Lessons from a Robot Vacuum: Deciding When to Outsource Marketing

A few years ago, I bought a robot vacuum. It seemed a bit silly, and maybe a bit lazy (is it really so hard to push a vacuum across the rug?), but it turned out to be an excellent decision. Suddenly, the floors were clean all the time! There were no dog-hair-tumbleweeds drifting through the halls. And I was able to replace the time I used to spend on the chore “vacuum floors” with time spent on other tasks. That little vacuum runs at its scheduled time and automates one part of my house cleaning.

When running a small business, we also have to make decisions about what tasks to do ourselves, and what tasks can be outsourced to others. But it can be tricky to determine when it makes sense to keep something in-house, and when it’s more effective to outsource. It requires a careful assessment of the pros and cons, and the current and anticipated needs of your business. When it comes to marketing, small businesses have a few different options, each with benefits and challenges. Check out our list of pros and cons and what we see as the key dimensions and factors to consider in deciding which way to go.

Pros of Outsourced Marketing for Small Businesses

Specialized Expertise

Small businesses can tap into a diverse range of specialized skills, including branding, SEO, digital advertising, and more through outsourced agencies.

Cost-Effectiveness

The pay-as-you-go model of outsourcing is often more cost-effective for small businesses, allowing them to access specific services without the financial commitment of a full-time, in-house team.

Access to Cutting-Edge Tools

Outsourced agencies bring the advantage of using the latest marketing tools and technologies, ensuring that small businesses stay competitive in the rapidly evolving digital landscape.

Fresh Perspectives

External agencies provide valuable fresh, objective perspectives and insights. This outside viewpoint can inject creativity and innovative thinking into small businesses' marketing strategies.

Scalability

Small businesses benefit from the flexibility of outsourced marketing, allowing them to scale up or down based on changing business needs and market dynamics.

Lower Overhead

Outsourcing eliminates the need for maintaining in-house personnel, reducing overall overhead costs for small businesses.

Timely Delivery

Outsourced agencies are typically deadline-oriented, ensuring that small businesses receive marketing services on time, contributing to efficient campaign management.

Cohesive Brand Management

Depending on the scope of the agency's services, outsourced specialists can ensure consistent brand application, acting as vigilant brand custodians for small businesses.

Cons of Outsourced Marketing for Small Businesses

Loss of Control

Small businesses may experience a potential loss of control over processes and creative direction when relying on external agencies.

Communication Challenges

Communication with external agencies can sometimes be slower or less direct, posing challenges for small businesses that value real-time interactions.

Risk of Misalignment

There is a risk that outsourced agencies may misalign with the company's culture and values, potentially impacting the identity that small businesses wish to portray.

Confidentiality Concerns

Sharing sensitive information with external agencies introduces potential risks to data security, requiring careful consideration and proper safeguards.

Hidden Costs

Small businesses might encounter unexpected or hidden costs associated with outsourced services, necessitating clear communication on financial arrangements.

Potential Overcommitment

Agencies managing too many clients may lead to reduced attention to the unique needs and goals of small businesses.

Distance from Day-to-Day Operations

Outsourced agencies may lack insight into the daily workings of small businesses, potentially affecting the effectiveness and relevance of marketing campaigns.

How to Decide

So what dimensions are at play when deciding whether to keep your marketing in-house or outsource? Here are the ones we see, and the factors to consider for each:

Control and Flexibility

Consider your desired level of control and flexibility when determining your approach to marketing. If you prefer hands-on management of marketing plans, an in-house solution may be the ideal choice. Also weigh the need for adaptability – is your business environment one that demands frequent pivots and rapid adjustments to marketing efforts or are you able to plan ahead for most of your marketing?

Expertise and Innovation

What level of industry-specific knowledge is required to reach your target customers, and what level of marketing expertise do you need or want? Assess how easily knowledge about your business niche can be transferred to and absorbed by an external agency. Additionally, weigh the significance of fresh perspectives, experience and innovative approaches that an external marketing specialist can introduce. If your in-house marketing person is juggling various roles, staying updated on the latest developments may become challenging.

Cost Management

As you look at marketing costs, start with your budget constraints and available resources. It's essential to weigh the short-term cost advantages of having someone in-house, possibly at a lower hourly rate, against the potential long-term costs. These long-term costs include overhead (insurance, computer, software, office space), potential turnover, and the risk of losing your investment in training if your in-house marketing person views the role as a stepping stone to a full-time position elsewhere. Consider that when opting for an outsourced option, you'll be paying for tangible deliverables, and accountability for them should be incorporated into the financial arrangement, ensuring easier tracking of your direct marketing expenses.

Communication and Collaboration

How often will you need to work with your team on marketing plans? Consider how difficulties in communication might affect project timelines and overall efficiency. Also, take into account how easy it is to connect with an outside agency, and how organized they are, if you need to collaborate quickly. It's crucial to ensure that communication flows seamlessly, regardless of whether you're working with an in-house marketing person or an agency, to avoid delays and ensure effective coordination in your marketing efforts.

Risk Management

How sensitive is the data involved in your marketing efforts? Assess the potential risks associated with both in-house and outsourced approaches. If you decide to outsource, make sure your partner is trustworthy and has a solid reputation to mitigate any potential risks related to data security and overall reliability.

Scalability

As you think about your business's growth or changing market demands, if your business is relatively stable, having an in-house marketing person might suffice. However, if you experience more ups and downs, opting for an outsourced marketing solution provides the flexibility to expand or contract in line with your business cycles. This way, you can adjust your marketing efforts and spending to match the evolving needs of your business more effectively.

Brand Management and Alignment

Who will ensure you maintain a consistent brand image across all of your business communications? If you have an in-house marketing person who understands the importance of this consistency, you can maintain meticulous control over your brand. On the other hand, assess how well an external agency can absorb your company's culture and values. If they have a broad understanding of your messaging and marketing, or if they developed your brand strategy and identity with you, they can act as an extension of your brand, ensuring consistency on your behalf.

Conclusion

The decision between in-house and outsourced marketing for small businesses involves careful consideration of a number of factors. By weighing the pros and cons, as well as evaluating key decision-making dimensions, you can make an informed choice that aligns with your unique needs, goals and constraints.

Rinehart Marketing specializes in working with very small businesses who want a marketing expert they can trust to understand and represent their brand to help them get, keep, and grow their client base. We've worked extensively with small business owners, acting as their outsourced marketing director and team, freeing them to focus on serving their customers. Additionally, we've collaborated with in-house marketing staff, offering extra expertise and support to enhance their efforts. Reach out if you’d like to discuss how we might be able to help you!