Choosing the Right Partnership: 6PM Model vs. Local Software Agency
Why Founders Make the Mistake of Choosing Local Software Agencies?
Immediate Access
Geographical Advantage
Being in the same city or region allows for easier face-to-face meetings, fostering a sense of partnership and immediacy in addressing issues.
Time Zone Alignment
Working in the same time zone simplifies scheduling meetings and can lead to quicker responses and updates.
Misunderstanding of Costs
High Costs
Local agencies can be expensive, with starting costs for basic software development services reaching up to $70,000/month.
Limited Involvement
Founders often find themselves excluded from the development process, as agencies tend to take full control.
Trust and Relationship
Personal Connections
The opportunity to build a personal relationship with the team can create a stronger bond of trust and loyalty.
Local Reputation
Agencies with a good reputation in the local community can seem more reliable, as their success and failures are more visible and potentially verifiable through local networks.
Local Software Agency vs 6PM
| Aspect | Local Software Agency | 6PM Model |
| Cost | Very high, starting at $70K/month for basic software development | Reduced costs due to fractional CTO and offshore team, avoiding full-time salary expenses |
| Tech Strategy | May not align with startup needs | Unified and professional strategy by a fractional CTO |
| Team Cohesion | Good, but primarily for larger corporations | High, team works under unified leadership even remotely |
| Project Focus | Generic, not customized | Highly focused, main gig for the team |
| Leadership | Standard agency leadership | Fractional CTO provides leadership and strategic oversight |
| Customization | Low, prefers to build from scratch | High, strategy and team tailored to specific project needs |
| Efficiency and Harmony | Moderate, depending on the agency's workload | High, strategic planning ensures team works in sync |
| Strategic Insight | Limited, often transactional | Deep, with a fractional CTO providing comprehensive oversight |
| Cost Transparency | Often lacks transparency, with hidden fees | Clear and structured, with cost-efficiency as a key benefit |
| Tech Stack Selection | Agency preference, may not be ideal | Tailored to project needs under CTO guidance |
| Long-Term Support | Structured but expensive | Integral, with ongoing strategic and operational support |
| Scalability | Can be rigid, difficult to scale quickly | Designed for scalability, with flexible team adjustments |