Hiring a fractional executive saves between 50-70% on labor costs
Hey there, busy business moguls! Ever wondered about the cost of bringing a top-tier marketing expert on board without breaking the bank? Enter the Fractional CMO who typically will work closely with a Fractional CRO. Understanding how much a fractional CMO charges can be a game-changer for your business, especially when you’re aiming to maximize growth without an out-of-reach price tag. Plus, you might be curious about how this compares to a full-time CMO’s salary and why a fractional CMO might deliver better ROI and faster results.
But first, let’s set the stage with some essential context. Fractional CRO roles are gaining traction, and understanding the cost dynamics can help you make informed decisions. Also, the variety of fractional cmo services available makes this an exciting option for growing businesses. You should note that 92% of small to medium businesses who take advantage of a fractional CMO wish they had hired them sooner.
What is a Fractional CMO?
First, let’s make sure we’re all on the same page here. A fractional CMO is a part-time executive who takes on the responsibilities of a Chief Marketing Officer without being a full-time employee. These seasoned professionals bring a wealth of experience and strategic insight to your company, often working with multiple clients simultaneously.
The fractional CMO cost typically varies based on their experience, industry expertise, and the specific needs of your business. This flexible model allows companies to access high-level marketing leadership without the full-time commitment and expense. The fractional CMO cost is offset by the fact that they typically will drive revenue an average of 33% according to Forbes. And their labor costs are 50-70% those of full-time employees.
What Does a Fractional CMO Do?
“The average salary for a full-time CMO in the U.S. is approximately $174,000 per year.”
So, what exactly does a fractional CMO do? Think of them as your marketing maestro, orchestrating everything from brand strategy to overseeing campaign execution. Their fractional CMO job description includes:
Developing and implementing marketing strategies
Interpreting data to ensure the right targets are met
Overseeing digital marketing efforts
Managing marketing teams
Analyzing market trends and customer insights
Reporting on marketing performance and ROI
In essence, they handle all the duties of a full-time CMO but on a part-time basis, providing the expertise you need without the full-time cost.
Fractional CMOs work less time but can get more done than a full-time CMO due to their expertise.
How Many Hours Does a Fractional CMO Work?
One of the biggest advantages of a fractional CMO is their flexibility. Typically, a fractional CMO works between 10 to 30 hours per week, depending on the needs of your business. This can vary based on the scope of your fractional CMO services and the specific projects you have in mind.
This flexible arrangement ensures you’re only paying for the time and expertise you need, making it a cost-effective solution for businesses looking to scale their marketing efforts.
How Much Does a Fractional CMO Make?
When it comes to compensation, fractional CMOs charge an hourly rate or a retainer fee. The fractional CMO salary can range from $200 to $500 per hour, depending on their experience and the complexity of the tasks. Retainers are typically between $5,000 and $10,000 per month.
In contrast, a full-time CMO’s annual salary can range from $150,000 to over $300,000, plus benefits and bonuses. This significant difference highlights the cost-effectiveness of hiring a fractional CMO, especially for small to midsize businesses.
Comparing Costs: Fractional CMO vs. Full-time CMO
Let’s break it down with some numbers. If a fractional CMO works 20 hours a week at $300 per hour, that’s about $312,000 a year. While this might seem comparable to a full-time CMO’s salary, remember that with a full-time CMO, you’re also covering benefits, bonuses, and other employment costs. Plus, the flexibility and targeted expertise of a fractional CMO often lead to quicker, more effective results.
Fractional CMOs result in a higher ROI and driving better revenue
ROI and Results: Fractional CMO vs. Full-time CMO
Now, let’s talk ROI. A fractional CMO can deliver faster, more impactful results than a full-time CMO because they focus on high-priority projects and strategic initiatives. The average statistic is that they deliver 22% faster results than a full-time CMO. This is because they’re not bogged down by daily operations or internal politics. This focus translates into a better return on investment, as they can swiftly implement changes and drive growth.
Bottom line is that your bottom line in hiring a fractional CMO is a smart move for any small to mid-size business looking to boost their marketing efforts without the hefty price tag of a full-time executive. Their flexible, cost-effective approach, coupled with their expertise, ensures you get the best of both worlds.
Ready to take your business to the next level? Consider exploring the benefits of fractional CMOs and see how they can help you achieve your growth goals. Leaving 33% revenue growth on the table should never be an option you really want to consider. So reach out to Invictus CMO today to schedule your private CEO Flash Focus call and start reaping the rewards! It’s a preliminary focused and high-level 15-20 minute meeting with CEOs to highlight their main challenges. No selling. Just solutions.
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