You Get What You Pay For - The Truth About Engaging Fractional Executive Talent

“somewhat inexpensive”

“as cost effective as possible”

“sort of cheaper (likely offshore)”

"scrappy in terms of cost"

These are some of the phrases I read and hear when companies and their leadership are looking for fractional executives.

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In a blog post three years ago, titled “Cheap, Unbound, Convenient” I described this phenomenon across our entire economy:

“Maybe it goes back to 1896 when the Sears Catalog featured the header “Cheapest Supply House on Earth.” Research by UCI described it as: “Price mattered, and a “cheap” and affordable consumer economy matured in Chicago geared to selling a branded product at a “bargain” aimed at every price-point in a family budget.”

That was long before the Walmart economy, described by Business News Daily as: “It is no secret that the retail giant provides products to U.S. consumers at a low cost. A so-called Walmart economy allows workers to buy the products they need without having to rely on higher-cost products. Products at a reduced price give millions of people many benefits.”

And also, long before Amazon started to provide an enhanced buying experience and yet more customer cost-savings. In short, consumers and corporations in this economy love cheap products and services.”

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One of the many challenges SMBs face is accessing top-tier executive talent without heavy financial commitment. Fractional executives present an attractive solution—experienced professionals who work on a part-time or project-based basis, offering the expertise of a seasoned leader without the full-time price tag. But when engaging fractional talent, one timeless adage holds true: you get what you pay for.

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The promise of “cost-effective” fractional talent can sometimes lead businesses astray. Understandably, SMB leaders are often drawn to lower-priced options. Words like “inexpensive” or “cheap” can be tempting, especially for budget-conscious founders. However, it’s essential to differentiate between cost-effective solutions and undervalued talent. While a bargain might seem appealing in the short term, hiring the wrong fractional executive can cost your business far more in the long run.

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The Danger of Cheap Talent

Cheap doesn’t always mean cost-effective. When it comes to fractional executives, inexpensive talent often lacks the depth of experience, strategic insight, or leadership skills necessary to make a meaningful impact. These individuals might not have a proven track record in your industry or the ability to adapt to your company’s unique challenges. Their expertise might sound impressive on paper, but without the substance to back it up, they risk becoming a liability rather than an asset.

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Cheap talent often requires more oversight and can leave you scrambling to fill gaps in their knowledge or skills. Worse, their inability to deliver results can stall critical initiatives, frustrate your team, and, ultimately, hinder your company’s growth.

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The Value of Investing in the Right Talent

On the other hand, investing in a seasoned, high-performing fractional executive can be transformative. Experienced professionals bring more than just knowledge; they bring perspective, strategic thinking, and leadership honed through years of navigating complex challenges. The right fractional executive will hit the ground running, integrate seamlessly with your team, and deliver measurable results that drive your business forward.

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While these professionals may come with a higher price tag, their value far outweighs their cost. Their expertise can unlock new revenue streams, optimize operations, and provide the strategic direction needed to scale your business. They don’t just complete tasks—they build momentum, foster innovation, and empower your organization to achieve its goals.

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You Always Get What You Pay For

Ultimately, the choice is yours: you can engage inexpensive talent and hope for the best, or you can invest in proven expertise and ensure success. While you’ll always find someone willing to work for less, remember that talent isn’t a commodity. Fractional executives are not interchangeable, and the cheapest option might not deliver the value your business needs.

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When it comes to leadership, there’s no room for compromise. The stakes are too high, and the potential cost of missteps is far greater than the upfront savings of hiring cheap talent. By investing in the right fractional executive, you’re not just buying time or expertise—you’re securing the future of your business. After all, you get what you pay for.