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Is investing in a product design agency cost effective?

Product Design Agency
Product Design Agency

Product Design

Design Agency

Cost Effective Design

Product Design Agency

Design ROI

Product Design

Design Agency

Cost Effective Design

Product Design Agency

Design ROI

Written by:

8 min read

Updated on: July 5, 2024

Toni Hukkanen

Head of Design

Creative Direction, Brand Direction

Toni Hukkanen

Head of Design

Creative Direction, Brand Direction

Planning a fresh product or a new design can feel like juggling flaming torches—thrilling at first until you realise there’s only so much time (and sanity) in a day. Design covers everything from mobile apps to animation, and no single person can possibly excel at all of it. That’s when you bring in the specialists.

As you sift through portfolios, you’ll quickly spot two paths: freelancers working solo or full-blown agencies backed by entire squads of experts. The price tags can range from a few hundred to tens of thousands, which naturally prompts the question, “Whose hands should I trust with my brand’s next big step?” Let’s run through the pros and cons of each option so you can decide which best fits your needs.

Planning a fresh product or a new design can feel like juggling flaming torches—thrilling at first until you realise there’s only so much time (and sanity) in a day. Design covers everything from mobile apps to animation, and no single person can possibly excel at all of it. That’s when you bring in the specialists.

As you sift through portfolios, you’ll quickly spot two paths: freelancers working solo or full-blown agencies backed by entire squads of experts. The price tags can range from a few hundred to tens of thousands, which naturally prompts the question, “Whose hands should I trust with my brand’s next big step?” Let’s run through the pros and cons of each option so you can decide which best fits your needs.

What is a product design agency and what does it do?

What is a product design agency and what does it do?

A product design agency is a specialised creative organisation dedicated to boosting the visual appeal and user experience of products or services. Alongside design itself, agencies often tackle marketing strategy and public relations for their clients. In simpler terms, they assemble an all-star team of professionals ready to ensure your product looks great and resonates with your audience. Below are just a few typical agency contributions.

1. Observing the market and competitors

A design agency generally begins with research calls and planning sessions that identify your goals, audience, and any quirks in your sector. By understanding potential customer behaviour and keeping tabs on competitors, they can craft the right design and messaging.

2. Mapping the customer path

They’ll often develop a “customer path map” (rather than that overused J-word) to show how people might interact with your product. This lets them spot trouble areas and refine the approach before anyone wastes time or money on poor design choices.

3. Building wireframes

Think of wireframes as the skeleton of your digital product’s interface. Agencies sketch out these layouts to demonstrate structure and key functions, allowing you to catch any design flaws early on.

4. Creating conceptual designs

After wireframing, the agency tests possible looks and feels for your product. Mockups and prototypes help everyone picture the outcome before any major development work begins.

5. Working with other experts

When you hire an agency, you’re also indirectly hiring their network of specialists—marketers, writers, programmers, and so on. They collaborate as needed to ensure your new product not only looks sharp but also meets search engine criteria, accessibility standards, and marketing goals.

6. Overseeing the entire project

A project manager typically keeps tasks on track and communicates updates, giving you a single point of contact rather than chasing multiple freelancers. This structured workflow tends to deliver results on schedule and at consistent quality.

In short, an agency brings creativity, strategy, and technical skill to the table. But does that mean freelancers can’t do it too? Let’s weigh up the possibilities.

A product design agency is a specialised creative organisation dedicated to boosting the visual appeal and user experience of products or services. Alongside design itself, agencies often tackle marketing strategy and public relations for their clients. In simpler terms, they assemble an all-star team of professionals ready to ensure your product looks great and resonates with your audience. Below are just a few typical agency contributions.

1. Observing the market and competitors

A design agency generally begins with research calls and planning sessions that identify your goals, audience, and any quirks in your sector. By understanding potential customer behaviour and keeping tabs on competitors, they can craft the right design and messaging.

2. Mapping the customer path

They’ll often develop a “customer path map” (rather than that overused J-word) to show how people might interact with your product. This lets them spot trouble areas and refine the approach before anyone wastes time or money on poor design choices.

3. Building wireframes

Think of wireframes as the skeleton of your digital product’s interface. Agencies sketch out these layouts to demonstrate structure and key functions, allowing you to catch any design flaws early on.

4. Creating conceptual designs

After wireframing, the agency tests possible looks and feels for your product. Mockups and prototypes help everyone picture the outcome before any major development work begins.

5. Working with other experts

When you hire an agency, you’re also indirectly hiring their network of specialists—marketers, writers, programmers, and so on. They collaborate as needed to ensure your new product not only looks sharp but also meets search engine criteria, accessibility standards, and marketing goals.

6. Overseeing the entire project

A project manager typically keeps tasks on track and communicates updates, giving you a single point of contact rather than chasing multiple freelancers. This structured workflow tends to deliver results on schedule and at consistent quality.

In short, an agency brings creativity, strategy, and technical skill to the table. But does that mean freelancers can’t do it too? Let’s weigh up the possibilities.

What does a freelancer do?

A freelancer is the industry’s lone wolf—self-reliant, flexible, and often well-suited to smaller tasks or tight budgets. If you’re a startup on limited funds, freelancers can be especially appealing. You might only need a single specialised skill (say, top-notch illustration or UI design), and that’s where freelancers shine. However, if you require a broader approach—covering design, coding, marketing, and more—collaborating with just one person may not be enough.

A freelancer is the industry’s lone wolf—self-reliant, flexible, and often well-suited to smaller tasks or tight budgets. If you’re a startup on limited funds, freelancers can be especially appealing. You might only need a single specialised skill (say, top-notch illustration or UI design), and that’s where freelancers shine. However, if you require a broader approach—covering design, coding, marketing, and more—collaborating with just one person may not be enough.

Should you hire a freelancer or a design agency?

If you’re unsure which path to take, ask yourself a few questions:

1. What’s my budget?

Freelancers usually cost less—one person with a home office is cheaper than a full agency. But if your project is complex, remember you may have to hire multiple freelancers for different tasks, which can rack up costs.

2. How tight are my deadlines?

An agency usually has more manpower to handle fast turnarounds. A freelancer might be speedy too, but if they’re juggling multiple clients or life circumstances, you could experience delays.

3. How broad are my needs?

If you just want a quick design revamp, a freelancer might suffice. But if you need a complete package—design, strategic advice, marketing, and user experience—a diverse agency team could save you massive headaches.

4. Do I want direct oversight or a packaged service?

Going with one freelancer often allows for more personal attention, but an agency offers a project manager and a bigger skill range. You’ll sacrifice a bit of day-to-day control yet gain overall project stability.

If you’re unsure which path to take, ask yourself a few questions:

1. What’s my budget?

Freelancers usually cost less—one person with a home office is cheaper than a full agency. But if your project is complex, remember you may have to hire multiple freelancers for different tasks, which can rack up costs.

2. How tight are my deadlines?

An agency usually has more manpower to handle fast turnarounds. A freelancer might be speedy too, but if they’re juggling multiple clients or life circumstances, you could experience delays.

3. How broad are my needs?

If you just want a quick design revamp, a freelancer might suffice. But if you need a complete package—design, strategic advice, marketing, and user experience—a diverse agency team could save you massive headaches.

4. Do I want direct oversight or a packaged service?

Going with one freelancer often allows for more personal attention, but an agency offers a project manager and a bigger skill range. You’ll sacrifice a bit of day-to-day control yet gain overall project stability.

Pros and cons of hiring freelancers

Freelancers are quite efficient in completing projects but hiring them always comes with some risks. Here are some pros and cons of hiring a freelancer for a product design project:

Pros

Less expensive

If you’re pinching pennies, freelancers often come at a friendlier rate. They work from their own setups and don’t carry the overhead of an office or large support team.

Flexible schedules

Freelancers often adapt their work hours to fit your timetable. They can also be swift problem-solvers for smaller tasks if you’re in a hurry.

Niche expertise

Some freelancers have developed razor-sharp skills in a specific area (like UX animations or brand illustrations). If that’s exactly what you need, you’re in luck.

Personal involvement

You’ll often communicate directly with the designer, minimising “telephone game” misinterpretations. This can lead to a closer working relationship.

Cons

Limited skill range

A single freelancer, however talented, can’t handle every aspect of a large-scale product overhaul. If you require SEO, email marketing, copywriting, and design all at once, you’ll end up hiring multiple people.

Dependence on one person

A single freelancer might be unavailable due to illness or personal emergencies, leaving your project in limbo. Worse yet, some freelancers simply vanish without notice (it happens).

Potential gaps in accountability

If they miss a deadline or produce work below your expectations, there’s no backup person to step in. You’ll have to negotiate or chase them down yourself.

Freelancers are quite efficient in completing projects but hiring them always comes with some risks. Here are some pros and cons of hiring a freelancer for a product design project:

Pros

Less expensive

If you’re pinching pennies, freelancers often come at a friendlier rate. They work from their own setups and don’t carry the overhead of an office or large support team.

Flexible schedules

Freelancers often adapt their work hours to fit your timetable. They can also be swift problem-solvers for smaller tasks if you’re in a hurry.

Niche expertise

Some freelancers have developed razor-sharp skills in a specific area (like UX animations or brand illustrations). If that’s exactly what you need, you’re in luck.

Personal involvement

You’ll often communicate directly with the designer, minimising “telephone game” misinterpretations. This can lead to a closer working relationship.

Cons

Limited skill range

A single freelancer, however talented, can’t handle every aspect of a large-scale product overhaul. If you require SEO, email marketing, copywriting, and design all at once, you’ll end up hiring multiple people.

Dependence on one person

A single freelancer might be unavailable due to illness or personal emergencies, leaving your project in limbo. Worse yet, some freelancers simply vanish without notice (it happens).

Potential gaps in accountability

If they miss a deadline or produce work below your expectations, there’s no backup person to step in. You’ll have to negotiate or chase them down yourself.

Pros and cons of working with a design agency

To avoid the consequences of hiring a freelancer, you can hire a product design agency for better results. But it also comes with some benefits and a few drawbacks.

Pros

A full range of skills

An agency gathers specialists in design, marketing, content, and more under one roof. That team synergy typically makes large or complex projects run more smoothly.

Extensive portfolio

Agencies often have an established history and a client list to prove their competence. By browsing previous projects, you’ll see what sort of design approaches they’ve used—and whether they suit your brand.

Consistent quality

A reputable agency prides itself on delivering reliable results. They’re used to bigger challenges and often have protocols in place to maintain high standards.

Professional Workflow

Agencies typically appoint a project manager to handle schedules, quality checks, and communication. You’re less likely to feel out of the loop.

Cons

Higher cost

If your budget is especially tight, an agency might feel out of reach. Their fees cover everything from office expenses to salaries and marketing. That said, many agencies offer package deals that might be more reasonable than you’d expect.

Less direct attention

Because they juggle multiple clients, your project won’t always be an agency’s sole priority. You’ll likely communicate through an account or project manager instead of speaking directly with the designer every time.

To avoid the consequences of hiring a freelancer, you can hire a product design agency for better results. But it also comes with some benefits and a few drawbacks.

Pros

A full range of skills

An agency gathers specialists in design, marketing, content, and more under one roof. That team synergy typically makes large or complex projects run more smoothly.

Extensive portfolio

Agencies often have an established history and a client list to prove their competence. By browsing previous projects, you’ll see what sort of design approaches they’ve used—and whether they suit your brand.

Consistent quality

A reputable agency prides itself on delivering reliable results. They’re used to bigger challenges and often have protocols in place to maintain high standards.

Professional Workflow

Agencies typically appoint a project manager to handle schedules, quality checks, and communication. You’re less likely to feel out of the loop.

Cons

Higher cost

If your budget is especially tight, an agency might feel out of reach. Their fees cover everything from office expenses to salaries and marketing. That said, many agencies offer package deals that might be more reasonable than you’d expect.

Less direct attention

Because they juggle multiple clients, your project won’t always be an agency’s sole priority. You’ll likely communicate through an account or project manager instead of speaking directly with the designer every time.

Why are agencies better than freelancers?

For businesses with a sizable project—or if you just prefer a “one-stop shop”—an agency can be the wiser option. Since the team includes various specialists, you won’t have to scramble to find separate people for each new phase. The agency also accepts full responsibility for the work, so you won’t end up coordinating multiple freelancers or managing competing schedules.

Agencies typically have structured processes for legal matters as well, making contracts and confidentiality agreements more straightforward. If you’re building a high-profile website or digital platform, comprehensive support from an agency can provide real peace of mind. Even though the initial price tag might seem high, the time you save can be priceless.

For businesses with a sizable project—or if you just prefer a “one-stop shop”—an agency can be the wiser option. Since the team includes various specialists, you won’t have to scramble to find separate people for each new phase. The agency also accepts full responsibility for the work, so you won’t end up coordinating multiple freelancers or managing competing schedules.

Agencies typically have structured processes for legal matters as well, making contracts and confidentiality agreements more straightforward. If you’re building a high-profile website or digital platform, comprehensive support from an agency can provide real peace of mind. Even though the initial price tag might seem high, the time you save can be priceless.

How to hire a product design agency?

So, you’ve decided an agency is the way to go. How do you find the right one? Here’s a step-by-step plan for scouting and hiring without the guesswork:

  1. Pin down your needs: First, clarify your project goals. Are you after a rebrand, an e-commerce site, or an app design? Different agencies excel in different areas, so be specific.

  2. Do your research: Compile a shortlist of agencies that specialise in the service you need. Check online directories, ask for referrals from colleagues, or look for endorsements from industry insiders.

  3. Look into their portfolios: An agency’s past work tells you a lot about their style and creativity. You can also see if they’ve handled a product or sector similar to yours.

  4. Assess their understanding of your sector: If your project is in fintech, fashion, healthcare, or anything else with particular requirements, ask them if they’ve tackled similar challenges. An agency that already speaks your industry’s language can save time (and headaches).

  5. Schedule a Meeting: Get to know the team via video call or face-to-face if possible. Ask how they approach deadlines, handle project changes, and manage communication. Will you have a weekly check-in? Are they quick to respond to emails?

  6. Discuss Timelines and Deliverables: Ensure everyone’s on the same page about deadlines, version reviews, and any additional services (like marketing or SEO). The more transparent you are at this stage, the fewer surprises later on.

  7. Check the Contract: Before signing, pay attention to intellectual property ownership, confidentiality terms, and payment schedules. If you see anything unclear, ask about it until you’re satisfied.

  8. Keep communication going: Once the project begins, organise regular check-ins. Many agencies use management tools like Asana or Trello, letting you view progress and give feedback in real-time.

  9. Track progress: Don’t vanish until the final deliverable. Stay involved, request timely updates, and confirm milestones have been met. This helps the agency catch any flaws before launch.

  10.  Evaluate final results: When the design is finished, measure its success against the aims you set out at the start. If you’re pleased with the outcomes, consider offering a testimonial or referral—this helps both you and them build a positive relationship.

So, you’ve decided an agency is the way to go. How do you find the right one? Here’s a step-by-step plan for scouting and hiring without the guesswork:

  1. Pin down your needs: First, clarify your project goals. Are you after a rebrand, an e-commerce site, or an app design? Different agencies excel in different areas, so be specific.

  2. Do your research: Compile a shortlist of agencies that specialise in the service you need. Check online directories, ask for referrals from colleagues, or look for endorsements from industry insiders.

  3. Look into their portfolios: An agency’s past work tells you a lot about their style and creativity. You can also see if they’ve handled a product or sector similar to yours.

  4. Assess their understanding of your sector: If your project is in fintech, fashion, healthcare, or anything else with particular requirements, ask them if they’ve tackled similar challenges. An agency that already speaks your industry’s language can save time (and headaches).

  5. Schedule a Meeting: Get to know the team via video call or face-to-face if possible. Ask how they approach deadlines, handle project changes, and manage communication. Will you have a weekly check-in? Are they quick to respond to emails?

  6. Discuss Timelines and Deliverables: Ensure everyone’s on the same page about deadlines, version reviews, and any additional services (like marketing or SEO). The more transparent you are at this stage, the fewer surprises later on.

  7. Check the Contract: Before signing, pay attention to intellectual property ownership, confidentiality terms, and payment schedules. If you see anything unclear, ask about it until you’re satisfied.

  8. Keep communication going: Once the project begins, organise regular check-ins. Many agencies use management tools like Asana or Trello, letting you view progress and give feedback in real-time.

  9. Track progress: Don’t vanish until the final deliverable. Stay involved, request timely updates, and confirm milestones have been met. This helps the agency catch any flaws before launch.

  10.  Evaluate final results: When the design is finished, measure its success against the aims you set out at the start. If you’re pleased with the outcomes, consider offering a testimonial or referral—this helps both you and them build a positive relationship.

Final Thoughts

A freelancer can be great for small projects or a direct, one-on-one approach. But if you want a team of experts working under a proven system—especially for larger, more complex tasks—a product design agency usually delivers bigger wins with fewer headaches. Yes, it costs more, but the long-term payoff in cohesive branding, polished design, and reliable support often makes it well worth the investment. Just keep your goals in focus, do your homework, and stay communicative.

A freelancer can be great for small projects or a direct, one-on-one approach. But if you want a team of experts working under a proven system—especially for larger, more complex tasks—a product design agency usually delivers bigger wins with fewer headaches. Yes, it costs more, but the long-term payoff in cohesive branding, polished design, and reliable support often makes it well worth the investment. Just keep your goals in focus, do your homework, and stay communicative.

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Work with us

Click to copy

work@for.co

FOR® Agency

Design Trial
Coming soon

FOR® Industries

Retail
Finance
B2B
Health
Wellness
Consumer Brands
Gaming
Industrial

We’re remote-first — with strategic global hubs

Click to copy

Helsinki, FIN

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Click to copy

New York, NY

ny@for.co

Click to copy

Miami, FL

mia@for.co

Click to copy

Dubai, UAE

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Click to copy

Kyiv, UA

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Click to copy

Lagos, NG

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Copyright © 2024 FOR®

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