Is Hiring a Full Time Employee More Cost Effective?
A common way business owners’ compare whether or not to hire a marketing employee or a marketing agency is to use a base salary versus an hourly quote for a marketing agency and thus conclude that since the hourly rate is higher it must be more expensive. That is not the case. We are going spill the details on why hiring an entire agency is actually more cost efficient and better for your business.
Something that is often overlooked are the true costs associated with hiring and retaining an employee such as the base salary, federal, state and /or local taxes as well as health insurance contributions, retirement plan matches, vacation, sick days, etc. That doesn’t even include recruiting and training that potential employee and hoping they stay at your company longer than it took for you to find them in the first place.
We took a look at what a total compensation of a Marketing Manager would be. This is taken from Salary.com based in Baton Rouge, LA. The numbers are averages based on location and will vary depending on needs and location of business.
Your total compensation ends up being around $137,168 annually.
Now, let’s look at what a hiring a Marketing Agency costs. You can hire agencies on a retainer agreement, monthly or by projects. We are going to estimate a 1-year retainer to compare it to the annual salary of a hired marketing professional.
Inbound Marketing Monthly $3,000
Software subscriptions $1,000
Total Annual Expenditure $48,000
That is an Annual Expenditure Difference of = $89,168
It seems like a no brainer, right? Hiring an agency will save you loads of money but that isn’t the only positive about hiring an agency.
With marketing agencies, you are getting access to more than just a marketing professional but a whole list of professionals with mass knowledge in different areas like a social media manager, art director, graphic designers, media coordinators, content strategists and more. Those salaries all split up would look something like this…
Marketing Coordinator: $46,756
Marketing Associate: $49,708
Social Media Manager: $55,901
Content Strategist: $87,174
Marketing Manager: $78,429
Director of Marketing: $109,492
VP of Marketing: $163,134
You get all of this skill and expertise for one price.
Not to mention, most agencies are up to date with the latest technology and tools so you will be to! Lastly, there is no training and no learning curves you just start working right from the start.
Have we convinced you that hiring a Marketing Agency is the right choice? What are you waiting for… give us a call!
4600 Sherwood Common Blvd.
Baton Rouge, LA 70816
Phone: (225) 663-6878
Octagon Media handles a variety of accounts. From mom-and-pop businesses to corporate giants, you name it and our team does it all. Creative produced with purpose. Digital work that dazzles. Effective media plans that get your message heard.
We are powered by the leading advertising technology. We subscribe and have in-house access to sophisticated planning and media buying software. Using these tools, every member of Octagon works together to provide a strategic and creative approach to all we do.
At the end of the day, we achieve results for our clients. Our knowledgeable team brings dedication and enthusiasm to every project. From traditional media to innovative magic, we are capable of handling your every need.
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