Web Design Agency vs. Freelancer vs. In-House Team: What Is the Best Choice for Your Business?

There are three ways to build a website: outsource it to a freelancer, partner with an agency, or build an in-house team. One is economical, the other is expert-led, and the last one gives you total control; it all depends on what’s best for your business. 

Today, we break down the costs and trade-offs of web design agency vs. freelancer vs. in-house team, so you can choose the right approach based on your budget, timeline, and goals.

TL;DR: The Quick Comparison

What This Decision Actually Depends On

Before deciding who should design and build your website, consider the following:

• Budget
  Are you working with a tight budget, or are you ready to invest more for long-term quality and support?
• Project size and complexity
  Is this a small brochure-style site, or something bigger, like an e-commerce store, a custom app, or a platform with lots of moving parts?
• Timeline
  Do you need the site done fast, or do you have time to work through revisions, testing, and extra features?
• Level of control
  Do you want to be involved in every step, or would you rather hand things off and focus on other parts of your business?
• Future maintenance
  Who’s going to update the site after it launches? Do you need someone on standby for changes, or is it a one-and-done type of project?
• Internal skills and team
  Do you or your team have any web experience already? If so, maybe you just need extra hands. If not, you may need full support from start to finish.
• Long-term plans
  Are you planning to launch new pages, new products, or keep things small and steady?

The best choice depends on how you answer these questions. If you need something small and quick with a limited budget, a freelancer might be enough. If you want an expert team to handle everything and deliver high-quality results, an agency could be the way to go. And if you’re building something long-term that needs regular updates and tight control, having your own in-house team might make more sense.

1. Web Design Agency

A web design agency usually has a full team of designers, developers, project managers, and sometimes even marketers and writers. You’re hiring a whole crew that works together on your site.

Agencies often have a set process. You’ll talk to a project manager, share your goals and ideas, and then their team handles the rest: design, development, testing, and launch. Some agencies also offer extra services like branding, SEO, or ongoing support.

This setup works well if you want a polished, professional site and don’t want to manage every little detail yourself.

Web Design Agency Pros & Cons

Pros:

• Full-service team: You get designers, developers, project managers, and more—all working together. You don’t need to coordinate with different people.
• Professional quality: Agencies usually have strong processes and experience across many industries. The final product tends to look and function really well.
• Reliable timelines: Agencies are used to working with deadlines and can often deliver a large project on schedule.
• Ongoing support: Many offer long-term help, from maintenance to marketing.
• Scalable: Need a bigger team mid-project? Agencies can usually handle that without slowing down.

Cons:

• Higher cost: Agencies charge more than freelancers or in-house employees. You’re paying for the full team and their overhead.
• Less direct contact: You often talk to a project manager instead of the actual designer or developer. This can sometimes slow down small changes or feedback.
• Fixed processes: Agencies tend to stick to their way of doing things. If you want full creative control or frequent changes, you might feel limited.
• Not always a long-term fit: If you constantly need small updates, paying agency rates over time can add up quickly.

How Much Does It Cost To Hire a Web Design Agency?

By hiring an agency, you are buying a guaranteed result and a full team, rather than just one person’s time. Agencies usually work within one of these three frameworks:

Most agencies use three pricing models:

• Fixed project price: $10,000–$250,000+
  You pay the total cost for the entire website based on the agreed scope. This is the most common model for full website builds.
• Hourly rates: $150–$250
  You pay for the actual time spent on design, development, or updates. This model is typically used for smaller changes or undefined projects.
• Monthly retainer: $3,000 – $10,000+ per month
  You pay a recurring monthly fee for ongoing updates, maintenance, and improvements after launch.

The total cost depends mainly on the size and complexity of the website, the number of features, and whether you need ongoing support after launch.

When To Hire an Agency?

Hiring a web design agency makes the most sense when:

• You have a high-stakes project: The website is your primary source of revenue, and you need the best people to ensure its success.
• You need a “dream team”: The project requires relevant web design services (SEO, content, development, etc.), for which you need experts. 
• You have a tight deadline: A team can work on tasks simultaneously and hit the ground running immediately.
• Your project is complex: The website you are building needs custom features, like a member portal or an experiential e-commerce store.
• You have the budget for quality: You are willing to pay a premium for a “done-for-you” experience and peace of mind.

2. Freelancer

A freelancer is a self-employed web designer or developer who works solo. They usually take on clients one at a time or juggle a few small projects at once. Some focus on design, others on development, and a few do both. Most freelancers work remotely and set their own hours.

When you hire a freelancer, you’re dealing directly with the person doing the work. You explain what you want, agree on the price, and they build the site. It’s usually a more casual setup with less (or no) paperwork and fewer layers of communication.

Freelancers are a popular choice for smaller projects or businesses that need something simple without spending a ton.

Freelance Designer Pros & Cons

Pros:

• Lower cost: Freelancers usually charge less than agencies or full-time employees. This makes them a good option for startups or small businesses on a tight budget.
• Direct communication: You talk straight to the person doing the work. This can make it easier to share feedback, ask questions, and make changes quickly.
• Flexible schedules: Many freelancers work odd hours or weekends. If you need fast changes or off-hours help, this can be a big plus.
• Specialized skills: Some freelancers focus on specific platforms or styles (like Shopify, WordPress, minimalist design, etc.), so you can find someone who fits your exact needs.

Cons:

• Limited capacity: Freelancers work alone. If they get sick, go on vacation, or get busy with another project, your timeline could slip.
• Mixed skill levels: Some freelancers are great, others are hit-or-miss. It takes time to vet them, and there’s more risk if you choose wrong.
• No built-in team: If your project needs more than one person to do the job, you’ll need to hire both separately and manage the whole operation yourself.
• Less long-term support: Many freelancers move on after the project is done. If something breaks a few months later, they might not be available to fix it.

How Much Does It Cost To Hire a Freelance Designer?

Freelancers typically charge between $25 and $200 per hour. They use three pricing models:

1. Hourly Rates

This is the most common model for small fixes, updates, or projects where the final “finish line” isn’t 100% clear.

• Junior or entry-level: $25 – $50 per hour
• Mid-level: $50 – $100 per hour
• Senior or expert specialist: $100 – $200+ per hour

2. Flat Project Fees

Most business owners prefer this because it’s predictable. The price stays the same unless you change the “scope” (add more work).

• Starter site (1–3 pages): $500 – $1,500
• Small business site (5–10 pages): $1,500 – $5,000
• Advanced or e-commerce site: $5,000 – $15,000+

3. Monthly Retainers

If you need a designer on standby for constant updates or marketing graphics, you pay a flat monthly fee for a set “bucket” of hours.

• Basic maintenance: $500 – $1,200 / month
• Active support (typically design + SEO): $1,500 – $3,000+ / month

Even with the averages above, three things often trigger an extra fee:

• If you need a site in days rather than weeks, expect a 25% to 50% markup.
• Anything that involves payment gateways (Shopify, WooCommerce) usually adds at least $2,000 to the base price due to testing and security needs.
• Most freelancers include 2 rounds of changes. If you want unlimited tweaks, they will likely switch to an hourly rate to protect their time.

When To Hire A Freelance Designer?

Opt for a freelancer when:

• You have a limited budget: You need professional work, but can’t justify the high overhead costs of a full agency.
• The project scope is small: You only need a simple site, a few landing pages, or a specific “refresh” of your current design.
• You want a direct relationship: You prefer talking straight to the person doing the work rather than going through a project manager.
• You need high flexibility: You have a one-off task and don’t want to sign a long-term contract or commitment.
• You’ve found a specific style: You’ve seen a designer’s portfolio and want that exact look for your brand.
• You’re in no rush: You have a flexible timeline and don’t mind if the project moves a bit slower since they are a team of one.

3. In-House Design Team

An in-house design team means hiring employees who work directly for your company. These can be full-time web designers, developers, or even a small team that handles everything from design to updates. They work in your office or remotely, but they’re part of your payroll and day-to-day operations.

An in-house setup gives you full control. The team gets to know your brand inside and out, and they’re always available when you need changes or new features. You don’t have to wait days or weeks to schedule work; they’re already on board.

In-house teams work best for businesses with ongoing design and development needs, or for companies that want tight creative control and faster update turnaround.

In-House Team Pros & Cons

Pros:

• Full control: You decide what gets built, when, and how. The team answers to you, not to multiple clients.
• Fast updates: Since they’re already part of your company, in-house designers can jump on fixes or changes right away.
• Deep brand knowledge: Over time, your team understands your business, your tone, your customers, and your goals, so designs feel consistent and aligned.
• Easy collaboration: Working side-by-side (or over chat if remote) means quicker feedback loops and smoother teamwork across departments.
• Long-term focus: In-house teams are ideal for companies with ongoing projects, constant content updates, or evolving platforms.

Cons:

• High cost: Hiring full-time employees means paying salaries, benefits, software, equipment, and training. Even when there’s no active project, you’re still paying them.
• Slower to set up: Finding the right people takes time. Interviews, onboarding, and training can take weeks or months.
• Limited skill range: One or two people might not cover everything (UX, dev, SEO, etc.). You may need to hire for multiple roles or bring in outside help for certain tasks.
• Risk of burnout: If your team is small and the workload is heavy, designers can burn out or fall behind without fresh support.

How Much Does It Cost To Hire an In-House Design Team?

Hiring an in-house team takes more time and requires a significant budget. While salaries are the most visible expense, they are just the tip of the iceberg. In the tech industry, the fully burdened cost (the actual price to the company) is typically 1.3x to 1.5x the base salary.

Besides salaries, you are paying:

• Benefits & insurance: Health, dental, and vision insurance, plus 401(k) matching and life insurance.
• Taxes: You must cover employer-side payroll taxes (FICA, FUTA, and SUTA).
• Equipment & software: A high-end designer needs a powerful machine (e.g., MacBook Pro) and a suite of licenses (Figma, Adobe Creative Cloud, Slack, Jira), which can cost $3,000 – $5,000 per year.
• Office space: Even for remote teams, you often pay for home-office stipends, coworking passes, or the literal square footage in an office.

Cost breakdown table (annual estimates):

The Bottom Line: If you hire a three-person team with a combined salary of $300,000, your actual business expenses will likely be closer to $400,000–$450,000 per year.

Expenses could start even before the first day of work.

• Recruiter fees: If you use an agency, they typically charge 15% – 25% of the hire’s first-year salary. For a $120k designer, that’s a $30,000 one-time fee.
• Internal time: Your leadership team will spend dozens of hours reviewing portfolios and interviewing. This “opportunity cost” means they aren’t focusing on building the business.

You don’t get 100% productivity on day one.

• The search: It takes an average of 40 – 60 days to find and hire a senior designer in today’s market.
• The learning curve: It usually takes 3 months for a new designer to fully understand your product, brand, and workflow. During this time, you are paying a full salary for partial output.

When To Hire an In-House Team?

Hire in-house when:

• The website is your product: Your business is a tech platform or app that requires constant updates and new features every single day.
• You need total brand immersion: You want a team that lives and breathes your company culture and understands your customers as well as you do.
• You want immediate pivots: Having your own team gives you the ability to walk over to a desk (or jump on a quick Slack call) and change priorities instantly without a new contract.
• Data security is a priority: You handle sensitive information and prefer to keep all development and “trade secrets” inside your own walls.
• You are scaling for the long haul: You want to build institutional knowledge so that when the site grows, the expertise stays within your company.

Web Design Agency vs. Freelancer vs. In-House Team: The Verdict

Choosing the wrong model can lead to wasted resources or a site that never launches. To make it simple, here is the “litmus test” for each:

• Choose a web design agency if your website is your primary revenue driver. You’re paying for the peace of mind that comes with a guaranteed, high-stakes result.
• Choose a freelancer only if you have a clear “one-and-done” project. They are the best way to get a professional, beautiful site without the high overhead of an agency or a full-time employee.
• Choose in-house if your website is your product. If you’re a tech company needing daily updates and total brand immersion, the long-term investment is worth the control.

If an agency feels like the right move, you can find web design agencies on Dribbble and contact them directly, or submit a Project Brief, and we will InstantMatch you with the most suitable agencies for your project.