How much is a fractional CMO?
There are a variety of ways a fractional CMO may price their services. They can cost anywhere from $50-500+ per hour or they may take payment in a small equity portion of the business. The overall cost and pricing structure varies widely based on the experience of the fractional chief marketing officer.
With the rapid pace of technology and innovation, marketers today aren’t just looking for ways to engage consumers; they’re looking to transform the way they do business.
To be successful in this changing market environment, a company must transform its marketing strategy and operations. It’s no longer enough to post links on social media or send out a few newsletters. Today’s CMO needs to take an analytical, data-driven approach to everything from identifying trends and opportunities to measuring performance and results.
In order for this transformation to be successful, it’s essential that the CMO has access to the right resources from the start. This means investing in high-level support staff as well as strategic consultants who can offer impartial advice about how best to implement their new ideas.
Therefore, when it comes time to hire a CMO, most companies will look into hiring senior executives from other industries such as IT or finance. There are some great agencies that can help you choose the right candidate for your business — but how much will it cost you?
What goes into choosing a CMO?
Annually, a CMO may cost anywhere between $100,000 and $1 million. The first thing a company must look at when choosing a CMO is the candidate’s experience. Typically, the person will have worked in an industry similar to the company they are going to work for, so be sure that they are qualified to handle the job.
If you want someone with deep experience in marketing analytics and data-driven decision-making skills, it’s likely you’ll need to spend more money on your CMO than if you were hiring for a position with less focus on technology and data.
A great way to save money on your CMO is by having them come from outside of marketing — like IT or finance. But don’t forget that these candidates typically require more training before they start working as your CMO!
How much does an average CMO cost?
The average CMO cost can vary depending on the company, and it’s not always clear-cut. For example, companies with bigger budgets might be able to pay more for a higher-level position. Other companies might have a smaller budget and therefore take a lower-level position instead.
As for the job description, the average CMO job description could be as broad or as specific as you’d like. It all depends on what type of skills your company needs from its CMO, which is why it’s important to do careful research before hiring someone.
Additionally, looking at how much other companies are paying for similar positions provides an idea of what the market rate is for that particular role.
Although this information may help you get a rough idea of what your cost will be, it should also keep you grounded in reality and allow you to make an educated decision about whether or not hiring someone is worth it for your business.
Finding a CMO for your business
If you’ve hired a CMO for your business and are looking for ways to make the most of your investment, here are six secrets to finding value in your CMO:
1. Know what you need from your CMO
Before hiring a senior executive, it’s important that you can clearly articulate what you need from your CMO. What are the key objectives and KPIs? What is the ideal candidate going to be doing on a day-to-day basis?
It also helps to have a clear understanding of how much time an ideal candidate would spend on this role. If someone is new to the industry and has never worked in marketing before, they might not require much support.
However, if someone comes from another position such as IT or finance where they have been exposed to data analytics tools and systems already, then they might require more support from their team.
2. Invest in an agency
It’s often worth investing in an agency that specializes in recruiting high-level executives so that you can be sure that you hire someone with the right skillset and experience level for your needs.
Agencies will take the time to understand exactly what kind of requirements your company has in terms of culture fit and skill set, which means there is less room for miscommunication when it comes to onboarding new employees.
3. Find out how many hours they want to work
Some companies might be open with their expectations on how many hours are worked by the CMO. The CMO themselves may be limited on how much they can commit to the role as well. It’s important to establish expectations of time commitment before hiring for the role.
Should you outsource your CMO role?
For most companies, it’s not a question of whether to outsource their CMO role. It’s a matter of deciding how much their CMO will cost.
The costs for hiring a full-time CMO have risen in the past few years and are expected to grow even higher. Part-time or on-demand strategies have become more popular as well. This means that companies can hire someone temporarily or on an ad-hoc basis to provide expert advice when they need it while being able to save money in the long run.
When choosing between traditional methods like in-house hires or part-time/on-demand hires, there are pros and cons for both approaches. Some of the benefits of using part-time/on-demand consultants are shorter learning curves, increased ability to scale up and down, and lower expense.
On the other hand, working with a consultant provides access to different perspectives and experiences which may help you learn new ways of thinking about your business challenges.
Hiring a Strategic Consultant
A strategic consultant is someone who has the skills and experience to help you identify trends and opportunities within your industry as well as understand how best to implement them. A strategic consultant can actually lead a business through a digital transformation.
Typically, this person will have experience in the marketing field of some sort, but they will also have a background in finance, sales and customer service or other key areas that may be necessary for their role.
The cost of hiring a strategic consultant depends on the complexity of the project and the circumstances surrounding it.
The price of a fractional CMO will vary depending on the specific skills and experience needed for the position. But we can say that it won’t be cheap.