Unlocking Growth with Fractional CMO Services: A Guide for Busy CEOs

Juggling all the responsibilities you have while running a small to midsize business can feel like a never-ending marathon. You’re always looking for ways to boost growth without complicating things, right? Well, that’s where the magic of the fractional CRO services come in handy. But today, let’s chat about another game-changer: fractional CMO services.

92% of companies audited wish that they had hired a fractional CMO sooner

All the Expertise Without the Daunting Bill

Imagine having top-notch marketing expertise without committing to a full-time executive. What if you could get the expertise you needed from someone who’s had ages of experience in the world of marketing, brand strategy, messaging, and leadership and you could get them at a fraction of the price of a full-time professional? Sounds like a dream? It’s actually very doable! Let’s dive into when you should consider hiring a fractional CMO, what they do, and why it might be the perfect solution for your business.

The most important aspect to understand about using fractional CMO services is that you’re getting executive level experience that can hit the ground running. In fact, Ampleo says, “Because fractional CMOs are experienced marketing executives, they can hit the ground running and make an immediate impact on a business. They can quickly assess a company’s marketing needs and develop a plan of action to drive growth.”  Hiring a VP of marketing or a regular junior marketing position won’t get you that kind of distance.

When should I hire a fractional CMO?

Time is Money. Hire your fractional CMO today

First of all, let’s answer the most obvious question.  When should you hire a fractional CMO, because there is an ideal time.  They should be considered early on in your business, as soon as you can financially handle it  because you want to make sure you don’t waste any marketing dollars.  If you’re not on brand right from the beginning, then you could have to spend more dollars fixing a branding problem later on down the road. And revenue is most important in the early stages of a business.  A fractional CMO could be a big difference in your revenue generation at that point.  In fact, Forbes stated that hiring a fractional executive resulted in an average of a 33% revenue increase while the Wall Street Journal pointed out that hiring a fractional executive saved 50%-70% on labor costs.

Some tell-tale signs that you need a fractional CMO would be if your marketing efforts feel scattered, or you’re struggling to develop a solid strategy. Maybe you’re at a growth stage where you need expert guidance but not ready for a full-time commitment. This would be an ideal time to hire a fractional CMO.

And let’s talk about the fractional CMO cost – it’s a big factor. Hiring a full-time CMO can be pricey with benefits and bonuses, but a fractional CMO gives you the expertise you need without needing a knee-breaker loan. You get high-level skills at a fraction of the cost. Pretty neat, huh?  We’ll get into more specifics later on in this article, because how much a fractional CMO charges could be a key indicator on whether or not they are good enough for your business.

Who hires fractional CMOs?

You might wonder, who exactly is hiring these fractional CMOs? Well, it’s often savvy CEOs like you, running small to midsize businesses, who need seasoned marketing leadership without the full-time commitment. These businesses benefit immensely from the expertise and flexibility that a fractional CMO provides.

CMO’s garner interest over time for an excellent ROI

For many small to midsize businesses, bringing on a fractional CMO means accessing top-tier marketing minds without draining their budgets. It’s like having your cake and eating it too! (Hope you like cake) You get all the strategic insights and leadership of a full-time CMO, but at a fraction of the cost which is why they are called “fractional” professionals. As one expert notes, “A fractional CMO will help your company save on costs by not taking up the same amount of your budget as a full-time CMO. They can work on multiple projects at once, so you don’t have to wait for them to complete their current one before they start working on yours”​​. (Source)

Fractional CMOs for Startups?

This is especially valuable for startups and companies in growth phases, where every dollar counts but high-level expertise is still crucial. Fractional CMOs are also a perfect fit for businesses looking to revamp their marketing efforts. Whether you’re launching a new product, entering a new market, or just trying to refine your marketing strategies, a fractional CMO can provide the guidance and execution needed to hit your goals.

By hiring a fractional CMO, you’re not just getting a part-time executive; you’re gaining a strategic partner dedicated to helping your business thrive.

What is a fractional CMO job description?

Let’s break down the fractional CMO job description. These folks oversee the development and execution of your marketing strategies, lead your marketing team, and ensure everything aligns with your business goals. They analyze market trends, your specific marketing data,  manage budgets, and make sure your marketing efforts actually move the needle towards a better ROI for your business.

They’re also mentors, guiding your internal teams, spotting growth opportunities, and offering insights that help shape your overall strategy. In short, they’re like having a high-level marketing executive on demand.

Typically fractional CMO services do not include execution, rather they operate on a higher, oversight level such as brand strategy, messaging design, an the architecture of the marketing campaigns themselves.

What does a fractional CMO do day-to-day?

Fractional CMO presenting winning strategies

Curious about what a fractional CMO does day-to-day? Here’s a sneak peek:

• Strategy Development: They craft and roll out comprehensive marketing plans.

• Team Leadership: Guiding and mentoring your marketing team to ensure seamless execution.

• Market Analysis: Digging deep into market research to spot trends and opportunities. A typical fractional CMO will love getting their hands dirty in the data and be able to spot key trends that can be interpreted for the benefit of your business.

• Budget Management: Making the most of your marketing budget to maximize ROI. At Invictus CMO, for example, we believe that every dollar must pull its weight.  We don’t believe that a single dollar should be permitted to be a freeloader.  Every marketing dollar should be spent to EARN another marketing dollar.

• Performance Tracking: Keeping an eye on and reporting the effectiveness of your campaigns and determining where there’s room for improvement.

When you consider how to become a fractional CMO, you will see that there’s a great deal of training and responsibility that has come with their expertise.  They require a solid mix of strategic thinking, leadership skills, and a solid grasp of various marketing channels.

What are fractional CMO services?

Fractional executives have a great ROI

So, what exactly are fractional CMO services? They cover a wide range of activities tailored to your business needs. Here’s what they typically include:

1. Marketing Strategy: Crafting long-term plans that sync with your business goals.
2. Brand Management: Boosting your brand’s presence and reputation. A typical CMO nowadays will try to accomplish this just by throwing money at aimless ads and social media, while a great CMO will accomplish this through direct marketing because she’ll understand that small to midsize businesses don’t have the luxury of branding themselves in the same manner as Nike and Coca-Cola.
3. Digital Marketing: Handling online efforts, from SEO to social media.
4. Content Marketing: Creating and sharing valuable content to attract and engage your audience. This can be done via email campaigns, blogging, direct mail campaigns, as well as other written content that is circulated for the sake of perpetuating the business’s messaging.
5. Sales Alignment: Making sure marketing efforts align with your sales goals to drive revenue.  A great fractional CMO, who’s worth the money you pay them, will always ensure that they are speaking the same language as your sales department.  Too often the marketing department runs the sales department autonomously and that inhibits a great revenue production.

Fractional CMOs for startups are ideal as well as these services are a goldmine. They help set up a strong marketing foundation without needing a full-time hire.  Getting started on the right foot with a good CMO will inevitably make your business more valuable amidst an exit strategy and even make an exit strategy more viable sooner because of the revenue it’s able to generate earlier on in the process.

How much should you pay a fractional CMO?

As of May 10, 2024, Salary.com estimates that the average salary for a Chief Marketing Officer (CMO) in the United States is between $304,669 and $429,040 per year, not including bonuses and stock options.

When it comes to paying a fractional CMO, it depends on their experience, the scope of work, and your budget. A typical fractional CMO proposal might offer various pricing models like hourly rates, monthly retainers, or project-based fees.  If the fractional CMO is worth their salt, they will be charging on a monthly basis and they will require a 3-6 month agreement as they will be wise enough to understand that a fully executed campaign requires that kind of time commitment.

On average, the fractional CMO salary can vary, but it’s generally more affordable than hiring a full-time CMO. You might be looking at anywhere from $5,000 to $15,000 per month, depending on what you need and the expertise you’re getting. In exchange for that you’ll typically be getting a set number of hours from the fractional CMO weekly.

How much should a fractional CMO charge?

What a fractional CMO charges is actually a telltale sign of whether or not you want to hire them.  Let’s talk numbers. The fractional CMO hourly rate can range from $150 to $500 per hour but if your fractional CMO is charging solely by the hour, run away.  This kind of fee structure typically demonstrates an inexperienced fractional CMO.  Experienced fractional CMOs know that in order for a project to be successful, it will require a number of months for commitment, not hours. Anything less would be setting you up for failure. Even with a number of monthly commitments from you, this flexibility still means you can scale your marketing efforts up or down based on what you need and what you can afford. It’s a great way to get top-tier talent without long-term commitment.

Consider this authoritative answer to the question. “Fractional CMOs work on a project-by-project or retainer basis, which allows for flexibility and scalability. This means that businesses can access their expertise as needed, without committing to a long-term contract.”

Is a fractional CMO worth it?

Fractional CMOs help you to save on labor costs while increasing your ROI

Is it worth it? To figure this out, weigh the fractional CMO cost against the potential benefits. What would your revenue need to increase in order to make it a positive ROI? Discuss this with your potential fractional executive. A competent fractional CMO will have solid wisdom to answer those hard questions for you. Remember, a fractional CMO can bring in high-level strategic insights, drive growth, and boost marketing efficiency without tying you down to a full-time executive.

“A fractional CMO will allow you access to expertise, resources, and data that you may not have been able to acquire on your own. They can help take the load off of you and your team so they can focus on what they’re good at while the CMO takes care of the big picture”​ (Source) What’s that worth to you?

Time is money. So, consider this statement by Ampleo,”Because fractional CMOs are experienced marketing executives, they can hit the ground running and make an immediate impact on a business. They can quickly assess a company’s marketing needs and develop a plan of action to drive growth”

Many businesses find that the ability to tap into top-notch marketing talent on a flexible basis is a huge plus. The return on investment can be significant and long-lasting, especially if their expertise leads to better marketing performance and business growth.

In a nutshell, fractional CMO services offer a flexible, cost-effective way to elevate your marketing game. Whether you’re a startup laying down your marketing roots or an established business looking to refresh your strategy, a fractional CMO can provide the leadership and expertise you need.

Ready to explore how a fractional CMO can work for your business? Reach out to experts in the field to discuss your needs and create a tailored strategy. Investing in a fractional CMO could be the key to unlocking your business’s full potential.

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