With fractional chief marketing officer (CMO) services, your business can access best-in-industry marketing leadership—even if you don’t have the need or resources for a full-time chief marketing officer. In this blog, we break down the finances of working with a virtual or fractional CMO.
What Is a Virtual Chief Marketing Officer?
A virtual chief marketing officer (CMO) is a flexible and budget-friendly alternative to hiring a full-time CMO. Just like full-time CMOs or fractional CMOs who operate on-site, virtual CMOs share the goal of increasing your business’s revenue through improved marketing efforts. Engaging with a virtual CMO can enhance digital marketing efforts and drive measurable business growth through focused campaigns and expert execution. To achieve this goal, virtual CMOs can perform some or all of the following functions:
- Creating a vision for your marketing department
- Developing your marketing team
- Optimizing marketing campaign performance
- Coordinating marketing goals with organizational priorities
- Managing relationships with third-party service providers
- Improving synergy between marketing, advertising, and sales initiatives
We mentioned three types of CMOs: full-time, fractional, and virtual. Here’s what makes each role unique:
- Full-Time CMOs: These executives are part of your internal team and get paid a yearly salary plus benefits to cover all of the responsibilities of a chief marketing officer.
- Fractional CMOs: These executives are provided by a third-party company and cover a portion of the overall responsibilities of a full-time CMO. Fractional CMOs provide smaller businesses and startups with flexibility when it comes to their resources and goals.
- Virtual CMOs: These executives work much like fractional CMOs. The only difference is that while some fractional CMOs work on-site, all virtual CMOs work remotely.
Could your business benefit from executive-level marketing leadership at a fraction of the cost? Contact us today to learn more.
How Much Does a Fractional CMO Make?
The average fractional CMO makes $139,248 per year, according to Glassdoor. Does that mean you’re likely to pay nearly $140,000 annually for fractional CMO services? Not necessarily. The key advantage of these services is how customizable they are, so you can customize a fractional CMO role to your specific needs and budget.
Marketing consultants, including fractional CMOs, provide strategic guidance during critical business phases, such as growth or market entry.
When compared to a traditional, full-time CMO who makes an average of $358,743 per year (as reported by Salary.com), hiring a fractional CMO can save upwards of $200,000 annually. As an organization, you can reinvest those savings into product development, team growth, or upgraded technology systems, all while still benefiting from impactful marketing leadership.
Reach out to our experts to see how you can most effectively leverage fractional CMO services.
How Much Does a Virtual CMO Cost Per Month?
The average fractional or virtual CMO cost per month is approximately $11,667, which can be determined by dividing the average yearly cost (about $140,000) by 12. However, just like yearly costs, how much businesses spend per month on virtual CMO services varies greatly.
One common model for virtual CMO services is a monthly retainer. In this model, you’ll pay a set rate to grant your team access to an executive for a certain amount of work per month. This can be a great option for businesses that are tackling several initiatives at once and only need intermittent guidance.
How Much Does a Fractional CMO Charge Per Hour?
The average fractional CMO cost per hour ranges between $200 and $300. Using an hourly rate of $250 and a work year of 52 weeks, we can calculate the following yearly costs:
- 10 Hours Per Week: $130,000 per year
- 15 Hour Per Week: $195,000 per year
- 20 Hours Per Week: $260,000 per year
- 30 Hours Per Week: $390,000 per year
Fractional CMOs provide strategic marketing guidance, offering experienced support to businesses and aligning marketing strategies with overall goals.
Compared to a full-time CMO, you can save a significant amount by choosing to work with a fractional CMO for up to 20 hours per week. Reach out today for a quote to see how much fractional CMO services would cost your business.
When Should You Hire a CMO?
Fractional or virtual CMO services are highly impactful during periods of change. When it comes to operating a business, change is one of the few constants. Strategic insights from a CMO can be invaluable during these times, providing the expertise needed to navigate transitions effectively. Here are some periods of change that show your business could benefit from fractional CMO services:
- You’re previous marketing methods aren’t cutting it anymore
- You want to scale your operations or expand into a new market
- Your marketing team has gone through significant changes and could use unified leadership
If any of the above situations resonate with your team, it’s time to consider fractional CMO services. Contact us today to get started.
How Do I Hire a Good CMO?
The best CMO is one that fits both your needs and budget. That’s why fractional and virtual CMO services provide startups and small businesses with such an advantage. These services are scalable to your specific situation, so you can pay for as much or as little as you need.
Strategic planning is crucial in evaluating a CMO’s capabilities, as it significantly influences marketing strategies and contributes to measurable business growth.
Still, all fractional services aren’t created equal. When looking for the best fit for your business, consider each executive’s experience. Fractional executives have the opportunity to work with a wide variety of industries and business stages, so you can find someone who knows how to overcome the challenges you’re experiencing.
Contact Us To Learn More About Virtual CMO Services
Bohu is the choice for fractional CMO services—including virtual arrangements! Our experts are ready to guide you through the entire process, from evaluating your needs to matching you with a professional who has the right experience. Get in touch to get started!
