Business12 min read

In-House vs. Agency vs. Subscription: The Real Cost Comparison

Every growing business reaches a point where they need design, development, and marketing support. But which model actually delivers the best value? We break down the real numbers — including the hidden costs most companies overlook.

By Flex Tech Design|Updated February 2026

[Placeholder: Hero illustration — visual showing the 4 hiring models side by side]

If you run a business with 5 to 50 employees, you have almost certainly faced this dilemma: you need design, development, and marketing work done consistently — but how do you resource it?

The four most common options are hiring in-house staff, contracting a traditional agency, working with freelancers, or using a subscription-based team. Each has genuine strengths. But when you look at the total cost of ownership — not just the price on the invoice — the picture changes dramatically.

This guide uses real European salary data, agency rate benchmarks, and freelancer market rates to give you an honest comparison. No sales pitch — just the numbers.

Option 1: Hiring In-House

The most straightforward approach: hire full-time employees to handle your digital needs. For a small team covering design and development, you would typically need at minimum a designer and a developer — and ideally a project manager or marketing specialist too.

The Real Salary Numbers

Based on 2025-2026 European market data:

UI/UX Designer

€45,000 – €60,000

annual salary (Western EU)

Web Developer

€60,000 – €80,000

annual salary (Western EU)

Marketing Specialist

€38,000 – €55,000

annual salary (Western EU)

Project Manager

€42,000 – €65,000

annual salary (Western EU)

The Hidden Costs Most Companies Miss

Salary is only part of the story. The true employer cost adds 30-35% on top for:

Employer social contributions and taxes20-30% of salary
Recruitment costs per hire€4,000 – €10,000
Onboarding and training€3,000 – €5,000
Software and tools (Figma, Adobe, hosting, etc.)€500 – €2,000/month
Office space, equipment, and infrastructure€14,000 – €22,000/year
Holiday and sick pay (avg. 30 days/year)Paid but unproductive
Average time to hire40+ business days

Total all-in cost per specialist per year

€80,000 – €182,000

Source: Decode Agency 2025 European employment cost analysis

When In-House Makes Sense

You have 40+ hours/week of work for a single specialist role
The work requires deep institutional knowledge of your product
You can afford the 2-4 month hiring timeline
You want to build long-term proprietary expertise

Option 2: Traditional Agency

Agencies bring experience, a team of specialists, and established processes. But the cost structure can be prohibitive for SMBs — especially for ongoing work.

Typical Agency Pricing

Hourly rate (EU average)€80 – €150/hr
Landing page project€3,500 – €10,000
Full website (design + development)€15,000 – €80,000+
Mobile app€30,000 – €200,000+
Monthly retainer€5,000 – €15,000+
Typical contract length6 – 12 months

The Challenges

Long-term contracts with limited flexibility
Scope changes incur additional fees
Slow turnaround — 4-8 weeks is typical for projects
Formal communication through account managers adds delays
You may work with a different team member each time
Hidden costs can add 15-30% to quoted prices

When an Agency Makes Sense

You need a one-off, high-stakes project (major rebrand, enterprise platform)
You have the budget for €15,000+/month retainers
You need deep strategic consulting alongside execution

Option 3: Freelancers

Freelancers offer flexibility and can be cost-effective for individual tasks. But when you need multiple disciplines — design, development, marketing — the coordination overhead grows quickly.

Typical Freelancer Rates (Western Europe)

UX/UI Designer

€53 – €87/hr

Web Developer

€53 – €93/hr

Graphic Designer

€40 – €75/hr

Project Manager

€73 – €113/hr

The Real Challenge: Coordination

If you need design, development, and marketing, you are managing 3-5 separate people. Each needs their own brief, their own follow-ups, and their own quality checks. Research shows this coordination overhead adds 20-40% to the effective cost in time and management effort.

No single point of accountability — you become the project manager
Quality varies between freelancers and projects
Risk of ghosting or disappearing mid-project
No brand continuity across deliverables
You spend your time managing instead of running your business

When Freelancers Make Sense

You need a single discipline (e.g. just a logo, just a landing page)
The project is clearly scoped with a defined end date
You have internal PM capacity to coordinate the work

Option 4: Subscription Team (The Flex Way)

A subscription-based model gives you access to a dedicated, full-stack team — design, development, marketing, and video — for a fixed monthly fee. You send work, they deliver. No hiring, no coordination, no overhead.

What's Included

Full-stack team (Design + Dev + Marketing + Video)
Dedicated Project Manager
Portal + WhatsApp communication
Unlimited revisions
24-48 hour turnaround
Native source files
Scale up or down anytime
No long-term contracts

The Pricing

Design

€1,800

20 hrs/mo

Marketing assets, solo founders

Full-Stack

€4,200

50 hrs/mo

Web + app + design, growing teams

Enterprise

€8,000+

100+ hrs/mo

Dedicated engineering & strategy

When a Subscription Makes Sense

You need ongoing digital work across multiple disciplines
You want predictable monthly costs with no surprises
You cannot afford 2-4 months to recruit in-house specialists
You are frustrated by coordinating multiple freelancers or agencies
You want to focus on your business, not managing creative work

Side-by-Side Comparison

[Placeholder: Comparison infographic — 4-column visual table]

FactorIn-HouseAgencyFreelancersSubscription
Monthly Cost€6,700 – €15,000+€5,000 – €15,000+€3,000 – €10,000+€1,800 – €8,000
CommitmentPermanent hire6-12 month contractPer projectMonth-to-month
TurnaroundImmediate (once hired)4-8 weeks1-2 weeks24-48 hours
Onboarding2-4 months2-4 weeksDays24-48 hours
DisciplinesLimited by hiresFull-service (expensive)One per personFull-stack included
FlexibilityLow (hiring/firing)Low (contracts)High (per project)High (scale anytime)
Quality ControlYou manageAgency managesYou manage per personPM + QA included
Hidden CostsHigh (overhead, tools)Medium (scope creep)Medium (coordination)Low (all-inclusive)

The Bottom Line

There is no single "right" answer — the best model depends on your business stage, budget, and needs. But for most SMBs with 5-50 employees who need ongoing, multi-discipline digital work, a subscription model offers the best balance of cost, quality, speed, and flexibility.

You avoid the overhead and commitment of full-time hires, the rigid contracts and high rates of agencies, and the coordination headaches of managing multiple freelancers. Instead, you get one team, one point of contact, and one predictable monthly cost.

Related Resources

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