Hire a Fractional CMO - Comprehensive Guidelines.
Meet Cody Gutierrez, CMO turned Fractional CMO for Hire:
I help $1M-$100M businesses to scale-up profitably. In the corporate world, I earned 9 promotions in 10 years, quickly climbed to the C-Suite & scaled revenue 2X, 5X & 10X for 3 separate companies. In 2022, I walked away from my executive job (CMO) at a VC-backed startup to build my own portfolio of companies to grow & invest in. Learn about me here.
Hiring and Working with Fractional CMOs - A How-To Guide
The role of a Chief Marketing Officer (CMO) is critical for long-term growth. But for many companies, the prospect of hiring a full-time CMO may be impractical due to cost constraints. Enter the Fractional CMO – a flexible, experienced professional who brings strategic marketing experience without the commitment or cost of a full-time role. Here are the answers to common questions about hiring a Fractional CMO.
What is a Fractional CMO?
A Fractional CMO is an experienced marketing executive who works with multiple companies on a part-time basis (this is where “fractional” comes in). Think of them as strategic advisors who bring a career’s worth of expertise without the hefty price tag associated with a full-time executive role. This partnership allows businesses to access high-caliber marketing talent on a flexible basis. Many Fractional CMOs start with clients part time and then transition into full-time roles as the client grows.
Why Hire a Fractional CMO?
Build Brand, Grow Revenue or Increase Profits: those are the fundamental reasons why Fractional CMOs get hired. There are nuances, but that’s the gist.
Strategic Expertise: Fractional CMOs are seasoned professionals with a storied background. Quickly level-up your marketing decision-making by tapping into their career and track record.
Cost-Effective Leadership: Hiring a full-time CMO can be costly & take up cash flow. Fractional CMOs provide a cost-effective alternative, enabling access to high-level strategic guidance without the high-costs of a permanent executive.
Flexibility: Fractional CMOs can work on specific projects that align precisely with the organization's needs. Typically an alignment session will be needed on execution priorities.
What Does a Fractional CMO Do?
Strategic Planning: A Fractional CMO develops and executes holistic marketing strategies aligned with the business's goals (typically revenue growth). Brand Positioning is a key component of this that extends across all marketing channels.
Team Collaboration: Fractional CMOs work closely with internal teams, providing guidance and leadership to ensure that marketing efforts are integrated seamlessly with other departments. Think of them like a “player AND coach”.
Performance Monitoring: Fractional CMOs monitor and analyze the effectiveness of the marketing strategies they implement. The end-goal is to emphasize what’s working & de-emphasize what’s not working… i.e. funnel all the resources to what has the best chance of growing the company.
How Much Does a Fractional CMO Cost?
The cost of hiring a Fractional CMO varies. While the per-unit-rate might seem higher compared to hiring an in-house professional, the overall investment is often more efficient. Typically you can find a Fractional CMO in the $100-$500 per hour range & $3K+ monthly retainers. Realistically you can find a Fractional CMO that fits within any budget, but they aren’t necessarily the ones you want to hire.
When Should a Business Consider Hiring a Fractional CMO?
Launching a New Brand or Offering: A Fractional CMO can create a targeted go-to-market strategy to maximize impact when your business is introducing something new to the market.
Navigating Departmental Changes: During periods of restructuring or significant changes within the company, a Fractional CMO can provide well-needed leadership & good decision-making. For example, if you need to re-build your marketing department, a Fractional CMO could be a good fit to lead the hiring & vetting talent; and/or team training.
Filling a Leadership Gap: If your organization lacks a senior marketing executive but doesn't require a full-time CMO, a Fractional CMO can provide the needed leadership. This is one of the most common scenarios.
Other example reasons to hire a Fractional CMO could be your agency burned you, you lack high-quality marketing talent, you’re not hitting your growth goals, you need marketing leadership, you’re in growth mode, you’re in go-to-market mode, and so on.
How Do I Know If I’m Ready to Work with a Fractional CMO?
Complex Marketing Challenges: If your business is facing intricate marketing challenges that require strategic expertise, a Fractional CMO can provide valuable insights and solutions.
Lack of In-House Marketing Leadership: If your organization lacks a senior marketing executive but doesn't need a full-time CMO, a Fractional CMO can fill this leadership gap on a part-time or project basis.
Launching a New Product or Service: When introducing a new product or service, a Fractional CMO can develop a targeted launch strategy to maximize impact, leveraging their experience in product launches.
Need for Strategic Planning: If your business lacks a comprehensive marketing strategy or needs to revamp its existing strategy, a Fractional CMO can contribute their strategic planning expertise.
Desire for External Perspectives: If you believe that fresh perspectives and innovative ideas are needed to take your marketing to the next level, a Fractional CMO with experience across industries can bring valuable insights.
Desire for Results-Driven Marketing: If you are focused on achieving tangible and measurable results in your marketing initiatives, a Fractional CMO is typically results-driven, monitoring performance and adjusting strategies as needed.
How Do I Choose Between Different Fractional CMOs?
Have they been an ACTUAL CMO before? This is the quickest and easiest way to vet talent. If they haven’t been a CMO before, then they are more like a Fractional Marketing Manager or Fractional Marketing Director, not a CMO.
Track Record of Success: Assess their track record by reviewing past projects and achievements. A successful Fractional CMO should have a history of driving tangible and measurable results. I.e. have they grown companies before?
Strategic Mindset: Seek a Fractional CMO who not only understands tactical aspects of marketing but also possesses a strategic mindset. They should be able to align marketing initiatives with your business goals. You don’t want task-masters, you need end-to-end excellence.
Team Leadership: If your engagement involves leading internal teams, look for a Fractional CMO with strong leadership skills who can motivate and guide your team towards shared goals. I.e. have they build & led marketing departments or teams before?
Understanding of Technology: A Fractional CMO should have a good understanding of marketing technologies and how to leverage them for optimal results. They need to know how to implement technology stacks & infrastructure.
Budget Alignment: Ensure that the Fractional CMO's fee structure aligns with your budget. While cost is a factor, prioritize value and return on investment over the lowest price.
Cultural Fit: Consider the cultural fit with your organization. A Fractional CMO who aligns with your company culture is more likely to integrate seamlessly and work collaboratively with your team.
Availability and Commitment: Clarify the Fractional CMO's availability and commitment to your project. Ensure they can dedicate the time and attention required for your specific needs.
When should I NOT hire a Fractional Chief Marketing Officer / Fractional CMO?
Limited Budget for Marketing: If your budget for marketing is extremely limited, hiring a Fractional CMO may not be the most cost-effective solution. In such cases, you might explore alternative options, such as hiring a part-time marketing specialist or consulting with marketing agencies that offer more budget-friendly services. I.e. the Fractional CMO will need additional resources like software, media spend, etc.
Short-Term Projects with Minimal Marketing Needs: For short-term projects with minimal marketing requirements, bringing in a Fractional CMO may be excessive. In these cases, it might be more practical to work with freelance marketers or utilize in-house resources.
Lack of Clarity on Marketing Goals: If your organization lacks clarity on its marketing goals or is uncertain about the outcomes it expects from a Fractional CMO, it might be beneficial to first establish clear objectives before engaging external expertise. Or have the Fractional CMO determine & recommend goals as the first priority project.
Overemphasis on Short-Term Gains: If your organization is solely focused on short-term gains and is not committed to a more strategic, long-term approach to marketing, a Fractional CMO may not align with the immediate objectives.
Resistance to External Expertise: If there is resistance within the organization to external expertise or a reluctance to consider recommendations from outside professionals, it could hinder the success of a Fractional CMO engagement.
High Turnover of Key Personnel: If your organization churns & burns agencies, employees, contractors, etc. a Fractional CMO likely won’t be any different. Address internal factors first to create an environment that’s suitable for high-quality performance.
What Should I Expect When Hiring a Fractional CMO?
Needs Assessment: The process typically begins with a thorough assessment of your business's marketing needs. The Fractional CMO will seek to understand your goals, challenges, and expectations to tailor their approach to your specific situation.
Strategic Planning: A world-class Fractional CMO will develop a comprehensive marketing strategy aligned with your business objectives. This involves market analysis, competitor research, and the creation of a roadmap for effective brand positioning.
Collaboration with Internal Teams: Expect the Fractional CMO to collaborate closely with your internal teams. Effective communication and integration with existing departments, such as sales, product development, and customer service, are crucial for successful outcomes.
Leadership and Guidance: The Fractional CMO will provide leadership and guidance to your marketing team, fostering a cohesive and motivated working environment. This includes setting clear expectations, defining roles, and ensuring everyone is aligned with the overall marketing strategy.
Performance Monitoring and Analysis: A key responsibility of the Fractional CMO is to monitor and analyze the performance of marketing initiatives. This involves tracking key performance indicators (KPIs), adjusting strategies as needed, and ensuring that marketing efforts contribute to overall business growth.
Transparent Communication: A world-class Fractional CMO will maintain transparent communication throughout the engagement. This includes regular updates on progress, challenges faced, and recommendations for optimizing marketing strategies.
Results-Driven Approach: Expect a results-driven approach. The Fractional CMO will focus on achieving measurable outcomes, whether it's increased brand awareness, lead generation, conversion rates, or other key metrics relevant to your business goals.
Budget Management: Your Fractional CMO should communicate budget recommendations and ways to improve return on invested capital throughout the engagement.
Is Hiring a Fractional Chief Marketing Officer Worth It?
Yes, it is. Biased opinion because I’m a Fractional CMO myself.
