In-House vs Agency vs Fractional AEO: Which Hiring Model Actually Works in 2026

Every brand serious about AEO eventually faces the same decision: in-house lead, agency, or fractional consultant? There's no universally right answer — but there is a right answer for each stage, budget, and program maturity. Here's the framework I use when clients ask.

Should I hire in-house, agency, or fractional for AEO?

Stage-dependent. Pre-program / first 6 months: fractional consultant ($3K–$8K/month) — fastest to start, highest learning per dollar. Established program (6–24 months): in-house lead supported by fractional strategist — owns execution, gets senior strategy on call. Mature program (24+ months) at scale: full in-house team, with agency for specialist surges (large content sprints, technical migrations). Pure agency-only is the weakest model for AEO because it disconnects strategy from internal context.

Why fractional wins early

The first 6 months of an AEO program is mostly strategy + setup: prompt set definition, schema architecture, entity stacking plan, measurement framework. A fractional senior consultant ships these faster than any in-house hire (who needs ramp time) or agency (which needs months to learn your business). At ~$3K–$8K/month, the cost is below a junior in-house salary.

When in-house becomes essential

Once the strategy is set, execution velocity matters. Schema rebuilds, content shipping, weekly Echo loops, internal stakeholder management — all of these compound far better with an embedded in-house lead. The right time to hire in-house is usually month 6–9 of a serious program, after the fractional consultant has built the strategy and proven ROI.

Where pure agency falls short

Agencies are great at execution surges, technical specialties, and creative work. They struggle with the weekly Echo loop discipline that AEO requires, with deep product context (which matters more for AEO than classic SEO), and with the entity-building work that requires real internal coordination (legal, leadership, PR). Agency-only AEO programs almost always plateau at month 6.

The hybrid that usually wins

In-house lead (full-time) + fractional senior strategist (4–8 hours/month) + agency or freelancer for specialist work (content shipping, technical migrations). This hybrid out-performs every single-source model I've benchmarked. Costs $8K–$18K/month for a serious mid-market program.

How to evaluate a fractional AEO consultant

Ask for: (a) named clients with verifiable results (citation share before/after); (b) proprietary frameworks they've published (CITE, etc.); (c) references from in-house leads they've worked with, not just agency partners; (d) public writing demonstrating depth. Avoid anyone whose primary credential is 'I worked at a big agency' — agency tenure correlates poorly with AEO chops.

Red flags in any model

Promised citation guarantees. Vague pricing. No measurement framework. 'AI-first' tools as the entire pitch. No named case studies. Anyone who tells you AEO is just SEO with new jargon. Anyone who tells you AEO is entirely different from SEO.

Frequently Asked Questions

What's a realistic budget for serious AEO in 2026?

Under $1M ARR: $3K–$5K/month with a fractional consultant. $1M–$10M ARR: $8K–$18K/month combined. $10M+ ARR: $20K–$50K/month combined.

Can a single person own AEO in-house?

Yes, at sub-$10M ARR scale. Above that, you need at least one specialist plus content/dev support.

Should the in-house AEO lead report to SEO, content, or marketing?

Marketing leadership directly, with dotted lines to SEO and content. AEO touches all three and reporting to one creates artificial friction.

How do I find a good fractional AEO consultant?

Read their writing. Ask for case studies. Talk to past clients. The good ones are easy to identify because they publish frameworks and show their work.

Is offshoring AEO viable?

Yes, with the right talent. Bangladesh, Pakistan, Philippines, and several LATAM countries have excellent operators. Vet by output quality, not location.

Do you take on fractional AEO clients?

Yes — typically 4–6 clients at any time, full-stack from strategy through implementation oversight. Reach out via the contact page.