When determining if a fractional CMO is right for your company, you will probably ask how much it costs. There are many types of fractional CMO services, models, and individuals available and it can be challenging to understand which service and price will help you best achieve your needs.
It is easier to grasp the cost of a fractional CMO if you begin with an average hourly rate. Several seasoned executive-level marketers have told us that a fractional CMO earns between $200 and 350 per hour. In some fractional CMO situations, clients are billed hourly while in others, they are billed on a retainer.
Cost savings are the most common selling point of fractional CMOS. Chief marketing officers earn more than $300,000 in total compensation each year, including base pay and cash bonuses. Real costs are generally much higher once recruitment expenses, benefits, stock options, and equity are included.
An employee with the same skill level can be hired part-time at a lower cost. A fractional CMO may have limited potential, value, and impact when considered as only a fraction of a full-time hire. This makes a clear point that it is important to set clear goals, expectations, and communication guidelines to maximize results.
Two types of fractional CMOS
Depending on your organization’s goals you may want one of the two types of fractional CMOS.
First is a framework leading fractional CMO who brings hourly guidance each week and helps give some leadership, coaching, and strategic initiatives to the internal team. This style of fractional CMO leads with intention and holds the team accountable and supports them with their expertise and insights.
Second is a fractional CMO who will work not only with providing frameworks and support but also focus on bringing value to the executive level. This type of fractional CMO leads the marketing team but also brings value to executive meetings and plays a role in overall organizational decision-making and collaboration with sales. This type of fully involved fractional CMO has a higher cost because of the additional time invested into the business. This clearly comes with much more value and executive and strategic leadership as well.
Why brands prefer a fractional CMO
Hiring new employees can be very costly. The worst thing a business can do is get in a pattern of hiring and firing people for roles. Most organizations try to train and help employees grow to fit into a role because the cost of hiring a new employee is so high.
This is where hiring a part-time fractional CMO is such a massive advantage. Rather than posting a job listing and waiting for the right applicant to apply, you can begin working with a marketing expert with years of experience executing and leading teams by your side immediately.
Being able to hire a vetted industry-leading executive leader is becoming a major value add for businesses. Not only is it a challenge that many brands completely fail to hire someone who delivers value and return, but we bring the ability for you to find the right fit for your business with our team of vetted marketing experts. Not having an experienced marketer leading your CMO role is a costly mistake. There is far more to lose than there is to gain with the wrong hire.
If you are interested in how your business can gain value from working with an Imprint Digital fractional CMO, reach out to us below. We would love to help.