Instrumental insemination of honeybees allows for two opposing breeding strategies. In single colony insemination (SCI), all drones to inseminate a queen are taken from one colony. In pooled semen insemination (PSI), sperm of many genetically diverse drones is mixed and queens are fertilized from the resulting drone pool. While SCI allows for maximum pedigree control, proponents of PSI claim to reduce inbreeding and maintain genetic variance. Using stochastic simulation studies, we compared genetic progress and inbreeding rates in small honeybee populations under SCI and PSI. Four different selection criteria were covered: estimated breeding values (EBV), phenotypes, true breeding values (TBV) and random selection. Under EBV-based truncation selection, SCI yielded 9.0% to 44.4% higher genetic gain than PSI, but had vastly increased inbreeding rates. Under phenotypical or TBV selection, the gap between SCI and PSI in terms of genetic progress narrowed. Throughout, PSI yielded lower inbreeding rates than SCI, but the differences were only substantial under EBV truncation selection. As a result, PSI did not appear as a viable breeding strategy owing to its incompatibility with modern methods of genetic evaluation. Instead, SCI is to be preferred but instead of strict truncation selection, strategies to avoid inbreeding need to be installed.