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Team Orange PegsOct 26, 2023 7:48:29 AM7 min read

In-House or Outsourced Marketing: What’s Best for Business Growth?

In-House or Outsourced Marketing: What’s Best for Business Growth?
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In the dynamic, ever-changing world of sales and marketing, businesses face a crucial decision: should they build an in-house team or outsource to an agency? Each approach has its own set of advantages and disadvantages, shaping the way companies strategize, execute their plans, and expand their brand reach. In many instance, it's not an "either, or" situation.

Let's dive into the pros and cons of insourcing and outsourcing, to help you navigate this complex terrain.

Insourcing: Building an In-House Marketing Team

Building an in-house marketing team while building your business brings with it a unique set of benefits and disadvantages. Some advantages of using an in-house marketing team include: 

Dedicated Focus

An in-house team is exclusively dedicated to your business, ensuring they have an in-depth understanding of your brand, values, and goals.

Quick Communication
Direct and immediate communication is facilitated, allowing for swift decision-making and adaptability to changing market trends.

Control and Transparency
You have direct control over the strategies, tasks, and outcomes, promoting transparency and accountability within the organization.

Some potential drawbacks can include: 

Higher Costs
Building an in-house marketing team involves significant costs, including salaries, benefits, training, and infrastructure, which might strain the budget for small or medium-sized businesses.

Onboarding Investment
It takes time to onboard and integrate a new in-house marketing resource into your organization. This may result in a slower start compared to the relatively quick engagement of an outsourced agency.

Lack of Objectivity
In-house marketers may become too close to the company's culture, products, and services, which can lead to a lack of objectivity in their marketing strategies and campaigns. An external perspective can sometimes offer more innovative and unbiased solutions.

Restricted Scalability
In-house marketing teams may struggle to scale up or down according to your company's evolving needs. You may have to hire additional staff or lay off employees during seasonal fluctuations or changing business priorities.

Limited Expertise/Skill Set
Depending on the size of your organization, you might lack access to a diverse range of specialized skills, hindering the ability to execute complex marketing campaigns. For example, they may excel in traditional marketing channels but lack proficiency with digital marketing strategies. 

Training and Development
Speaking of skill set and proficiency, many business owners find they must heavily invest in continuous training and development to keep their in-house marketing team up-to-date with the latest industry trends and technologies. This level of personnel investment and management can significantly divert your focus away from core business activities (aka the very things that grow your operations).

Overall Takeaway When Building an In-House Marketing Team

Although in-house may look attractive on the surface, the lack of expertise and additional strain on resources could hinder growth far more than simply having a dedicated outsourced team. 

Outsourcing: Partnering With a Professional Growth Marketing Agency

Hiring outsourced marketing services is a strategic decision that can deliver its own distinctive mix of pros and cons. This may or may not include an outsourced marketing strategy. Some advantages of partnering with a growth marketing agency include:

Cost-Efficiency
Many business owners are surprised to learn that working with a professional growth marketing agency can actually deliver significant cost savings compared to hiring internally. Outsourcing can be more economical, as you pay for specific services and expertise without the overhead costs, salaries, and benefits associated with in-house teams.

Sales and Marketing Alignment
An experienced growth marketing team facilitates sales and marketing alignment by enhancing communication, setting shared goals, providing high-quality leads, creating effective sales materials, sharing performance data, integrating feedback, and optimizing resource allocation. This alignment results in greater efficiency, better customer experiences, and improved overall outcomes for businesses.

Vision Alignment

Outsourced marketing is a challenge when it comes to aligning your GTM vision. But, let's be honest. It's difficult with internal employees as well. An outsourced marketer may have a distinct advantage if they have a system for absorbing and actualizing that vision. At Orange Pegs, we have a whole onboarding system dedicated to extracting and harnessing founder vision. This template has given us a distinct advantage over many in-house teams because we aren't encumbered by historical or role bias.

Access to Expertise
Marketing agencies often have a diverse talent pool, offering specialized skills and experiences that can significantly enhance the quality of your campaigns. You will have access to an entire team of marketing experts and creatives with the experience needed to level up your campaigns.

Tools and Technology

Marketing agencies typically have access to the latest marketing tools and technologies. Your business will have access to cutting-edge innovation without having to incur the expense of purchasing and maintaining them in-house.

Scalability
Outsourced growth marketing agencies can quickly scale their services up or down to meet your business's changing needs. This flexibility is especially valuable for businesses looking to accommodate fluctuations in workload without the challenges of hiring (or firing) employees.

Industry Insights and Trends

Growth marketing agencies stay up-to-date with industry trends, emerging technologies, and best practices. They can provide valuable insights and recommendations to keep your strategies current and competitive.

Innovative Approach
External perspectives can inject fresh ideas and innovative strategies into your marketing efforts, pushing boundaries and exploring new avenues.

Focus on Core Competencies
Outsourcing marketing allows your team to focus on core business functions and strategic priorities, rather than getting bogged down in the day-to-day management of marketing campaigns.

Communication Challenges
On the cons side, remote collaboration with an external marketing team may seem challenging at first. However, the right growth marketing team will prioritize and encourage streamlined and effective communication practices. Regular updates, check-ins, and reports can all lead to improved transparency and understanding of marketing activities with all stakeholders for seamless communication. 

Perceived Lack of Control

 Another potential drawback to outsourcing to a professional growth marketing agency is that you may initially make you feel like you’ll have limited control over the day-to-day activities of the outsourced team as well as over marketing decisions. However, the right growth marketing team puts you in the driver’s seat to ensure you have the final say in every strategy representing your brand. 

Dependency Risks
It’s only fair to share one potential downside to hiring an innovative, results-focused, data-obsessed growth marketing agency: They are so good at what they do — you’ll never want to go back to business as usual with internal marketing resources. 

Overall Takeaway When Building an In-House Marketing Team

The key takeaway when considering outsourced marketing is that it can be the best choice for businesses looking to thrive and scale in the competitive landscape. But it all depends. It depends on how big your company is and what your challenges of today are.

Partnering with an outsourced growth marketing agency gives you access to a treasure trove of knowledge, technology, and experience that would otherwise take years to cultivate in-house.

Are there drawbacks of partnering with a growth marketing agency?

You have to find the right agency!

Communicating with an external marketing team may seem challenging at first; however, the right team will prioritize and encourage streamlined and effective communication practices.

Outsourcing to a professional agency can also initially make you feel like you have less control over day-to-day marketing decisions. That's not good either, even if that's your initial goal. Disconnecting marketing from visionary leadership can lead to poor decisions by people accountable for decisions who have no context to those decisions. The right growth marketing team will make sure to always keep you where you belong — in the driver’s seat! 

One other potential downside to hiring a growth marketing agency is that they are so good at what they do — you’ll never want to go back to business as usual with internal marketing resources. And that actually could be a problem long-term if you're trying to scale. Having somebody own marketing internally is a good move. They'll keep your agency on track and deal with everything else that comes their way. 

Curious About Using an Outsourced Growth Marketing Team to Scale Your Business?

To learn more, take our free lesson on "Roles and Responsibilities" in Growth. In it, we show you how to develop a Growth marketing team structure and incorporate Growth with the rest of your business. It also includes org chart examples and a free RACI template!

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