Upload
bka-content
View
45
Download
0
Embed Size (px)
Citation preview
@BKAContent / @JonBKA
Outsourcing Your Content vs.
Hiring an In-House Writing TeamA True Cost Comparison
Jon BinghamDirector of Marketing
BKA Content
Outsourcing vs In-House Writing @BKAContent / @JonBKA
How Much Content Do You Need?
29%26%
Content Marketing as a % of Total Marketing Budget
B2C
B2B
29%48%
15%% of Marketers Increasing Content Creation
Significant IncreaseIncreaseNo ChangeDecrease
Based on Content Marketing Institute’s 2017 survey, companies are setting aside nearly 30% of their total marketing budget towards content marketing.
Also, 77% of companies plan to increase their overall content production from the previous year.
Companies that published 11 or more posts per month saw 3x the traffic of those that published 1 or 2 posts.
Outsourcing vs In-House Writing @BKAContent / @JonBKA
Pros and Cons
In-House Writers
Pros:• Industry Experience• Increased Control
Cons:• Skills Gap• Time/Resources• Bias• Fixed Capacity
Outsourced Writers
Pros:• Process Expertise• Ability to Scale• Outside Perspective• Resources• Convenience
Cons:• Lack of Inside
Knowledge• Limited Control
Outsourcing vs In-House Writing @BKAContent / @JonBKA
The Cost of Hiring In-House WritersAccording to the Society for Human Resource Management, the average hiring cost is:
$4,000We found 18 copywriting salaries from 7 different employment websites. The average salary is:
$49,982According to the Bureau of Labor Statistics, benefits account for 30.2% of compensation costs. In our example that equates to:
$21,625Payroll taxes are around 8.24%, meaning the tax payout is:
$4,119The cost of equipment/overhead is approximately:
$2,800The total cost for 1 in-house writer is:
$82,526
Outsourcing vs In-House Writing @BKAContent / @JonBKA
The Cost of Outsourcing Content Creation
Self Service vs. Managed Service• Order through online platform• Select price or quality level• Manage and quality check the
content yourself• Interact with each writer and
give feedback• Typically cheapest option
• Dedicated account manager• Manager creates team of writers
for your project• Most convenient and hands off
approach • May require a retainer or
membership fee• FREE with BKA Content
Outsourcing vs In-House Writing @BKAContent / @JonBKA
The Cost of Outsourcing Content Creation
PricingFor our cost comparisons, we’ll be using 2 different products to compare costs. Our scenarios will use 500-550 word blogs and 100-124 word product descriptions.
Branded Blogs Product DescriptionsProduct Descriptions Words Price25-49 $2.50 50-74 $4.15 75-99 $5.80
100-124 $7.45 125-149 $9.10 150-174 $10.75 175-199 $12.40 200-249 $14.10 250-299 $17.55 300-350 $21.00
Branded BlogsWords Price
100-150 $15.00200-250 $20.00300-350 $25.00400-450 $30.00500-550 $35.00600-650 $42.50700-750 $50.00800-850 $57.50900-950 $65.00
1000-1050 $75.00
Outsourcing vs In-House Writing @BKAContent / @JonBKA
How Much Can One Writer Produce?
In 2016, Hubspot asked 4,000 marketing professionals how long it took to write a 500-word blog post. They found that in-house writers could produce 1 article in approximately 2 hours, which equates to:
.50 Articles / HOUR
4 Articles / DAY
20 Articles / WEEK
87 Articles /MONTH
At BKA, we surveyed our writers and found that on average, they can produce:
.94 Articles / HOUR
7.52 Articles / DAY
37.6 Articles / WEEK
163 Articles /MONTH
For our scenarios, we’ll take the average of these 2 numbers, which is:
125 Articles / Month
Outsourcing vs In-House Writing @BKAContent / @JonBKA
Scenario 1: Small to Medium Size Business• # of Pieces of Content Needed: 30 per month• Article Word Size: 500 words• # of In-House Writers Needed: 1• Outsourcing Discount Pricing: N/A ($35 per
article)Cost of In-House Writer x1
First Month Cost Ongoing Monthly Cost Annual CostSalary $4,165 $4,165 $49,982 Benefits $1,802 $1,802 $21,626 Payroll Taxes $343 $343 $4,119 Subtotal $6,311 $6,311 $75,726 One-Time CostsHiring $4,000 $4,000 Equipment $2,800 $2,800 Total Cost $13,111 $6,311 $82,526
Cost to Outsource 30 articles/month First Month Cost Ongoing Monthly Cost Annual Cost$35/Article $1,050 $1,050 $12,600Total Cost $1,050 $1,050 $12,600
Annual Savings from Outsourcing: $69,926
Outsourcing vs In-House Writing @BKAContent / @JonBKA
Scenario 2: An SEO/Marketing Agency• # of Pieces of Content Needed: 250 per month• Article Word Size: 500 words• # of In-House Writers Needed: 2• Outsourcing Discount Pricing: $34.30 per
articleCost of In-House Writer x2
First Month Cost Ongoing Monthly Cost Annual CostSalary $8,330 $8,330 $99,965 Benefits $3,604 $3,604 $43,251 Payroll Taxes $686 $686 $8,237 Subtotal $12,621 $12,621 $151,453 One-Time CostsHiring $8,000 $8,000 Equipment $5,600 $5,600 Total Cost $26,221 $12,621 $165,053
Cost to Outsource 250 articles/month First Month Cost Ongoing Monthly Cost Annual Cost$34.30/Article $8,575 $8,575 $102,900 Total Cost $8,575 $8,575 $102,900
Annual Savings from Outsourcing: $62,153
Outsourcing vs In-House Writing @BKAContent / @JonBKA
Scenario 3: Large Enterprise Company• # of Pieces of Content Needed: 500 per month• Article Word Size: 500 words• # of In-House Writers Needed: 4• Outsourcing Discount Pricing: $33.95 per
articleCost of In-House Writer x4
First Month Cost Ongoing Monthly Cost Annual CostSalary $16,661 $16,661 $199,929 Benefits $7,209 $7,209 $86,502 Payroll Taxes $1,373 $1,373 $16,474 Subtotal $25,242 $25,242 $302,905 One-Time CostsHiring $12,000 $12,000 Equipment $8,400 $8,400 Total Cost $45,642 $25,242 $323,305
Cost to Outsource 500 articles/month First Month Cost Ongoing Monthly Cost Annual Cost$33.95/Article $16,975 $16,975 $203,700 Total Cost $16,975 $16,975 $203,700
Annual Savings from Outsourcing: $119,605
Outsourcing vs In-House Writing @BKAContent / @JonBKA
Scenario 4: Ecommerce Business• # of Pieces of Content Needed: One-time, 20,000 SKU
order• Article Word Size: 100 words• # of In-House Writers Needed: 5• Outsourcing Discount Pricing: $4.84 per description
Annual Savings from Outsourcing: $65,452
Cost of In-House Writer x5 for 6 Months First Month Cost Ongoing Monthly Cost 6 Month CostSalary $20,826 $20,826 $124,956 Benefits N/A N/A N/APayroll Taxes $1,716 $1,716 $10,296 Subtotal $22,542 $22,542 $135,252 One-Time CostsHiring $20,000 $20,000 Equipment (half) $7,000 $7,000 Total Cost $49,542 $22,542 $162,252
Cost to Outsource 20,000 SKU Project for 3 Months First Month Cost Ongoing Monthly Cost 3 Month Cost$4.84/Article $32,267 $32,267 $96,800 Total Cost $32,267 $32,267 $96,800
Outsourcing vs In-House Writing @BKAContent / @JonBKA
Final Cost Comparison
Small Business Agency Enterprise E-Commerce
In-House Annual Cost $82,526 $165,053 $323,305 $162,252
Outsourced Annual Cost $12,600 $102,900 $203,700 $96,800
Annual Savings from Outsourcing $69,926 $62,153 $119,605 $65,452 (and 3 months)
In most cases, companies will save money by outsourcing. On the other hand, in-house production might make sense for more technical/specific content projects that don’t fall under the industry averages like the scenarios we’ve outlined.
Also keep in mind other costs associated with running an in-house writing team. You’ll need space, equipment, software and someone to manage the writing team and their tasks.
• Founded in 2009• Industry Leading Content Provider• Service Agencies, SMBs & Enterprises• Offer Account Management• No Monthly Minimums or Contracts• Hand-picked, Experienced U.S. Writers• Dedicated Writing Teams
Outsourcing vs In-House Writing @BKAContent / @JonBKA
Who are we?
@BKAContent / @JonBKA
www.bkacontent.com
If you need custom content, come visit us at Booth #320!
Thanks for listening!
Outsourcing vs In-House Writing