What You Need to Know About Being a Subcontractor for Online Agencies
We’re switching things up in our blog this month… because agency owners this one is NOT for you!
Instead, we’re talking to the online service providers and done-for-you specialists who are wondering what it could be like to work WITHIN an agency as a team member or subcontractor.
As the CEO of a launch management agency, as well as a coach for online agency owners, I can tell you that one of our biggest pain points is hiring.
Agency owners are looking for team members who:
Can show up as the expert in their specialty
Don’t need to be micromanaged and takes initiative
Value longevity with an agency
Is a good culture fit within their team
Understands what subcontracting does and does not entail
Now, if you were completely onboard until you read that last bullet point… HOLD UP and KEEP READING. Because by the time you’ve finished reading this blog post you’re going to:
Understand what subcontracting is
The pros and cons of being a subcontractor for agencies
What an acceptable compensation amount is for subcontractors
And you’ll gain a better understanding of why I teach an extensive multi-step hiring process to the agency owners inside my program.
Let’s dive in!!
Join the Agency Subcontractor Virtual Job Fair Waitlist
If you’re an agency owner looking to grow your team, or a service provider hoping to add a new client to your roster - Join us for our next job fair in 2025 and make dozens of connections with agency owners and subcontractors alike. It’s a job fair unlike any other! Think group speed dating without the awkward hug at the end!
Join the waitlist and be the first to know when we open the doors for our next job fair!
Question 1: What is a subcontractor?
This is a great question, and one that I get ALL the time in my DMs on Instagram.
One of the most common misunderstandings I hear is, “aren’t subcontractors and contractors the same thing?” Short answer is no, and let me explain the differences as I explain them to my coaching clients.
A contractor is hired to support an entrepreneur directly. So, if you’re hired as a social media manager to manage the agency’s platforms and create content promoting the agency’s services, then you are a contractor.
A subcontractor is hired to work with the agency’s clients. For example, if you were hired by a copywriting agency, as a subcontractor you will be writing emails or page copy for the clients that the agency has acquired and then paired you with.
Make sense? Yes, yes?
Question 2: What are the pros and cons of subcontracting for an agency?
While I know MANY service providers who love working for agencies, I also know that… subcontracting isn’t for everyone.
If you like being the boss, sticking only to your own systems and processes, and will only accept $75+/hour for your services… that’s awesome - but being a subcontractor isn’t the right path for you.
Let’s get the cons out of the way first -
CON #1: While you are not an employee, you will still be required to abide by certain expectations, as you are a representation of the agency, and follow their standard operating procedures, which may be different from how you run your own business.
Hot Tip: Ask what about their unique processes and their expectations during an interview and really knock their socks off! This is a great way for you to also know if you’re a good fit for the agency.
CON #2: A subcontractor’s hourly rate is less than how much you would typically charge as a contractor. We will discuss this more in depth later on in the blog, so keep reading!
CON #3: You don’t get to choose your clients. As an entrepreneur, you have the right to be as picky as you want when it comes to choosing the clients you want to work with. This won’t be the case as a subcontractor. The CEO and their leadership team is responsible for lead generation and will assign you to the project if they believe you would be a good fit for the client.
Now let’s move onto the benefits of being a subcontractor! Because while as a subcontractor you may not get “typical” benefits, like an employee would, agency owners want you to LOVE working for them so you stick around!
PRO #1: A great way to get more experience quickly. Subcontracting is a perfect opportunity for those who are newer service providers and grow in confidence and experience. Instead of having to problem solve and improve completely on your own or with Google, you often can seek advice from managers or the CEO of the agency.
PRO #2: When you work as a subcontractor, you become a part of a team! This was the #1 thing I missed when I left corporate. Being an online business owner can get kind of lonely.
At The Launch Guild we have a team channel in Slack where we share about what’s going on in our personal lives, check-in with one another, give shoutouts, and celebrate birthdays and anniversaries. We also do quarterly happy hours and other fun ways to connect outside of client work.
PRO #3: In addition to fun events with my team, I am also a huge advocate for continuing education. Depending on the agency owner, they may conduct in-house trainings or invite a guest speaker to do a training for the team. And some agency owners may even offer financial support for you to participate in a course or certification to help you grow.
PRO #4: You’re not responsible for securing new clients. Maybe you hate marketing your services, or you don’t have enough experience to attract your ideal client yet - as a subcontractor you can rely on the reputation the CEO has to attract clients. Then YOU have the freedom to do what you truly love!
PRO #5: Flexible Hours. Because you are not an employee, you are not required to work typical work day hours. While there may be team or client meetings you will be required to attend during the day, you are still in full control of your hours, when you work and where you work. So if you work best in the very early mornings or very late at night - YOU get to choose!
🎧 Related Podcast Episode: Why You Didn’t Get Hired and What You Can Do About It
Here's a hard reality, you're not going to get 100% of the roles you put yourself out there for! When a potential client reaches out to us or we fill out their hiring application and then DON'T get the job...ouch! That can sting! However, just because you didn’t get hired this time doesn’t mean you can’t improve for next time. There are plenty of ways to improve both your skillset and how you showcase your qualifications before your next discovery call or interview.
As the CEO of my own company, I know a thing or two about the hiring process. I’m going to share with you what I look for in potential new team members.
Question 3: How much can I charge as a subcontractor?
I want to let you in on a little secret. When potential clients are researching who they want to hire for a specific project or ongoing support - an agency will never be the cheapest option.
When agency owners are deciding how to price their services, there is a lot of math involved. Not only do they need to determine how much of that revenue will go toward paying team members, and then themselves - but there’s also overhead costs that need to be considered.
So once all the numbers have been calculated, agency owners need to decide on a price that makes a profit… while also choosing a price that is competitive and potential clients can afford.
What does that mean for you? Well, it means that agency owners simply can’t afford to pay exorbitant hourly rates for subcontractors. Based on the information we’ve collected from agency owners attending our job fair events, on average the average subcontractor rates they’re looking for are between $20 - $40/hour.
While this hourly rate may be a cut from what you normally change, remember to consider all of the other benefits you get from working with an agency. Because most of the time, the value of those benefits make up for the reduced rate.
🎧Related Podcast Episode: What Even IS An Agency Model Business?!
If after reading this article, you’ve become intrigued by the idea of an agency model business, give this podcast episode a listen! You’ll learn why I decided to start my agency, The Launch Guild, the difference between an agency and a “team,” the pros and cons of agency ownership, and so much more!
Question 4: Why is the hiring process for agency owners so extensive?
I have heard from many of the agency owners I coach, that when they begin the hiring process, subcontractors will ask… “Why do I have to go through such an extensive interview process when this role is just a subcontractor role?”
Answer: Subcontractors are what make up a majority of the team within an online agency. So while you may not be an employee, it’s still just as important that an agency owner is bringing on team members who a) know what they’re doing and b) are a good culture fit for their agency.
Inside my coaching programs, I encourage agency owners to develop a multi-step hiring process which includes at minimum:
An initial application
A secondary application
An interview
A test project
If you’re applying for a subcontractor position within an agency, and the hiring process feels extensive, consider that a big GREEN flag! Because what this tells you is this agency owner is taking the time to hire team members proactively, wants to get this right, and cares about her team.
I hope by reading this blog you have a deeper understanding of what a subcontractor is, and what the expectations are for both the subcontractor AND the agency owner who’s hiring them.
Think subcontracting for an online agency is something you want to explore?
Join us for our next Agency Subcontractor Virtual Job Fair. As a subcontractor you’ll have the opportunity to meet and connect with at least 10 - 20 agency owners who are interested in hiring someone with your specific skill set! Get on the waitlist and be the first to know when registration re-opens.
Let’s Stay Connected
If you’re ready to get out of the doing in your online business, and ready to begin exploring the possibilities of an online agency model, I have lots of good resources to help you on your journey. I encourage you to check out my How She Did That podcast, and my Shop full of mini-courses and trainings!
Send me a DM on Instagram with any questions you have about agency ownership! @thetashabooth
- Tasha Booth, Agency Coach & Owner of The Launch Guild
Tasha Booth is an agency owner, podcaster, coach. She is the Founder & CEO of The Launch Guild - a full service launch support agency working with established coaches and course creators with Course & Podcast Launches. Her team works together to support their clients in being able to focus back onto their zones of genius.
She is passionate about helping women build profitable and sustainable agencies that they love, so they can fully step into the CEO role and create a life they dream of - one where naps are ALWAYS encouraged.
