Fractional CMO cost
What senior marketing leadership costs, three ways.
Fractional leadership is billed at a published hourly rate, so the monthly cost is a function of hours. Set the hours you need and compare it against an agency retainer and a fully loaded executive hire.
Monthly cost
- Fractional CMO
- $5,250
- Agency retainer
- $12,000
- Full-time hire
- $19,271
- Difference vs the hire
- $14,021 lower
30 hours at $175 per hour. Annualized: $63,000.
$6,750 per month more than the fractional option.
Salary plus 25% load, spread monthly. Annualized: $231,250.
At high hour counts a full-time hire becomes the better structure. That is the point to make the hire, and I say so.
Reading the comparison
Cost is only half the question
Hours, not headcount
Fractional cost scales with the hours the work truly needs. Most growth-stage companies need senior judgment two or three days a month, not twenty.
Seniority per dollar
An agency retainer buys a team, usually with the senior name on the pitch and the day-to-day handled by someone more junior. Fractional buys the senior person directly.
The load nobody quotes
A full-time hire carries payroll tax, benefits, equipment, recruiting fees, and ramp time. Twenty to thirty percent on top of base is a conservative estimate.
When to make the hire
Past roughly 60 hours a month, or once the marketing team is large enough to need daily management, a full-time leader is the right answer and fractional becomes the bridge to it.
For what the engagement includes, see fractional CMO services. For the structural tradeoffs, see fractional CMO vs agency. For every published rate, see pricing, and for acquisition economics, the CAC calculator.
Next step
Bring the number, and the decision behind it.
The right hour count depends on what is actually unowned inside your marketing. That takes twenty minutes to establish, and the consult is free.
