Operations

UGC agency vs freelance creators: which should you hire?

Freelancers can cost less per video. An agency takes the work off your desk. The right answer depends on who on your team will do the managing.

By Creative strategy, Ad Army

Published Updated 5 min read

Two paths to UGC ads: a busy freelance path with sourcing, briefs, shipping and invoices, and a managed path where one request returns finished videos
Illustration: going direct puts the management work on your desk; a managed service takes one request and returns finished ads.

Three ways to get UGC made

Most brands end up choosing between three setups. They differ less in the videos than in who does the work around them.

ItemFreelance creators, directSelf-serve platformAgency or managed service
Who finds creatorsYouYou, from a marketplaceThe agency
Who writes the briefYouYouUsually the agency, from your request
Who chases late draftsYouYou, with platform toolsThe agency
Who edits into adsYou or the creatorVariesUsually the agency
Rights paperworkYou draft itPlatform termsAgency terms
How you payPer creator, per dealPlatform pricing plus creator feesAgency pricing
Grid comparing freelance creators, a self-serve platform and an agency across finding creators, briefing, chasing drafts, editing and rights, marking who does each task (opens the full-size image in a new tab)
The videos can be similar; who does the work around them is what differs.

Self-serve platforms sit in the middle. They make finding creators and paying them easier, but the brief, the review and the chasing usually stay with you. If your main problem is finding creators, a platform can be enough. If your main problem is time, it usually isn't.

The same goes for getting ads for TikTok or Reels specifically. The platform doesn't change the work: someone still has to cast, brief, review and edit. What changes is the format you ask for, and whether you also want to run the ad from the creator's handle, which always needs the creator's permission.

What hiring freelancers directly involves

Going direct gives you the most control and often the lowest rate per video. It also makes you the production manager. The work usually includes:

  1. Finding creators whose style fits, and checking they deliver on time
  2. Writing a brief that can't be misread, and agreeing on revisions
  3. Shipping product and tracking who has it
  4. Drafting an agreement that covers rights and disclosure
  5. Reviewing drafts, sending notes and chasing the ones that go quiet
  6. Paying each creator and keeping tax records

Two pieces of paperwork catch people out. Under US copyright law, a commissioned video is not automatically yours: the Copyright Office's Circular 30 explains that a commissioned work counts as made for hire only in specific categories and with a written agreement signed by both parties, so you need the rights spelled out in writing. And paying US creators as contractors can mean filing Form 1099-NEC with the IRS for those paid above the IRS reporting threshold. Ask your accountant how the rules apply to you.

If creators keep missing deadlines, our guide to what to do when UGC creators ghost you covers how to handle missed deadlines.

What an agency is really charging for

An agency's price includes the creator's fee plus the management work above. Before you compare, separate the two:

  • Casting and contracting: someone else finds, vets and signs the creators
  • Briefing and quality control: drafts are checked before they reach you
  • Replacement risk: if a creator drops out, finding another is the agency's problem
  • Editing: you get ads, not a folder of clips
  • Rights: one set of terms instead of one per creator

What you give up is direct contact. Some agencies keep creators at arm's length, so if building long-term relationships with named creators matters to your brand, that is a real cost.

The costs people forget on each side

  • Freelance: your team's hours for sourcing, briefing, chasing and paying
  • Freelance: product shipped to creators who never deliver
  • Freelance: separate fees for paid usage, whitelisting and extra revisions
  • Agency: subscriptions, minimums or retainers you pay in slow months
  • Agency: any percentage of your sales or ad spend
  • Both: videos you pay for but can't run

Our comparison of managed UGC vs managing creators in-house includes a simple way to estimate the hours. As an illustration only: 3 hours per video, 10 videos a quarter and a $50 hourly cost is $1,500 of team time on top of the creator fees.

Which one fits your brand

Your situationUsually the better fit
You need 1 to 3 videos and have a marketer with spare timeFreelance creators
You want long-term relationships with named creatorsFreelance creators
You need a steady flow of ads for testingAgency or managed service
Nobody on the team owns creator managementAgency or managed service
You need TikTok or Meta ads without managing anyoneAgency or managed service
Decision flow: if someone has time to manage creators and you want named relationships, go freelance; if you need steady ad volume and nobody owns creator management, use a managed service (opens the full-size image in a new tab)
Two questions settle most cases: who has the hours, and do you need named creators.

A useful test: if the person who would manage creators is also the person running your ads, their hours are expensive. That is where an agency is most likely to be worth its price.

Whichever you choose, run a small first batch and judge it on the same measure: how many of the videos you paid for actually ran as ads, and what each of those cost you in money and hours. That single number makes a second round of decisions much easier.

Where Ad Army fits

Ad Army is a fully managed UGC service. You submit one request; we cast creators from our own roster, brief, contract and pay them, and send back finished, captioned ads. You leave timestamped notes and revisions continue until you approve. Each video is a flat price, billed only when you approve it, with full rights included and 0% of your sales or ad spend. Creators stay anonymous to brands, so it is not the right fit if you want to build named creator relationships. See what each format costs.

FAQ

  • Is a UGC agency more expensive than freelancers?

    Often per video, because the price includes management. Add your team's hours, shipping, separate rights fees and reshoots to the freelance side before you compare.

  • Do I own videos made by freelance UGC creators?

    Not automatically. In the US a commissioned video is usually owned by its creator unless a signed agreement transfers or licenses the rights. Get the terms in writing before filming.

  • How do I get UGC for TikTok ads without managing creators?

    Use an agency or managed service that casts, briefs and edits for you, and check that paid ad rights are included. If you also want Spark Ads, each creator still has to authorize it.

  • Can I use both freelancers and an agency?

    Yes. Some brands keep a few named creators for organic content and use a managed service for steady paid ad volume.

Sources

  1. Works Made for Hire (Circular 30), U.S. Copyright Office. Revised August 2024. Retrieved .
  2. About Form 1099-NEC, Nonemployee Compensation, Internal Revenue Service. Last reviewed June 7, 2026. Retrieved .
  3. Pricing, Ad Army. Retrieved .

About the author

Jack Nelson leads creative strategy at Ad Army. He is also Chief Content Officer at Nativz and Anderson Collaborative, sister agencies that produce short-form video and run paid media for brands.

All articles by Jack Nelson

Get creator ad ideas, monthly.

No spam, unsubscribe anytime.

Rather not do this yourself?

Send one request. We cast and manage the creators, you review finished videos, and you pay a flat price only for the ones you approve.