Every founder faces this decision:
"How do I get this technical work done?"
Your options: do it yourself, hire freelancers, work with an agency, or build an in-house team.
Each has trade-offs. Each has situations where it makes sense. I'm going to give you the honest comparison.
The Options at a Glance
| Factor | Freelancer | Agency | In-House |
|---|---|---|---|
| Cost | $$ | $$$ | $$$$ |
| Speed | Fast | Fast | Slow |
Control | Low | Medium | High |
Commitment | Low | Medium | High |
| Risk | High | Medium | Low |
Freelancers
What They Are
Independent contractors who work on a project or hourly basis.
When Freelancers Make Sense
- One-off projects with clear scope
- You need specific expertise for a short time
- You're bootstrapped and need to minimize commitment
- You have a strong technical founder who can manage them
When Freelancers Don't Make Sense
- Ongoing work that needs continuity
- Work that requires deep integration with your team
- You can't manage or oversee the work
- You need someone who owns the outcome
The Freelancer Reality
Pros:
- Flexible—you can start and stop
- Often cheaper than agencies
- Direct communication with the person doing the work
Cons:
- Quality varies wildly
- Availability can be inconsistent
- No guarantee they'll be available when you need them
- You're managing multiple people if you hire several
- No backup if they disappear
Typical Cost
$50-150/hour for experienced freelancers $30-50/hour for junior/entry-level $150-300/hour for specialized experts
Agencies
What They Are
Companies that provide development services, usually with a team of people.
When Agencies Make Sense
- You need a complete solution, not just code
- You don't have technical oversight capacity
- You want someone to own the outcome
- The project is complex and needs multiple skills
- You want to minimize management burden
When Agencies Don't Make Sense
- You have a tight budget
- You need ongoing work and iteration
- You want direct control over the work
- The project is simple and well-defined
The Agency Reality
Pros:
- Dedicated team with multiple skills
- Processes and project management included
- Usually more reliable than freelancers
- Someone to hold accountable
- Can scale resources as needed
Cons:
- More expensive
- You're not working directly with developers
- Communication can be filtered
- Less flexibility—harder to change direction
- Can feel like you're not in control
Typical Cost
$5,000-15,000 for a simple MVP $15,000-50,000 for a standard MVP $50,000-150,000+ for complex projects
In-House Team
What They Are
Full-time employees who work only on your company.
When In-House Makes Sense
- You have product-market fit and need to scale
- You have ongoing development needs
- You need deep institutional knowledge
- You can afford the commitment
- You want maximum control and alignment
When In-House Doesn't Make Sense
- You're still validating your idea
- You don't have product-market fit yet
- You can't afford the salary + equity + benefits
- You don't have enough work for them
The In-House Reality
Pros:
- Maximum control and alignment
- Deep knowledge of your product
- Available when you need them
- Invested in your success
- Can build culture and teamwork
Cons:
- Expensive (salary + equity + benefits)
- Hard to hire the right person
- Takes time to onboard and get productive
- Management burden
- Commitment even if things change
Typical Cost
Junior: $80-120K/year + equity Mid-level: $120-180K/year + equity Senior: $180-250K/year + equity (Plus 30% for benefits/overhead)
The Decision Framework
Choose Freelancers If:
- You have a well-defined, one-off project
- You can oversee and manage the work
- You need flexibility
- Budget is a constraint
- You can tolerate some risk
Choose an Agency If:
- You want a complete solution delivered
- You lack technical oversight capacity
- The project is complex
- You want to minimize management burden
- You're okay with less control
Choose In-House If:
- You have product-market fit
- You need ongoing development
- You can afford the commitment
- You want maximum control
- You have enough work for them
The Hybrid Approach
Most successful startups use a combination:
Phase 1: Validation (0-3 months)
Freelancers or Agency
Validate your idea quickly. Don't invest in in-house yet.
Example: Hire a freelancer to build your MVP in 4-6 weeks.
Phase 2: Early Growth (3-12 months)
Mix of Freelancers + First Hires
Once you've found product-market fit, start building a small team. Fill gaps with freelancers.
Example: Hire 1-2 full-time developers, use freelancers for specialized work.
Phase 3: Scale (12+ months)
In-House + Specialized Partners
Build your core team in-house. Use agencies/freelancers for overflow and specialized needs.
Example: Your team builds core product. You hire an agency for a mobile app. You use freelancers for design work.
Common Mistakes
Mistake #1: Hiring In-House Too Early
You don't know what you need yet. Hire in-house when you're ready to scale, not when you're still figuring it out.
Mistake #2: Using an Agency for Ongoing Work
Agencies are great for projects. For ongoing work, the cost and communication overhead add up.
Mistake #3: Managing Freelancers Without Technical Skills
If you can't evaluate their work, you're taking a big risk. Get technical help for oversight.
Mistake #4: Not Checking References
Freelancers and agencies can look great on paper. Check references. Talk to previous clients.
Mistake #5: No Trial Period
Always do a small paid project first. Don't commit to big work without seeing how they perform.
What Most Founders Do
Based on what I've seen:
Bootstrapped founders: Start with freelancers or self-build. Save money, accept risk.
Funded founders with technical co-founder: Build in-house from start. Control matters more than cost.
Funded founders without technical co-founder: Start with an agency to get moving, then transition to in-house or freelancers.
The Bottom Line
There's no perfect answer. The right choice depends on your:
- Stage: Validation vs. growth vs. scale
- Resources: Budget, time, technical capacity
- Risk tolerance: How much uncertainty can you handle?
- Control needs: How much do you need to be involved?
My advice: Start small. Learn what works. Adjust as you go.
You can always change your approach. It's harder to undo a bad hire or agency relationship than to adjust course early.
Need Help Deciding?
At Startupbricks, we've helped founders navigate this decision—finding the right approach for their situation. Whether you need:
- Help deciding what makes sense for you
- Recommendations for agencies or freelancers
- Technical oversight for your team
- A partner to help build
Let's talk. We help founders find the right path.