Fractional Marketing: What Is It and Do You Need it to Grow?
Marketing is crucial, but not every company needs the full-time help of an expensive Chief Marketing Officer to succeed. In today's fast-paced and ever-evolving business landscape, flexibility is key to staying ahead of the competition and effectively reaching potential customers. In-house marketing teams and CMOs don’t always have the resources and expertise to remain competitive and up-to-date with the latest trends.
One marketing strategy that's gaining popularity is fractional marketing. Fractional marketing is when a company hires a marketing expert on a fractional or part-time basis. This approach can help businesses save costs while still benefiting from expert marketing advice.
But what makes fractional marketing effective, and how can it benefit your business? Let's explore this concept further.
What Is Fractional Marketing?
Fractional marketing is a cost-effective solution for businesses seeking a marketing advantage without breaking the bank. Companies can access industry experts at a fraction of the cost of full-time employees by hiring a fractional marketing guru vs a temporary or on-contract marketing professional.
Essentially, these fractional marketing teams or experts work on specific tasks and are only paid for the outsourced project hours. Unlike contractors, fractional executives act as “real employees” who often become part of a long-term solution for a company with a relationship that can last for years.
By only paying for the time the company actually needs that person or team, the company:
Saves on costs
Has access to industry professionals at a fraction of the cost of a full-time employee
Gains a marketing advantage
Some companies may opt for a full-time marketing team but outsource specific tasks to specialists like content marketing or copywriting. Even the chief marketing officer (CMO) can be an outsourced position responsible for outsourcing different marketing functions like design, layout, content, and imagery.
This helps lower the company’s marketing bill substantially. You no longer have to pay full-time salaries and benefits to expensive marketing professionals. You can simply “hire” their skills at a reduced rate.
It's a smart business move that allows companies to stay competitive while remaining fiscally responsible.
Understanding the Importance of a Fractional Chief Marketing Officer (CMO)
At your company, the position of chief marketing officer doesn't have to be a full-time role. Consider hiring a fractional CMO or a marketing team for targeted marketing campaigns.
This approach can save your business from annual salary costs, bonuses, and equity expenses. It's a cost-effective method that allows you to focus on specific marketing efforts to achieve optimal results. Additionally, it's flexible, enabling you to adapt strategies quickly in response to changing market conditions.
The fractional CMO functions as a team lead or project manager, overseeing and coordinating the marketing team to meet company goals. With their expertise and experience, fractional CMOs can lead teams and achieve results. They may work with multiple clients, dedicating only a portion of their time to your company.
Hiring a fractional CMO is the first step in outsourcing to a specialized talent pool while paying only for the time utilized.
Benefits and Impact on Business
From increased efficiency to improved ROI, fractional marketing can help take your business to the next level. There are several benefits to hiring a fractional CMO or marketing professional, including the following.
Cost-Effective Marketing Solutions
When it comes to marketing for your business, full-time teams can come with a hefty price tag. The costs can increase quickly, from wages and benefits to bonuses and overtime pay.
That's why it can be smart to utilize fractional CMOs and their specialized contractors.
Plus, fractional marketing teams typically work off-site, which means even more savings for your business. Opting for an experienced marketing team on a budget allows you to keep costs down without sacrificing quality.
Access to Specialized Expertise
Let’s say you need a copywriter with proven KPIs per content piece. You want to see how a particular content piece has boosted sales, but hiring a professional monthly can be expensive.
Fractional marketing can help by allowing you to pay for only a portion of a specialist’s time, making it more affordable to access industry professionals who can help you develop a marketing strategy that follows the latest trends and best practices. This can reduce pressure on your team and increase your success rate.
Scalability and Flexibility
As a business owner, having access to marketing professionals on a limited basis can be incredibly helpful. You could benefit from fractional marketing teams that can be on standby and ready to scale up as needed. These teams are adaptable and can easily adjust their schedules to align with your project rollouts.
Enhanced ROI and Performance Metrics
Implementing fractional marketing strategies can significantly boost your ROI by reducing marketing costs and optimizing sales results. By enlisting the expertise of a fractional CMO, you can access a wealth of resources and knowledge that can be used to develop coordinated marketing strategies and campaigns, ultimately driving growth and improving your marketing performance metrics.
Outsourcing vs. Fractional Marketing: Pros and Cons
Still unsure if your company needs to use fractional marketing? Here are some of the pros and cons to help you decide:
Pros:
You have instant access to the specialist's skills, expertise, and resources
It’s more affordable than hiring full-time professionals
With a fractional CMO (and team), communication can be streamlined, and there’s better interaction on the project
Fractional CMOs typically deliver up to 10x ROI
Cons:
Outsourcing can limit your company’s input on campaigns
You may not always have access to your fractional professional as they work for multiple clients at the same time
How to Evaluate if You Need Fractional Marketing Help
Fractional marketing can be particularly advantageous for startups, small businesses, and companies with limited budgets. It can help fill skill gaps and complement existing marketing teams.
But how do you know if your business needs fractional marketing? Here are some considerations to help you choose whether to outsource a professional or not:
Is your current marketing team delivering a good ROI?
Does your budget allow you to hire an experienced permanent marketing team member?
Are you short-staffed and have limited time to get a marketing campaign together? Or perhaps you don’t have time to onboard a full-time marketing team?
Is your startup still growing, but you want an effective marketing campaign by professionals whom you may not be able to afford full-time?
If you're considering fractional marketing, assessing your goals, resources, and marketing requirements is important to ensure it's the right fit for your business. Before implementing a fractional marketing strategy, it's also crucial to thoroughly assess opportunities and gaps in your marketing strategy and team. This will help you identify areas where fractional marketing can help you achieve your goals.
Once you understand your marketing needs clearly, you can identify the right candidates to fill your role and implement your strategy. It's important to remember that fractional marketing should be viewed as a long-term investment in your business. By assessing your needs and finding the right talent, you can create a sustainable marketing strategy that will help you achieve your goals over the long term.
What to Look for in a Fractional CMO
Initially, you may have to ask for recommendations from other business owners to find experienced fractional marketing teams or employ a fractional CMO with experience. When you’ve had an opportunity to work with the best professionals, you can start building a list to draw on in the future.
Keep these aspects in mind when hiring any fractional CMO (for the first time or a repeat contract):
Candidate background, experience, qualifications, and results: The fractional CMO may not always be able to share their client list, but they may share samples or the results of their work. An example is a fractional CMO who has secured a channel partnership for their clients.
Strategic thinking skills: The fractional CMO will oversee your marketing strategy. They need to have practical and strategic market knowledge and thinking.
Good communication skills: Ensure the fractional CMO you hire is easy to speak with in person and on paper. Communication skills will make or break your marketing efforts.
Leadership skills: The fractional CMO needs to be a good leader. Ensure they are an effective listener, a continual learner, emotionally intelligent, good at managing people, motivated, and a problem-solver. The fractional marketing function can also extend to a VP of Sales for hire and other marketing department features.
A logical process: The best fractional CMO candidate can explain their strategy in clear and effective steps.
Holistic business understanding: Your chosen fractional CMO needs to understand your business's big picture. A fractional CMO isn’t a permanent member of your team, but they need to act as if they are. Since their work will significantly affect your business, they should understand it.
The Cost of Hiring a Fractional Marketing Role
A highly experienced fractional CMO can charge hourly (around $200 to $350) or a monthly fee (paid for the work duration). The monthly fee for 40 hours can be as much as $5,000 to $15,000 over a three to six-month period.
In comparison, the average salary of a full-time CMOs can be between $300,000 and $420,000 per year.
Looking at these salaries, it’s clear that hiring a fractional CMO proposal is significantly more cost-effective than hiring a full-time CMO. In addition, B2B companies should expect a 5 to 10x return on investment when hiring a fractional CMO.
When Is the Right Time to Hire?
Knowing the right time to hire for fractional marketing can be challenging, but knowing exactly what you need is easier. To make the hiring process more manageable, it's wise to bring in an assessment team to do a health check on your sales strategy, software, process, and/or team.
While the cost ranges widely depending on the complexity of your sales systems and your needs and goals, the investment can have multiplier effects on sales productivity that can be 5-10x that cost.
Here are some signs that it may be beneficial to hire a fractional professional:
You have a lean marketing budget and want to maximize it
You need expertise in a specific niche
When a team member leaves suddenly, and you need help until you find a replacement
You can’t afford a full-time marketing team or CMO
Armed with this knowledge, you can find the perfect hire who will be set up for success through a well-oiled sales system and process.
How Mindracer Can Help
Fractional marketing is quickly becoming a popular strategy for businesses looking to grow and expand their reach. With the help of emerging technologies and AI-powered automation tools, the landscape of fractional marketing is changing rapidly.
These advancements allow businesses to target specific audiences more precisely and efficiently than ever. With the potential to reach new customers and increase revenue, it's no wonder why fractional marketing is a crucial growth tool for businesses. As businesses continue to embrace these new trends and technologies, the future looks bright for those willing to adapt and take advantage of these powerful tools.
At Mindracer Consulting, we can help you maximize your efforts with fractional sales management. Our fractional team of experts will help optimize your sales and marketing efforts to ensure greater business success. Book a call with us today to learn more.