Agency Owners, when should you hire W2 employees vs.1099 Contractors (freelancers)?
Most often the agency owner has this big vision of growing an agency with this massive team of employees. Somehow the way they see success is by how big the agency gets in revenues and employee counts.
In my experience, this is disastrous thinking. More employees does not = more profits. In most cases it = less profits.
Today’s healthy agency structure is often a hybrid model of a smaller team of full time client facing employees with an outside team of contractors that allow you to expand and contract as needed.
No need to add overhead when you don’t have the full-time work.
There are so many experts out there to hire for speciality work that are more than willing to be a part of your team virtually, on an hourly or project basis, that you simply don’t need the big building and huge staff.
So when do you hire the full time employee? Usually it’s when you have 30s+ hours of work for them and client demand for those services.
Join Ryan Parshall and Trice Alford on Episode 22 of The Growth Engine Show where we get into all the details of decision making on how you build out your agency or marketing team.
Learn more about Healthy Brands Agency Coaching and Brokering Services on our website HealthBrands.biz