What is the average hourly rate for a Fractional CMO?

Fractional CMO has become an extremely popular buzzword in the business world. Numerous organizations claim to offer Fractional CMO services, but are you really getting a Fractional CMO??

Unfortunately, there is not a standard or required certification to obtain the title of Chief Marketing Officer. Buyers need to beware so that they are not taken advantage of and pay Fractional CMO rates for services that do not provide the return in revenue growth that an experienced marketing executive would.?

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Not all Fractional CMOs are equal?

Here are the three factors to look for when considering a Fractional CMO:?

1. Experience – A high caliber CMO will have held the position of Chief Marketing Officer (CMO) in a large company or Fortune 500 corporation. If your business is under $100 million in revenue, you may want to consider someone with experience as a Vice President of Marketing.??
2. Education – We recommend a master’s degree, preferably MBA, or Master of Marketing.?
3. Results – The right Fractional CMO for your needs should have measurable results to exemplify their skills and abilities.??

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Many of the impostors claiming to be experienced Chief Marketing Officers lack the big-picture perspective and knowledge of Geo-Economical and political factors of today’s highly volatile global marketplace. Their scope is limited to underperforming strategies and tactical operations. Services that are available at a much lower cost.??

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Fractional CMO Fee Structure, Not Hourly Rate?

?Every organization is unique. Each has their own goals, challenges, and resources. These factors directly impact the engagement of a Fractional CMO and the fee structure. The most common are a fee per project, or a recurring monthly fee. Rarely does a highly experienced, executive-caliber Fractional CMO quote an hourly rate.?

In most cases, experienced CMO’s will be able to gauge what is needed to complete a project and achieve the desired goal(s). An experienced Fractional CMO should be able to provide a quote for the project, rather than charge hourly. This is advantageous to the client because it sets clear expectations and enables accurate budgeting. Paying an hourly rate for a service often leads to surprises.?

There is not a set standard for a Fractional CMOs hourly rate. The rates vary by firm. This creates a challenge in determining the quality of service that the firm will provide.?

Below is a table that is intended ONLY to provide a general gauge for a Fractional CMOs Average Hourly Rate.??

Ultimately the hourly rate paid for Fractional CMO services is not the final cost. There are additional costs like lost opportunities and time. Opportunity cost can be quite substantial.?

For example, if your Fractional CMO generates 3% growth, you are likely to be pleased. After all an organization averaging $10MM in annual revenue, achieved $300,000 in revenue growth. However, if the industry is averaging a growth rate of 9%, your business is missing out on the opportunity to generate an additional $600,000 in additional revenues for that year.???