We Hired All Three
2020: Freelancer for our first internal tool.
2021: Agency for a client project.
2022: In-house developer for ongoing work.
Each had pros and cons. Here's what we learned.
Freelancer
Best For
- Simple projects
- Tight budgets
- One-off work
- Specific expertise needed
The Trade-offs
Pros:
- Cheaper (sometimes)
- Direct communication
- Flexible
Cons:
- Single point of failure
- Limited availability
- Quality variance
- No backup if sick/away
When to Choose
You need a logo. You need a landing page. You need one specific thing built.
Not: Your core product.
Agency
Best For
- Complex projects
- Multiple skills needed
- Ongoing relationship
- Accountability matters
The Trade-offs
Pros:
- Team of specialists
- Project management
- Backup coverage
- Process and quality
Cons:
- More expensive
- Communication overhead
- May use juniors on your project
- Less flexible
When to Choose
You need a real product built. Not just code. Product.
In-House
Best For
- Long-term products
- Frequent updates
- Deep product knowledge
- Competitive advantage
The Trade-offs
Pros:
- Full control
- Deep product knowledge
- Available anytime
- Aligned incentives
Cons:
- Expensive (salary + benefits)
- Hiring/firing overhead
- Management required
- Skill gaps
When to Choose
You have funding. You have ongoing work. You want a competitive moat.
The Decision Matrix
| Need | Best Choice |
|---|---|
| Simple landing page | Freelancer |
| MVP with payments | Agency |
| Logo design | Freelancer |
| Ongoing product work | In-house |
| Quick expertise | Freelancer |
| Complex system | Agency |
The Honest Take
For most early-stage founders: Agency.
Why?
- You don't have time to manage
- You need accountability
- You need multiple skills
- You need quality assurance
Freelancers work when you have technical co-founders to manage them.
In-house makes sense after product-market fit.
Don't optimize for cost. Optimize for what gets you to revenue.
