The True Cost of Design: In-House vs Outsourcing vs Subscription in 2025

Every growing business faces the same question: How do we get quality design work done efficiently and cost-effectively? The answer isn't one-size-fits-all, and making the wrong choice can cost you tens of thousands of dollars annually.

In this comprehensive analysis, we'll break down the real costs of three primary options: hiring in-house designers, working with traditional agencies, and using design subscription services. By the end, you'll have the data you need to make the right decision for your business.

Option 1: Hiring In-House Designers

Salary Costs in 2025

Let's start with the numbers. According to Indeed and the Bureau of Labor Statistics, here's what you can expect to pay for design talent in 2025:

• Junior Designer (0-2 years): $53,000/year
• Mid-Level Designer (2-5 years): $62,000/year
• Senior Designer (5+ years): $93,000/year
• UX Designer: $124,941/year (average)

The national average for graphic designers sits at $56,599-$64,500 per year, depending on the source.

Hidden Costs You Can't Ignore

But salary is just the beginning. The true cost of an in-house designer includes:

• Benefits (healthcare, retirement, insurance): Add 20-30% of salary ($11,000-$19,000)
• Equipment and software: $3,000-$5,000 annually (computers, tablets, Adobe CC, Figma, etc.)
• Hiring costs: $4,700 average per hire (SHRM data)
• Training and onboarding: $1,000-$3,000
• Office space/overhead: Varies by location
• Paid time off: 15-20 days average
• Management time: Your time supervising and directing work

Total True Cost Calculation

For a mid-level designer at $62,000 salary:

• Salary: $62,000
• Benefits (25%): $15,500
• Equipment/software: $4,000
• Hiring cost (amortized): $1,500
• Training: $2,000

Total: $85,000+ per year for ONE mid-level designer

Team Costs at Scale

Need a full design team? Here's what companies typically spend:

• Small team (2-3 people): ~$221,000/year
• Medium team (5-7 people): ~$646,000/year
• Large team (10+ people): ~$1,372,000/year

Pros of In-House

• Deep brand knowledge and consistency
• Immediate availability and quick turnarounds for urgent needs
• Direct collaboration and communication
• Full control over priorities and workflow
• Builds institutional knowledge over time

Cons of In-House

• Highest fixed cost regardless of workload
• Limited skill diversity (one person can't do everything)
• Vacancy risk (what happens when they leave or get sick?)
• Training and management burden
• Difficult to scale up or down with demand

Option 2: Traditional Design Agencies

Pricing Structure

Agencies typically charge by the hour or by project. Here's what you can expect:

Hourly Rates:

• Junior agency designers: $50/hour
• Senior agency designers: $75-$150/hour
• US/Canada premium agencies: $100-$200/hour
• Western Europe agencies: $70-$150/hour

Project-Based Pricing:

• Logo design: $300-$5,000+
• Website design: $5,000-$50,000+
• Brand identity package: $5,000-$25,000+
• Marketing campaign: $2,000-$20,000+

The Real Agency Math

Let's say you need 40 hours of design work per month (one full-time equivalent):

• At $100/hour: $4,000/month = $48,000/year
• At $150/hour: $6,000/month = $72,000/year
• At $200/hour: $8,000/month = $96,000/year

And that's if you only need 40 hours. Most businesses underestimate design needs by 30-50%.

Pros of Agencies

• Access to diverse expertise and specialists
• Professional project management
• No employment overhead or commitments
• Fresh perspectives and industry insights
• Scalable for large projects

Cons of Agencies

• Expensive for ongoing work
• Slower communication and longer timelines
• Less brand intimacy
• Scope creep and change order fees
• May not be priority client (unless big budget)

Option 3: Design Subscription Services

How Subscriptions Work

Design subscriptions offer unlimited design requests for a flat monthly fee. You submit requests, designers complete them, you provide feedback, and the cycle continues.

2025 Pricing Landscape

• Entry-level services: $399-$699/month
• Mid-tier services: $899-$1,995/month
• Premium services: $2,000-$5,000/month
• Enterprise solutions (Superside, etc.): $5,000+/month

At Designgud, our plans start at $898/month for unlimited graphic design requests.

What You Typically Get

• Unlimited design requests (queued, not simultaneous)
• Fast turnaround (24-72 hours average)
• Unlimited revisions
• Dedicated designer or team
• Source files included
• Pause or cancel anytime

Pros of Subscriptions

• Predictable, flat monthly cost
• No hiring, training, or HR overhead
• Flexibility to scale up or down
• Access to professional designers immediately
• Often includes diverse skill sets (unlike single hire)
• Perfect for fluctuating design needs

Cons of Subscriptions

• Not ideal for extremely specialized work
• Async communication (not instant collaboration)
• Quality varies by service
• May need time to learn your brand

The Cost Comparison: Real Numbers

Let's compare annual costs for a business needing consistent design support (roughly equivalent to one full-time designer's output):

The subscription model can save businesses $60,000-$75,000 annually compared to hiring in-house, while still getting professional design output.

Which Option is Right for You?

Choose In-House When:

• Design is core to your business model
• You need real-time collaboration constantly
• You have consistent, high-volume needs
• You're building a product requiring deep brand knowledge
• You have budget for proper compensation

Choose Agency When:

• You need specialized expertise for specific projects
• You're doing a major rebrand or launch
• You need comprehensive strategy alongside design
• Budget is flexible and timeline is generous

Choose Subscription When:

• You need ongoing design support but can't justify full-time hire
• Your design needs fluctuate month to month
• You want predictable budgeting
• You need diverse design skills (web, print, social, etc.)
• Speed and flexibility are priorities

The Hybrid Approach

Many successful companies combine approaches:

• Core team in-house for strategic, product-critical work
• Subscription service for day-to-day marketing and content needs
• Agency partnerships for specialized campaigns or major initiatives

This hybrid model optimizes cost while ensuring quality and availability across all design needs.

Making the Decision

The "right" choice depends entirely on your specific situation. But here's a simple framework:

1. Calculate your true design needs (hours/month, project types)
2. Assess urgency patterns (how often do you need same-day turnaround?)
3. Consider growth trajectory (scaling up or down?)
4. Factor in management capacity (do you have time to manage a hire?)
5. Run the numbers using the costs above

Looking for a flexible, cost-effective design solution? Designgud offers unlimited design requests with fast turnaround—no contracts, no hiring headaches. See our plans or chat with us to find the right fit.