One-Person Agency vs Large Development Firms: What's the Difference?

It's been four years since I started running Dante Company. At first, I thought of large development firms as competitors. But as time passed, I realized something. We're in the same market but playing completely different games.

The Structure of Large Development Firms

Large development firms typically operate like this: the sales team acquires projects, PMs manage projects, and developers write code. Each role is clearly separated.

The advantage of this structure is systematization. Projects continue even if someone leaves. Large projects can be handled by splitting work among multiple people.

But there are downsides. Sales and development are separated. The sales team says only good things to clients to win projects. "It's possible," "We can do that." But the development team that actually has to build it suffers wondering "Is this even possible?"

Another issue is motivation. Developers at large firms get salaries. Whether projects succeed or fail, their pay stays the same. Of course, good developers work hard regardless, but structurally there's less urgency.

The Reality of One-Person Agencies

One-person agencies are completely different. I'm the sales team, developer, and PM. What I tell clients, I have to build myself. If I say "I can do it," I really have to be able to.

This creates surprisingly strong accountability. At large firms, you can say "Sales made unreasonable promises..." But I have to take responsibility for my own words.

Most importantly, there's the formula: Project = Income. Projects need to end well for money to come in, and clients need to be satisfied for future projects to follow. This urgency raises quality.

Differences in Communication

Working with large firms, you usually communicate through PMs. Client → PM → Developer → PM → Client. Information gets distorted or lost in this process. Like a game of telephone.

One-person agencies mean direct communication. I understand exactly what clients say and ask questions immediately. No middlemen means faster and more accurate.

Of course, there are downsides. Handling all communication myself reduces development time. It's the price of giving up division of labor efficiency.

The Poisoned Chalice

Interestingly, whether one-person or large firm, there's a common problem we all face. I call it "the poisoned chalice."

There are moments when survival forces you to take projects you shouldn't. Projects with ridiculously small budgets but extensive requirements. Projects with impossible timelines and inflexible clients.

Large firms take these during slow seasons too. They have to pay employee salaries. One-person agencies are the same. For next month's living expenses.

Over four years, I took several such projects. And regretted each time. Because both sides end up unhappy. Now I decline when possible. Long-term reputation matters more than short-term income.

In the End, It's About People

So what's the conclusion? One-person agencies are better? Large firms are better? Honestly, it depends on the situation.

Large-scale projects suit large firms. There are limits to what one person can handle. Conversely, small and fast-moving projects may suit one-person agencies better.

But what matters most is who you work with. Even at large firms, good results come when the assigned PM and developers are responsible. Even at one-person agencies, if that person can't be trusted, the project fails.

The lesson from four years: look at the people, not the size.

What Dante Company Aims For

Dante Company is small. It's just me. I can't have 10 people working on something like large firms can.

But I communicate directly, build directly, and take responsibility directly. There's no one between the client and me. I believe this is the value a one-person agency can offer.

• Requirements don't get distorted in transmission
• Decisions and changes can be made quickly
• Motivation for project success is clear

Five Years Later, and Looking Ahead

Looking back, I was fortunate. Over the past five years, I earned enough to live comfortably on my own. Of course, it didn't just happen. I cut unnecessary spending and focused on saving and investing with every bit I earned. It was far from a luxurious life, but thanks to that, I've now reached a point where I can live off capital income alone.

What this means is I no longer have to take projects just to survive. I don't have to force myself to drink from "the poisoned chalice" anymore.

So lately, my direction has been shifting. Rather than taking just any project, I want to work with clients who are a good fit for me. People who respect each other's time and share the goal of building something great. Those projects are enjoyable regardless of the money.

And in my spare time, I want to create things that could become my own brand. Maybe a game, maybe a service. Freelance development is ultimately building other people's products. Someday, I want to put something out into the world with my name on it.

I don't have concrete plans yet. But I didn't have any plans when I received that business registration five years ago either. I figure if I just keep doing things one at a time, the path will reveal itself.

If you're considering outsourced development, look at the people inside rather than the size first. And if you're interested in collaborating with a one-person agency, feel free to visit dante.company.