Product Company vs Design Agency: Which Path Should UX Designers Choose in 2025?

Consider joining a product company or design agency? Discover the pros and cons of each path for UX designers in 2025. And get equipped with a structured framework and key assessments to guide your decision.

Product Company vs Design Agency: Which Path Should UX Designers Choose in 2025?
Do not index
Do not index
Read time: under 12 minutes

The State of UX Design Careers in 2025

Looking through Glassdoor, I couldn't help but notice that UX designer salaries at product companies tend to be higher than those at design agencies.
But salary isn't everything. Choosing between a product company and an agency goes beyond just pay—or work-life balance, project variety, career growth, and job stability all matter just as much.
So, which one is the right fit for you? Let’s break down the pros and cons of each.
 

Product Companies: The Long Game

Think of joining a product company like moving to a new country; you're committing to learning the language, understanding the culture, and becoming a local.
Your growth with the company.
Your growth with the company.

Pros of working in product companies

1. Full project lifecycle experience

When you work at a product company, sometimes it takes months to work on just one single feature.
Sounds boring? It wasn't. It’s a chance for you to see every single phase:
  • Initial user research → Multiple design iterations → A/B testing → Launch → Post-launch optimization.
And more…

2. Build better team chemistry over time

At product companies, you're not just building features; you're building relationships.
This means less time explaining yourself and more time actually designing.
  • Deep understanding of how engineers think
  • Shared vocabulary with product managers
  • Long-term trust with stakeholders

3. Real user understanding

You don't just study users, you live with them:
  • Access to real usage data
  • Long-term user research relationships
  • Ability to see how your designs perform over time
 
Example: Netflix didn’t introduce the “Are you still watching?” feature overnight.
It came after years of studying user behavior and realizing that many people left Netflix running in the background.
This long-term approach allowed them to refine the UX based on real usage patterns—something an agency’s short-term engagement might miss.
 

Cons of working in product companies

1. Being stuck in a boring industry

Not every product is as exciting as designing the next Instagram or TikTok.
Sometimes, you're deep in enterprise software, untangling shipping logistics or streamlining healthcare billing—important, but not exactly glamorous.
How it can hold you back:
  • Skill Stagnation
    • Less exposure to cutting-edge design trends
    • Industry regulations can limit creativity
    • Solving similar problems for the same user base
    • Fewer opportunities to work with emerging technologies
  • Career Mobility Challenges
    • Harder to break into other industries
    • Portfolio may lack variety, making job moves trickier
    • Specializing too much can make you less adaptable
    • Fewer high-profile, attention-grabbing projects

2. Spending months and not shipping

Picture this: You’ve spent four months refining a feature, obsessing over every pixel—only for it to sit in limbo. Sound familiar? Welcome to one of the biggest frustrations of working in a product company.
How it can hold you back:
  • Stalled career growth
    • A stagnant portfolio with fewer shipped projects
    • Slow feedback loops make it harder to improve
    • Fewer learning opportunities = slower skill progression
    • The lack of momentum can kill your sense of achievement
  • Mental burnout
    • Motivation dips as work feels like it’s going nowhere
    • Frustration builds when efforts don’t see the light of day
    • Creativity takes a hit when projects drag on forever
    • Decision fatigue sets in from endless iterations with no release in sight

3. Being forced to executing ineffective UX process

Being forced to follow ineffective processes just because “that’s how we do things here.”
How it can hold you back:
  • Design quality takes a hit
    • Inconsistent execution leads to a fragmented product
    • Solutions get watered down to fit outdated frameworks
    • User experience suffers from rigid, ineffective processes
    • Opportunities for real impact are lost in bureaucratic noise
  • Team morale nosedives
    • Creativity withers under unnecessary constraints
    • Innovation slows as designers stop pushing boundaries
    • Cynicism creeps in when good ideas are repeatedly shut down
    • Job satisfaction drops when work feels more like compliance than creation
 
Example: Google designers spent years working on Stadia, a cloud gaming platform, refining UX flows and onboarding.
But due to business decisions, Stadia was shut down before it could reach mass adoption. Designers invested significant effort, only for their work to disappear.
 

Design Agencies: The Creative Sprint

Think of joining an agency like being a digital nomad – you're constantly exploring new territories, adapting to different cultures, and solving fresh challenges.
Designers in design agency be like.
Designers in design agency be like.

Pros of working in design agencies

1. Wide-ranging project experience

When you work at an agency, you might juggle 3-4 projects simultaneously. Sounds chaotic? It's actually exhilarating. Each project brings:
  • Diverse problem spaces
  • Different user demographics
  • Various technical constraints
  • Multiple industry perspectives
Example: In just one quarter at a major design agency, a senior designer could have worked on:
  1. Fintech app for millennials
  1. Healthcare platform for seniors
  1. E-commerce site for luxury brands
  1. Booking system for travel industry

2. Build adaptable client chemistry

At agencies, you're not just designing – you're becoming a business consultant:
  • Client management expertise
This means you become highly skilled at:
  • Building trust quickly
  • Reading room dynamics
  • Speaking multiple "industry languages"
  • Adapting to different company cultures

3. Broad market understanding

You don't just study one market, you become a multi-industry expert:
  • Trend spotting abilities
  • Cross-pollination of ideas
  • Diverse user research exposure
  • Pattern recognition across sectors
Example: Pentagram has tackled branding for Mastercard, Rolls-Royce, and Warner Bros—all in completely different industries.
Agency designers get to dip their toes into multiple markets, keeping their work fresh and avoiding the monotony of being stuck on a single product for years.
 

Cons of working in design agencies

1. Sales vs design struggle

Not every moment is spent designing. Sometimes you're more of a salesperson than a designer, and this can be jarring for many creatives.
How it can hold you back:
Time management challenges
  • Constant context switching
  • Rush jobs for new business
  • Design time gets fragmented
  • Client pitches eat into creative time
Skill impact
  • Quick-fix mentality
  • Less deep design thinking
  • Superficial problem solving
  • Portfolio quantity over quality

2. The "yes person" syndrome

The pressure to keep clients happy can turn you into someone who never pushes back, even when you should.
How it can hold you back:
Professional development
  • Reduced innovation
  • Loss of design vision
  • Fear of challenging clients
  • Compromised design principles
Personal growth
  • Identity crisis
  • Creative stagnation
  • Decreased confidence
  • Professional frustration

3. Never tracking success metrics

One of the most frustrating aspects: rarely seeing the long-term impact of your work.
How it can hold you back:
Career development
  • Limited metrics for portfolio
  • Unclear success measures
  • No long-term case studies
  • Difficulty proving impact
Design growth
  • Missing user feedback
  • No iteration opportunities
  • Limited learning from mistakes
  • Shallow understanding of outcomes
 
📰
Join 9,000+ Designers for FREE weekly UX Insights 
Every Wednesday, I send out 1 actionable framework to grow your UX career 🌱 — No fluff. Always 5 minutes or less.
 

Decision Framework and Self-Assessment

After mentoring dozens of designers through this decision, here are some decision frameworks and self-assessment tools you can use to make your own decision:
Career impact comparison: Product Company vs Design Agency
Career impact comparison: Product Company vs Design Agency

1. Career goal alignment

Before you jump into job listings, let's get crystal clear about where you're headed. The career path you choose will shape your skills and growth for the next 3–5 years.

Specialist path (product companies)

If you're nodding along to most of these points, you might be a product company person:
The specialist path.
The specialist path.
Deep product knowledge
  • Industry-specific expertise
  • Ability to influence product strategy
  • Understanding of complex user behaviors
  • Long-term product vision development
Feature optimization skills
  • Iterative design processes
  • Performance metric analysis
  • Technical feasibility assessment
User behavior expertise
  • Advanced quantitative research skills
  • User psychology understanding
  • Longitudinal study experience
  • A/B testing proficiency
Data analysis proficiency
  • SQL and analytics tools
  • Experimentation frameworks
  • Statistical significance understanding
  • User behavior pattern recognition
 

Generalist path (agencies)

If these resonate more, agency life might be your calling:
The generalist path
The generalist path
Broad industry knowledge
  • Various business model comprehension
  • Cross-sector understanding
  • Trend analysis capabilities
Rapid prototyping ability
  • Flexible design approaches
  • Fast problem-solving
  • Quick iteration skills
  • Tool adaptability
Client management skills
  • Relationship building
  • Presentation expertise
  • Expectation management
  • Stakeholder communication
Presentation expertise
  • Pitch development
  • Executive presence
  • Visual communication
  • Story-telling capabilities
 

2. Work style assessment tool

Are you better suited for the focused, long-term projects of a product company, or the fast-paced, diverse work of an agency?
The work-style assessment below will help you uncover your preferences and guide you toward the work environment that aligns best with your strengths and interests.
Work style preferences: Product company or Design agency.
Work style preferences: Product company or Design agency.
ℹ️

How to use this assessment:

Step 1 — Rate each statement from 1 (strongly disagree) → 5 (strongly agree)
Step 2 — For product company fit: Add up the scores for statements that apply to product company preferences (max 50 points)
Step 3 — For design agency fit: Add up the scores for statements that apply to agency preferences (max 50 points)
Step 4 — Compare total scores
  • If Company score is higher: You prefer stable, long-term work and would fit
best at a product company.
  • If Agency score is higher: You prefer variety and dynamic work and would
fit best at an agency.
 
💡 Remember:
  • A score difference of less than 10 points suggests flexibility for either environment.
  • Consider other factors like location, compensation, and growth opportunities in your decision-making.
 
📍 Quick Tip:
For accurate results, answer based on your natural preferences, not what you think is "correct." There are no right or wrong answers - only what works best for your work style.
 
🗒️
Example: Meet Sarah's results:
  • Product Company Fit Statements (Rated 1-5): Sum = 42
  • Design Agency Fit Statements (Rated 1-5): Sum = 20
→ Difference: 22 (Product > Agency)
Conclusion: Sarah would likely be happier at a product company.
 

Product company fit statements:

Statement
Category
Your Score
I enjoy seeing long-term impact
Project Duration
I prefer deep diving into problems
I enjoy regular, predictable meetings
Stakeholder Interaction
I prefer working with the same team
I work best with structured timelines
Work Pace
I prefer predictable work hours
I enjoy optimizing existing features
Innovation vs Iteration
I like data-driven decisions
I work best in stable, larger teams
Team Size
I like established processes

Design agency fit statements:

Statement
Category
Your Score
I get bored working on the same product
Project Duration
I like frequent context switching
I enjoy meeting new stakeholders
Stakeholder Interaction
I thrive in client presentations
I can easily switch between projects
Work Pace
I thrive under tight deadlines
I prefer creating new solutions
Innovation vs Iteration
I enjoy rapid ideation
I prefer small, dynamic teams
Team Size
I enjoy flexible workflows
 

3. Industry fit matrix

This isn't just about gut feeling. Let's put some numbers behind your decision.
This matrix helps you evaluate fit based on weighted factors that matter most in each environment.
ℹ️

How to use this matrix:

Step 1 — Rate each factor (5 = Love it, 3 = Neutral, 1 = Prefer others)
Step 2 — For product company → Calculate total scores (max 30 points each)
Step 3 — For design agency → Calculate total scores (max 30 points each)
Step 4 — Compare the scores
  • If the Product score is higher: You have a strong preference for stable environments with long-term impact. Consider product companies.
  • If the Agency score is higher: You thrive in dynamic environments with varied projects. Consider agencies.
 
💡 Note:
If your scores are within 3 points: You could thrive in either environment. Consider what matters most to you like:
  • Team dynamics
  • Salary and benefits
  • Growth opportunities
  • Industry and project types
  • Location and work flexibility
  • Company culture and mission
The goal is to make an informed decision based on your current career stage and personal preferences as well.
 
🗒️
Example: Meet Ana's scores
Product Score (18/30):
  • Stability: 9/15
  • Impact: 9/15
Agency Score (27/30):
  • Variety: 12/15
  • Growth: 15/15
Result: With a 9-point lead for Agency, Ana should pursue agency roles where she can enjoy variety and fast-paced growth!

Product companies score calculator

Stability factor
Regular hours
  • 5 = Love routine
  • 3 = Neutral
  • 1 = Prefer flexibility
Consistent team
  • 5 = Value long-term relationships
  • 3 = Neutral
  • 1 = Prefer changing teams
Clear progression
  • 5 = Want structured advancement
  • 3 = Neutral
  • 1 = Prefer flexible growth
Impact factor
Long-term influence
  • 5 = Value lasting impact
  • 3 = Neutral
  • 1 = Prefer quick wins
User relationship
  • 5 = Want deep user understanding
  • 3 = Neutral
  • 1 = Prefer varied user groups
Feature ownership
  • 5 = Want complete ownership
  • 3 = Neutral
  • 1 = Prefer shared ownership
 

Agency score calculator

Variety factor
Project diversity
  • 5 = Love variety
  • 3 = Neutral
  • 1 = Prefer focus
 
Client exposure
  • 5 = Enjoy client interaction
  • 3 = Neutral
  • 1 = Prefer internal stakeholders
Industry range
  • 5 = Want broad exposure
  • 3 = Neutral
  • 1 = Prefer specialization
Growth factor
Skill expansion
  • 5 = Want rapid skill growth
  • 3 = Neutral
  • 1 = Prefer depth over breadth
Network building
  • 5 = Value extensive networking
  • 3 = Neutral
  • 1 = Prefer stable connections
Portfolio growth
  • 5 = Want diverse portfolio
  • 3 = Neutral
  • 1 = Prefer deep case studies
 

Making The UX Career Transition

Why designers make the switch?

The decision to switch isn't just about salary or job titles. Often, it's about finding the right environment for your current career stage and personal growth needs.
Some designers thrive in the fast-paced, varied world of agencies, while others find their groove in the deep, focused environment of product companies.

The reality check

Making a successful transition requires more than just updating your portfolio.
It's about understanding the fundamental differences between these environments and preparing yourself for a significant shift in:
  • Work style
  • Team dynamics
  • Project ownership
  • Skill requirements
  • Success metrics

Preparation steps

1. Portfolio transformation

Product company → Design agency
  • Break down your long-term projects into digestible cases
  • Highlight versatility within your specialized experience
  • Showcase rapid iteration capabilities
  • Focus on problem-solving process over long-term metrics
Design agency → Product company
  • Consolidate similar projects into themed case studies
  • Emphasize deep thinking and strategic decisions
  • Show iteration and improvement patterns
  • Focus on user impact and metrics where possible

2. Skill gap analysis

Product company → Design agency skills checklist:
  • Client presentation abilities
  • Quick ideation techniques
  • Multiple project management
  • Cross-industry knowledge
  • Sales and pitching
Design agency → Product company skills checklist:
  • Deep user research
  • Data analysis
  • A/B testing methodology
  • Product strategy
  • Stakeholder management
  • Technical implementation

3. Network preparation

  1. Connect with designers who've made similar transitions
  1. Join relevant industry groups
  1. Attend targeted events and conferences
  1. Build relationships before you need them
 
📝
Key takeaway:
  • The best transitions happen when you're ready, not when you're desperate.
  • Use the preparation checklist to ensure you're fully equipped.
  • Give yourself 3-6 months for proper preparation.
 

Final Thoughts

Whether you choose the focused depth of product companies or the dynamic variety of agency life, success comes from understanding yourself and preparing thoroughly for your chosen path.
Remember: This isn't a permanent decision. Many successful UX designers have worked in both environments, using each experience to build a unique and valuable skill set.
I’m cheering on you, guys! ✌️
 

 
👉
Whenever you're ready, there are 4 ways I can help you:
3. UX Portfolio Critique: In less than 48 hours, get your 30-minute personalised video of brutally honest feedback.
4. Job Sprint Course: Stand out in an unpredictable job market by building a memorable personal brand and a killer job search strategy.
 

Get free UX resources

Get portfolio templates, list of job boards, UX step-by-step guides, and more.

Download for FREE
Catherine Smith

Written by

Catherine Smith

    Related posts

    How To Become A UX Designer In 2025 (Ultimate Guide)How To Become A UX Designer In 2025 (Ultimate Guide)
    Navigating Your UX Career: Insights from Chris, Founder of UX PlaybookNavigating Your UX Career: Insights from Chris, Founder of UX Playbook
    How To Get A Job In UX DesignHow To Get A Job In UX Design
    UX Design Hiring Process: What To ExpectUX Design Hiring Process: What To Expect
    How To Navigate UX Design Job InterviewsHow To Navigate UX Design Job Interviews
    Crack The Code: Essential Tips For Nailing The Whiteboard Design Challenge In UXCrack The Code: Essential Tips For Nailing The Whiteboard Design Challenge In UX
    8 Best UX Design Courses in 2025 for Aspiring and Practicing UX Designers8 Best UX Design Courses in 2025 for Aspiring and Practicing UX Designers
    10 Must-Read UX Design Books in 202510 Must-Read UX Design Books in 2025
    20 Best UX Portfolio Website Builders for Designers in 202520 Best UX Portfolio Website Builders for Designers in 2025
    Hiring Manager's Insights on UX Design InterviewsHiring Manager's Insights on UX Design Interviews
    How To Stop Getting UX Job RejectionsHow To Stop Getting UX Job Rejections
    Why Designers, Copywriters, and Tech Workers Need to Read FictionWhy Designers, Copywriters, and Tech Workers Need to Read Fiction
    The Power of Journaling: A Tool for Mental Clarity and Career GrowthThe Power of Journaling: A Tool for Mental Clarity and Career Growth
    Researching Companies for UX Interviews: A Step-by-Step GuideResearching Companies for UX Interviews: A Step-by-Step Guide
     
     

    Get unstuck in our newsletter

    Actionable frameworks to level up your UX career. Read in 5 minute or less, weekly. Absolutely free.
     
     
       
      notion image
      Join over 8,000 designers and get tactics, hacks, and practical tips.