Fractional CMO Retainers Explained
Categorized in: Fractional Marketing, B2B Digital Marketing
Every company needs a well managed marketing strategy. However, without the right expertise, this will be very difficult to do. For many, having the right leadership in place to manage a marketing department is cost prohibitive. Hiring a Fractional CMO, however, solves this problem because it effectively balances cost and expertise. Because Fractional CMOs are not employed by the company, you end up saving a lot of money.
In fact, most Fractional CMOs are paid on retainer, which means that once your initial rate with them is negotiated, they will be your dedicated person to get the job done. Here’s more information about Factional CMO retainers:
Pay for Whatever You Need
The magic of a fractional CMO is that you will only pay for what you need. If you say that you need them for ten hours a week, that is all you will need to pay. Then, the individual will work that number of hours to run your marketing department. In order for the payment model to really work, though, you need to be upfront about what you need and what your expectations are.
If you have certain expectations that certain tasks will get done, you want to make sure that you communicate this. For example, if you are only paying for ten hours, but your expectations will take twenty hours per week to be met, you need to be upfront with them what you need. If they know they won’t be able to do it in the ten hours you’re willing to pay, they will tell you. You can work together to come up with a budget and set of expectations that make sense for your budget.
Communication is Key to a Good Relationship
Going into the relationship, it helps for both sides to communicate expectations right up front. Start by making a list of what you expect the Fractional CMO to handle. You should also make a list of your business goals. The Fractional CMO will communicate to you their genuine assessment of what needs to occur in the marketing department in order to help you best achieve the overall goals. They should also tell you if your expectations are realistic for your time frame and budget.
This level of open communication should be done in the beginning of the relationship. You want to set your expectations early and they need to have a clear idea of what they need to do in order to help your company succeed. Although this step might seem obvious or simple, it is a lot more difficult than it looks to properly communicate expectations when you first start working together. An experienced Fractional CMO will know exactly what needs to be done in order to be aligned with expectations.
There is no cut and dry way to price Fractional CMO work because it all depends on the situation. Mainly, it all depends on how many hours he or she will need to spend in order to do the work properly. With good communication, this will all be straightforward.
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