In-House Design Team vs. Agency vs. Freelancer

Choosing the best setup for your design needs can be a difficult decision. Whether you are a business owner or a project manager, finding the best solution that suits your unique requirements is essential.

We understand that making this decision can feel overwhelming, and we're here to help lighten the load. That's why we've created a comprehensive guide where we will explore all of your options in-depth, empowering you to make informed decisions confidently. So, let's dive in!

These are the topics we'll cover:

Unlock the power of creativity within your organization - Take a look at in-house design teams!
Looking to level up your design game? Explore the benefits of hiring a design agency
For a quick project turnaround, check out freelance graphic design
Hybrid design teams: Combine your in-house expertise with freelance creativity for outstanding design solutions
Looking for a change? Discover 24Slides, the Game-Changing Alternative!

So, let's get started! - Or, you can always skip to your preferred section.

In-house design teams vs. Agency vs. Freelancer: Some factors to consider

Before diving in, it's important to remember that there is no one-size-fits-all approach. The choice of design resources depends on the characteristics of your own company and the project you are working on. So, before exploring your options, consider the following aspects:

Expertise: Assess the required skills for your design project.
Project Scope: Evaluate the scale and duration of your projects.
Budget: Consider your budget and compare your options.
Deadlines: Assess the urgency and determine if quick turnaround times are necessary.
Creative Vision: Consider the level of creative control you want.

After carefully considering these factors and the project you have in mind, let's explore all your options.

In-house design teams

When it comes to design, the first option that comes to mind for a lot of businesses is to establish an in-house design team, making use of the creativity and efficiency within their own organization.

What is an in-house design team?

In-house design teams are a group of designers and creative professionals employed directly by a company.

In other words, in-house design teams are part of the company staff. They collaborate with various departments, including marketing, product development, and communications, to fulfill their design projects, such as creating graphics for product logos, website images, social media ads, presentations, etc.

How much does it cost to hire a design team?

To determine the cost of having an in-house design team, we have considered the following salary data obtained from Glassdoor and Indeed for design professionals in the United States:

Junior Designers (0-2 years of experience): On average, junior designers earn around $53,000.
Mid-Level Designers (2-5 years of experience): On average, mid-level designers earn about $62,000.
Senior Designers (5+ years of experience): On average, senior designers make around $93,000.

It's important to note that these numbers may vary depending on factors such as expertise, responsibilities, industry, location of the company, and several other factors.

How much does a design team cost?

Let's take a closer look at the estimated team costs for different sizes of design teams. Keep in mind that these examples are based on hypothetical team structures:

Small Design Team (3-5 members):
3 Junior Designers
1 Mid-Level Designers
0 Senior Designers
Total cost for a small design team: $159,000 (Junior Designers) + $62,000 (Mid-Level Designers) = $221,000 per year.
Medium Design Team (6-10 members):
4 Junior Designers
4 Mid-Level Designers
2 Senior Designers
Total cost for a medium design team: $212,000 (Junior Designers) + $248,000 (Mid-Level Designers) + $186,000 (Senior Designers) = $646,000 per year.
Large Design Team (10+ members):
6 Junior Designers
8 Mid-Level Designers
6 Senior Designers
Total cost for a large design team: $318,000 (Junior Designers) + $496,000 (Mid-Level Designers) + $558,000 (Senior Designers) = $1,372,000 per year.

Additional costs for in-house design teams

The cost of having an in-house design team extends beyond salaries. There are several additional expenses to consider when calculating the overall cost:

Benefits: Apart from salaries, there are additional costs associated with employee benefits, such as healthcare, insurance, and retirement plans.

According to Zippia, benefits can range from 20% to 30% of an employee's salary. For example, if the total wages of the design team amount to $221,000 per year (small design team cost), the estimated additional cost for benefits would be approximately $44,200 to $66,300 per year.

Business expenses: Maintaining an in-house design team also involves expenses like office space, equipment, software licenses, and utilities.
Tools and Software: Design teams require various tools, including graphic design software, prototyping tools, and project management software.
Recruiting and Hiring: If you're just starting your project, you must invest in recruiting and hiring designers. This process may involve advertising job openings, conducting interviews, and potentially working with recruitment agencies.

The exact cost will depend on the specific recruitment strategies employed. However, according to a study conducted by the Society for Human Resource Management (SHRM), the average cost per hire across industries is nearly $4,700.

Pros and cons of an In-house design team

Pros

More control over costs: In-house design teams allow you to control how much you'll spend regularly. In the same way, they will enable you to make more from the budget they have, unlike freelance designers who charge per hour or piece delivered.
Better communication with stakeholders: Having an in-house group makes things easier for stakeholders who can work with designers who already know their design preferences and are in sync with what's happening in the company.
They are guardians of the brand: An in-house team has deep knowledge of the business and the brand. They better understand the product, values, company culture, and brand philosophy than external designers.
Higher sense of ownership: In-house design teams usually are deeply invested in their work, as they have a direct connection to the organization. This level of dedication can result in greater attention to detail, accountability, and a willingness to go the extra mile to ensure the success of design projects.

Cons

Hiring and training costs: Usually, hiring can take several days (or weeks) - especially if you're looking for specialized talents or need to fill multiple roles. And let's not forget about the training period for new hires and the upskilling a team requires every year.
Not enough capacity to meet the company's needs: Another common challenge is dealing with high demand for their services with limited resources. Not having enough capacity to manage the workload can ultimately lead to overworked designers and upset colleagues who don't get their projects on time.
Range of capabilities and limits of knowledge: While in-house design teams offer a deep understanding of the business and brand, they may have limitations regarding specific skills required for certain projects, which could result in the need to outsource or hire external experts for such tasks.

Now that we've seen everything about in-house design teams, we will check in-house design team alternatives.

Freelance graphic design

Hiring a freelance graphic designer is another option for fulfilling your business's design needs. These are professionals who operate independently and are not tied to a specific company. They typically have a diverse portfolio and offer their services on a project basis, tailoring them to each client's unique requirements.

Hiring a freelance graphic designer can be particularly beneficial in the following situations:

You have a specific project requiring assistance: Hiring a freelance graphic designer allows you to bring in specialized talent for those tasks without committing to a long-term arrangement.
You are uncertain about workload fluctuations: With freelancers, you have the freedom to determine the amount of work you assign to them. You can easily adjust the design resources based on your current needs, which allows you to maintain a balanced and efficient level of design support at all times.
You want to access specialized expertise: Hiring freelancers allows you to hire a specialist who has the exact skills you’re looking for. That could be having a specific style, expertise in a software, or an understanding of a specific industry.

Freelance graphic design rates

Websites like Fiverr and Upwork showcase a wide range of freelance designer hourly rates, with amateur and junior designers typically charging between $15 and $45 per hour. On the other hand, Senior or Pro designers often command higher prices, starting from $100 to $150 per hour and sometimes even more.

If you prefer a project-based billing approach, the cost will depend on the specific deliverable you require. Here are some typical graphic design prices for common projects:

Standard logo design: Generally priced around $300.
Illustrations: Costs can range from $700 to $4,000, depending on the complexity of your request.
Infographics: Similarly, the pricing for infographics can fall within the $700 to $4,000 range, depending on the project's intricacy.

It's important to note that these figures are just estimates, and actual prices may vary depending on the designer's skill level, reputation, geographical location, and the specific requirements of your project.

Pros and cons of freelance graphic design

Pros

Cost-effectiveness and flexibility: Freelance graphic design offers cost savings compared to maintaining a full-time team. It allows you to optimize your budget and adjust the workload according to the demand.
Access to specialized skills and expertise: When hiring freelancers, you work with professionals who have the specific skills you need, whether it's logo design, web design, user experience, etc.
Greater control over deadlines: When working with freelance graphic designers, you can establish deadlines, set specific timelines and expect faster turnaround times.

Cons

Limited brand understanding: Freelancers may have a limited understanding of your brand, which can lead to potential style mismatches and require additional guidance.
Variations in quality and reliability: While many freelancers are highly skilled, finding the right match can take some time. To ensure successful collaboration, reviewing their portfolios and setting clear expectations is essential.
Limited availability for revisions or support: Freelancers may have limited availability for revisions or ongoing support once a project is completed. So, to avoid any complications, it's crucial to clarify post-project terms before hiring.

Design agency

Design agencies are similar to freelancers in that they are external providers who can fulfill your graphic design needs but also bring a higher level of professionalism and expertise to the table.

They usually work as multidisciplinary teams of various professionals, such as graphic designers, project managers, and strategists. Together, they brainstorm ideas and incorporate feedback to deliver high-quality design solutions that go beyond what an individual freelancer can provide.

How do design agencies charge?

Graphic design agency rates can be determined on an hourly basis, project-based fees, or a combination of both.

In the hourly rate approach, the agency charges an agreed-upon hourly rate for the time spent working on a project. Then, tracks the hours worked by their team members and provides a breakdown of the time spent on various activities. This approach offers flexibility as clients pay for the actual time invested in their project.

With the project-based fees approach, the agency provides a predetermined, fixed price for the entire project, which is determined after discussing the project requirements, the scope of work, deliverables, and estimated time with the client. This approach offers more predictability in the cost for the client.

With the combined approach, agencies determine a fixed fee for the core project. Still, they also establish an hourly rate for any additional work beyond the agreed project scope, ensuring transparency and fair compensation for unforeseen tasks or revisions. The agency tracks the time spent on these other tasks and bills the client accordingly.

Average design agency hourly rate

According to Clutch, most graphic design companies charge between $100–$149 per hour for their services. However, rates can vary widely depending on factors such as the agency's reputation, location, expertise, project scope, and complexity. An alternative pricing model is offered by 24Slides, where clients pay per project, providing a fixed rate for specific design needs.

These are some examples of hourly rates:

Pros and cons of hiring an agency

Pros:

High-quality work: By partnering with a design agency, you gain access to a team of experts with a proven track record. This ensures that you receive top-notch and effective design solutions.
Reliability: Agencies are known for their efficiency and productivity. They remain focused on your tasks, alleviating any concerns about vacations, sick leaves, or interruptions.
Expertise: When you hire an agency, you collaborate with professionals who take the time to understand your brand and objectives.

Cons:

Cost: It's important to note that working with a design agency can be relatively expensive compared to other options.
Potential for delays: The agency design process often involves multiple meetings, potentially slowing down the overall timeline.
Reduced control: Agencies make decisions based on their expertise, which may not be the best option for those who prefer complete control over the design direction.

Hybrid design team

Are you currently equipped with an exceptional in-house design team yet face a mounting workload that requires an extra boost? Then you could benefit from having a hybrid design team.

What is a hybrid team?

A hybrid design team is a combination of in-house designers working hand-in-hand with skilled freelancers or an agency.

This approach allows you to leverage the best of both worlds, ensuring optimal results when the workload becomes overwhelming or when a specific project demands a unique skill set. By receiving extra help from outside, you can handle busy periods well and achieve excellent results.

What is the cost of having a hybrid design team?

The cost of having a hybrid design team can vary depending on several factors, including the salaries of the in-house designers, the number of hours required from freelancers or a design agency, and their respective rates. To calculate the cost, you can use the following formula:

Discover cost-effective design solutions tailored to your business

Are you looking for the perfect design solution for your business? 24Slides has got you covered. Not only do we provide top-notch presentation design services, but we also offer additional benefits to enhance your presentations. With 24Slides, you'll experience an efficient and user-friendly platform that makes your creative process a breeze.

At 24Slides, we go beyond design. Our team offers proofreading services to ensure your content is free from grammar and spelling mistakes. We also provide editing services to clarify any unclear information on your slides.

When you choose 24Slides, you gain access to a dedicated team of world-class designers and an account manager. This ensures that you receive high-quality creative assets that genuinely stand out. Our platform facilitates seamless collaboration, allowing you and your team to submit briefs, provide feedback, and store your creative assets effortlessly.

What truly sets us apart from agencies and freelancers is our proven track record. Renowned brands like Amazon, Netflix, CVS, and Mastercard have trusted us to deliver over 40,000 slides with an impressive 4.5 rating. Check out what our customers are saying:

“The partnership with 24Slides has allowed us to scale our marketing operations with quality and efficiency. The service we receive is extremely responsive, tailored to our needs, and allows us to smoothly manage workload fluctuation throughout projects. Exactly what we need!” - Stefanie Menusso (Head of Marketing Services, Sika)

By selecting 24Slides, you can elevate your presentations and present your business with a more professional image. Let our experts handle the design while you focus on delivering impactful content. Give us a try and experience the difference for yourself.

The benefits of working with 24Slides: