I've always been a big supporter of hiring one great person and rewarding them appropriately rather than hiring three average/poor workers and rewarding each of them poorly.

Revolution Systems Blog had a recent post about the High Cost of Low Quality, specifically with regards to the hiring of programmers.

One great quote from the article:

"When you work in an environment with experts things simply work. They are easier to use and require less initial training. The software is easier to modify. Requested changes happen more frequently and easily. Things just flow."

I agree wholeheartedly - whether it be video editing, web design or programming, working with an expert just makes every thing so much easier! So before you go hire that "xpert programaar with 20 yrs exp" from elance.com or your neighbors kids to produce your car dealership's TV commercial - remember there is a reason why experts can demand the salary which they do!