Never heard of a Fractional CMO? Well, what if I told you that you don’t have to DIY your marketing, hire a full-time person or struggle to figure out who to outsource your marketing to…
That’s because there’s a little-known resource, called a Fractional CMO. It lets you bring in C-Suite level marketing strategy to define, engineer and execute your business goals without having to pay to hire someone internally.
The good news is that you don’t need to fork out a multi-six-figure CMO salary. Nor do you have to become a marketing pro yourself to skillfully market your business.
In this post, I’ll explain:
- What is a Fractional CMO
- When should you hire a Fractional CMO (…and when not to)
- What’s the difference: Fractional CMO, Marketing Consultant, Marketing Agency
- What are a Fractional CMO’s responsibilities
- How much does a Fractional CMO cost
- How do I hire the right Fractional CMO for my business
If you’re ready to learn more about Fractional CMOs than you ever thought you’d need to know, read on.
So, what is a Fractional CMO?
A Fractional CMO (Chief Marketing Officer) is an outsourced marketing executive focused on growing your business. They typically work with multiple clients at the same time. This allows you to secure an experienced strategist while sharing the cost of this resource with other companies. So, you get all of the benefits of a seasoned thinker without the big salary or feeling pressure to keep them busy.
The idea of fractional resources isn’t a new one. In the 1970s we saw the rise of Timeshares, giving the mainstream access to vacation real estate by sharing their ownership with other people. In the 80s fractional plane ownership became a thing. Regular people could share the cost of owning an aircraft. Fractional C-Suite positions follow the same guiding principle. Multiple people can share the cost of a coveted resource, which makes access affordable.
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When should you hire a Fractional CMO? (…and when not to)
Knowing when you should hire a Fractional CMO comes down to two core question:
- Do you need long-term strategy, leadership and oversight to market your business?, and
- Are you not yet ready to make an investment into a full-time position?
If you answered ‘yes’ to both questions, your business is likely ready for a Fractional CMO.
The reasons why a business may opt to hire a Fractional CMO depends on the business…
For some, revenue has flatlined or declined – what they were doing isn’t working anymore. They need expertise from someone outside of the organization to help them identify blind spots, issues and opportunities and create a new plan for growth.
For others, they’ve outgrown their organizational structure. They’re experiencing growth, but they don’t yet have the internal expertise to continue that trajectory.
If you’re not looking for long-term marketing support or if you aren’t ready to invest time or money into the execution of a marketing plan, you may be better suited for other resources first. More on that in the next section.
What’s the difference between a Fractional CMO, a Marketing Consultant and a Marketing Agency?
We know that a Fractional CMO is an outsourced marketing executive focused on growing your business, but how does this differ from a Consultant or an Agency?
What’s the difference between a Fractional CMO and a Marketing Consultant?
A consultant is usually a marketing specialist hired to identify and/or solve a specific business problem. They’re usually tasked with giving recommendations and strategies but rarely get involved in executing a plan. So, a consultant is a very valuable resource to businesses who are clear about where they want to focus their marketing efforts and for those who have resources available to execute the recommendations.
Types of Marketing Consultants include: SEO Consultant, Google Ads Consultant, Local Business Consultant, Branding Consultant, Social Media Consultant, Email Marketing Consultant, Marketing Funnel Consultant, Marketing Automations Consultant, Market Research Consultant, etc.
What is the difference between a Fractional CMO and a Marketing Agency
A Fractional CMO is a single person working directly with you to grow your business. Alternatively, an agency is made up of many people, all who have a specific function in the business.
Point of contact: If you were to work with an agency you’d be assigned to an Account Person, who is not typically a marketer and instead is focused on client service. They are the conduit between you and the other specialists in the agency (such as designers, strategists, SEO specialists, copywriters, etc). And, they can often be juggling 20 or so other clients. With a Fractional CMO, they are your point of contact. So, you’ll be speaking directly with the leader working on your marketing.
Team: The larger the Marketing Agency, the more specialists they have in-house. This can be a great advantage for clients who want a one-stop-shop; but can be a disadvantage as it doesn’t guarantee you the best or most skilled specialists and an agency may be less flexible in using your preferred vendors. Many Fractional CMOs either have their own team, similar to an agency or they have preferred 3rd party experts they recommend or they only work with your team. This depends on the Fractional CMO you hire.
Cost: The cost of a Marketing Agency and a Fractional CMO can vary greatly depending on the size of business and their specialty / tenure. However, according to WebFX, a Marketing Agency can cost anywhere between $900-20,000 per month. A Fractional CMO, on the other hand, can range from around $7,000-9,000 per month.
Marketing Functions: The functions of a Fractional CMO and a Marketing Agency can be similar. Both can develop your strategy, plan and execution.
What are a Fractional CMO’s responsibilities?
The responsibilities of a Fractional CMO can be quite vast, depending on the needs of the client’s business. However, they generally fall under 3 categories:
Insights & Analysis: In-depth analysis is done into the company’s sales, historical marketing activity, systems and processes, key competitors, brand awareness and company reputation, market research, employee experience, organizational architecture, to name a few. This research helps the Fractional CMO understand where the business’s priorities lie and where to focus their efforts so they can develop the strategic plan.
Strategic Planning: Depending on the needs of the company, strategic planning may include a brand and positioning strategy, pricing strategy and launch plan, content strategy, marketing strategy as well as associated timelines, budget allocation and resource allocation.
Implementation: Although most Fractional CMOs don’t do marketing implementation themselves, they do hire marketing team members or 3rd party resources including training and/or onboarding. They will also oversee campaign management as well as tracking, insights and reporting. They will help to onboard any new tools or technology required to run the strategic plan.
How much does a Fractional CMO cost?
According to Salary.com, the average Chief Marketing Officer salary in the United States is $353,196 as of December 27, 2023, but the range typically falls between $305,461 and $430,154. This is a very significant investment for small- to medium-sized businesses, which is why a Fractional CMO can be so enticing.
There are 2 main ways to engage a Fractional CMO: hourly or on retainer.
Hourly cost structure: Although costs can vary greatly with Fractional CMOs, many charge between $250-400 per hour.
Retainer cost structure: To avoid cost fluctuations and to lock in pricing, many clients opt to engage their Fractional CMO in a retainer. Retainers can range from about $7,000 – 9,000 per month.
It’s also important to keep in mind that, with a 3rd party contractor, you don’t have to pay for benefits, insurance, bonuses and other additional costs that come along with a full-time C-Suite employee.
How do I hire the right person for my business?
Finding the right fit for your business is paramount in getting great results. So, what should you be looking for when hiring a Fractional CMO?
Experience: You want to ensure your Fractional CMO has experience related to your business needs – so, ask yourself if they should have expertise in B2B, B2C or D2C marketing. Do they need to have direct experience in your industry? Have they helped businesses achieve the same goals you’re looking to achieve? Have they worked with a company of similar size?
Local Knowledge: Great marketers understand the market they’re marketing to. If you service a local market, your Fractional CMO having knowledge of that location can be very valuable to you.
Implementation Alignment: When it comes to implementing the strategic plan, you need to understand what type of scenario works best for you. Do you need a Fractional CMO to work with your internal marketing team? Do you want one who can help you hire and onboard a team? Or do you want someone who can bring their own implementation team?
Can they walk the talk?: A window into how good of a marketer they are is how they market themselves. How does their website look? How is their content? How are they able to articulate what makes them different and valuable to you?
Results: You want results for your business and you want a handsome return on your investment with your Fractional CMO. Understanding what type of success they’ve achieved for other clients can give you a window into their work with you. Do they have case studies for companies they’ve worked with who have similar goals? Do they have references you can speak to? What is their track record?
Fit: You and your team are going to be working very closely with your Fractional CMO. You want to make sure you’re hiring someone who will not only get you results, but also fit well with your organizational culture and core values.
If you’re interested in learning more about the Fractional CMO services we offer, you can fill out a Growth Call request form here.