Cost Savings to Hiring a Fractional CMO
Many businesses in the growth stage of development are turning to Fractional CMO’s to oversee their marketing efforts. And while there are many factors to consider when deciding between a fractional vs. full-time CMO, cost savings are at the top of the list.
Depending on the stage of your company’s growth, you may find yourself in a position where you need senior marketing leadership but are either simply unable to afford it or are not quite at the stage where you’re ready to bring someone on staff full-time.
Evaluating the Cost Savings of Hiring a Fractional CMO
One of the biggest benefits of using a fractional CMO is that you save on the added expenses associated with hiring a full-time employee. Like any C-Suite employee, a qualified CMO’s salary starts at around $150K. And that doesn’t include all the other added costs you’re required to pay as an employer, such as:
- Insurance (medical, dental, life);
- Annual Bonuses;
- Payroll taxes (company-paid portion);
- Employment insurance;
- Training; and,
- Payment matching and more.
When evaluating the cost of hiring a full-time Chief Marketing Officer, be sure to factor all of the associated costs of hiring a full-time employee.
Time Savings Associated with Hiring a Fractional CMO
Time savings are another cost-savings area to evaluate when hiring a fractional vs. full-time CMO. For example, some businesses don’t need a full-time Chief Marketing Officer if they find that they can accomplish most of their goals in less than 40 hours a week. Therefore, a fractional CMO is a great option if you’re a smaller company that recognizes the need for strong marketing leadership but does not have enough projects available to justify a full-time salary.
Short-term Cost Savings
In situations when your business will one-day likely need a full-time Chief Marketing Officer, a fractional CMO offers a solution to bridge the gap and save you money in the short-term. Because, when you hire a fractional CMO, you don’t pay for a long-term investment. For example, a CMO’s contract is typically around nine months long. Therefore, when you hire a part-time CMO, you allow yourself time to mitigate financial risk to your company regarding long-term decisions around marketing support.
Finally, when weighing the cost benefits of a full time or fractional CMO, be sure to consider the following:
- Hours needed against cost of full-time pay;
- Growth goals in the short and long term;
- Work volume both immediately and in the future;
- Your current budget and capital.
If you’re in the process of evaluating the costs savings associated with hiring a Fractional CMO, reach out to a member of our team.