The Cost Of Doing Nothing
As a business owner, you are faced with decisions every day. Each decision likely has consequences on your business. The right decisions will lead to increased sales, greater productivity, improved morale and happier customers or clients. The wrong decision could cost your business money, hurt your brand or result in losing customers, employees or position in the marketplace.
In other words, everything you do and DO NOT do has an impact on your business – and has a cost. That’s why successful business owners must carefully evaluate all new ideas and scrutinize every dollar spent on the business and only invest in programs and ideas that will have a positive ROI on their business.
But what happens when this process takes too long or never ends? What is the cost of doing nothing?
THE COST OF DOING NOTHING
When considering any major investment in your business, it is important to calculate your ROI. But many times, the cost of doing nothing (CODN) is not calculated. In other words, what will inaction or delay in taking necessary action cost your business in time, revenue, growth or another factor that is important in your business?
The cost of doing nothing can be a tangible and direct cost, like lost revenue by not closing more leads, failing to earn a repeat sale by an existing customer or by not reversing a downward sales trend. But there can also be indirect costs of inaction, like the loss of morale because you keep seeing your competitors ads in relevant search results or loss of productivity because your employees are taking on more tasks outside of their core job scope. The cost of doing nothing can easily exceed the cost of implementing a new program or hiring a new employee, especially if doing nothing leads to other negative and unintended results.
HIRING A MARKETING EMPLOYEE VS OUTSOURCING
Marketing is about reaching the right person at the right time and helping them solve a problem they have. It is key in driving leads to your business and to the success of your business.
When businesses think about expanding their team, they have to determine if they should hire someone full time or outsource a consultant or agency to handle their marketing for them. Many businesses choose to hire within for various reasons but for many, it comes down to cost. They believe it is more cost-effective to hire an employee than hiring an expensive agency to do their marketing. They also believe that this individual will help them achieve their goals and the increase in sales will offset the investment of the new hire much faster than hiring experts from an agency.
Let’s Do Some Math:
Let’s say you bring in a mid-level marketing professional to handle some of your digital marketing. The cost of hiring ONE marketing professional with a few years of experience (without benefits) might be about $25/hour or $52,000 / year.
This does NOT include the:
- Cost of benefits (generally add another 30%) ~ $15,600
- Total salary for your new hire is now $67,600 (~$5,600/month)
- Time it takes to get the person the acclimated to your business, fellow employees and culture and to start producing results
- Time person will be spending on other projects and activities NOT directly related to achieving your goals
- Sick days, personal time off and non-productive time not spent working on your goals
- Risk that they won’t perform at the level you need, has the expertise you need or will stay on the job
DON’T FORGET TO ADD IN THE OTHER COSTS
Just because you hire a full-time employee to work on your marketing, doesn’t mean your investment is over. It is likely that you will have additional costs in order to implement your marketing. Unless your employee actually creates your content, manages your paid search campaigns, updates your website, posts on and manages your social media platforms, develops a strategy, provides reporting, analyzes the data, etc, you will still have to invest in agencies, partners, software, tools and programs in order to implement your marketing ideas.
All of these costs need to be factored in when calculating your ROI on your new hire.
BENEFITS OF OUTSOURCING YOUR DIGITAL MARKETING
Being successful at digital marketing requires orchestration of various digital marketing activities. Unless you hired a super employee to handle all the various activities mentioned above, you will likely need to bring on multiple people to work on the various elements to drive your business using digital marketing.
In fact, the average digital marketing team includes 6 professionals:
- Digital Marketing Manager / Strategist
- Paid Search Manager
- Content Writer
- Web Team (Designer / Web Support / IT)
- Social Media Community Manager
- SEO Strategist / Optimization Manager
If you were to hire these 6 employees with mid-level experience, you could expect to invest approximately $400,000 per year, or $33,000 a month, not including the cost of employee benefits. (According to a 2018 study from the US Bureau of Labor & Statistics, benefits add nearly 32% more to the employee’s salary. )
|Title / Position
||Avg Median Salary
||Avg Hourly Cost
||Avg Monthly Cost
|Digital Marketing Manager
Business Consultant / Strategist
Social Media Manager
Paid Search Manager
$405,000 / year
$202.50 / hour
$33,749 / month
Again, keep in mind that this investment is just for the people. To actually implement the marketing strategy and activities, you’ll likely need to invest in software, subscriptions, tools and possibly training on those tools to name a few added expenses.
WHY OUTSOURCING MAKES SENSE
It is for this reason that outsourcing digital marketing makes more sense. In fact, it is becoming the norm for businesses to invest in experts outside their organization for their digital marketing rather than trying to build an expert team inside the organization.
Here are some reasons why outsourcing your marketing makes sense:
- You are hiring a team of experienced professionals at a FRACTION of hiring a single, mid-level marketer doing one job
- Your team is always focused on achieving YOUR goals
- Your investment goes to the work, not for benefits, down time or on projects unrelated to your goals
- You do not have to invest your time to lead your marketing team
- There is minimal ramp-up time. Once they understand your goals, they get to work
- They have access to and know how to use the tools required to implement
- You do not have to ‘start over’ if your employee leaves the team
- Your digital marketing team can easily scale up and down as the work / focus changes (in other words, you do not pay for idle time or under-utilization)
BIGGEST BENEFITS OF HIRING AN OUTSOURCED TEAM
Perhaps the two biggest benefits of hiring an outsourced marketing team are:
- 100% of your financial investment is working towards delivering on your goals and objectives that will make your business money
- You and your team get to focus on other areas of your business while your outsourced team manages the work, manages the people and manages the budget.
WHY HIRE A CONSULTANT (VS AN AGENCY)
If you are leaning towards hiring an external resource to help your business with your digital marketing, here is one more thing to consider:
Do you hire an agency or a consultant?
While similar, the biggest difference in hiring a consultant versus an agency is that when you hire a consultant, like eyeBrand, you are hiring someone to care about your business as much as you do. We truly partner with you to help you achieve your goals by creating the path to your success.
Our job is to help you achieve your goals.
To hit your goals, we develop the very best solutions for your business, budget and timeline and then bring together the right people, agencies and resources to build the right team. We only work with experienced professionals who are trusted eyeBrand partners – many of which have been with us since we opened our doors. We then take the reins to direct the work, manage the team and keep the train on the track.
When you hire an agency, you work with who they assign to your team. While agencies have great people on their team to create the work, they also regularly assign less experienced people to keep their pricing competitive and their overhead down. While agencies may be a great solutions for larger businesses with large budgets, they are not for everyone. With agencies, even though you will likely have an account representative, it is generally up to you, the client, to direct the agency on what you want done. They are then responsible for creating what you ask for.
This puts the responsibility of coming up with the right solutions and making sure they are executed properly back on your team. Their responsibility is to provide you with great deliverables not necessarily great results.
RELATED ARTICLE: 5 Reasons Why Hiring a Digital Marketing Consultant Can Save Your Company Money
Hiring someone to help you with your digital marketing strategy and execution is an investment and commitment. Whether you hire someone internally or hire an agency or digital marketing consultant, it is important that you take the time necessary to find the right fit for your business, your management style and for the goals you need to achieve.
Just don’t forget that the cost of doing nothing can be expensive.
For a consultation with an eyeBrand, click below. We’ll be happy to talk with you about your business goals over coffee.
The chat and the coffee is on us.