Are Business Owners Outsourcing Their Marketing?

I am seeing this trend.
And, it makes sense for many owners.

What's the cost of living in San Diego. The difficulty of finding people with the needed skills and of course how much do they need to earn to not have an hour commute in and out of the city .

And because of the change in rules in California regarding sub contractors .it just might be safer cheaper to get the work done outside of the state.

In house employees are very expensive, when you factor in the healthcare, insurance, salaries and fringe benefits. Outsourcing marketing and sales is a great idea, IF you can find an agency or person that knows what they are doing and can produce a good ROI. You definitely want to test and experiment with it.

Any smart business owner should still stay involved in the process though. That is probably the one thing (sales and marketing) that the owner should be at least somewhat involved in.

Yes, a very significant portion of them.

It's a much better value offer for a business owner to have a dedicated agency or consultant that brings them results than it is to have someone in-house doing something that he doesn't understand.

A lot of business owners I talk to are scared to hire in-house because they can't be sure that person is doing a good job.

This is a terrific opportunity.

As long digital marketing keeps changing fast, these people will always be looking for agencies and outside help.

I wouldn't say it's a "big change".
Businesses have been outsourcing for many years.
When I started offering SEO services back in 2009, it was old hat and already had a bad reputation.
People like Jay Abraham and Dan Kennedy made their name by bringing in results for clients back in the 1970s.
Probably if you go back in time to Ugh, selling his new fangled wheels out of a cave, he probably outsourced some or all of his marketing...
If anything, I'm seeing business owners pretty cynical about "agencies"... especially so called digital marketing agencies.

Once upon a time, there were these 2 peeps, Adam and Eve. They had to work harder than they thought was fair. So, they look around for ways to offload some of the work. Lo' and behold, they find an ox and outsource the brute force part of plowing to it.


They found a dog and outsourced the keep-the-wolf-from-my-lambs work to it.


Then they made themselves some kids, so they could outsource all the work to them in their old age.


Their kids did the same + the smart ones got the slow one to do all the work they did not like for a few potatoes and some fruit.


And it's been like that ever since... Then, someone invented a tax code, which people are continuously tinkering with. And they invented digital communications and such stuff. So business people have forever been adjusting to changes in the tax code and new inventions... Sometimes that means hire in-house people, sometimes it means outsource.


I have not seen a large rush to outsource... Though, around here, from a tax-point of view, it often makes a lot of sense. Sometimes, from a liability point of view (sub-contractor's insurance gets hit before the business owner's).


I have seen a bunch of business owners outsource, then, figuring they could to the outsourced work better, started to do it in-house... Then, some changed their mind (rules changed and they did not want to bother) while others said, I'll send my employee to take a class or two to keep up with the new...

I haven't noticed one way or the other...but...

It sure is an easy thing to sell.

You have the "It costs less if we do it" story...the "we have no learning curve" story...the " What if your employees quits?" story....the "It's our sole business...so of course we'll be better at it" story.

And you have case histories (testimonials) saying that you already know your stuff and get results.

And....let us not forget... we aren't going in with wishful thinking and unreasonable expectations, and business owners are. and...the best of us know what actually works to get new business...as opposed to "getting seen out there".

And.... you are comparing the amount you charge to the cost of a trained employee...or two. And that means you can charge enough to put up with the inevitable aggravations, without killing yourself.

SMB or SME, the so called small business are used to define businesses by the number of employees they have.

Most mom and pop and even those with 10, 20 or fewer employees are what most of us deal with. I know of very few momma and poppas who have or had an IN HOUSE marketing team. But that also is or has been the bread and butter for many of use who were THEIR outsourced marketing, by offering advertising or promotional services to them.

As you go up the ladder to the number of employees and reach that small business, of say 100 or fewer employees, and the bigger mid and large businesses who DO have (or had) in house marketing, you face stiff competition from those who do the outsourcing.

There is a time factor. Anyone can go out and in a single day find a client who is ready, willing and able to give them a thousand dollars in exchange for more business, and that same thousand bux drawn from a bigger business may take days or weeks, and involve several decision makers.

So, I have a problem with all blanket statements regarding BUSINESS. Statistics say the vast majority of businesses never had an in-house marketing dept to start with, so I guess it depends on what kinds of business you are calling on, right?

GordonJ

But its really some trend?
Doesn't all these businesses need such stuff like automated software or individuals while back ago?

I think all businesses want to automate and outsource some tasks. Of course, now in 2019-2020 there are much more options to outsource.

If they have money for it, I guess they do it, why not? It makes everything easier for them

Hello, My Friend!
I am from Trumbull and I use Social Media Marketing for business promotion & also use automation tools to automate, handle & manage social media activities.
For selecting the best automation tools, I visit the best reviews website to check the users' reviews & opinion about the particular tool.

The trend of outsourcing marketing is surely increasing. I think it is because that way it's easier to focus on the core business of the organization and still get amazing results marketing wise. Also, outsourcing is always cost and time effective as in-house marketing teams can be very expensive.

I have pivoted slightly since I read wrote this post. Got several new clients this summer. I'm coaching and consulting business owners marketing departments. The in-house people don;t have my skill level and not delivering results.