Remote Developer vs Full-Time Hire: What's Right for Your Startup?

The Hiring Dilemma

Every startup faces this decision: Should we hire full-time or work with contractors? There's no universal answer, but there are clear trade-offs.

When to Use Remote Contractors

• Pre-product-market fit - You need flexibility

• Specific projects - Clear scope and timeline

• Specialized skills - Need expertise you'll only use once

• Capital efficiency - Preserving runway is critical

• Speed - No hiring process delays

When to Hire Full-Time

• Post-product-market fit - Ready to scale

• Core technology - Building proprietary systems

• Team culture - Need tight collaboration and shared context

• Long-term investment - Building institutional knowledge

The Hybrid Approach

Many successful startups use both:

• Core team (1-2 full-time engineers) for architecture and key decisions

• Contractors for feature development and specialized work

What to Look for in Remote Developers

• Communication skills - Async communication is critical

• Startup experience - Understands constraints and pace

• End-to-end capability - Can own features completely

• Self-directed - Doesn't need constant management

• Quality focus - Ships production-ready code

Cost Comparison

Full-time engineer: $100-200K/year + equity + benefits + overhead Remote developer: Hourly/project-based, no overhead

But cost isn't everything. Consider:

• Time to productivity - Contractors ramp up faster

• Flexibility - Contractors scale up/down easily

• Risk - Easier to end contractor relationships

• IP and knowledge - Full-time builds institutional knowledge

My Recommendation

For early-stage startups (pre-Series A), consider working with experienced remote developers who understand startups. You get senior-level expertise without the overhead and commitment of full-time hires. As you grow and your needs stabilize, build your core team.