Fractional CMO services can provide a significant amount of value for startups and small businesses, but exactly how much do these services cost? The simple answer is that fractional CMO services cost less than hiring a full-time CMO, with fractional CMO costs being influenced by hourly rates and various other factors. In this blog we dive into the specifics.
What Is the Fractional CMO Hourly Rate?
The median yearly salary for a chief marketing officer (CMO) is $357,747 (according to Salary.com), which equates to about $178.87 per hour (assuming a 2,000-hour work year). Hubspot recommends that startups spend approximately 11% of their revenue on marketing, which means that your business would have to bring in at least $3.25 million a year just to be able to afford a full-time CMO’s salary. This figure doesn’t include the rest of your marketing team’s salaries, funding for campaigns, or advertising costs.
Working with a fractional CMO is often an effective and budget-friendly alternative to hiring a full-time CMO. The average hourly rate for a Fractional CMO ranges between $150 to $375 per hour, which, while not necessarily lower, involves fewer hours worked, thus reducing your overhead costs. To supplement C-suite level marketing roles, you could also partner with consultants, since freelance marketing consultant rates tend to range between $50 and $200 per hour (according to Indeed).
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How Much Is the Fractional CMO Salary?
The average fractional CMO salary is $114,547 per year, as reported by Glassdoor. However, not all fractional CMO agreements operate on an annual basis. Many organizations opt for a monthly retainer model instead. Hiring a fractional CMO can provide businesses with high-level marketing strategy without the need for a full-time commitment, making it an attractive option for companies looking to optimize their marketing efforts on a budget. This model allows for your organization to have access to executive leadership when you need it without committing resources to a full-time CMO. The average fractional CMO salary per month is $9,546.
It’s also important to note that fractional CMOs can earn their living by working with multiple companies at once. This has two key advantages. First, your organization gains access to the experience your fractional CMO gains by working in a variety of industries and business growth stages. Second, you don’t have to bear the full financial burden of a highly experienced professional. Instead, you can invest in fractional CMO services if and when they make sense for your organizational goals.
For more information on how much fractional CMO services could cost for your business, get in touch with our experts.
What Is the Average Rate for a Fractional CMO?
The average fractional CMO hourly rate ranges between $200 and $300, as reported by LinkedIn. Investing in a fractional CMO can be a strategic marketing investment, ensuring that your efforts are aligned with specific goals and not wasted on uncoordinated activities. Like most services, fractional CMO cost also tends to vary with quality. For example, you may be able to find fractional CMO services for around $150 per hour, but you will likely be making trade offs when it comes to experience and results.
How Much Does a Fractional Marketing Director Cost Per Hour?
The terms fractional marketing director and fractional CMO are often used interchangeably, so fractional marketing directors also have an average rate that falls between $200 and $300 per hour.
These professionals are responsible for implementing and overseeing marketing initiatives that align with business goals, ensuring accountability and effectiveness.
How Much Does a Fractional Marketing Director Cost Per Month?
How much you need to pay a fractional marketing director or a fractional CMO per month depends on the scope of their responsibility, as well as their experience level. A fractional CMO can significantly enhance the effectiveness and strategic leadership of your marketing department. Using our earlier figure of $114,547 for a CMO’s annual salary, you can use $9,000 to $10,000 per month as a starting point for your budget.
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How Many Hours Does a Fractional CMO Work?
Fractional CMOs don’t work a standard amount of hours; instead, your business works out an agreement with these professionals that makes sense for each party’s schedule and budget. Strategic leadership plays a crucial role in determining the number of hours needed to address your marketing challenges effectively. When determining how many hours you’d like to work with a fractional CMO, consider the following figures that show which schedules make the most financial sense:
- 10 Hours Per Week: $104,000 – $182,000 per year
- 15 Hours Per Week: $156,000 – $273,000 per year
- 20 Hours Per Week: $208,000 – $364,000 per year
- 30 Hours Per Week: $312,000 – $546,000 per year
As you can see, the average fractional CMO salary reflects a 10-hour-per-week schedule. At 20 to 30 hours per week, these services cost much closer to filling a full-time CMO position. For many businesses, working with a fractional CMO for 10 to 15 hours per week will make the most sense.
How Much Should You Pay a Fractional CMO?
At the end of the day, fractional CMO pricing should be less than hiring a full-time CMO. Effective marketing strategies are crucial for aligning marketing plans with business goals and ensuring sustainable growth. The key advantage of fractional CMO services is that your organization can access highly impactful, executive-level marketing leadership at the scope (and cost) that makes sense for your specific situation.
