Freelancers are the cheapest per hour, but you carry the project management and the risk. An in-house team gives the most control and costs the most, and takes months to hire. An agency costs more per hour than a freelancer but delivers a whole team, a fixed scope and accountability. For a first product, most non-technical founders are best served by an agency, often paired with a fractional CTO.
Prices are in US dollars. Euro and pound figures in parentheses are approximate, rounded conversions. Quotes are issued in the currency of your contract.
Once you have a budget in mind, the next question is who should spend it. Founders usually compare three options: hire freelancers, hire employees, or hire an agency. Each is right for someone. The mistake is choosing on hourly rate alone, because the hourly rate is the smallest part of the difference.
How do the three options compare?
| Freelancer | In-house team | Agency | |
|---|---|---|---|
| Typical 2026 cost | $30 to $100 per hour (€25 to €85 per hour, £20 to £75 per hour) depending on region and seniority | $100,000 to $180,000 per year (€85,000 to €155,000 per year, £75,000 to £135,000 per year) per senior engineer in the US, plus 20 to 30 percent overhead, plus recruiting | $50 to $150 per hour (€45 to €130 per hour, £35 to £110 per hour) blended, higher in New York and London, lower with a nearshore delivery hub |
| What you get | One person, one skill set, part of their week | Full control, full-time focus, knowledge stays in the company | A complete team: project manager, designer, developers, QA, with a process already in place |
| Time to start | Days | Two to four months to hire a first engineer | One to three weeks |
| Who manages the project | You | You, or a CTO you also have to hire | The agency, with you as decision maker |
| Main risk | Availability, single point of failure, no one checking the work | Cost before there is revenue, wrong first hire | Choosing the wrong agency, lock-in if the code is not yours |
| Best for | Prototypes, small additions, founders with technical judgement | Funded companies with a product that is already proven | First products, fixed budgets, founders who are not technical |
What does a freelancer really cost?
A skilled freelancer at $60 per hour (€50 per hour, £45 per hour) looks like the obvious choice next to an agency at $100 per hour (€85 per hour, £75 per hour). The gap closes quickly. Someone has to write the specification, design the screens, review the code, test the product, set up the infrastructure and coordinate when the freelancer is unavailable. If that someone is you, and you are not technical, each of those steps is either skipped or done slowly. If you hire a second freelancer to cover the gap, you are now managing a team without the tools to manage it.
Freelancers are excellent for a defined piece of work with a technical person reviewing it. They are a risky way to build a whole first product.
What does an in-house team really cost?
An in-house team is the right long-term answer for a company with a proven product and revenue. It is an expensive way to find out whether the product works. Before the first line of code you need to recruit, which takes months and money, and the first engineer you hire is making architecture decisions you cannot evaluate. Salaries continue whether or not the product is progressing, and if the idea changes, the skills you hired for may not match.
Many of our clients build in-house teams later, and we help them do it. We rarely recommend it as the way to build version one.
What does an agency really cost?
An agency charges a higher blended rate because the rate includes the people a freelancer does not bring: a project manager, a designer, a QA engineer and someone senior reviewing the architecture. The price you pay for a fixed scope covers all of that. The number to compare is not rate against rate but total cost to a working product, and on that comparison a good agency is usually cheaper than a freelancer project that went wrong or a team hired too early.
The risk with agencies is picking the wrong one. Look for fixed scope and timeline after discovery, ownership of the code and infrastructure in your name, regular demos, and references from founders in a similar position to yours.
Is there a fourth option?
Yes, and it is often the best one for a non-technical founder: a fractional CTO or technical advisor for a few hours a week, plus an agency for delivery. The advisor represents your interests, helps evaluate proposals, reviews architecture and later helps you hire in-house. The agency builds. You get technical judgement without a technical salary.
Where does 7L fit?
We are an agency with hubs in New York, London and Athens, which lets us pair senior client-facing people with cost-efficient delivery. We commit to fixed scope and timeline after discovery, the code and infrastructure belong to you from day one, and through the Startupper Program we also provide the advisory role many founders would otherwise have to hire. If you are weighing these options for your own product, tell us where you are and we will give you a straight answer about which one fits, even if it is not us.
Frequently asked questions
Is it cheaper to hire developers overseas?
Hourly rates are lower in many regions, and quality can be excellent. The cost that matters is communication and management. A team with senior people in your time zone and delivery elsewhere often gives the best balance, which is how our own hubs are organized.
Should I give a developer equity instead of paying?
Equity is expensive money and it does not buy accountability. Sweat-equity arrangements with a technical cofounder can work when there is a real partnership. Paying a freelancer or agency in equity rarely does.
Who owns the code when an agency builds my app?
You should, in writing, from the start. Check that the contract assigns intellectual property to you and that the repositories, cloud accounts and app store accounts are in your company's name.
When should I move from an agency to an in-house team?
When the product is proven, revenue or funding is stable, and there is enough continuous work to keep a team busy. A good agency will help you make that transition rather than resist it.
Can I start with a freelancer and switch to an agency later?
You can, and it is common. Expect the agency to spend the first weeks reviewing and possibly reworking what was built, so keep the freelancer phase small and well documented.