The marketing community is more woke than ever before. They’re aware of their capabilities and are managing their priorities to remain relevant and profitable.
As per the state marketing report 2024, the future of marketing is personal.
Marketers are focusing more on individual and human content that drives growth.
As stated in the report, content is a consistent struggle for marketers. Hence, the role of the CMO is becoming increasingly complex to cope with the latest trends.
More responsibility is humped on the shoulders such as integrating customer data, providing value on the investments, and high-yielding returns on campaigns.
It gets overwhelming for a full-time CMO. Naturally, the cost of hiring top-tier CMOs also gets expensive.
As stated by, Brett Schklar
“The weight of the world that was already on a CRO or VP of Sales’s shoulders is getting heavier. You were pulling the company along before. But now, you’re fighting upstream in a river to get to that destination. You don’t need internal fighting or finger-pointing. You don’t need brand marketing strategies full of pretty colors and magical words. You don’t need to be slowed down.”
As a mid-size company or early-stage startup if you’re looking for a flexible, experienced, and cost-effective marketing solution, a Fractional CMO might be the answer.
Let’s jump to the basics.
A fractional CMO is an outsourced position contracted for a certain period to lead your team in a part-time role. The fractional CMO generally steers the direction of the marketing team’s go-to-market strategy aimed at achieving product market fit as the business scales.
Having worked with Fortune 500 companies or companies with five-figure MRR, they have a wide range of marketing skills that can shape any organization’s marketing plan.
It’s a good idea to hire a fractional CMO if you need C-suite-level leadership for only part of the week.
For example, if you need help with complex messaging or go-to-market situations. They should expect to do some IC work but that’s not the point of the role.
A fractional CMO guides and grows your team as they grow your business. They’re embedded in your organization either working virtually, hybrid, or in person.
Fractional leaders typically specialize in strategy development and implementation. They focus on the “big picture” for your specific needs, whether it’s marketing, sales, operations, or another area.
While some fractional leaders may offer assistance with executing the strategy, others focus solely on providing guidance. This depends on your agreement and the leader’s approach.
Typically, a fractional leader shares their expertise with your internal team, and does knowledge transfer to simultaneously train your team.
Note: Avoid hiring a fractional CMO to do the grunt work like lead generation, simple outreach, basic content writing, etc. It would be a waste of their time and money. Instead expect them to bring a strategy and provide them resources to get it done. They may still do 50% implementation. But not all of it.
Often a fractional CMO is misunderstood as a consultant but there’s a difference. Before you choose for your company, consider these:
| Fractional CMO | Marketing Consultant |
| Require ongoing marketing leadership to hit your growth targets | Have specific marketing challenges to be solved |
| They act as a part-time marketing leader, providing strategic guidance and potentially assisting with implementation |
They offer project-based expertise, tackling a defined problem or campaign. |
| Need strategic expertise + longer-term support | Lack of ownership of a deliverable but NOT team leadership |
| Demand marketing ownership & accountability over KPIs | Need specific expertise to provide an outcome |
| Maybe a higher investment than a consultant | Offers a more cost-effective solution for specific projects but no one-stop for all |
Early-stage startups face unique challenges when hiring a Fractional CMO. If you’re at an early stage then a CMO from a giant corporation might not be the best fit.
Their experience with large teams and budgets may not translate to your lean startup environment. You need someone who can not only craft a strategy but also get their hands dirty and help execute it. Don’t be fooled by marketers with expertise in just one or two marketing channels. Look for a well-rounded Fractional CMO with a broad marketing skill set.
Focus on a Fractional CMO with experience leading marketing at companies in a similar revenue stage as yours. These individuals will understand your specific challenges and limitations, allowing them to tailor their approach for maximum impact.
A Fractional CMO should at least leverage their 10+ years of experience to develop digital marketing and product development strategies for organizations seeking growth.
They assist businesses in various stages, from startups to established companies, by guiding positioning, brand storytelling, and omnichannel marketing strategy development.
They achieve this by collaborating with internal teams or their team to execute various marketing tactics.
Most importantly, a fractional CMO should be able to understand the mindsets of the consumers and leverage them on online and offline platforms.
These tactics include
This Fractional CMO service offers two main solutions:
They differentiate themselves through their experience in tech marketing, knowledge of lead generation, and cost-effective approach.
Fractional CMO can go beyond and do stuff for you like:
1. Fractional CMO for B2B Software Companies:
2. Outsourced Marketing Team Support:
Here’s what a 20-year experienced Fractional CMO drew from her career.
“As a Fractional Chief Marketing Officer & Marketing Agency Owner, I have supported organizations and businesses in the growth stage looking for positioning help & support in gaining further market traction. I also serve as a marketing consultant to Start-up Founders through various Accelerator and Incubator programs, guiding them to develop their marketing strategy.”
–Shannon (McDonald) Clement Fractional CMO, Space Tech & Aerospace Startups & Scale Ups
An offshore Fractional CMO (Chief Marketing Officer) is a marketing executive who works remotely, often located in a different country with a lower cost of living. They provide their expertise on a part-time basis, typically a set number of hours per week, instead of a full-time commitment.
Bringing in a full-time CMO can strain a startup’s budget. An offshore Fractional CMO offers the marketing leadership at a fraction of the cost.
This frees up valuable resources for early-stage companies to focus on product development and customer acquisition.
As witnessed, US-based startups are no longer limited by geography when seeking marketing leadership. Offshore Fractional CMO agencies house a network of seasoned executives with diverse industry expertise. This allows you to find the perfect CMO match for your specific B2B SaaS niche, even if they’re located overseas.
Fractional CMOs provide invaluable strategic direction, helping startups develop a winning marketing strategy and build a strong brand identity. The part-time nature of the engagement allows you to scale the CMO’s involvement as your needs evolve, ensuring a cost-effective approach throughout your growth journey.
By outsourcing some marketing tasks to an offshore Fractional CMO, your internal team can remain laser-focused on what they do best – building a world-class product and acquiring customers.
While communication can be a consideration, reputable offshore Fractional CMO agencies understand the importance of clear and consistent communication.
They often employ rigorous vetting processes to ensure their CMOs possess excellent communication skills and a strong understanding of working across time zones and potential cultural nuances.
Saas companies go through different stages of development. It is not easy to say what exactly is the right time to bring fractional CMO into the organization. There are different stages when you think it is the right time, but in a strategic way for a longer run if you see it isn’t.
Here are different situations that you can consider:
Mostly, lean budget companies or early-stage startups use their funds wisely, in a way that it doesn’t get exhausted before they reach a certain goal. In such a way, hiring a fractional CMO is the most optimal solution instead of hiring a full-time CMO.
As we discussed in the beginning, a full-time CMO is an expensive deal. Having a fractional CMO you get a part-time experienced leader to guide the marketing strategies and at the same time you make the most of your budget.
A Fractional CMO is capable of providing marketing strategies and plans that are tried and tested with different clients in different industries. Sometimes the internal expert cannot solve a critical problem that a fractional CMO can analyze and solve without heating the rest of the team members’ efforts.
Hiring a fractional CMO helps businesses with problem-solving, figuring out the problem, and hitting the right spot.
Sometimes the existing team cannot flourish with a set of available ideas and strategies. Having an external point of view helps to add an extra boost to the opportunity.
As fractional CMOs work with different clients, they are exposed to new technologies, marketing tools, hacks, and trends. Due to fractional CMO’s broad horizon, new opportunities are also expanded.
When launching new distribution channels, partnerships, or markets, companies need specific, niche talent. By hiring a fractional CMO with experience in that niche, businesses can capitalize on that expertise.
Generally, full-time employees are rarely exposed to another industry expert, but fractional CMOs are out there with different clients–they bring a whole lot of expertise to the table.
Economies of scale can be accessed by companies by pooling resources with other clients since fractional CMOs usually work with a few companies at once. A partner marketing program can involve something as simple as joint media buys, the sharing of tools, or even the sharing of reports. Fractional CMOs can see how these opportunities connect businesses.
In the startup ecosystem, every time there’s news of a startup shutdown due to a money shortage problem investors are not funding anymore.
Hiring a Full-time CMO is a big commitment of funds. Before you invest in hiring a full-time CMO look under the carpet and see if it’s worth it.
It’s foremost to weigh the benefits against the challenges of bringing a full-time CMO on board.
Here’s something you should consider before making the decision.
CMOs are very expensive. Their compensation packages can easily reach seven figures including base salary, bonuses tied to performance, stock options, and comprehensive benefits packages. Not just that, as a full-fledged company you need to bear the additional recruitment fees, onboarding costs, and potential relocation expenses (if any).
To look for a CMO, you need to onboard a head-hunting firm and these firms typically charge hefty fees, often a percentage of the CMO’s base salary.
For example, a $500,000 CMO salary might translate to a $25,000-$50,000 recruitment fee.
So unless your company is making an ARR of $10mm or more then only hiring a full-time CMO would be considerable. High-growth startups might prioritize rapid market expansion. In this scenario, a CMO’s strategic direction and expertise become particularly valuable. However, the upfront investment can be a strain on their limited resources
Finding a CMO who aligns perfectly with your company culture and leadership style takes time and effort. A leader not only brings skill sets but also ownership and reflects a truth in culture.
A mismatch can lead to internal conflict and hinder progress. A CMO with a hierarchical leadership style might clash with a company built on collaboration and transparency. This can lead to frustration, resentment, and decreased team morale.
For example: If a CMO prefers to work as a solo-marketer and neglects the team efforts. This can delay important marketing initiatives and divert resources away from growth-focused activities.
Marketing operates in a complex ecosystem. A customer might see a social media ad, read a blog post, and then receive an email before finally making a purchase. Attributing that sale solely to the final email interaction is a gross oversimplification.
Hiring a CMO before your business is truly ready can be a costly mistake. Planting the seeds before you onboard a full-time CMO is important. Check if your company has a solid marketing foundation in place.
CMOs don’t operate in a vacuum. They need a budget to execute their vision. This includes funds for advertising, content creation, marketing automation tools, and potentially additional team members. If your marketing budget is tight, a CMO’s grand plans might be grounded by financial limitations.
A successful CMO requires buy-in and support from leadership. Are your company’s key decision-makers aligned with the need for a CMO and prepared to empower them to make strategic marketing decisions? Without this alignment, internal conflicts can arise, hindering the CMO’s ability to make a positive impact.
Hiring a CMO too early can backfire. You’ll waste resources onboarding them without the infrastructure to support their work. Their frustration with limitations can lead to stalled growth and a demotivated team.
Hold off until your marketing foundation is built, your budget is robust, and leadership is on board. Look for signs of explosive growth and a clear need for a strategic marketing leader before making the move.
When looking for a fractional CMO, we at FirstPrincples recommend hiring someone who has led marketing teams at your revenue tranche ($1-5m, $5-10, $10-20m, etc). In companies with $20m ARR, the titles of these people typically include Head of Marketing or Vice President of Marketing and Growth.
Here are 5 important points you need to know:
At FirstPrinciples Growth, we understand marketing is just one piece of the puzzle. Our Fractional CMOs are more than advisors; they’re strategic partners focused on building the foundational systems and processes that fuel long-term success.
We specialize in helping businesses of all sizes achieve sustainable growth by:
By going beyond marketing tactics and focusing on building a sustainable growth engine, you unlock the potential for long-term success.
Our Fractional CMOs become an extension of your leadership team, guiding you toward achieving your full growth potential.
Contact us today to learn more about how we can help you build a thriving, sustainable business.
Ameet Mehta
