Why Fractional CMOs Are Expensive
This article was published on February 1, 2021
Categorized in: Digital Marketing
We have noticed that people often pause when considering the fee for hiring a Fractional CMO. They may be comparing the fee structure to something else, such as the cost of hiring a digital agency to help with marketing, or even hiring freelancers to do some of the work.
Well, Fractional CMOs are more expensive than these for a reason. Their work is intended to replace hiring a full time, in-house CMO, and the cost is far lower than if you went with a full time CMO.
So, why does the fee to hire a Fractional CMO often look so expensive? Here’s a breakdown of why the fee structure makes sense.
You’re Paying for Executive-Level Strategy
With a Fractional CMO, you are actually paying for executive-level strategy, and that is something that you don’t get with other work-for-hire arrangements. Because the arrangement with a Fractional CMO looks similar to one of hiring a freelancer or an agency, it is easy to lump them in a similar category, and therefore expect similar pricing. However, it’s not the same thing
Fractional CMOs develop business-level strategy that aligns marketing with objectives. They use their extensive expertise to analyze data, analyze the existing strategy, determine what gaps need to be filled, and a host of other high-level activities that ultimately lead them to make their strategic recommendations. You aren’t hiring someone to “do work”. It’s much deeper than that and much more effective.
Save On Costs of Hiring a CMO Full Time
When thinking about the pricing structure, you need to understand that the pricing for a Fractional CMO sits well under the costs of hiring a CMO in-house. You won’t have to pay a full-time strategy and all the extras that go along with it, such as benefits and the taxes associated with having an employee.
In other words, when comparing the pricing of a Fractional CMO to something it has to be the right thing. You get all the benefit of having an executive-level marketing strategist on your team without paying for the full time strategy. You pay only for what you need, and you use them for only as long as they are needed. This works out to be a considerable cost savings. In this context a Fractional CMO isn’t expensive at all.
The Term “Fractional” Doesn’t Mean Junior
Many people see the term “fractional” and automatically assume that it signifies someone junior. The opposite is the case. Fractional CMOs are industry experts. They’ve been doing strategic work for a long time, and they’ve decided to offer their services “for rent” rather than align themselves with a single company for a full time job.
The truth is, not all businesses need a CMO to be with them 24/7. You can hire a Fractional CMO only for what you need. This varies depending on the business. For example, some higher a Fractional to solve a particular problem or work on a particular project. They work closely with the company until the project is complete and then part ways.
Each situation is different, but the point is, Fractional CMOs are industry experts who can handle everything you need, and you didn’t need to hire a full time employee to experience the benefits.
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About the Author: Brick Marketing President, Nick Stamoulis
Nick Stamoulis is a digital marketing expert and President of Brick Marketing. With 25+ years experience, he specializes in solving complex digital marketing challenges through SEO, content marketing, social media, PPC, email marketing, SEO for AI (GEO) and conversion optimization.
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