Should You Outsource Your Marketing? A Cost Analysis

by Jennifer Beever

Outsource marketing?If you’re considering hiring marketing staff, one of your options is to outsource this key function. To decide if outsourcing is an option for you, do a simple cost analysis.

The cost of employing full-time staff over outsourcing is increasing, because of mandatory health insurance, workers comp insurance and other increasing costs. Some business owners are making the decision to hire employees for core competencies and outsource functions such as accounting and finance, HR, legal counsel, and marketing.

What are the costs of hiring versus outsourcing?

Below is a cost scenario for employing marketing staff. If we (conservatively) estimate benefits at 35% of salary and a 30% bonus, the cost could be:



Benefits (35%)

Bonus (20%)

Annual Total

















A cost scenario for working with an outsource marketing firm or CMO for Hire can be as follows, depending on the amount of work and time your outsource resource has to spend:

Senior-Level Pro.

Monthly Fee


Annual Total

Hourly, Retainer, or % of Project

$2,000 – $8,000


$24,000 – $96,000

What are the benefits of outsourcing marketing?

  • Eliminate your overhead cost of employing marketing personnel
  • You don’t have to manage marketing staff
  • Your company gets a senior-level, outside, strategic viewpoint

Outsourced marketing isn’t for everyone. There are considerations other than cost when it comes to deciding if it’s right for your business. Read my previous post, Pros and Cons of Outsourcing Your Marketing, to decide if it’s right for you. Another post, When Is It Time to Hire a Part-Time CMO?, discusses some of the situations or trigger points that might lead to outsourcing marketing staff.

Blog author Jennifer Beever coined the title, “CMO for Hire” in 2004, because she enjoyed consulting engagements when she became part of the client’s team. Contact Jennifer today using this form or by calling 818-347-4248 for more information on how her CMO for Hire and marketing consulting services can help your business.


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