To make the most of your email marketing, you need a powerhouse of a team on your side. If you’re using Klaviyo, you’re already using the best email software available. But choosing between an in-house team and hiring a Klaviyo agency can be tricky… And price is often the biggest factor. So what’s best: Klaviyo agency pricing vs. in-house team salaries?
Let’s break it down so you can get a good idea of what your choices are. This will help you pick something that suits both your budget and your business goals.
Outsourcing to a Klaviyo agency is generally the more affordable of the two options. Email marketing agency rates can vary widely, but there are advantages to choosing a Klaviyo marketing agency vs in-house team. Let’s start by comparing Klaviyo agency pricing models.
Klaviyo agency pricing usually falls under one of three types: a monthly retainer, a revenue-share structure, or a per-project fee. On rare occasions, agencies may charge an hourly rate, but it’s not common and generally only helpful for short projects.
This is the most common type of Klaviyo agency pricing. You’ll pay a flat rate (fixed monthly retainer fee) for an agreed-upon set of email services and deliverables. The more services in your package, the more you’ll pay.
For example, a simple, 8-per-month package with strategy but no copy or design will cost a fair bit less than a 20-email package with advanced strategy, segmentation, email design, and copywriting.
It’s easy to budget for on a monthly basis, making it simple to fit into your marketing budget. Business owners who are looking for a fuss-free email marketing model will prefer this. A long-term partnership with a Klaviyo agency will take your email from strength to strength.
How much do marketing agencies charge per month? That’s not a simple question to answer, because it depends on your needs. Expect anything from $500 upwards.
Some Klaviyo agencies may offer a discounted yearly retainer. Others offer a contract-free month-to-month retainer. Finding one that works for you is key.
This is like a pay-as-you-earn model. You won’t pay a set fee per month—instead, you’ll agree upon a percentage of total email revenue to pay to the agency each month. Revenue share fees can be anything from 5% to 25%. It depends on the services the Klaviyo agency is providing and the size of your business.
It’s a less risky option, because if you happen to have a low-earning month, your Klaviyo agency pricing reduces too. But because the Klaviyo agency pricing depends pretty directly on your emails’ conversion rates, this type of pricing may give you some peace of mind that the agency will be working hard on boosting your email marketing efforts.
On the other hand, it’s harder to factor into a marketing budget, because it changes every month. Keep in mind that higher-earning months (think Black Friday, Christmas, etc) will incur a higher fee.
If you already have in-house employees working on email, or you don’t do a lot of email at all, you might only need an agency for small, few-and-far-between projects. This type of payment is very subjective, so it’s hard to put an average on it.
It’s a good idea to get quotes from a few different agencies based on your project. Make sure you know the scope of your project before asking. This includes the work that needs to be done (strategy, copy, design, etc), the timeline, and your expectations for outcomes.
Many Klaviyo agencies also offer a hybrid pricing structure: a set fee + revenue share percentage. Ask about this upfront to understand what’s covered.
Custom pricing is also an option. If you have specific needs, mention it upfront. The Klaviyo agency will be able to put a personalized plan together for you.
Most Klaviyo agencies are flexible in terms of the services they offer within each package. Regardless, you’ll get a dedicated team handling your emails with in-depth knowledge of the most effective email platform available today. The final price will depend on a combination of multiple things, including:
If you’re already using Klaviyo, you’ll likely need just a basic email marketing setup. But if you’re just starting on Klaviyo, you might end up paying a little more during your first month to cover things like migration, initial setup, and email automation flows.
An email deliverability service may also be part of the initial setup. Most agencies do a deliverability audit upfront and fix any issues to make sure your emails reach their intended audience.
One of the biggest factors that increases Klaviyo agency pricing is the number of campaigns you want to send monthly. Sending 4 emails per month will cost significantly less than sending 20 emails a month, for example.
More emails means more time spent strategizing, writing copy, and designing on the part of the agency. It also requires more time for data analysis, so it’s natural that the cost will increase with the email volume.
Choosing an appropriate number and frequency of campaigns will depend on your marketing goals, your target audience, and your budget. Discuss it upfront with the agency in order to get an accurate idea of pricing.
The level of customization in your emails will also affect the price. Klaviyo experts are proficient at smart email strategy, personalization, advanced segmentation, and using dynamic content to improve the customer experience.
All of this will increase the total cost, because it requires more time and specialized skills. But it’s also highly likely to engage potential customers and increase your email revenue, so it’s a win-win situation.
The bigger your email subscriber base, the more work it takes to manage. Larger email lists will require quite a bit more work for an email strategist and a Klaviyo specialist. They’ll also need more detailed segmentation needed to really nail down the customer experience.
Keep in mind that the bigger your email list, the bigger your Klaviyo fee will be too. Some email agencies build this into their fee, especially if you’re migrating from another email service provider. Some leave it entirely separate.
Now that you have an idea of Klaviyo agency pricing, let’s check out the expected costs for in-house marketing teams. The first thing to understand is that while you’ll have more direct control over your email marketing, putting together an in-house email marketing team involves hiring multiple full-time employees with different skill sets.
It’s a much longer and more detailed process than hiring a Klaviyo agency. Also, when you consider full-service agency pricing vs in-house salaries, it’s easy to see which is more cost-effective. However, in the end, it depends on your goals.
Below are the typical roles you’ll need to hire for if you’re planning on building an internal team of experts to handle your email marketing. Understand that even if you have a marketing team in place, you’ll still need to hire an email specialist (particularly Klaviyo) if you want to get the most out of your emails.
An email marketing manager oversees all email marketing activities, from strategy development to execution. The average salary for a full-time email manager ranges from $60,000 to $100,000 annually, depending on experience.
An email marketing strategist focuses on planning and optimizing email campaigns by analyzing the data. This role includes market research, identifying trends, email campaign strategy, A/B testing, data tracking, and increasing customer engagement. Their average salary is between $50,000 and $80,000 per year.
An email copywriter creates engaging and persuasive email content based on consumer buying psychology. The job includes client research and target audience research as well as creative copywriting. Their annual salary typically falls between $30,000 and $70,000, depending on their expertise and the complexity of the content.
An email designer is responsible for creating visually appealing email templates and graphics that match your brand identity. They earn an average salary of $30,000 to $75,000 per year, based on their design skills and experience.
Full-Time Employees vs. Hiring Freelancers: Experienced freelance email marketers, email managers, copywriters, and designers are typically a little more affordable and may also be more flexible. But freelancers can be less reliable than both agencies and in-house employees. If you’re serious about increasing your email revenue, a Klaviyo agency is your best choice in terms of value for money and ROI.
Aside from in-house team salaries, there are potential additional costs that could add to the overhead costs.
As well as monthly salaries, in-house teams will also receive benefits like health insurance, retirement plans, and paid time off. These perks add to the overall cost of maintaining an internal team. These can add thousands extra to your annual costs.
Email marketing costs include software subscriptions, which can add anything from $500 to a few thousand dollars to your monthly costs. Klaviyo itself can add up to a few thousand if you’ve got a sizable email list. If you’re considering a different email marketing platform, you may lower costs but you’ll lose out on the advanced features Klaviyo offers.
Other potential costs might include design tools like Canva ($12.99 per month), Adobe Creative Cloud ($52.99 per month per user) or the gold standard, Figma, which ranges from $15 to $75 per month; writing aides like ChatGPT; and advanced analytics or automation tools.
Continuous training and development are necessary to keep your in-house team updated on the latest trends, best practices, and technical expertise.
Investing in workshops, courses, and certifications is a must for maintaining a high-performing team, but it can be costly in the long run. On average, the annual budget for training ranges from $2,000 to $5,000 per employee.
Worried about agency pricing vs. in-house team salaries? Here’s a quick cost comparison to help you figure out which one fits your budget.
Klaviyo Agency | In-House Team | |
Initial Investment | $500 to $1,000 for Klaviyo setup (if necessary) | More of a time investment, sorting through CVs, interviewing, etc. |
Ongoing Costs | Monthly fee OR revenue share depending on your arrangement. Typically from $500 to $10,000 depending on your needs. | Multiple monthly salaries and software costs. Monthly costs can exceed $20,000. |
Hidden Costs | There should be none—all costs will be laid out explicitly in your contact. | Employee benefits and perks, paid time off, etc. |
Time Costs | Time to research and reach out to agencies, may have a few calls. | The full hiring process can take weeks to months for a single employee. |
Does the quality of your email marketing change depending on if you’re using an email marketing agency or an inside team? Here’s a deeper dive into how your choice might affect the performance of your emails.
Agencies bring specialized expertise, plenty of experience, and data-driven marketing strategies. This combination often results in higher-quality work compared to an in-house team that might lack specific skills, training, or time.
On the other hand, internal marketing teams often have a deep understanding of the company’s branding, which means the quality of the work could be higher.
Case studies are a great way to get an idea of what kind of work an agency is capable of producing. They’re real-life success stories of current or previous clients, demonstrating the quality and results of the agency’s work.
When it comes to in-house marketing teams, you’ll need to look closely at individual references to get an idea of the quality of each potential employee’s work.
For visual inspiration, check out sample campaigns from Klaviyo agencies. They’ll give you a good idea of the kind of creativity an agency can produce, especially if you compare them to your current email designs and messaging.
When it comes to hiring employees, each person should have a robust portfolio for you to explore, which will give you an idea of what they’re capable of producing.
Agencies often have more streamlined processes and advanced tools that enable them to execute campaigns more quickly and efficiently than an in-house team. This is particularly handy if you’re planning on putting out a large volume of campaigns each month.
In-house teams can be just as fast and efficient, as long as they have the space and the tools to do so. In some cases, internal teams can be split between multiple marketing projects, which can reduce efficiency.
When creatives are working on social media marketing, press releases, product descriptions, and more… It can be tough to put the necessary effort into email to get the results you really want.
Email marketing agencies are adept at adapting to changes in the market, industry regulations, and email marketing trends. Their ability to quickly pivot and implement new strategies can be a huge advantage in a rapidly evolving digital marketing landscape.
In-house marketing teams may be less on-the-ball when it comes to adapting to changes and trends. They’re often split between multiple types of content, which means they may be a little behind in terms of email-specific best practices and regulations.
When deciding between Klaviyo agency pricing vs. in-house team costs, consider your vision for email marketing in the future. Your long-term goals should factor into deciding between an agency and an internal team.
If you’re looking to scale your business soon, hiring an email marketing agency could be the better option. Scaling with an internal team often means bringing new team members onboard, upping costs, taking time, and possibly requiring training.
On the other hand, if an agency is handling your email marketing, scaling becomes easy. Increasing the volume of emails, adding advanced features, growing your email list, and other scaling efforts might increase costs a touch, but can do wonders for boosting your revenue too.
While agencies offer external expertise, building an in-house team can be valuable in the long-term as you’re building up a knowledge database within your own business. Investing in training an internal group of professionals means you can build a team that deeply understands your brand and its messaging.
However, investing in your in-house employees does leave you at risk of them leaving and taking their knowledge with them. If you can manage to build an internal training library for easy access by new employees, it could still be worthwhile in the long run. Consider this possibility when choosing between agency pricing vs. in-house salaries.
Relying on external agencies can create a dependency that might not be ideal for all businesses. If the agency relationship ends, you might face challenges when it comes to maintaining the same level of expertise and performance.
But, it’s likely to be easier to hire another agency to take over than it would be to build a full team and a stack of email tools within the business. However, if you’re reluctant to entrust your emails to agency after agency, it could be worth creating a solid team within the business, as long as you have the budget for it and you can confidently hit a good ROI month after month.
YOCTO is a Klaviyo agency with a difference. We’re a small but dedicated team of email marketing professionals who live and breathe Klaviyo, data, and exceeding our clients’ needs. With us on your side, you aren’t just getting regular old email marketing—you’re working with a Klaviyo-approved group of experts.
Do you need
to maximize your
profits?