How Much Should You Pay a Fractional CMO?

“A fractional CMO can bring substantial business growth by optimizing marketing practices and constructing long-term plans, which can lead to enduring success.”

Bonjour! (Just had to throw a little French in there) *grin* Balancing the countless responsibilities of running a business can feel like a never-ending juggling act. You might be wondering if a fractional CMO (or a fractional CRO) could be the missing piece to help manage your marketing strategy and drive growth. Let’s dive into what you should expect to pay for fractional cmo services and why it could be a game-changer for your business.

What is a Fractional CMO?

Before we get into the numbers, let’s clarify what a Fractional CMO is. A fractional CMO is a part-time executive who offers the same expertise and leadership as a full-time Chief Marketing Officer but without the hefty full-time salary. They can help craft your marketing strategy, drive growth, and ensure your marketing efforts are aligned with your business goals.

How Much Should You Pay a Fractional CMO?

So, how much does this expertise cost? Typically, a fractional CMO charges between $200 and $350 per hour. This flexibility allows small to mid-sized businesses to access top-tier marketing talent without breaking the bank. According to Forbes, this makes it a cost-effective solution for businesses looking to enhance their marketing efforts without committing to a full-time hire.

To put this into perspective, the national average salary for a full-time Chief Marketing Officer is around $174,000 per year. Contrast that to the fractional CMO hourly rate which may cost about $84,000 annually, assuming a rate of $7,000 per month. This significant cost saving is one of the major advantages of hiring a fractional CMO, as noted by HubSpot.

What Does a Fractional CMO Do?

A fractional CMO balances between creating a better ROI and a better revenue for the business.

A fractional CMO brings substantial value to your business by optimizing marketing practices and constructing long-term plans based on their extensive expertise. They focus on strategic leadership, ensuring that your marketing initiatives are effectively driving brand awareness and customer engagement. This role includes analyzing data, developing marketing strategies, and overseeing the tactics that they create to enhance customer experience and increase sales.  Common approaches for a fractional CMO are to strengthen a brand strategy, direct marketing campaigns, and to create a better ROI.

Additionally, a fractional CMO will manage your marketing team, align your marketing efforts with overall business goals, and ensure that your marketing budget is spent efficiently. They work on creating campaigns that resonate with your target audience and leveraging various marketing channels to maximize reach and effectiveness.

Brand strategy is a very important task for a fractional CMO as is communicated clearly with the sales team to make sure that they are considering the sales teams efforts and obstacles when creating campaigns.

“When deciding whether to hire a fractional CMO, consider factors such as the hours needed, growth goals, work volume, and budget. This approach helps mitigate financial risk and ensures that the marketing leadership aligns with the company’s objectives.”

What Should I Look for in a Fractional CMO?

When you’re ready to hire a fractional CMO, there are a few key qualities to look for:

Experience: Look for someone with a proven track record in your industry or who at least has the experience overcoming the same obstacles as you’ve got.  Marketing principles ae the same, but crisis points are not so select a CMO who’s familiar with putting out the kinds of fires you might be dealing with.

Strategic Thinking: Your CMO should be able to craft and execute comprehensive marketing strategies and utilize those analytic abilities to clearly define your actual market footprint.  Most businesses underestimate their target market substantially.

Cultural Fit: They need to align with your company’s values and work well with your existing team.

Training: There’s no such thing as fractional CMO training really.  Most CMOs get to their position by paying their way up the ladder and proving themselves one campaign initiative after another. So, ensure they have the necessary skills and knowledge to drive your business forward. This is crucial as highlighted by CMO Alliance, which underscores the importance of a CMO who can lead and mentor your marketing team effectively.

How Many Hours Does a Fractional CMO Work?

The number of hours a fractional CMO works can vary based on your needs. Some may work just a few hours a week, while others might be more involved, especially during critical campaigns or strategy sessions. When creating a fractional CMO proposal, consider your business’s specific needs and the goals you aim to achieve.

Cost Savings with a Fractional CMO

A fractional CMO can save you 50-70% on labor costs vs. a full-time CMO

One of the biggest benefits of using a fractional CMO is saving on the added expenses associated with hiring a full-time employee. These additional costs include insurance, bonuses, payroll taxes, and more. According to Business Insider, these savings can be substantial, making a fractional CMO an attractive option for growing businesses.

Considering the fact that revenues are 33% higher upon engaging a fractional executive, according to Forbes, and the labor costs are 50-70% lower, hiring a fractional CMO could be the strategic move your business needs. It offers flexibility, expertise, and significant cost savings. Ready to explore further? Dive into the benefits of a Fractional CMO today with Invictus CMO—the only fractional CXO company to guarantee their work. Let’s take your revenues to the next level!

Schedule your private CEO Flash Focus call today with Invictus CMO–a preliminary focused and high-level 15-20-minute meeting with CEOs to highlight their main challenges. No selling. Just solutions.