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How to hire a software developer

How to hire a software developer, in short: first decide whether you need a freelancer, an agency or an in-house employee, then write a short description of the project, check past work and references, run a small paid test, and put scope, ownership and payment terms in writing. The right choice depends mostly on whether you have someone technical to manage the work. If you do not, a managed team such as Zoti, starting at $499/month, is one option alongside the others below.

Updated November 3, 2026

First decision
Freelancer, agency or in-house
Best test
A small paid trial project
Always get
Ownership of code and data in writing

Freelancer vs agency vs in-house developer

  • Freelancer: usually the lowest cost and quick to start. Best for a well-defined job with someone on your side who can review the work. The risk is that one person covers everything, and if they get busy or move on, the project stalls.
  • Agency or development company: a team that covers design, development, testing and project management, with someone accountable for delivery. Costs more per hour than most freelancers, but you are not managing individuals. Best when you have no technical staff.
  • In-house employee: the most control and the deepest knowledge of your business over time. Also the highest fixed cost once you add salary, benefits, recruiting and tools, and one hire rarely covers every skill a project needs. Best when software is central to the business and there is steady full-time work.
  • Staff augmentation: developers supplied by an agency who join your team. Useful when you already have a technical lead and need extra hands.

How to hire a software developer, step by step

  1. Write a one-page briefDescribe the problem, who will use the software, the must-have features, your budget range and your timing.
  2. Pick the type of hireChoose freelancer, agency or in-house based on the size of the work and whether anyone can manage a developer directly.
  3. Build a shortlistAsk your network first, then look at freelance marketplaces, agency directories, local tech groups and job boards.
  4. Review real workAsk to see live software they built, not just screenshots, and ask what their part in it was.
  5. Talk to referencesSpeak to two or three past clients, ideally ones whose project is still running.
  6. Run a small paid testGive the top one or two candidates a short, paid piece of real work and judge communication as much as code.
  7. Put it in writingAgree scope, price, ownership, support and how either side can end the arrangement before the main work starts.

Interview questions to ask

You do not need to be technical to learn a lot from these. Listen for clear, specific answers and honest trade-offs.

  • Walk me through a project like mine that you built. What went wrong, and how did you handle it?
  • What would you need from me before you could give a realistic estimate?
  • How will you show me progress, and how often?
  • What happens when I ask for a change halfway through?
  • How do you test your work before I see it?
  • Where will the code and the hosting live, and whose accounts will they be in?
  • Who else will work on this, and what happens if you are sick or leave?
  • What happens after launch? Who fixes bugs and how much does it cost?
  • What would you not recommend building, and why?

Red flags when hiring a developer

  • A firm price or timeline before they understand what you need.
  • No questions about your business, only about features.
  • Pressure to pay most of the money up front.
  • Reluctance to put the code in an account you own.
  • No live examples or references they are willing to share.
  • Vague answers about who will actually do the work.
  • Promises that sound too good, such as a complex app in a couple of weeks for very little money.
  • Slow or unclear communication during the sales process. It rarely improves after you sign.

What to put in writing

Whatever kind of developer you hire, agree on these points in a written contract: what is in and out of scope, how changes are handled and priced, the payment schedule tied to milestones or time worked, who owns the code, designs and data, where the code is stored and who has access, confidentiality, what support looks like after launch, and how either side can end the agreement and hand over the work. This is general guidance, not legal advice, so have a lawyer review the contract before you sign.

When not to hire anyone yet

Sometimes the right move is to wait. If you cannot yet describe who the software is for and what problem it solves, spend a few weeks talking to the people who would use it. If an off-the-shelf tool might do the job, try it first. And if you are hiring to build a product you hope to raise money on, consider whether you are really looking for a technical cofounder rather than a contractor.

More hiring & planning software: fractional CTO, how to find a technical cofounder and software development process.

Questions

Common questions

How much does it cost to hire a software developer?

It varies widely by experience, location and type of hire. As a rough guide, US freelancers often charge somewhere around $50 to $150 an hour or more, agencies usually charge more per hour but include project management and design, and in-house hires add salary and benefits on top. Get several written quotes for your actual project.

Should I hire a freelancer or an agency?

Hire a freelancer for a well-defined job when someone on your side can review the work. Hire an agency when the project needs several skills, when you have no technical staff, or when you want one accountable partner.

How do I hire a developer if I am not technical?

Focus on what you can judge: how well they understand your business, how clearly they explain trade-offs, what past clients say and how a small paid test goes. You can also pay an independent developer for a few hours to review proposals.

Where can I find good software developers?

Start with referrals from people you trust. After that, try freelance marketplaces, agency directories and review sites, local tech meetups and job boards. Wherever you find them, check live work and references.

Who should own the code a developer writes for me?

Your business should. State it clearly in the contract, and keep the code in an account your business controls from day one.

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