Freelancer vs Agency: Which One Should You Hire?
Owning a business can become overwhelming especially if you are doing everything on your own. Even if you wish to manage your business directly, there are times that you need help and outsourcing is the best option to get things done properly and avoid being overworked.
When outsourcing to a third party, you always have the option of using either a freelancer or an agency. Both can be a great assistance in getting some of the work off your hands and help you focus on things that need your attention the most.
However, selecting between a freelancer and an agency can be quite challenging. Which is better and how do you decide: freelancer vs agency?
In today’s blog, we will examine the advantages and disadvantages of each to help you decide which will best suit your business or company.
What is a Freelancer?
A freelancer is a self-employed specialist or an independent contractor with a particular area of expertise. Freelancers spent several years honing their skills in different areas such as web development, bookkeeping, podcast management, and the like.
Additionally, they work directly with their clients and you can easily find them these days on different platforms such as UpWork, LinkedIn, and Fiverr, just to name a few.
Pros and Cons of Freelancer
Pros
1. Cost-effective
Freelancers are often cost-effective compared to agencies because they have lower overhead costs making them more affordable. This can be beneficial for small businesses or start-ups with limited budgets.
2. Flexibility
Generally, freelancers are flexible. They can work on short-term to long-term tasks or projects. You can hire multiple freelancers and do different tasks if needed. They can often start working immediately thus resulting in faster turnaround times for urgent projects.
3. Specialized Expertise
Many freelancers these days are experts in their field, offering niche skills and in-depth knowledge. This can be advantageous especially if you need someone to work on a specific area of expertise.
4. Direct communication
Communication is easy when hiring a freelancer. You can communicate directly with the person doing the work thus streamlining the process quicker and ensuring that your vision for the task is delivered promptly.
Cons
1. Limited resources
Since freelancers work alone, it can be a drawback especially if working on larger projects. They might not have the capacity to handle extensive or multifaceted tasks.
2. Reliability
Even if freelancers are professionals, there may be times that unexpected circumstances arise such as illnesses or personal emergencies which can delay your project. And since a freelancer is only an individual, no one can make up or substitute to finish your project on time.
In some cases, it can be difficult to find a freelancer who can be reliable. Some freelancers bail on you in the middle of the project thus you may need to look for a new one.
3. Management
One of the biggest disadvantages of hiring a freelancer is that you also act as their manager. Unlike agencies, freelancers don’t have a fixed working schedule and this can be quite tricky.
You may have to check in with them from time to time and may also need to follow up with them if the tasks are done.
What is an Agency?
An agency consists of a remote team of freelancers, also known as virtual assistants (VA), working together to serve various clients.
Many leading advertising agencies, startups, and small or large businesses hire agencies to cut costs and recruit top-rated talents.
These agencies act as intermediaries and ensure that freelancers and clients have a smooth and professional working relationship.
Pros and Cons of an Agency
Pros
1. Dedicated Team
Hiring an agency provides you with a dedicated team designed to handle multiple projects at the same time. Since you have access to various individuals with specialized skills, you can easily ask for their assistance and accomplish tasks immediately.
2. Reliability and accountability
Agencies have established processes and systems to ensure that any project will be done efficiently and on time. They are more reliable and accomplish tasks more consistently.
In addition, you are assured that tasks are completed and you won’t be left hanging because they provide you with backup assistance if someone from the team won’t be able to finish a task on time.
3. Scalability
Most agencies can easily scale their resources to match the demands of your project. Whether you need a larger team or specialized skills, agencies can accommodate it easily.
4. Strategic insight
One of the advantages of hiring an agency is they often provide strategic insight and a wealth of experience for your business. They can provide valuable guidance on industry practices and help shape your project for better outcomes.
Cons
1. Higher costs
Since you have access to unlimited talents, you will pay more. After all, having the best team comes with a cost. Agencies are also liable to pay for their employees and other overhead costs such as tools, insurance, and the like.
2. Flexibility
Agencies have set processes and timelines, which might not always align with your schedule. Their structured approach can sometimes lead to longer turnaround times.
3. Communication
With agencies, you often communicate through their account managers or project leaders rather than directly with the professional doing their work. This can sometimes lead to miscommunication or delays when it comes to giving feedback or instructions.
Tips to Help You Decide What You Choose
Still confused about choosing a freelancer vs an agency? Here are a few tips to consider:
1. Experience in your business niche
Ensure that you check if the freelancer or agency has experience working in your industry or niche. Check the brands that they have worked on and their knowledge of the industry. If you find that they don’t know anything about the industry, chances are they will have a hard time working on your business plan.
2. Recommendations
Actual reviews from real customers are also the best ways to learn if the freelancer or agency is efficient when working for different clients. Are they responsive? Do they finish tasks on time?
Recommendations and reviews are proof that they can deliver what they promise and can work seamlessly with the tasks that you give them.
3. Budget
It is always best to check your budget when choosing between a freelancer or agency. Consider your needs and the tasks that need to be done. The more tasks and the more complex they are, the higher costs may be needed.
Why Choose Smart VAs as your Marketing Partner?
It is always essential to ensure that your business always comes first to mind. If you think that you are having a difficult time managing everything on your own, then don’t!
Outsourcing allows you as an entrepreneur to focus on your business operations and forget the hassles of doing everything all at the same time. Smart VAs as your marketing partner is the perfect fit to take away your overwhelm.
Tap into the talented team members of Smart VAs and propel your business to success. Book a call today and let’s discuss your business needs.
Frequently Asked Questions:
1. Should I hire an agency or freelancer?
Ultimately, it is essential to assess your company’s requirements, budget, project, and timeline when deciding to hire an agency or freelancer. Both have their strengths and understanding the difference between freelancer and agency can help you decide which will suit best for your business or company.
However, should you need more complex and long-term assistance, it may be the best option to work with an agency.
2. What is the average rate for an agency?
Agencies vary with their rate depending on several factors including the type of services offered, level of expertise, location of the freelancers, and specific terms of the agency.
According to Upwork, agencies pay 10% freelancer fees on contracts. Most agencies may follow different types of pricing models depending on their client’s subscription and service tiers, which can be from basic to premium tiers.
You can learn more about freelancer rates here.
3. When do I hire a freelancer or agency?
Freelancers are great when you need assistance in finishing short-term projects. For small and easy projects, you can hire one or two freelancers to finish the tasks.
On the other hand., agencies are best to hire when you need people to complete complex projects. Also, if you have no time to manage freelancers and other tasks, choosing an agency is the best choice.
At the end of the day, the decision will depend on your personal preference; what are your needs, requirements, and budget to identify whether you need to hire a freelancer or an agency.