How to Choose Between Freelancers, Agencies, and In-House Developers

The Hiring Dilemma

You’ve scoped your idea and now you need someone to build it.

Do you hire a freelancer? An agency? A full-time developer? Each option sounds right — and wrong — at the same time.

If you’ve read enough blog posts, you’ve probably noticed: everyone pushes one “best” path. But in reality, it’s about trade-offs and timing.

The Three Options

Freelancers

✅ Lower cost, flexible, good for small or contained projects
❌ Risk of reliability, limited bandwidth, often need multiple freelancers to cover all skills

Agencies

✅ Broad skill set, project management, reliable process
❌ Higher cost, can feel impersonal, scope creep danger

In-House Developers

✅ Deep alignment with your vision, always available, builds institutional knowledge (someone who knows your codebase inside and out)
❌ High fixed costs (salary, benefits), recruiting headaches, may not be needed early on

How Founders Should Decide

Think of it like a decision tree:

• Budget

  • Small → freelancer or small agency
    
  • Larger → agency or in-house
    

• Timeline

  • Fast MVP → freelancer or agency
    
  • Long-term build → in-house (once validated)
    

• Project Complexity

  • Straightforward → freelancer
    
  • Multi-feature or scaling needs → agency
    
  • Ongoing product company → in-house
    

• Control / Relationship

  • Want close collaboration every day? → in-house
    
  • Okay with external partners? → freelancer or agency
    

Honest Pitfalls to Watch Out For

• Freelancers sometimes disappear mid-project if life happens or a bigger gig comes along.
  
• Agencies can upsell bells and whistles you don’t actually need.
  
• In-house hires can sit idle if you don’t have constant dev work for them.
  

There’s no perfect choice. The goal is the right choice for your stage.

Real-World Patterns We’ve Seen

• Startup A went with a freelancer. Great MVP, but scaling became a headache once users piled in.
  
• Startup B hired an agency. They launched smoothly, then transitioned to an in-house team once revenue justified it.
  
• Startup C hired in-house too early. With no product-market fit, they burned cash paying salaries before the product had traction.
  

A Stage-by-Stage Guide

• Idea / MVP stage → freelancer or small agency
  
• Growth stage → agency for speed + reliability
  
• Established product with revenue → build your in-house team
  

Match the talent model to where you are — not where you think you’ll be someday.

Still Not Sure?

That’s normal.

We’ve worked alongside freelancers, agencies, and in-house teams. If you’re unsure which path fits your idea, reach out — we’ll help you find the right setup for your stage, even if that means pointing you away from us.