Blog Posts

December 17, 2012

Whether you are selling ice cream cones on the boardwalk or airplane tires to Boeing – almost every well run business uses marketing. The question is, in this day of crunched profits and outsourcing options – what is the best solution to get the marketing support you need – at a price you can afford.

Job posts are full of ads for entry- to mid-level positions for marketing folks to manage various marketing efforts. The challenge for any small- to mid-sized company, is that it’s hard to find a single person who possesses the necessary skills and knowledge to manage all marketing fronts: social, print, web, event planning, field marketing, — plus keep up with emerging trends and opportunities.

A growing trend in marketing would suggest that the marketplace is warming up to the notion of using marketing agencies – or freelancers to fulfill the traditional roles of in-house marketing departments and direct hires. The economics are compelling.

Example: The cost to hire, say, 2 full time marketing professionals (designer and marketing manager/project manager) would be approximately $150K to $175K, annually (loaded cost). For this example, we will assume that, between the two of them, they can handle all aspects of marketing, without outside help.

Now, lets take a look at how a marketing agency approach would look. Below is a list of service fees charged for typical agency services:
Website design and development $10,000 one time
Website hosting and maintenance $600 / year
Social Media Set up: $3,500
Social Media Maintenance: $2,500 / year
Print Collateral (brochures, cards, monthly ads): $5,000
SEO: $1,000
E-Mail Blasts (1/mo): $6,000
Trade Show Administration (2 shows): $5,000
Video production (4 per year): $10,000
Miscellaneous other stuff: $10,000
Project management $20,000

The total annual cost comes to $73,600, which translates into a savings of over $100K a year (a pretty penny for most business owners). PLUS, having the ability to expand and contract without having to hire and fire — is a priceless luxury.

Also, with an agency, you are likely to get the benefit of specialists with years of experience in each of the respective areas — versus a Jack-of-all-trades trying to keep his/her head above water.

Of course, the agency solution would not be ideal for every company, depending on their unique needs and extent of resources devoted to marketing. That said, unless you can find a truly multi-talented workaholic marketing/designer type – the agency solution is a no brainer.