Inhouse vs. Agency - Fundamentals and Best Practices 2025

Introduction

The decision between an internal SEO team and collaboration with an external agency is one of the most important strategic decisions for companies. Both approaches have their specific advantages and disadvantages, and the optimal choice depends on various factors such as company size, budget, expertise, and long-term goals.

What is Inhouse SEO?

Inhouse SEO refers to the implementation of all search engine optimization measures by internal company employees. The SEO team is permanently employed and works exclusively for the company itself.

Advantages of Inhouse SEO

001. Complete Control

• Direct influence on all SEO decisions
• No dependency on external partners
• Immediate responsiveness to changes

002. Deep Industry Knowledge

• Intimate knowledge of company structure
• Understanding of internal processes and workflows
• Industry-specific expertise

003. Long-term Investment

• Building internal know-how
• Continuous development of skills
• Stable team structure

004. Cost Efficiency at High Volume

• Fixed costs independent of workload
• No hourly billing
• Scalable resources

Disadvantages of Inhouse SEO

001. High Initial Investment

• Recruiting costs for qualified employees
• Training time and onboarding
• Salaries and social benefits

002. Limited Expertise

• Dependency on internal capabilities
• Difficulties with specialized topics
• Potential knowledge gaps

003. Resource Binding

• Fixed personnel costs even with low utilization
• Difficulties with short-term projects
• Limited flexibility

What is Agency SEO?

Agency SEO refers to commissioning an external specialized agency for implementing search engine optimization measures. The agency works on a project basis or within the framework of a retainer contract.

Advantages of Agency SEO

001. Immediate Expertise

• Access to specialized experts
• Proven methods and tools
• Cross-industry experience

002. Flexibility

• Scalable resources according to needs
• Specialized teams for different areas
• Quick adaptation to project requirements

003. Cost Efficiency for Smaller Projects

• No fixed personnel costs
• Pay-per-use model
• Lower initial investment

004. Objective Perspective

• External view of the company
• Benchmarking with other clients
• Fresh ideas and approaches

Disadvantages of Agency SEO

001. Dependency on External Partners

• Potential switching costs
• Dependency on agency availability
• Risk when changing agencies

002. Limited Control

• Less direct influence on daily decisions
• Dependency on agency processes
• Potential communication barriers

003. Higher Costs at High Volume

• Hourly billing can become more expensive
• Additional project costs
• Potential hidden costs

Decision Criteria

Cost Comparison

Inhouse SEO Costs

001. Personnel Costs

• SEO Manager: 60,000-80,000 €/year
• SEO Specialist: 45,000-65,000 €/year
• Content Marketing Manager: 50,000-70,000 €/year
• Technical SEO: 55,000-75,000 €/year

002. Additional Costs

• Tools and Software: 5,000-15,000 €/year
• Training: 2,000-5,000 €/year
• Hardware and Workplace: 3,000-8,000 €/year

003. Total Costs per Year

• Small Team (2-3 people): 120,000-200,000 €
• Medium Team (4-6 people): 200,000-350,000 €
• Large Team (7+ people): 350,000+ €

Agency SEO Costs

001. Retainer Models

• Basic Package: 2,000-5,000 €/month
• Premium Package: 5,000-15,000 €/month
• Enterprise Package: 15,000+ €/month

002. Project-based Billing

• SEO Audit: 3,000-10,000 €
• Content Strategy: 5,000-20,000 €
• Technical SEO: 8,000-25,000 €
• Link Building: 2,000-8,000 €/month

003. Additional Costs

• Setup Fees: 1,000-5,000 €
• Tool Costs: Often included
• Reporting: Usually included

Hybrid Models

001. Inhouse + Agency

• Internal coordination and strategic planning
• External specialization for specific areas
• Best combination of control and expertise

002. Freelancer Integration

• Fixed internal contacts
• External specialists for specific projects
• Flexible resource planning

003. Gradual Development

• Start with agency
• Build internal expertise
• Gradual takeover of tasks

Best Practices for Decision Making

Checklist for Inhouse SEO

• Available budget for 2+ years
• Continuous SEO needs
• Internal resources for recruiting
• Willingness for long-term investment
• Need for complete control

Checklist for Agency SEO

• Limited budget or short-term projects
• Missing internal SEO expertise
• Need for specialized knowledge
• Flexible resource planning required
• Objective external perspective desired

Implementation Strategies

Inhouse SEO Setup

001. Define Team Structure

• Define roles and responsibilities
• Hierarchy and reporting structure
• Establish communication channels

002. Recruiting Strategy

• Formulate job postings
• Develop interview process
• Create onboarding program

003. Build Tool Stack

• Evaluate and license SEO tools
• Implement workflow tools
• Set up reporting systems

Agency SEO Selection

001. Agency Evaluation

• Check references and case studies
• Evaluate team expertise
• Test communication style

002. Contract Design

• Define scope of services
• Agree on KPIs and reporting
• Define exit strategies

003. Onboarding Process

• Conduct kick-off meeting
• Provide access and tools
• Establish communication channels

Monitoring and Optimization

KPIs for Inhouse SEO

• Organic traffic growth
• Keyword rankings
• Conversion rate
• ROI of SEO measures
• Team productivity

KPIs for Agency SEO

• Fulfillment of agreed KPIs
• Quality of delivered work
• Communication quality
• Cost-benefit ratio
• Long-term success development

Avoiding Common Mistakes

001. Wrong Cost Calculation

• Hidden costs not considered
• Long-term costs underestimated
• Incomplete ROI calculation

002. Unrealistic Expectations

• Too quick success expectations
• Overestimation of own abilities
• Underestimation of effort

003. Poor Communication

• Unclear expectations
• Missing regular coordination
• Insufficient documentation

Future Trends

001. AI Integration

• Automation of routine tasks
• Better data analysis
• Personalized SEO strategies

002. Remote Work

• Global talent pools
• Flexible work models
• Hybrid teams

003. Specialization

• Niche expertise becomes more important
• Cross-functional teams
• Agile work methods

Conclusion

The decision between Inhouse and Agency SEO is complex and should be carefully weighed. While Inhouse SEO is ideal for large companies with continuous needs and sufficient budget, Agency SEO offers a cost-effective alternative with immediate expertise for SMEs and startups.

The optimal solution often lies in a hybrid approach that combines the advantages of both models. A realistic assessment of your own resources, goals, and requirements is important.

Related Topics

• Develop SEO Strategy
• Roles and Responsibilities
• Budget Planning
• Project Management
• Competitive Analysis