Marketing Officer (CMO) can earn upwards of AU$265,000.
Additionally, you’ll need to purchase social media management, analytics, and design tools, often costing AU$500-2,000+ monthly. Your team will also require ongoing training to stay current on platform changes.
Keep in mind that new hires usually take three to six months to be fully productive. During this time, management needs to supervise team development. For many small to mid-size businesses, having a skilled in-house social media team costs between AU$250,000 and AU$350,000 each year. This is often much higher than using agency services.
The Key Tradeoffs
We’ve seen companies choose the “cheaper” option only to realise they made an expensive mistake. I’ve also watched others invest heavily in what seemed like the perfect solution, only to face unexpected challenges. Here’s what actually matters day-to-day:
Social Media Marketing Agency Advantages
Working with a social media marketing agency gives you access to specialists across platforms, content formats, and marketing methods. They bring fresh viewpoints that internal teams might lack and can apply insights gained from various industry sectors.
A partnership with a social media marketing agency includes ways to measure success. It also lowers the risk of relying on specific employees who may leave. They also provide immediate capability without extended preparation periods.
According to a 2023 survey by HubSpot, businesses working with specialised social media agencies saw an average engagement rate increase of 37% compared to 21% for those with in-house teams of similar size. The research also found that agency-managed accounts were 2.5x more likely to adapt quickly to platform algorithm changes.
In-House Advantages
Internal teams develop deep knowledge of company values, voice, and subtle brand elements. More importantly, they may align naturally with company culture and mission. In-house staff can respond immediately to new opportunities and work directly with product, sales, and leadership teams. Moreover, they build and retain marketing knowledge continuously and give you complete control over all activities and priorities.
Company Size and Maturity Considerations
Your company’s current stage strongly influences the ideal method as well. Keep these factors in mind:
Startups and Small Businesses (Under 50 Employees)
A social media marketing agency offers great value for early-stage companies. These companies can use skilled workers in different areas without needing many full-time hires.
Agencies can also establish foundational social media management frameworks while offering flexibility to change course as business needs develop. This structure allows founders and early employees to focus on core business functions.
Mid-Size Companies (50-250 Employees)
Mixed solutions are great for growing organisations. They can appoint an internal coordinator to manage agency relationships.
External specialists also support strategy and specific campaigns while the company gradually builds internal skills with social media marketing agency guidance. The result? Better knowledge transfer to develop company marketing proficiency.
Enterprise organisations (250+ Employees)
Larger companies may maintain substantial in-house teams with targeted agency partnerships. It is recommended to have a dedicated internal resource for main platforms and content. At the same time, collaborate with external partners for new ideas and special campaigns.
The Rise of Mixed Models
The most successful organisations increasingly adopt nuanced solutions:
Maximising Both Strategies
Many companies handle their brand voice and daily tasks themselves. They often work with agencies for planning, analytics, and creating campaigns. This model establishes clear accountability for both teams and maximises strengths.
The Skill Builder
Some organisations form agency partnerships with defined knowledge transfer goals. They gradually move responsibilities to their internal team while maintaining agency relationships focused on new ideas and specialised tasks.
The Flexible Scaling Model
Some businesses keep a core in-house team for regular needs. They hire agencies during busy times and use outside help for special projects.
Finding Your Best Solution
To determine the right method for your organisation, consider these important factors:
Marketing Maturity Assessment
Check how strong your brand guidelines and voice are. See if you have written social media strategies. Also, look at the measurement systems you use now.
Resource Reality Check
Think about your budget for social media marketing. Also, consider if your team has time to grow. Finally, think about how quickly you need results from social media marketing.
Importance Evaluation
Decide how important social media is to your marketing plan. Think about if it gives you an edge in your industry. Also, consider how much control your brand needs.
Growth Planning
Consider how your marketing needs may change in the next 12 to 24 months. Think about any shifts in target markets, products, and the level of flexibility you might need.
Case Study
Consider the journey of a local fitness centre:
Startup Phase (Year 1-2)
When the gym first opened its doors, the owner Mike was a talented personal trainer who knew fitness but not marketing. He hired a local agency to establish the gym’s social presence. The agency created content highlighting the gym’s equipment, training philosophy, and member success stories.
With one location and a few trainers, Mike needed to focus on operations, programs, and client relationships. He did not have time to master Instagram algorithms.
Growth Phase (Year 3-4)
Membership grew. The gym hired Sarah as their part-time social media coordinator.
She worked at the front desk and had skills in photography and social engagement. She captured real gym moments, member transformations, and trainer tips.
Meanwhile, the agency focused on creating monthly campaign strategies. They also managed paid social ads for new member promotions. This hybrid model gave the gym authentic daily content with professional campaign support.
Maturity Phase (Year 5+)
Now, the gym has three locations in the city. It employs a full-time marketing coordinator.
This person manages all social media channels with help from two part-time content creators. They manage daily posts, highlight members, and organise community events. They also work with an agency for quarterly challenges, video production, and influencer partnerships. The gym found this balance delivers the authentic community feel members love alongside polished campaigns that attract new clients.
This progression shows how the agency and in-house decisions change over time. They rarely stay the same and often evolve as the business grows.
Making the Transition
If you’re thinking about changing your current method, consider these transition strategies:
From Social Media Marketing Agency to In-House
Plan a phased transition period with 3-6 months of overlap during team building. Focus on documenting processes and strategies. Create structured training programs to transfer skills from the agency to your internal team.
From In-House to Social Media Marketing Agency
Set clear goals and expectations before engagement begins. Develop a thorough onboarding process to immerse the agency team in your brand. Establish communication channels for feedback and collaboration.
The Simple Choice
The most successful organisations recognise that the social media marketing agency vs. in-house decision is more than a binary choice. The best method often changes as your business grows. Many companies find that well-designed mixed models give better results.
Instead of asking “which works better?”, think about what you need now and in the future. Consider where you need control and where you need specialised knowledge. Finally, assess how to set up your method for ongoing learning and improvement. This is the secret to long term success.
Contact us to learn how we can help optimise your resources, whether through in-house development or agency partnerships.
