At some point, nearly every growing Australian business asks the same question: should we hire someone to do our marketing, or hand it to an outside agency? It looks like a choice about cost, but cost is only part of it. The better question is what capabilities the business needs, how quickly it needs them and how much control it wants over how the work is done.
This article compares the two approaches fairly, looks at the true cost of each, and explains a middle path that many businesses find works best.
The real question is capability, not headcount
On the outsourced side, a Scalepoint agency style engagement, which the agency says runs month to month with no lock-in, gives a business access to several channels through one team. That is the core appeal of the agency model, but it is only one side of the picture. Marketing is not one job. It spans strategy, writing, design, analytics, paid advertising, search optimisation, email and web development. Very few individuals are strong at all of them.
So before comparing costs, list the skills your marketing actually requires over the next year. Then ask whether one person could realistically cover them, whether a small team could, or whether you need access to a wider pool of specialists. That answer shapes everything else.
The true cost of an in-house hire in Australia
The salary on a job advertisement is not the cost of the person. A fuller picture includes:
- The advertised base pay.
- A compulsory employer contribution on top of salary. The rate is 12 percent from 1 July 2025, according to the Australian Taxation Office.
- Leave and other entitlements. Annual leave, personal leave and, over time, long service leave.
- Payroll costs. Payroll tax where it applies, workers compensation insurance and other on-costs.
- Software licences for analytics, design, email, advertising and search tools, which can add up.
- Advertising, agency fees if used and the time spent interviewing.
- Training and management. Courses, conferences and the time you or a manager spend directing the work.
As a rough rule, many employers find the full cost of an employee is meaningfully higher than the base salary once these items are added. Here is an illustration of how it might look. The figures are examples only, so replace them with your own quotes and current rates.
| Item | In-house generalist (example) | Agency retainer (example) |
| Base salary or fees | $85,000 | $60,000 |
| Superannuation and on-costs | $12,000 | Included |
| Software and tools | $5,000 | Usually included or part-charged |
| Training and management time | $4,000 | $0 |
| Advertising budget | Separate | Separate |
| Skills covered | One person’s skills | Several specialists |
| Indicative yearly total | $106,000 | $60,000 |
The agency does not always come out cheaper. A large retainer with several services can exceed the cost of a hire. But the comparison is more useful when you look at what each option buys, not only what it costs.
What an agency model gives you and what it asks of you
An agency can offer several benefits:
- A range of skills. Strategy, creative, technical and analytical expertise in one team.
- Fresh ideas and outside experience. Exposure to what works across many clients and industries.
- You can scale services up or down more easily than you can hire and let go of staff.
- Work continues when one person is away or leaves.
It also asks things of you. An agency needs clear briefs, timely feedback and access to your customers and data. It will rarely know your business as deeply as someone who works inside it every day. And because it serves several clients, your account competes with others for attention. Good agencies manage this well, but it is worth asking how.
Where in-house teams win: brand knowledge, speed and control
In-house marketers have advantages that are hard to replicate from outside.
- Deep knowledge of your brand. They absorb your culture, products and customers over time.
- A quick change to a promotion or a response to a news event can happen in an hour, with no briefing or approval chain.
- Control and alignment. They work with your sales and service teams daily, which helps marketing reflect what is really happening in the business.
- Long term investment. Skills and knowledge stay in your business and grow with it.
For businesses with a steady stream of marketing work, a strong brand to protect or a high need for quick turnaround, in-house is often the right answer.
A hybrid model: one in-house lead plus specialist support
The choice is not all or nothing. Many businesses land on a hybrid. They hire one capable in-house marketer to own strategy, brand and day to day coordination, and they bring in outside specialists for areas that need depth, such as paid advertising, search optimisation or video production.
This keeps knowledge and control inside the business while giving access to specialist skills only when needed. The in-house lead also acts as an informed buyer, which makes outside providers more accountable because someone inside the business can judge their work.
A decision framework
Three factors usually settle the question.
- If you cannot afford to cover the full cost of a skilled hire, an agency or freelancers will likely give you more for the money. If you have the budget for a strong hire, the in-house route becomes realistic.
- Volume of work. If you have enough steady marketing work to keep a person busy every week, in-house makes sense. If the work comes in bursts or needs many different skills, outside help fits better.
- Speed of change. If your market moves quickly and you need to react daily, in-house speed matters. If your needs are more planned and campaign based, an agency’s process can work well.
Managing an external team well
If you choose an agency, a few habits make a large difference:
- Give a clear written brief with goals, audience, budget and deadlines.
- Agree on the numbers that will be reported and the dates they arrive.
- Name one person inside the business who is responsible for the relationship.
- Share sales and customer feedback regularly so the agency learns what is really working.
- Keep ownership of your accounts, data and creative assets.
Review the decision every year
The right answer today may not be the right answer in two years. A business that starts with an agency may later hire a lead and keep the agency for specialist work. A business that starts with one in-house marketer may outgrow what one person can deliver. Put a date in the calendar once a year to look again at what you need, what you are paying and what you are getting. That simple habit keeps your marketing set up in line with the business as it grows.
