Agency or Freelancer: What is the Right Option for You?

You have a brilliant, innovative idea for a new product. You have your whole business plan laid out. You are more than ready to launch your own startup and get this show on the road. But there is just one problem — you’re not a software developer and you don’t have the slightest idea about coding.

This is an issue many start-up owners face. Not everyone has the ability to master programming languages and learn how to code. Thankfully, there are professionals who do, and you’ll be better off hiring them to do the software development for you. But who should you trust to help carry out your vision? Choosing the right developers can be a make-or-break for your start-up, and both established agencies and independent freelancers can be a great choice for you as long as you understand the pros and cons of each option and figure out which option your project is better suited for.

What is the difference between an agency and a freelancer?

No-code agencies are generally well-established teams that consist of multiple professionals who work together on different projects. These professionals can come from different backgrounds, have different expertise, and are in charge of different aspects of the project; they could be software developers, digital marketers, quality assurance engineers, etc.

On the other hand, freelancers are self-employed and work independently as opposed to in a team. They usually work on a project-by-project basis and they are not committed to any employer on a long-term basis. They also do not necessarily work with one employer at a time as it is likely freelancers will take on multiple clients at once. Freelancers generally specialize in one particular skill or area of expertise such as front-end development or data analytics.

Skills and resources

Before you make your decision on whether to go with an agency or freelancer, it’s important to ask yourself: what kind of talent am I looking for? In other words, what are the specific skills that are required for your project and what kind of expertise or resources would your project benefit from?

As mentioned, working with an agency would mean you get to work with a whole team of professionals with each team member being able to offer different expertise and experience to the project. Thus, you do not need to worry about hiring a separate specialist to perform each specific task. Agencies also generally offer full-cycle software development services which means everything will be in one place from start to finish. Members of a team are also well-coordinated and used to working collaboratively with each other in a productive manner, which means there is no need for you to micromanage the team (and there is usually a project manager for that anyway!). If you are hoping to develop more advanced or sophisticated products, agencies might be the more appropriate choice for you!

However, freelancers have much to offer as well. Freelancers usually specialize in one specific area, so although they might not be a jack-of-all-trades, they can come in very handy if you need expertise on something specific. Therefore, if you are looking for some help in completing some specific tasks or one-time projects, such as adding some features to an already-built online marketplace, freelancers might be the better option. Just be sure to study their portfolios closely before you hire them so you know what they excel at!

Level of involvement and control

Another question you should ask yourself before picking between an agency and a freelancer is how much involvement and control do you as a client want to have? With agencies, it will require less involvement from you as you can leave it up to the project managers to micromanage their teams. This will save you a lot of time as you can leave most of the supervision to somebody else and focus on your main responsibilities.

However, not everybody wants to be at arm’s length. If you prefer to be more hands-on and be more involved in the whole process, you might work better with a freelancer. Although it will require some additional time, working with a freelancer one-on-one will give you more control over the software development process. In particular, if you have hired multiple freelancers for the same project, it would be your responsibility to coordinate and supervise them, but this also means that nothing will go over your head!

Budget constraints

One of the most important things that start-up owners are all too familiar with is budget. Working with agencies and working with freelancers come at very different costs. In general, agencies cost more than freelancers. They tend to charge higher rates that are also often non-negotiable. Understandably, agencies have to consider their overhead costs, and their teams consist of multiple professionals that each needs to be paid. This means that start-ups that have a lower budget might want to refrain from hiring agencies in case they break the bank.

Freelancers, on the other hand, charge considerably lower rates and are more flexible with the cost. Unlike agencies, freelancers work independently, so you only need to compensate one individual directly, bringing down the total cost. It is also easier to negotiate with freelancers about the pricing of their service. So, start-ups that have just started out and might be a bit strapped for cash can benefit from going down the freelancer route. Just remember that although hiring one freelancer is cheaper, that doesn’t mean you should start hiring multiple freelancers because that might add up to be quite expensive as well. Just make sure to do the math before you commit to anything.

Flexibility of schedule

Agencies and freelancers have very different working styles and schedules. Freelancers are self-employed, and one can assume that the main reason they decided to freelance was to enjoy more freedom and flexibility. Thus, they don’t necessarily have a fixed working schedule and they are in control of their own schedule based on their workload or simply based on whenever inspiration strikes them. On the other hand, agencies have established schedules and work processes. Most teams stick to the usual 9 to 5 and you will not have to worry about not being able to reach them within their working hours.

Flexibility can be both a good thing and a bad thing. Freelancers have a more flexible schedule than agencies. This can mean that they might have a more spontaneous working style and you might have to get used to unpredictable workflows. However, flexibility can also be beneficial in situations where you need an urgent task performed outside the usual 9 to 5. Every freelancer is different, and it is up to you to negotiate the extent of their availability. Ultimately, pick what is most compatible with your own working style!

Deadlines and risks

Lastly, you should consider the risks associated with working with agencies and freelancers. As mentioned, freelancers are a one-man show, and there is always a possibility that they may not meet your preferred deadlines due to special circumstances such as illnesses, personal commitments, or family emergencies. Essentially, working with a freelancer means you have to put all your eggs in a single basket, and in the event of special, unavoidable circumstances, you will have to pass your project from one freelancer to another, which would be time-consuming and expensive.

Agencies, on the other hand, are more reliable since they have enough manpower to substitute their workforce in the event of an emergency. It would be easy for agencies to re-allocate your project to another team member or replace a team member given their scale and resources. This means you won’t have to worry about your project being put on pause due to circumstances out of your control.

What’s the verdict?

So, who is better? An agency or a freelancer? The short answer is: there is no answer. Both agencies and freelancers can be fantastic at their job, and it simply depends on what you’re looking for. Are you looking for a particular set of skills? Are you working on a simple one-time project or a sophisticated long-term project? How much creative control do you want? How much are you willing to spend? These are all questions that need to be answered before you can make your decision. Just remember to always do your homework — there is no shortcut to success!