Should You Outsource or Internally Hire a Marketing Team for Your Trade Business?

In today's digital age, marketing plays a crucial role in the growth and success of any business, including trade businesses like plumbing, electrical, HVAC, and roofing. Effective marketing can help you reach new customers, build your brand, and increase your revenue. However, many small trade businesses struggle to keep up with the ever-changing landscape of marketing.

The constant evolution of digital tools, social media platforms, and SEO strategies can be overwhelming, especially when you're also busy running the day-to-day operations of your business.

As a trade business owner, you wear many hats. You're not just the expert in your field; you might also be the accountant, HR manager, customer service representative, and more. With so many responsibilities, finding the time and resources to stay current with marketing trends can be challenging.

This is where the dilemma arises: should you hire an external team or an internal employee to take over your marketing efforts? The answer likely lies in a combination of both.

94% of companies outsource at least part of their marketing efforts

Outsourcing your marketing to an agency or hiring an in-house team are both viable options, but the right choice depends on your specific business needs, budget, and long-term goals. Each approach has its benefits and drawbacks, and understanding these can help you make an informed decision that aligns with your business objectives.

Let's explore the advantages and challenges of both outsourcing marketing services and building an in-house team, so you can determine which path is best suited for your trade business.

Understand Your Marketing needs

As a trade business owner, it's crucial to identify your specific marketing needs to create an effective strategy.

Here are some key marketing responsibilities to consider:

Content Marketing: Creating valuable and informative content to attract and engage your target audience. This includes blog posts, videos, infographics, and more.
Social Media Marketing: Leveraging social media platforms like Facebook, Instagram, and LinkedIn to promote your services, engage with customers, and build brand awareness.
Lead Generation: Implementing strategies to attract potential customers and convert them into leads. This can involve paid advertising, email marketing, and special offers.
Search Engine Optimization (SEO): Improving your website's visibility on search engines like Google to attract organic traffic. This includes optimizing your website's content, structure, and performance.
Email Marketing: Connect with potential and existing customers through personalized email communication. This is a key method of sharing updates, discounts, and more.
PPC: Paid search ads help get your company in front of the right people quickly. While pay-per-click may not be a long-term strategy it’s a surefire way to grow fast.

Types of digital marketing channels include content, social media, PPC, SEO, lead generation, and email marketing

To effectively manage these responsibilities, trade business owners must:

Evaluate Concrete Goals: Clearly define what you want to achieve with each type of digital marketing, whether it's increasing brand awareness, generating leads, or boosting sales.
Monitor Competitor Marketing: Keep an eye on what your competitors are doing. Understanding their strategies can provide valuable insights and help you stay competitive.
Research New Target Markets: Continuously explore new markets and customer segments to expand your reach and grow your business.
Stay Updated with Trends: The digital marketing landscape is constantly evolving. Stay informed about the latest trends and tools to ensure your marketing strategies remain effective.

By understanding these key areas and setting specific goals, you can better determine whether to outsource your marketing or build an in-house team that aligns with your business objectives.

The benefits of outsourcing your marketing team

Outsourcing your marketing efforts to an external team can provide numerous advantages for your trade business. This approach allows you to tap into specialized skills and resources that might be challenging to develop in-house, especially for small businesses with limited budgets.

The benefits of outsourcing your marketing efforts include skills and experience, cost effectiveness, and efficiency

Skills and Experience

One of the primary benefits of outsourcing is access to a broad range of expertise and skills.

Marketing agencies often have teams of professionals who specialize in different aspects of marketing. Choosing to outsource social media marketing, SEO, content creation, and lead generation can ensure your marketing strategy is handled by experts who are more likely to drive effective results.

For example, some agencies specialize in building websites and publishing content, while others focus on lead generation or offer comprehensive marketing services. By outsourcing, you can find a marketing agency that matches your specific needs and goals.

Cost-Effectiveness

Outsourcing your marketing can also be more cost-effective in the long term. Hiring a full-time in-house team requires salaries, benefits, and other overhead costs, which can quickly add up.

In contrast, marketing agencies typically offer flexible pricing models, allowing you to scale your marketing efforts up or down based on your budget and business needs. This flexibility is particularly beneficial for small businesses that may not have the resources to maintain a large marketing team year-round.

Efficiency

Another significant advantage of outsourcing is the efficiency it brings to your business operations. By entrusting your marketing activities to an external team, you free up valuable time and resources that can be better spent on core business functions, such as servicing customers and managing operations.

This delegation allows you to focus on what you do best while the experts handle your marketing needs.

Overall, outsourcing your marketing can provide your trade business with the skills, cost savings, and efficiency needed to thrive in a competitive market.

Potential Drawbacks of Outsourcing

While outsourcing your marketing can offer many benefits, it's essential to be aware of potential drawbacks. Understanding these can help you make a more informed decision and take steps to mitigate any issues:

Less Control: When outsourcing, you may have less direct control over marketing campaigns and strategies. This can be challenging if you have specific visions or want to make rapid changes.
Initial Investment: Although outsourcing can be cost-effective in the long term, the initial investment might seem high. This can include costs for onboarding the agency, setting up new tools, or creating new marketing materials.
Communication Challenges: Working with an external team can sometimes lead to communication gaps. Misunderstandings about your brand, goals, or target audience can occur if clear communication isn't established.

You’ll also want to keep in mind some clear red flags that indicate a lead generation or marketing company doesn’t have your best interests at heart. These can range from a lack of transparency and unrealistic promises to low-quality leads and hidden fees.

Common lead generation red flags include a lack of transparency, unrealistic promises, low lead quality, and long term contracts with hidden fees

Tips for avoiding drawbacks:

Vetting Service Providers: Thoroughly vet potential marketing agencies before committing. Look for providers with proven track records, client testimonials, and case studies demonstrating their expertise and success.
Communicate Expectations Upfront: Clearly outline your goals, expectations, and brand values with the agency from the start. Regular meetings and updates can help ensure everyone is on the same page and adjust strategies as needed.

By carefully selecting a reliable service provider and maintaining open communication, you can minimize these drawbacks and enjoy the benefits of outsourced digital marketing.

The benefits of hiring an internal marketing team

Hiring an internal marketing team or full-time employee comes with several advantages that can benefit your trade business. One of the most significant benefits is the control it offers over your marketing strategies. With an internal team, you can closely oversee and adjust campaigns as needed, ensuring that your marketing efforts align perfectly with your business goals and brand identity.

Another advantage is the in-depth business knowledge that internal employees bring. Since they are immersed in your company's daily operations, they have a deeper understanding of your products, services, and customer base. This knowledge allows for greater transparency and consistency in your marketing campaigns, as your internal team can accurately reflect your brand's voice and values.

Having an internal team fosters better cross-departmental communication. Marketing efforts can be seamlessly integrated with other areas of your business, such as sales and customer service, to create a cohesive strategy that enhances overall performance.

Potential Drawbacks of Internal Hiring

Long-Term Costs

While there are many benefits to having an in-house marketing team, it's essential to consider the long-term costs involved. Hiring full-time employees means accounting for salaries, benefits, and training expenses. These costs can add up quickly, especially for small businesses with limited budgets.

Employee turnover costs businesses 1.5-2x that employee's salary.

Additionally, employee turnover can be unpredictable and costly. Recruiting, hiring, and training new employees requires significant time and resources, which can strain your business financially and operationally. A reliable recruitment platform can help streamline these processes, making it easier to find and onboard top talent without overextending your team's capacity.

Limited Skill Set, Perspective, and Bandwidth

Another potential drawback is the limited skill set that smaller in-house teams might possess. Unlike marketing agencies that offer specialized expertise in various areas, an internal team may lack diverse skills.

This limitation can impact the effectiveness of your marketing strategies, as certain aspects like SEO, content creation, or social media management might not be fully optimized.

Additionally, smaller teams often face challenges with bandwidth. With fewer people to share the workload, internal teams may struggle to keep up with all the necessary marketing tasks, especially during busy periods. This can lead to missed opportunities and slower progress toward achieving marketing goals.

Overall, while hiring an internal marketing team provides control and in-depth business knowledge, it requires careful consideration of costs and potential limitations in expertise and resources.

How to Choose the Right Team

Choosing the right team, whether internal or outsourced sales and marketing, is crucial for the success of your trade business. Here are some steps to help you evaluate potential marketing agencies and make an informed decision:

Check References and Past Performance: Start by asking potential agencies for references and case studies. This will give you insight into their past performance and success with similar businesses. Look for testimonials and client feedback that speak to their reliability, expertise, and ability to deliver results.
Understand the Range of Services Offered: Not all marketing agencies offer the same services. Some may specialize in specific areas like SEO, social media, or content creation, while others provide comprehensive marketing solutions. Ensure the agency's services align with your marketing plan and business goals. This alignment will ensure they can meet your specific needs and help you achieve your objectives.
Draw Up a Contract: Once you've identified a potential agency, it's essential to draw up a clear and detailed contract. This contract should outline the scope of work, deliverables, timelines, and payment terms. It should also include provisions for communication and regular updates, ensuring transparency and accountability throughout the partnership.
Shop Around and Read Online Reviews: Don't settle on the first agency you come across. Take the time to "shop around" and compare different options. Read online reviews and ratings to gauge the reputation of each agency. Reviews can provide valuable insights into their strengths and weaknesses, helping you make a more informed choice.

By carefully evaluating potential agencies and considering these factors, you can find a marketing partner that best fits your business needs and goals.

Conclusion

When deciding whether to outsource digital marketing services through a company like Service Direct or build an internal team, it's essential to evaluate your specific business needs, budget, and long-term goals. Outsourcing can provide you with specialized skills, cost savings, and efficiency, making it a great option for many small businesses. However, it also comes with potential drawbacks, such as less control and initial investment costs.

On the other hand, hiring an internal team offers more control over your marketing strategies and ensures that your marketing efforts align closely with your business's day-to-day operations. However, this option can be more costly in the long term and may come with limitations in expertise and resources.

Ultimately, the choice between outsourcing and building an internal team depends on your business's unique circumstances. By carefully assessing your needs and considering the benefits and drawbacks of each option, you can make the best decision to support your business's growth and success.

FAQs About Outsourcing Marketing

How Can I Determine Which Option is Best for My Business?

Evaluate your budget, long-term goals, immediate marketing needs, and the availability of potential marketing hires or companies. Consider the specific strengths and weaknesses of both options in the context of your business.

What Should I Look for in a Marketing Agency?

Look for agencies with a proven track record, positive client testimonials, and expertise in your industry. It's also important to assess their communication style and range of services.

How Do I Maintain Control Over My Marketing Strategy When Outsourcing?

Maintain regular communication with your outsourced team, set clear goals and expectations, and use performance metrics to monitor progress. Frequent updates and collaborative planning sessions can help ensure alignment with your business objectives.

How Do I Measure the Success of Outsourced Marketing Efforts?

Use key performance indicators (KPIs) such as lead generation, conversion rates, website traffic, ROI, and engagement metrics. Regularly review these metrics to assess the effectiveness of your outsourced marketing efforts.

What Are the Initial Steps to Take When Outsourcing Marketing for the First Time?

Start by identifying your marketing needs and goals, researching potential agencies, and requesting proposals. Conduct interviews, check references, and clearly define the scope of work before signing any agreements.

How Can I Ensure the Marketing Agency Understands My Business and Industry?

Provide comprehensive information about your business, including your target audience, essential products/services, and market challenges. Regularly communicate and provide feedback to help the agency tailor their strategies to your needs.

How Long Does It Take to See Results From Outsourced Marketing Efforts?

The timeline can vary depending on the strategies implemented. Some efforts, like PPC advertising, can show results quickly, while others, like SEO and content marketing, may take several months to yield significant results.