Do You Make More Money Working for Direct Clients or Content Marketing Agencies?

Note from Jennifer: Because I have been busy putting the finishing touches on my course, I decided to update a blog post from awhile ago that I think is still very relevant and often has different opinions. I think many writers overlook working with agencies because they assume that they are lower paid, but that’s not always true. My post today walks you through the pros and cons of both.

Speaking of my class, tomorrow is the last day of early bird pricing. I’ve already had over 100 writers sign up for my self-lead class. The price goes up from $99 dollars to $125 at midnight tomorrow (Tuesday Feb 21). And if you sign up and you aren’t fully satisfied in the course, I will refund your money. My goal is to help writers not take people’s money. Register here and get started learning how AI writing tools can help your business.

If you ask a roomful of freelance writers this question, the majority will assume that you make more money working with direct clients. And yes, that can be true in some cases. But in my experience, it’s not the blanket statement that some writers make it out to be. I have made more money with agencies on some projects and in other cases projects with direct clients have been more lucrative.

But I do think that freelancing content marketing writers that do not market to content marketing agencies are shooting themselves the foot, or more accurately their bank account. I think that some writers dismiss agencies because they think that all are low paying, yes there are some agencies that pay ridiculous rates, but there are also some agencies where you can earn $200 an hour on the right project. I also think other writers send a few LOI’s to agencies, but market themselves as a generalist when the agencies want a writer with experience in the client’s industry. Side note: You can absolutely make a crap ton of money as a generalist, but with agencies you need to present yourself as an expert in areas that you specialize in.

I personally don’t think that you can put all agencies into a single bucket. Some are high paying, some are low paying. Others are a pain to work with while some are a dream. Many writers dismiss agencies after one or two experiences when instead I think they should be evaluated totally separately.

Each writer has to find the balance of clients that works best for their personality, their industry and the work/life balance that they want. For me, it’s a mix of both, with more clients on the agency side. For the past year or so, I’ve been keeping a list of the upsides and downside of each type of client based on my own experience and stories that others writer share. Today I decided to turn my chicken scratch into a readable list and see what other writers find the pros and cons of working with agencies and direct clients

Why I Like Working through a Content Marketing Agencies

  • Often higher per hour pay rates. Agencies typically come up the ideas, find the sources and handle the schedule. I have even had a client pay $300 or $400 an hour in a project rate hand me an already approved outline for the project along with transcriptions of the source interviews. This lets you focus on writing which often results in a higher hourly rate. Agencies also typically have a project manager that handles the project management details that writers typically tend to when working with a business. So while the rate may appear a little lower, it’s often actually higher based on the amount of time you earn, meaning a higher hourly rate.
  • Access to Graphic Designers and Editors. As you probably already know, I am the typo queen and should never be the last set of eyes to look at a piece of content. When I work with a business, I typically hire my own editor since there is typically not an editor on the project. But agencies typically have an editor and while I do my absolute best to avoid typos, are typically fine with catching the occasional error. Agencies typically also have graphic designers who can help with charts and illustrations, while businesses have asked me to hire my own designer.
  • Opportunities to work on other agency projects. This is probably the main reason that I like to work with agencies and think that overall I earn more money with agencies. You are typically brought on for a specific project, but once you do a great job, most agencies are willing to put you on other projects. This is a great way to get more clients for no marketing time and also expand your niches and types of writing. A client that knows you may very well hire you for your first whitepaper while a brand new client will be much more hesitant. To me this is one of the BIGGEST benefits of agency – it’s much easier to turn an agency into an anchor client as well as get experience in different types of writing and niches.
  • Ability to focus only on writing. This is a plus or minus, depending on your perspective. Typically with agencies, I only have to worry about writing. I don’t have to handle project management, strategy, social media, finding sources or all of the other million things that are involved with creating a piece of content. My job is to write a fantastic piece of content.
  • Understanding of how to work with freelancers. Most agencies have been working with freelancers for a long time and have a set of processes for working with writers, such as project tracking, submission and invoicing. They also understand how freelancer writers work. But when you work with a business, you may be the first freelancer that they have ever used. I have found that this means you often have to forge your way through the process and also set boundaries much more than with agencies.

Why I Like Working Directly with a Brand                   

  • Greater ability to negotiate pay rate and raises than with an agency. Agencies typically have set rates that they use for all freelancers. While there is some room for negotiation with agencies, I have found much greater ability to negotiate pay rates when working directly with clients.
  • Feeling like part of a team. With an agency, you are one step removed from the client. If you are lucky, you get to work directly with the client, but sometimes you never have client contact. And at bigger agencies with a lot of freelancers you may feel very much like a cog in the wheel. On the other hand, many writers who work directly with a client on long-term projects are able to find the sense of team that is often missing in our daily lives as a freelancer. I love my dogs, but sometimes its nice to have co-workers that don’t want to play “throw the ball” all day.
  • Higher job security than agencies. Businesses often change agencies, which means that if you are going through an agency then you lose the client. I have lost many clients this way through agencies. But when working directly with a business, future work is typically more dependent on your results and your work than an arbitrary decision made about which agency to use.
  • Ability to learn a lot about the industry. When you work directly with a business, you typically have greater access to subject matter experts on the topics you are writing about. In addition to making it easier to get information as mentioned above, I have also found that I have many more opportunities to ask questions about the subjects I am writing about and really gain a higher level of expertise in the niche.
  • More opportunity to participate in content marketing strategy. I love being able to plan an editorial calendar, work on audience personas, plan social media strategy, and be involved with tracking metrics. But agencies typically handle these tasks and freelancers are usually not involved, unless you are really lucky or hired for a strategy role by an agency. When working directly for a business, you typically have more opportunity to learn about strategy and be involved in tasks other than writing.

 

What are the pros and cons for working with both agencies and businesses? Which do you prefer? Let’s discuss.

10 Comments

  1. Elizabeth on January 14, 2016 at 4:47 pm

    I could not agree more with all of your assessments here. I love working with agencies and often make a higher hourly rate on agency work than I make working directly with a brand. Why? Because agencies have already spent time developing the client’s content calendar. The agency sends me a detaed creative brief that contains all my marching orders. I need only write. I have one agency client that nets me nearly $400 per hour due to my not having to confab with the end client and hash out the current month’s assignments. Oh, yes. I love working with agencies.



    • Jennifer on January 15, 2016 at 10:47 am

      Hi Beth,

      I’m so glad to hear you say that you have found thing. Sometimes I feel like I’m the only writer who has that perspective. I often think that writers don’t realize that they are comparing apples to pears in terms of workload and just look at the rate. I also think that many writers don’t focus on hourly rate when determining if they should take a job. Wow, $400 an hour! That is great. I have a few that I’ve come close to that rate, but never gotten quite that high per hour.



  2. Jessica on January 16, 2016 at 9:36 am

    Found myself nodding throughout this post! In my experience, I also tend to prefer working for agenceis—I’m making more and my stress level is lower because I don’t have to manage everything. I’m working for an agency in the financial realm right now and they do allow me to connect directly with their clients and feel part of a team. And the pay is excellent! Right, I always heard that agencies would pay less than direct clients, but I’m happy to find that’s not always true. It saves me so much stress because I don’t have to be the one negotiating the rates, and I have someone who is setting boundaries with the client on my behalf. Like you, I am fairly sensitive and try to avoid working with jerky people. I’ve had a huge shift in the past few months of my career from mainly magazine writing to content marketing (with still some mag writing sprinkled in), and my income has taken a dramatic leap. So glad to have found this blog—I’ve already read back through several posts and found lots of helpful info. I’ve subscribed and look forward to following along with you! 🙂



  3. Jennifer on January 16, 2016 at 8:49 pm

    HI Jessica, Welcome to the blog. I am so glad you are here and are finding the content helpful. Your kind words made my day. Congratulations on your increase in income! That is AWESOME!

    I totally agree that agencies where you work with the client’s as well and are made to feel part of the team is the ideal project. And yes, life is too short to work with jerky people.

    Let me know if you have any questions or any specific topics you want me to address in future posts! I hope you hang around!



  4. Mark Armstrong on December 30, 2016 at 6:50 pm

    Another benefit of working for a direct client: once you’ve built some trust and credibility, they may invite you to pitch ideas.

    Great comparison and assessment– many thanks for sharing.



    • Jennifer Goforth Gregory on December 30, 2016 at 9:31 pm

      Absolutely! I have found exactly the same thing. I am glad you found this post helpful!



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  8. Stephanie Mickelson on February 20, 2023 at 11:11 am

    Yes! I am starting to actively look for more agency clients. I have a mix of direct and agency at the moment and I love both. But I’ve realized that my agency client (through Upwork, no less), is a significant chunk of my income and while they don’t pay as much per post, they are very easy which actually nets me about the same as my higher paying projects.

    I loved seeing the pros and cons of both in this post!