Frequently Asked Questions

A Fractional CMO (Chief Marketing Officer) is a senior marketer who is part of your leadership team, but works part-time (typically 1 - 3 days a week) vs. a full time CMO. 

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On average, he / she has 15+ years of marketing experience and has a strong track record of managing teams. Although a fractional CMO is not a permanent hire, he/ she operates as a business leader and is accountable for delivering results. Fractional CMOs tend to be hired on a day rate or a monthly retainer basis. They can come on board for 3-6 months or longer depending on the needs of the business.

Fractional CMOs take on all the responsibilities of a full-time CMO and are likely to focus on the startup’s critical business and marketing priorities during their engagement. 

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A few of these responsibilities could include:

• Building a solid foundation for growth
• Improving marketing ROI and optimizing CAC for sustainable growth
• Managing and coaching the in-house marketing team or contractors / agencies
• Setting up the right marketing capabilities or infrastructure as the business scales
• Advising the founder on the marketing team structure and assisting in the hiring process
• Representing the company to investors, partners or press

Fractional CMOs have likely spent many years solving marketing problems, managing teams, influencing stakeholders and scaling businesses across diverse industries. You’ll benefit from this breadth and depth of experience at a fraction of the cost incurred by a large company to hire them full time. 

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A Fractional CMO is particularly useful during the following inflection points:

1. You’ve just received a new round of venture funding with ambitious growth targets to hit this year
2. You’ve been chasing unsustainable growth and need an experienced leader to optimize your marketing and lower CAC
3. You’re launching a new product or expanding into a new market 
4. Your existing CMO or VP Marketing has left and you have a gap in leadership to fill before you onboard a full time hire

If you run a startup or scaleup that requires leadership expertise and deep functional experience, but you can’t afford to hire a full-time CMO - then it’s likely you need a Fractional CMO. Explore engagement options to learn more or book a consultation.

There are different compensation models available ranging from baseline fees (e.g. hourly/daily rate or monthly retainer), equity to performance-related incentives. 

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*Hourly rate: $150 - $300 for lower to mid-tier, $300+ for senior executives

*Average daily rate: $1000 to $1500 
*Equity: 0.5% to 1% based on stage of funding 

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It’s critical to map the seniority and market value of the fractional CMO you’re considering to your specific business requirements and financial situation. 

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If you’re keen to get a perspective or ad hoc input from a senior marketing leader,  but can’t afford him/her 1-3 days a week just yet,  consider on-demand or pay-as-you-go engagement options. While you will likely pay a higher fee per hour, there is no minimum commitment and therefore negligible risk or downside.

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However, if you’re interested in a more hands-on approach with clear ownership for business outcomes and team management responsibilities, then you’d need to consider a minimum number of hours / days per week for this to be truly successful. 

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Take a look at our Start small, Level up or Accelerate routes for more details on engagement options.

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It’s also important to note that your needs could change over time. You could start out with a “light touch” approach (e.g. 2-3 hours a week) as a test first and then switch to a consistent 2-3 days a week as you see value in the arrangement and as your business scales over time. 

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At the end of the day, it’s important for you to be clear and comfortable with your chosen path. Fractional hiring is still a relatively new approach vs. full-time hiring, so please ask questions and clear any doubts before you sign the dotted line. 

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Yes, it’s common to see a few synonyms emerge for the Fractional CMO model. You may have heard of the following terms which are often used interchangeably with Fractional CMO.

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• Part-time CMO
• CMO as a Service (CMOaaS)
• CMO on Demand
• Outsourced CMO
• Rent a CMO

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The other term that comes up frequently is Virtual CMO. This is a CMO who works 100% remotely (vs. on-site). A Virtual CMO could be hired on either a full time or part-time (fractional) basis.

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As this industry is still evolving with new use cases and deployment options, it’s important that you ask questions and seek clarifications from every provider on their services.

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Although the terms tend to be used interchangeably, there are differences in seniority, the depth and duration of engagement, scope of responsibilities and the time / cost commitment. 

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The below chart explains the difference between these terms as well as freelance and gig workers.