Full-time CMO vs. Fractional CMO — What to Consider
Small businesses and tech startups need the expertise of a Chief Marketing Officer (CMO) to reach and convert potential clients. Needing a CMO, however, doesn’t always mean that it makes sense to hire a full-time executive. Before committing to a professional, consider the following differences between full-time CMOs and fractional CMOs. You might find that a fractional CMO offers more advantages at a lower cost.
How Much Can You Afford to Pay Your CMO?
The average executive can earn $100,000 to $220,000 per year. That doesn’t include benefit packages that might come with performance bonuses, paid vacation time, health insurance, and other perks. Large companies might not flinch at spending that much money on a full-time CMO. A smaller startup, however, might find it impossible to attract an experienced professional without going over its budget.
If the cost of a full-time CMO looks intimidating, consider using a fractional CMO. Fractional CMOs work with several companies, so you pay a much smaller amount. Since you share the CMO with other businesses, you get to hire a qualified candidate at a lower cost.
How Many Hours Do You Need From Your CMO?
You rely on startup marketing and B2B marketing to reach members of your target audience and convert them into clients. That doesn’t necessarily mean that you need a tech marketing professional working more than 40 hours a week on your outreach projects. (Many CMOs work at least 50 to 60 hours a week. Plenty of them dedicated more than 70 hours a week to work.)
If you require a full-time CMO fully focused on your business, then you should hire someone willing to commit 40 or more hours per week to the startup.
If you don’t think you need someone working 40 hours a week on your campaigns, you probably want to choose a fractional CMO.
What’s the point of paying someone a full-time salary when they only work part-time hours? A fractional CMO helps market your products and services without forcing you to pay for unproductive time.
You’re not the first business leader to find this approach appealing. A growing number of companies find that part-time C-suite officers meet their needs well at a lower rate than full-time officers.
Keep in mind, though, that a fractional CMO can only give you so many hours per week or month. There are potential downsides for rapidly growing businesses that need the focused attention of full-time CMOs.
Do You Need a Unique Perspective on Marketing Your Business?
Anyone working as a CMO should know the best practices for startup marketing . A full-time CMO, however, probably hasn’t worked with nearly as many businesses as a fractional CMO. If you want a unique perspective that includes insights from someone who has experience in multiple industries, though, you will probably get better results from a fractional CMO.
Fractional CMOs have the freedom to work with several clients at once. While this means they cannot give you their undivided attention, it also means that they can bring higher, more diverse levels of experience to the job.
Do you want a CMO who spent their entire career in tech marketing, or would you prefer someone who has managed marketing projects in several industries? If you want more diversity, it makes sense to choose a fractional CMO. If you want a niche marketer, a full-time CMO might work better for you.
Do You Want to Hire a New Marketing Team?
Companies that plan to manage their own marketing campaigns often choose to hire full-time CMOs. Full-time CMOs can do more than manage ongoing marketing projects. They can usually reach out to their previous employees and bring full-time team members into your business.
It works a little differently when you hire a fractional CMO. You probably won’t get a pre-existing marketing team that can step into your company and start working. You might see other benefits, though, such as:
Rapid onboarding from someone used to adapting quickly to new projects.
Access to a marketing agency (or collective) that works with the fractional CMO.
The expertise of freelancers who excel in highly specific roles.
Additionally, your fractional CMO can help you find a replacement for when you want to fill a full-time position.
Learn More About Full-Time and Fractional CMOs
Still not sure whether a full-time or fractional CMO suits your business’s needs better? Get in touch with Amanda at Arch Collective for advice that relates to your unique situation.
