The fractional CMO role has become a fast-growing solution for brands that need an immediate impact and a low-risk hire who can take care of the same tasks that a full-time chief marketing officer would, but on a part-time schedule.
Often the fractional CMO is focused on hiring the marketing team, and getting the right people in the proper seat for campaign creation. The fractional CMO often becomes the communicator between the product and sales team to the marketing department.
Ultimately a fractional CMO is in charge of building out marketing funnels and helping foster the brand’s story across all campaigns to create the biggest impact on brand awareness, customer consideration, and sales generation.
Fractional CMOs often have diverse experience across many industries, consumer types, products, and services, and have an incredible ability to focus on increased conversions and sales.
Let’s dive into why B2C and Local Businesses often consider hiring a fractional CMO.
Do B2C Businesses need a fractional CMO?
B2C brands can benefit greatly from a fractional CMO role. Depending on your business funding round or cash flows, a fractional CMO is much more cost-effective than hiring a full-time CMO.
The role of a CMO can cost a company upwards of $300,000. This is why many brands choose to specifically hire a fractional CMO. It is a FRACTION of the cost!
Many times businesses get stuck in the startup or growth mode of their business. Either their sales funnel dries up, marketing is misaligned with their goals, or the business do not have the capability to sustain the growth that got it from the early stage to the next stage of growth.
Below is a visual framework from the Harvard Business Review (HBR) on the stages of business growth.
Most businesses get stuck in either stage 2 or 3. This is where the company needs growth through direction (Stage 2) or growth through delegation (Stage 3).
This is precisely when a B2C brand should hire a fractional CMO. The delegation of certain roles or components of the company control can be very hard for entrepreneurs. This is frankly what inhibits many brands from growing and scaling.
But how do B2C brands know who to hire?
When it comes to growing through these stages, trust must be formed. Finding a partner to fill the roles you have managed takes a tremendous amount of work and investment. B2C brands may simply need a part-time fractional CMO to help navigate this growth and establish the campaigns, funnels, processes, and team members that will get the company to the next stage.
This is why fractional CMO services are so VERY popular. Rather than a massive commitment upfront, your brand can bring on a team member who has the experience and expertise at a fractional cost.
Do Local Businesses ever have a Fractional CMO
When a local business brings on a CMO, it often has to negotiate compensation in the form of salary and equity. Below is a quick breakdown of equity and why you may or may not want to give up equity in your business.
- Salary – is a fixed payment expressed as an annual sum of payments made by an employer
- Equity – represents a shareholders stake in a company.
When hiring a CMO full-time, a CEO or business owner often pays a salary and equity to the new CMO. At an early stage of a company, the CMO is incentivized to do one of three things.
- A Large Salary and zero equity
- A blend of salary and equity
- A low salary, and a large sum of equity
We all should know what salary is because our first jobs typically have a salary base to it. The equity piece is what has the possibility to have a massive upside.
Fractional CMO’s do not get equity ownership of your business
The absolute beauty of a fractional CMO for a local business owner is not having to give up equity in the business. (It is also nice not to have increased costs of healthcare or the cost of headhunting the right employee)
The fractional CMO role enables you to keep equity ownership in your business while bringing on the top talent in the marketing world.
Business owners have some incredible optionality when it comes to growing and scaling their businesses. They simply need to ask themselves if they are happy in the stage of business they are in, and do they want to sustain or grow from that foundation.
The fractional CMO role and service empower entrepreneurs and CEOs to more easily foster a team and culture that enables growth to the more mature and later stages of the company.
At Imprint Digital our Fractional CMO service helps brands do exactly this. Reach out today for a complimentary consult and learn how we can make a mark and help your brand grow.