When choosing between hiring an in-house designer or using a design subscription service, the decision often comes down to cost, scalability, and workload flexibility. Here’s a quick breakdown:
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In-House Designer:
- Cost: $90,000–$150,000/year (including salary, benefits, and overhead).
- Scalability: Limited; hiring more staff is costly.
- Skills: Limited to one person’s expertise.
- Fixed Costs: Salary and infrastructure remain constant, even during slow periods.
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Design Subscription:
- Cost: $15,600–$24,000/year (predictable monthly fees).
- Scalability: Flexible; adjust plans as needed.
- Skills: Access to a team of specialists.
- Turnaround: Typically 48 hours per project.
How I Built A $1M/Year Design Subscription Service
Quick Comparison
| Factor | In-House Designer | Design Subscription Service |
|---|---|---|
| Annual Cost | $90,000–$150,000 | $15,600–$24,000 |
| Scalability | Limited | Flexible |
| Skills Access | One person’s expertise | Team of specialists |
| Turnaround Time | Varies | ~48 hours |
| Fixed Costs | High | Predictable |
If you need predictable costs, flexibility, and access to diverse skills, a design subscription might be the better fit. For deep brand knowledge and direct oversight, an in-house designer could be worth the investment.
1. Full-Time Designer Expenses
Hiring a full-time designer involves more than just paying their base salary. In reality, the total cost can be nearly double the salary once you factor in additional expenses like benefits, overhead, and other indirect costs.
Here’s a breakdown of these expenses:
| Cost Category | Components | Approximate Rate |
|---|---|---|
| Fringe Benefits | Health insurance, retirement plans, paid time off | 35% of base salary |
| Overhead | Office space, equipment, software licenses | 25% of base salary |
| G&A Expenses | Administrative support, payroll services, training | 18% of base salary |
| Recruitment | Job posting, interviewing, onboarding | One-time cost |
Recruitment alone can be costly, with the average hiring process taking around 44 days. During this time, productivity often dips, and HR expenses rise. If the new hire doesn’t work out, turnover costs can reach up to four times the employee’s initial salary.
Beyond these, infrastructure costs can add up quickly. These include setting up workstations, maintaining software licenses, offering professional development, IT support, and covering office space and administrative services.
Industry data shows that the total cost of an employee generally ranges between 1.5 and 2.5 times their base salary. For example, a designer earning $60,000 annually could end up costing the company between $90,000 and $150,000 per year when all expenses are included.
Another factor to consider is workload variability. Even when projects slow down, businesses must continue covering the full cost of employment. This fixed expense can be a challenge for companies with fluctuating design needs.
According to a Deltek report, combining fringe benefits (35%), overhead (25%), and G&A expenses (18%) results in a cost multiplier of about 1.99. These numbers highlight the importance of thoroughly evaluating the financial commitment of hiring an in-house designer.
While having a full-time designer offers perks like brand familiarity and immediate availability, the financial commitment goes well beyond just their paycheck. Careful planning is essential to ensure these costs align with your company’s budget and needs.
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2. Subscription Service Expenses
Design subscription services offer predictable monthly fees, covering a variety of design needs. Plans typically range from $1,300 for basic services to $2,000 for more extensive offerings. Below is a breakdown of costs and features:
| Service Level | Monthly Cost | Features | Team Access |
|---|---|---|---|
| Standard | $1,295 | Graphic and video design, supporting up to 3 projects at a time | Up to 3 users |
| Professional | $1,995 | Full-service design, including web design and development, supporting up to 4 projects | Up to 5 users |
Types of Costs
Fixed Costs:
- Monthly subscription fees
- Onboarding fees (if applicable)
- Additional user access fees
Variable Costs:
- Services outside the plan's scope
- Rush delivery fees
- Licensing fees for premium assets, like stock photos or fonts
Cost Efficiency
Industry data shows that subscription-based design services can lower operational costs by removing expenses like software licenses, equipment upkeep, office space, training, and employee benefits. For example, a business paying $1,400 per month for a standard plan would spend about $16,800 annually. This is far less than the $90,000 to $150,000 yearly cost of employing an in-house designer, which includes salary and other related expenses.
Another advantage is flexibility. Businesses can adjust their subscription tier as their needs change without the costs linked to hiring or downsizing staff. Additionally, these services often deliver designs within 48 hours, reducing delays and keeping projects on track.
With a fixed monthly rate, businesses can budget and forecast design expenses more effectively, offering a clear financial advantage over traditional in-house solutions.
Side-by-Side Comparison
Here's a breakdown of how in-house designers stack up against design subscription services across key factors:
| Factor | In-House Designer | Design Subscription Service |
|---|---|---|
| Annual Cost | $90,000 - $150,000 | $15,600 - $24,000 |
| Team Composition | One specialist; may need to hire more for diverse skills | Access to a team of design specialists |
| Scalability | Limited to individual capacity; requires hiring for growth | Easily scalable without additional hiring |
| Project Capacity | 1-2 projects at a time | 3-4 projects at a time |
| Brand Knowledge | Deep understanding of company culture and brand | Requires onboarding and documentation |
| Turnaround Time | Varies based on workload | Typically 48 hours |
| Workflow Control | Direct oversight and immediate feedback | Structured request system |
This comparison highlights important differences in costs, scalability, and efficiency.
Resource Allocation Analysis
Hiring in-house designers often means higher costs, especially when you need specialists for various tasks. Salaries alone can quickly add up, and expanding expertise usually requires additional hires. This can significantly increase your overall operational expenses.
Output Capacity Considerations
Design subscription services are built around team-based workflows, allowing them to handle more projects simultaneously. By dividing tasks among specialists, they can complete projects faster and more efficiently.
Workload Management
The approach to managing workloads also varies. In-house designers can adapt to changes quickly but may struggle with capacity limitations. On the other hand, design subscription services maintain consistent output without requiring extra costs or resources.
Conclusion
Choosing the right design solution comes down to your specific design needs, future growth plans, and budget. Design subscription services offer a way to manage costs effectively by providing predictable monthly expenses for professional design work without the overhead of full-time salaries.
For small businesses, these services offer flexibility and cost control. Mid-sized companies can use them to strike a balance between continuous support and budget management. Meanwhile, enterprises might opt for a hybrid model, combining in-house expertise for critical branding with subscription services to handle additional capacity.
Industry experts emphasize the importance of long-term thinking:
"Instead of falling into the trap of what you need now, focus on your future. Think about scalability, efficiency and affordability." – Tyler Wade, Content Marketer, Superside
When making your decision, weigh factors like design workload, project complexity, scalability, and budget flexibility. As remote work and digital collaboration become more common, subscription services stand out for their consistent quality and predictable pricing, offering a practical alternative to traditional hiring.