Fixed cost are huge. People, systems, and facilities account for the largest part of the internal marketing budget. And the cost of a bad hire can easily cost a company over $200,000.
By comparison, marketing agency resources don’t need a full-time salary, benefits, and other overhead. When you hire a good agency, that team should provide a wide-range of strategic, tactical, and technology skills.
By outsourcing some or all of your marketing activities, you not only save money in salaries and overhead, but your outsourcing partner can also save you money in direct purchases on marketing programs (e.g., printing, media buys, advertising, marketing technologies, etc.). By leveraging their suppliers, a good outsourcing partner can save a company 10 – 30% in their overall marketing spending. Here’s an example: Just one direct hire may cost a company about $120,000 (salary and overhead). A marketing outsourcing team typically cost less than that and in addition you gain access to a full cross-functional team.