Ep #16: What to Charge as a Fractional CMO

When it’s time to talk price, finding the right answer to get you the right compensation for the work that you do is not a clear-cut path. But that’s in the past because Casey Stanton is giving you the right mindset to approach this topic and the formula to help you find the rate you deserve to be paid. You’ll discover your effective hourly rate and what that says about the work you do and what you should aim for that rate to be.

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Episode highlights:


If someone thinks their problem is very big and you offer to only charge them a small amount to fix it, they won’t believe that you are the solution to that giant problem because to them. What you are charging doesn’t match the immensity of the issue.

As a very general rule, good SMBs to target for Fractional CMO services are those with over $1 million in revenue but under $100 million in revenue. Generally, they have under 100 employees, but that is not exact.

What you charge a company should be based on the size of the company.

Work out your effective hourly rate, which is how much YOU take home. This includes any prep hours, sales, follow-up, client hours, prospecting etc. Divide how much you bring in per month by the actual number of hours that you spend working.

To be called a Fractional CMO, your effective hourly rate should be at least $250 per hour to be properly compensated. You should look at a target rate of $400 per hour.

You should be able to do a lot in a small amount of time, so the net price to the company may be lower than you would initially expect.

Quote of the show:


”You have to charge the price at which the person believes the problem will cost to fix

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We are excited to announce the Fractional CMO Community Facebook Group. This aims to be a place where Fractional CMOs or marketers considering becoming a Fractional CMO can connect and share ideas.

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