How Much Should You Pay a Fractional CMO?

“On average, freelance executives, including CMOs, report higher satisfaction and earnings potential compared to traditional full-time roles.”

So, you’re a busy CEO of a small to midsize enterprise, and you’re contemplating hiring a Fractional CMO. Or maybe you’re an aspiring fractional CMO curious about the pay scale. Either way, understanding the right compensation is crucial. Whether you’re exploring the fractional CMO salary that’s out there or looking for guidance in setting your own rates, let’s break down the numbers and insights to guide you.

How much does a fractional CMO get paid?

The big question on everyone’s mind is, “How much should you pay a fractional CMO per hour?” It’s a fair question, especially considering the critical role a fractional CMO plays in driving marketing strategy and growth. Typically, a fractional CMO can charge anywhere from $200 to $550 per hour. However, this rate isn’t fixed and can vary based on several factors:

1. Experience: More seasoned CMOs with a proven track record of successful campaigns and strategies can command higher rates.

2. Project Intricacies: Complex projects that require deep strategic thinking and extensive planning may also drive the rate up.

3. Retention Length: Long-term engagements might allow for negotiated rates compared to short-term projects.

4. Value to the Client: If the project is likely to bring significant value or ROI to the client, higher rates are often justified.

How much does a fractional CMO charge?

As a fractional cmo, when setting your rates “Make sure your rates reflect the value you deliver.”

No, I’m not being facetious in asking this question, because what one charges is actually a significant marketing message.

When considering the fractional CMO hourly rate per hour, it’s essential to weigh these factors. For instance, a CMO with expertise in diverse industries and a portfolio of high-impact projects may charge more. Geographic location should never impact your rate because this is a remote position, and you can work anywhere you want to. What’s the value of the project to the client?  If they are marketing million-dollar homes and your marketing will increase their revenue 33%, then you better charge what you’re worth to them for that project otherwise you’re going to look like an amateur.  And no one wants to work with an amateur. A nuanced understanding of the client’s needs, and the expected outcomes plays a critical role in setting a price at a good value.

Having said that, you should know that fractional CMOs, the good ones anyway, don’t typically charge by the hour. They will charge by the month or the project. That can range anywhere from $3,000 for a small project to work on, up to $15,000 for a significant amount of time invested. Either way, it’s still a significant savings over what a client would have to pay a full-time executive.

What is the hourly rate for a fractional CEO?

Interestingly, the concept of fractional executives isn’t limited to CMOs. The fractional community began primarily with fractional CEOs (and then CFOs) Fractional CEOs are also in demand, and their rates can give us some context. The hourly rate for a fractional CEO can range from $300 to $1500 per hour. This higher rate reflects the overarching responsibilities and strategic oversight that a CEO provides. Comparing these figures can help businesses appreciate the value they’re getting from a fractional CMO, who often provides similarly high-level strategic guidance.  Again, just like with the rates for fractional CMOs, the rate which a fractional CEO (or CFO for that matter) that will be charged will be predominantly based on the experience of the professional and the value of the project to the client.

How much should I charge as a fractional CMO?

The variety is unbeatable. You’re not stuck in one company’s rut; instead, you get to flex your marketing muscles across various industries.”

For those looking to step into the fractional CMO role, the question shifts to, “How much should I charge as a fractional CMO?” Setting your rate involves assessing your experience, the value you bring to clients, and your unique skillset to address the problem that the client has. Remember, there’s no fractional CMO school to certify your skills – it’s your track record and proven results that count.

To position yourself competitively, research the best fractional CMO companies in the USA. Perhaps you can begin with one of them rather than going on your own. Understanding their offerings and pricing can help you set a rate that reflects your expertise while remaining attractive to potential clients. Don’t undersell yourself; the strategic impact you provide is invaluable.

Regardless, whether you’re hiring or becoming a fractional CMO, understanding the financial landscape is key. Make sure to factor in the scope of work, industry standards, and individual expertise when negotiating or setting rates. Whatever your purpose, may this article help you to take your next step in confidence.

If you’re a busy CEO of a small to midsize enterprise without a fractional CMO it’s time for you to claim the money that’s laying on the table. Forbes says that you’re leaving at least an average of 33% in revenue by not bringing one on.  So set up your CEO Flash Focus meeting with Invictus CMO today. It’s a preliminary focused and high-level 15-20-minute meeting with CEOs to highlight the main challenges. No selling. Just solutions.