Why Outsourced Digital Marketing is Becoming More Popular
You know that Johnny Cash song “I’ve Been Everywhere?” It’s a good one. And, I’m not just saying that because I might be related to the man. While the song is specifically about being a trucker, it also reminds me of where I’ve been in digital marketing.
You see, I’ve worked for start-ups with internal marketing teams that both expanded (hired) and contracted (laid off employees) in record time and at breakneck speed. I’ve worked at an agency, where clients shelled out hundreds of thousands of dollars to pass 99% of their digital efforts to us, with little oversight. (Now, that’s trust.) And now, for going on 15 months, I’ve worked as a freelance marketing consultant and contractor, filling in on everything from SEM, SEO, Media Buying, and Content Management, to designing complete marketing programs from scratch.
I’ve seen digital marketing tackled every which way, so I get asked a lot what the best way is to build a team. There’s one thing I know for sure, after almost 15 years in the digital marketing business: There’s no single best way to manage digital marketing.
Sorry.
But, I’m not the only one who has witnessed a trend in marketing in the last few years that’s worth pondering. Hiring freelancers to handle your digital initiatives is becoming more and more popular.
A study from Upwork and The Freelancers Union estimates that there are 57 million freelance workers currently, and predicts that at the current rate of growth, they could make up the majority of the U.S. Workforce by 2027.*
Why are folks like me abandoning traditional employment and working independently in big numbers? My take? For starters, the economy is in great shape, so there’s a comfort in knowing that there’s work to be done, and plenty of job openings to fall back on if needed. According to some sources, digital marketing jobs have doubled in the past 5 years,* which is something I’ve witnessed first-hand in my hometown of Boise, Idaho. It also doesn’t hurt that technology has made it much easier in the last 10 years to run our own businesses, communicate with clients, learn new skills, and market ourselves without leaving our homes. Add that to the fact that many traditional employers frown upon remote workers, and won’t consider an employee that doesn’t physically walk through the doors each day (a big bummer for millennials), and you’ve got the perfect storm for a growing freelance market.
In fact, in the marketing industry in particular, a report from research firm Inavero reports that traditional ad agencies will LOSE 33% of their billing to freelancers in the next five years, and 50% of their billings in the next decade.* Damn.
But, what’s in it for the enterprise? Why would a company hire a freelancer over an agency that has more breadth and horsepower, OR over a full time hire that can be 100% dedicated to the company? Here are a few reasons why it makes sense:
It can be cheaper.
While freelancers receive their fee, they receive none of the costly benefits that an employee racks up, such as insurance, paid leave, or technology costs. They obviously need to include these expenses in their rate, BUT it’s spread across all of their clients, not a single company’s burden to bear. It’s also typical for a company to only need a marketer part-time, either because the company is small and growing, or because the need/assignment is very niche. Who says every job takes exactly 40 hours per week? That’s nonsense.
The other cost benefit of hiring a freelancer rather than an employee is the savings in real estate. An employee takes up around 250 square feet (rule of thumb), and commercial real estate in downtown Boise, for instance, runs at $22.50/SF/Year. (Do that math - ouch.)
And, forget looking at an ad agency if your needs are limited or niche. Most agencies have minimums that are unattainable for small - medium companies, or they require you to use multiple services to get in the door. (They call this “full-service,” as a rule.)
It’s makes you more agile.
The costs of hiring, both in wasted time and real dollars, is jarring. And, with a traditional FTE, you may not see the ROI until weeks or months down the line. Freelancers can be turned on and off, per se, as needs arise and budgets ebb and flow. Projects can happen faster, since the freelancer already has everything they need to get started, from technology to training, and has likely performed your exact project many times for other clients.
Specialization is easier.
Imagine being able to design your own marketing employee. Say, 50% SEO expert, 25% award-winning graphic designer, and 25% incredible copywriter. Does that person exist? No, probably not. IF you can find someone with all of these skills, it likely that they are intermediate at best at all of these tasks, or WAY out of your price range.
Companies are choosing to take the money it would require to hire a single warm body, and spread it across several specialized freelance resources to CREATE the perfect team member. This also allows them to be running at top speed, at a very high skill level, in all 3 areas all at once, rather than prioritizing.
Because of these factors, it’s not at all surprising that companies are choosing to hire freelance digital marketers. If you are interested in hiring your own freelancer for SEO, SEM, pay-per-click, or content marketing, please reach out to me at amanda@cashcrowley.com. I’d love to hear from you!
https://www.slideshare.net/upwork/freelancing-in-america-2017/1