Fractional CMO vs Full-Time CMO
The real cost comparison: $8K-$25K/month fractional vs $300K-$500K/year loaded for full-time. When each makes sense, and when the math changes.
A full-time CMO costs $300K-$500K loaded (salary + benefits + equity + recruiting + ramp time). A fractional CMO costs $96K-$300K/year with 2-week time-to-value. The fractional model works until you hit $10M+ ARR and need a dedicated executive building and leading a 10+ person team.
Cost Breakdown
- Full-time CMO salary: $200K-$350K base
- Benefits, taxes, equity: add 30-40% ($60K-$140K)
- Recruiting: 3-6 months, $50K-$100K in fees
- Ramp time: 6-12 months to full productivity
- Total year-1 cost: $400K-$600K before any marketing results
- Fractional CMO: $96K-$300K/year, productive in 2 weeks
- Savings: $100K-$300K in year 1, plus 6+ months faster
When to Switch to Full-Time
- $10M+ ARR with a 10+ person marketing team to manage
- Board requires a dedicated C-level executive
- Multiple business units need separate marketing leadership
- You've found the right person and can offer compelling equity
Frequently Asked Questions
When you hit $10M+ ARR and need someone managing a large team full-time. Until then, the fractional model gives you senior leadership at a fraction of the cost.
Sometimes. It's a natural path if the fit is right. But don't hire a fractional with this expectation; hire them because the fractional model fits your current stage.
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