You need software built. You have three options: hire a freelancer, hire an agency, or build an in-house team. Everyone has an opinion. Here are the actual numbers.
Freelancer ($20-$100/hour)
Visible cost: $3,000-$15,000 for a typical project. Hidden costs: Project management falls on you. Communication overhead. No code reviews (nobody checking their work). Risk of disappearance mid-project. No ongoing support after delivery. If the freelancer gets sick, your project stops.
Best for: Small, well-defined tasks. Bug fixes. Landing pages. One-off scripts. Not for: Anything you need maintained long-term or anything critical to your business.
Agency ($50-$200/hour)
Visible cost: $5,000-$100,000+ depending on scope. Hidden costs: Some agencies pad timelines. Account manager overhead (you are paying for their project management layer). Potential for junior developers doing the work while seniors do the sales pitch.
Best for: Complex projects requiring multiple skill sets. Ongoing development partnerships. Projects where you need accountability and a team, not an individual. Not for: Small tasks (overkill) or companies that want to own the development process internally.
In-House Team ($80,000-$150,000/year per developer)
Visible cost: Salary. Hidden costs: Recruiting ($10,000-$30,000 per hire). Benefits (20-30% on top of salary). Management overhead. Office/equipment. Training. The 3-6 months it takes for a new hire to become productive. The risk that they leave after a year.
A single senior developer costs $120,000-$180,000/year fully loaded in the US. You probably need at least 2-3 for a real product. That is $360,000-$540,000/year before you ship a single feature.
The Math That Matters
For most companies doing $1M-$20M in revenue, the agency model wins on total cost and speed. You get a team of specialists without the recruiting, management, and retention overhead. When the project is done, you stop paying. When you need more work, you start again.
The in-house model wins when you have a core product that requires continuous, full-time development and you can attract and retain top talent. Usually that means $20M+ in revenue or significant venture funding.
The freelancer model wins when you have small, discrete tasks and strong technical leadership in-house to manage quality.
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