It seems obvious: "I'll hire someone internally to save on hourly rates." But have you calculated the hidden costs (taxes, benefits, training, downtime)?
1. The Junior Employee
You hire a junior for $40k/year. Real company cost: ~$55k.
Output: Slow, requires your constant supervision, introduces bugs you have to check.
Real Cost: Salary + 15% of YOUR time lost in reviews.
2. The Senior Freelancer (Me)
Higher hourly rate? Yes. But do you know what you don't pay?
- No payroll taxes or benefits (I handle that).
- No severance pay.
- No paid sick leave or vacation.
- No equipment or software licenses.
- Most importantly: No training. I'm operational from day 1.
3. Flexibility is Money
If you have a slow month, you still pay the employee. Not me. If the project delays, you pay me nothing until it restarts. The Variable Cost model beats the Fixed Cost model for agencies under 15 employees.