Fractional CMO Rates vary from $200-300 per hour. Even if they are working with your business 10-40 per month, this is typically much less expensive than paying a fulltime executive salary plus benefits and other overhead. In addition, an outsourced CMO can onboard themselves quickly and you don’t have to worry about the cost of having to hire a new one every 2-3 years (the typical tenure of a B2B CMO).
What Makes a Fractional CMO a Cost-Effective and Strategic Option?
In the ever-evolving world of business, fractional CMOs (Chief Marketing Officers) have emerged as a popular choice for many organizations. A fractional CMO is a professional who offers their marketing expertise part-time or on a contract basis, providing businesses with strategic direction for a fraction of the cost of a full time executive. These seasoned professionals bring a wealth of experience and knowledge, making them an attractive option for businesses seeking to boost their marketing results and grow their revenue more aggressively.
How Much Does a Fractional CMO Cost?
Understanding fractional CMO rates is crucial for any business considering this route. This understanding aids in budgeting and provides a clear picture of the value proposition offered by a fractional CMO. Let’s dive into the fractional CMO hourly rate, how much it costs to hire a fractional CMO, the structure of their teams, and how to integrate them into your business.
If you’re concerned about how well a fractional CMO can really learn your business, watch this episode of The Marketing Blender Show!
Average Cost of Hiring a Fractional CMO
The average hourly rate for a fractional Chief Marketing Officer is typically between $200 – $300 per hour. You can expect that there will be an initial phase that requires more hours in order to research the competitive ecosystem, your buyer, and build the marketing plan and messaging. The ongoing costs once this is built will depend on the amount and type of work they will need to do or oversee. For larger companies entering new markets or structuring a system that can scale, hours might be 10-20 per week. For smaller companies where the CMO is helping with ROI, strategy and oversight, the hours could be as low as 10-15 per month. The key is to have clear conversations with your fractional CMO about how they will drive progress and what their assumptions are about what resources will be needed to achieve the milestones.
Additional Costs to Consider
Hiring a fractional CMO involves several costs beyond their hourly rate. Expenses may include additional fees for specific projects (such as a new website or trade show booth), the need for tactical marketers (with lower rates) to execute the day-to-day requirements such as a graphic designer or digital marketer. Additionally, most companies need to budget for the media fees to advertise.
A great CMO should be able to help you budget and allocate resources and ownership to the appropriate people whether internally or externally. Their role is a leadership role where you should receive recommendations and plans to review and approve.
An experienced CMO will not need you to figure this portion out, but should be your guide to understand the investment, the best way to maximize your resources, and how to have clarity that will drive the results you need. A fractional CMO’s flexibility and expertise allows them to adapt to the needs and limitations of the business, fill gaps in the current team, and aggressively deliver results quickly to provide a significant return on investment.
When considering the return on investment, it’s not just about the direct costs. The benefits brought to the company’s marketing strategy and overall growth should also be considered. Some CMOs can assist with internal communication strategies and support and drive your culture initiatives and improve your recruiting efforts. A fractional CMO can bring fresh perspectives, innovative strategies, and a wealth of experience that expands beyond traditional marketing tactics, all of which can contribute to increased revenue, reputation, and resilience.
Fractional Marketing Team Structures
Fractional CMOs typically work with a team structure that includes various roles and responsibilities. This structure can vary depending on the needs of the business and the particular expertise of the CMO.
One of the key benefits of this structure is its flexibility. This structure can also be more cost-effective than hiring multiple full-time employees.
The Marketing Blender CMOs frequently manage, mentor, hire, and collaborate with dispersed teams that might include a combination of in-house talent, other marketing agencies, or even freelancers. When a client has a Head of Sales, we work closely with them to fill and optimize the pipeline and the technology that improves accurate projections. Additionally, our CMOs ensure messaging is aligned across all team members and vendors and rolling up to the company’s goals. A key benefit is a CMO will be able to maximize the effectiveness of team members and eliminate waste and redundancies that won’t drive revenue.
Integrating a Fractional CMO into Your Business
Integrating a fractional CMO into your business involves several steps. These include setting clear expectations, aligning goals with the CMO, and facilitating open and regular communication. It’s important to have a clear understanding of what you want the CMO to achieve and how their success will be measured.
At The Marketing Blender, our CMOs follow a time-tested process that creates clarity and confidence for the client and positions the engagement to have near-term impact while working on other longer-term projects at the same time. With every engagement, we
- Build a Brand Message Playbook
- Write a marketing plan that rolls up to your growth goals
- Assists with prioritization, budgeting, and project ownership creating a practical and proactive execution roadmap for every quarter
- Builds a clear scorecard that aligns with your pipeline and revenue strategy
- Is involve with building the execution system that can be optimized and scaled with growth and change
- Has a repeating cadence of reporting with the leadership team and is involve with strategic planning
Successful integration of a fractional CMO can bring significant benefits to a business. Real-world examples abound of businesses that have seen substantial growth and improved marketing efficiency after bringing a fractional CMO on board.
Are You Ready to Hire a Fractional CMO?
Understanding fractional CMO rates and the associated costs is crucial when considering this option for your business. Despite the costs, the value that a fractional CMO can bring in terms of flexibility, expertise, and quick results often justifies the investment. The unique team structure and the potential challenges it brings are worth considering, as is the process of integrating a fractional CMO into your business. With careful planning and effective communication, a fractional CMO can be a valuable asset to your business, driving growth and enhancing your marketing efforts.
Reach out to us at The Marketing Blender to learn more about how a fractional CMO can make a difference for your business.