When an organization is looking for a fractional CMO, it's most likely planning to make significant changes to its growth and marketing strategies. The problem is that many of these “fractional CMO” service providers have no real experience developing and executing marketing plans, growth strategies, executive management, or department development. Below is a table that is intended only to provide a general indicator of the average hourly rate of a fractional CMO. Many claim to be fractional marketing managers, even though they have no real experience developing comprehensive strategies to achieve the short- and long-term goals of organizations and improve sustainability.
Many organizations don't realize that the hourly rate of a fractional CMO is less important than the revenue growth a fractional CMO should generate. Real marketing managers don't quote hourly rates because of the complex nature and the long term required to achieve strategic objectives. Quoting projects on an hourly rate usually indicates that the service provider lacks the experience necessary to accurately assess the full scope of work. The reality is that an experienced chief marketing officer will generate a higher growth rate because they have the strategic knowledge, advanced skills, and executive leadership experience necessary to develop comprehensive multi-channel marketing programs.
An experienced fractional CMO should be able to accurately assess your costs and provide a budget for the project, instead of charging you by the hour. However, they cannot take full business responsibility because their time is limited to a few hours a week and their attention is divided among a large group of customers. Let's assume that the CMO was only able to achieve 6% growth during the year and not the sector's 8% growth rate. This means that their annual salary varies depending on their rate and the number of hours they are hired for.
In other words, the cost of a fractional CMO should be a small part of the revenue growth you generate for your company.