Solo Freelancer vs Agency: What's Better? | Kyle Prinsloo posted on the topic | LinkedIn (2024)

Kyle Prinsloo

Agency Owner, SaaS Founder & Content Creator

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Solo Freelancer vs Agency: What's Better?TL;DR: Try both.If you think an agency business model is better than a freelancing business model - you're wrong.A lot depends on the details of course, but 2 things to mention about agencies:- Bigger projects don't always mean bigger profits.- The more people you have, the more you need to manage those people.I know 7 figure agency owners with 10+ staff who work 60+ hour weeks and make a good living, but are stressed about the next big deal for cashflow with low-profit margins.Compare that with other 6-figure freelancers with 0 staff (maybe a few part-time contractors) who work 40 hour work weeks, make a good living, have 3+ months of cashflow savings, and have high profit margins.Society teaches us that a "bigger business is better" - I'd like to suggest this is overrated.Being lean is underrated...That said, if done correctly, an agency could be a great (and even better) business.So, what are the differences between solo freelancing & an agency?• Solo freelancers generally take on smaller projects.• Agencies have a team, so they can take on more projects.• Agencies can be sold, whereas a freelancing business is more difficult to sell.The approach you choose does not change the fact that you will be dealing with clients and the type of services you can offer.Should You Choose a Solo or an Agency Approach?Most freelancers will be better equipped to start off with a personal site and then transition to an agency site as they grow in confidence, team, and capability.Or, staying a lean, profitable freelancer might be the ideal solution.One size does not always fit all 🙂Start as a freelancer, see if you can grow into an agency, then decide from there.Hope this gives some insight into this topic.

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Kerapetsi Major

Head of Digital at Oxigen Communications

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Is not easy to transition from freelancing to agency. There are a lot of factors to consider, mostly human resources. Freelancing doesn't teach or train you to manage team and clients. My advice would be work for agencies and learn how to manage people and deal with conflicts. Lastly must not least, hiring and recruiting best people. Is very easy to hire someone here in South Africa and a whole new story when it comes to firing. Great tips by the way. Thanks for sharing Kyle

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  • Somya Joshi

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    Freelancer or Agency, which is better?As a freelancer I used to underestimate myself whenever a client would choose an agency over me but after putting a lot of thought and speaking to a dozen people I realised a couple of things. Both come with different perks and difficulties. This might sound rude but not all agencies are good too.One of my friend who worked at a marketing agency was managing 10-12 brands. The agency would -onboard more clients hence more income and hire less talent in order to earn more profit.Keeping this aside,even if you see it realistically, do you think that one person who's handling 10 brands would have the capacity to invest on your brand story. I don't think so! But that doesn't mean all agencies are bad, I just think there are pros and cons of working with both freelancers and agencies. It depends on what you are looking for. For ex: If you want a personalised brand voice and tone and want to be a little invested in the process then probably a freelancer works well for you but If you want someone to take care of couple of things all together without you having to be involved daily and just bring results at the end of the day then probably agency is a great option. And if you want to be involved in each and every step and do not want to give creative freedom and be part of the process then probably you need someone to be in house.All I mean is, different things work for different people. But for the longest time I thought agencies are a threat to freelancers. Now I don't think they are, they are neither better than us nor less, both agencies and freelancers could be good or bad. I have worked with clients who had terrible experiences with agencies as well as freelancers. In the end its about what the clients values more, what matters to them and if the service providers align with them or not. That's why now I don't underestimate myself, because I know what I bring to the table, the extra mile I go to help my clients and a client who really knows what they want and values my expertise will appreciate that.Whether you are a business owner or a freelancer, I hope it gave you some perspective. Let me know what are your thoughts on it. Would love to know in the comments below!Follow Somya Joshi to gain more insights on social media marketing and freelancing journey!

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