Starting and growing a small business is a journey filled with challenges and triumphs. Your passion and dedication have driven your success so far, but as you aim to grow and reach new heights, you may find that the marketing methods that worked initially are no longer enough. The path forward requires more—more strategy, more oversight, and a more structured approach to growth.
Establishing expert marketing leadership can provide the guidance and vision needed to propel your business to the next level. However, deciding whether to invest in a full-time chief marketing officer (CMO) or opt for a fractional CMO can be daunting.
With this in mind, we are breaking down everything you need to know and consider when it comes time to decide which is right for your business: fractional CMO vs. full-time CMO.
What is a full-time CMO?
A full-time CMO is a senior executive dedicated entirely to overseeing and directing a company’s marketing strategy. They are responsible for creating and implementing comprehensive marketing plans, managing the marketing team, and aligning marketing initiatives with business goals.
Since they only work for your business, a full-time CMO is able to provide constant, intensive marketing leadership and management to your company. They typically work a 40-hour workweek on-site along with your team, making them consistently available whenever they’re needed.
It's important to understand that CMOs don’t produce deliverables themselves. Their role is to oversee marketing initiatives and the marketing team, ensuring that projects are executed effectively and align with the overall strategy. The actual creation of marketing materials, campaigns, and other deliverables is typically the responsibility of the marketing team, which the CMO supervises and leads.
What is a fractional CMO?
A fractional CMO is a part-time executive who provides high-level marketing expertise and leadership for multiple businesses. They become part of your leadership team to help manage and refine your marketing strategies, offering the same strategic insights and leadership as a full-time CMO but as a contractor and on a part-time, more flexible basis.
By working part-time, fractional CMOs offer flexibility to scale their involvement according to your business needs, allowing you to access high-level expertise without the commitment of a full-time executive.
However, it's crucial to note that, like full-time CMOs, fractional CMOs do not produce deliverables themselves. They provide high-level guidance, set goals, and ensure that the marketing efforts support the company's growth objectives while others on the marketing team create whatever deliverables may be necessary.
Fractional CMO vs. Full-Time CMO: Which is right for your small business?
When it comes to deciding if a fractional or full-time CMO is best for your business, there are a few things you should keep in mind.
Cost
One of the largest differences between fractional CMOs and full-time CMOs is the cost. A full-time CMO can cost as much as half a million dollars per year when you consider their salary, insurance, and bonuses.
Meanwhile, a fractional CMO is likely going to cost somewhere between $3,000 and $8,000 a month—or $36,000 and $96,000 a year—depending on how you structure your contract and what is needed from them. While this may still sound like a lot, it’s actually less than a third of the total cost of a full-time CMO—giving you the marketing expertise you need at a fraction of the cost.
Additionally, because fractional CMOs are contractors, you will not be required to provide them benefits, which is also a significant savings.
With this in mind, it’s important to consider not only what your business needs but also what it can afford.
Availability & Flexibility
Full-time CMOs and fractional CMOs also differ in their flexibility and availability.
A full-time CMO is available daily throughout the company’s working hours to manage ongoing marketing strategies and address immediate needs or issues. While this is certainly necessary for larger companies, small businesses may find that having a full-time CMO is simply not needed.
In that case, a fractional CMO may be the better option. This position is hired on a part-time basis, meaning their availability is set by a predetermined number of hours or for specific projects.
Their part-time status gives them the flexibility to work on a needs basis, meaning you can partner with them for specific campaigns or a designated amount of time per week or per month—giving you the experienced help you need without overpaying for services you don’t.
You may be able to find similar flexibility with a marketing consultant, but they are more limited in what they do for your business. Whereas a marketing consultant would create your marketing strategy and leave you to it, a fractional CMO will create and oversee the implementation of the strategy and help guide your marketing team throughout the process.
Experience & Perspective
Both types of CMOs play a critical role in shaping your business’s marketing strategy and have the experience needed to create clarity out of chaos, develop structure within your marketing, identify areas of improvement, and fine-tune strategies to maximize ROI.
However, fractional CMOs can offer a fresh perspective and a wealth of experience from various industries, providing new insights on current marketing initiatives, systems, strategies, and goals. They bring a unique advantage by blending diverse industry knowledge with specialized expertise, which can lead to innovative approaches that a traditional, full-time CMO might not consider.
Business Needs
When deciding between a fractional CMO and a full-time CMO, it all comes down to what your business needs and can afford.
If you’re looking for constant, intensive marketing leadership and can afford a higher price tag, a full-time CMO may be worth the investment. A full-time CMO offers the advantage of being deeply integrated into your company's culture and day-to-day operations, providing continuous oversight and strategic direction. They can dedicate all their time and energy to your business, ensuring seamless coordination with other departments.
On the other hand, a fractional CMO is best for businesses needing flexible, high-level marketing leadership without the full-time commitment and cost.
Fractional CMOs can be especially beneficial for small businesses that want expert marketing guidance but don’t have the budget for a full-time executive. Their flexibility means you can scale their services up or down—from focusing on overall strategy to coordinating a specific campaign—allowing them to meet your business’s needs exactly.
Ultimately, the decision should be guided by an honest assessment of your business's current state and future goals. Consider factors such as the complexity of your marketing needs, the level of hands-on leadership you need, and your budget constraints. By aligning your choice with these considerations, you can ensure that your marketing strategy is effectively supported, driving your business towards the growth you’re wanting to see.
Whether you choose to work with a fractional CMO or a full-time CMO, remember that you deserve a marketing strategy and partner that works as hard as you do. While delivering exceptional products and services and providing great customer service are crucial, they can only take you so far. Don’t let a lack of strategic marketing be the thing that prevents your business from getting to the next level.
Small businesses deserve to have a marketing strategy and partner that works as hard as they do.
Treefrog Marketing is a marketing agency for small businesses located in Lafayette, Indiana that builds effective marketing strategies and systems that help small business leaders take their companies to the next level. We specialize in marketing leadership, strategic marketing and advertising, digital marketing, graphic design, web design, social media, SEO, and more. For more information, please visit our website. You can also connect with us on Twitter, Facebook, LinkedIn, and Instagram.
