Outsourcing your marketing will almost always cost less than a full-time in-house hire once you factor in salary, overhead costs, recruitment, and the time it takes to get someone onboarded and productive. But the real question shouldn't be just about cost, it needs to be about value. The right comparison isn't outsourced vs. employed. It's the quality of output you get per dollar invested.
Here's a clear-eyed breakdown to help you work it out for your business.
The True Cost of an In-House Marketing Hire
Most business owners compare an agency retainer against a salary. That's could be the wrong comparison. The full cost of an in-house hire includes a lot more than what hits the payroll.
Salary
A marketing manager in New Zealand earns between $70,000 and $130,000 per year, depending on seniority and location. A senior specialist paid media, SEO, HubSpot commands the higher end or more.
Overhead costs - add roughly 20-25% on top of salary
- KiwiSaver contributions
- ACC levies
- Annual leave (4 weeks minimum)
- Sick leave
- Statutory holidays
- Hardware
- Training/Professional Development
Recruitment costs
Expect to spend $5,000-$15,000 on recruitment fees, job ads, and interviewing time every time you hire. And if it doesn't work out, you start the cycle over again.
Equipment and software
Laptop, software licences, design tools, scheduling platforms, analytics subscriptions can see you spending $3,000-$8,000 per year.
Training and development
Good marketers will always want professional development as the industry is moving so rapidly. Budget at least $1,500-$3,000 per year to keep their skills current.
Management overhead
Someone in your business has to manage this person, review their work, and help them when they're stuck. That time has a cost too.
When you add it all up, an $85,000 salary hire typically costs a business $105,000-$120,000 per year all-in before a single piece of marketing has been produced.
The True Cost of Outsourcing
The cost of outsourcing varies significantly depending on who you work with and what you need. Solo freelancers can be cheaper but you still need to invest the time to find them, manage multiple freelancers and administer their requirements. Large agencies can bethe opposite, with a price tag that reflects the high overheads they cover. Virtual marketing agencies sit in the middle and tend to offer the best value for small to medium businesses.
At Virtual Marketers, retainer pricing starts from $2,400/month + GST (around $28,800/year) for 2 dedicated days per month, with access to a full team of specialists behind your dedicated Marketing Manager.
- Starter - 2 days/month - ~$28,800/year (ex GST)
- Growth - 4-6 days/month - from ~$57,600/year (ex GST)
- Scale - 8 days/month - ~$115,200/year (ex GST)
That's the full cost. No overhead costs, no recruitment, no equipment, no training budget. And if you need to scale up or down, you give one month's notice.
The Honest Comparison
Here's how the numbers typically stack up for a small to medium NZ business. In-house (senior hire): $105,000-$130,000/year, one generalist, 2-4 months to recruit, low flexibility, plus overhead costs. Virtual agency (Growth tier): from $57,600/year, access to a full specialist team, 2-4 weeks to start, high flexibility, no overhead costs.
The break-even point is usually clear, unless you need a full-time marketer managing a large team or complex operation, outsourcing costs less and gives you more breadth.
When In-House Makes More Sense
To be fair, there are situations where hiring in-house is the right call.
You have very high-volume, day-to-day execution needs. If you're producing 20+ pieces of content a week, running dozens of campaigns simultaneously, and need someone embedded in product and sales conversations every day, an in-house hire starts to make more sense.
You're at a stage where marketing is a core business function. Post-Series A startups, or businesses where marketing is genuinely the growth engine, often need a dedicated head of marketing internally with external support for specialist execution.
You want someone deeply embedded in company culture. There's value in having someone present in the business day-to-day. Virtual teams work hard to replicate this, but it's not identical.
If none of these apply to your business right now, outsourcing is almost certainly the better financial decision.
Beyond the Numbers: What You Actually Get
Cost is one thing. Output is another. The question to ask isn't just "is outsourcing cheaper?" but "will I get better marketing results for my money?"
A virtual marketing agency gives you a senior Marketing Manager who owns the strategy and the relationship, access to specialists across paid media, SEO, design, content, HubSpot, and development, no time lost to recruitment or performance management, and continuity if your main contact is ill or on leave.
A single in-house hire, however talented, has a ceiling. They can't be a strategist, a paid media specialist, a designer, and an SEO expert simultaneously. Most small businesses don't realise they're asking one person to do five jobs until the results disappoint.
Frequently Asked Questions
How do I calculate the ROI of outsourcing my marketing?
Start by tracking the inputs (what you're spending) against the results (leads generated, website traffic, revenue influenced). A good agency will help you set up this measurement framework from the start. If they don't, ask.
What's the minimum budget for outsourcing marketing in NZ?
For meaningful, senior-level support, expect to spend at least $2,000-$3,000/month. Below that, you're typically getting junior execution with little strategic thinking behind it.
Can I outsource some marketing and keep some in-house?
Yes - and it's often the smartest approach. Many businesses keep a junior coordinator or social media manager in-house for day-to-day tasks, and outsource strategy, paid media, and specialist projects. VM works well alongside existing in-house teams.
How long does it take to see results from outsourced marketing?
Paid media can show results within weeks. SEO and content compound over 3-6 months. Brand and strategy work takes longer to show in numbers, but tends to improve all other channel performance over time. A good agency will set realistic expectations upfront.
What should I look for in a marketing agency contract?
Flexible notice periods (1 month is reasonable), a clear scope of work, transparent regular reporting, and no long lock-in commitments before you've seen what they can do. VM operates on monthly terms with one month's notice to cancel, dial up or dial down.
Ready to Run the Numbers for Your Business?
If you'd like to talk through what outsourcing your marketing could look like, and whether it makes financial sense for where you are right now, Virtual Marketers is happy to have that conversation.
.png)
.png)
