The strategic advantage that a Fractional CMO brings to the table, particularly in the context of early-stage SaaS companies cannot be overlooked. I recommend making the first marketing hire, a Fractional CMO leader paired with a marketing executor. Then when the foundation is in place, and there is a solid understanding of the skills and roles needed, hire the rest of the team.
I have significant expertise in this decision, having built five successful marketing teams across various companies. Each team supported remarkable business success under my leadership. One company generated revenue exceeding $2 billion, another achieved a staggering revenue growth close to 3000%, a third successfully navigated an IPO, and a fourth was acquired. Early on, I was the first marketing hire with little management experience and moderate global marketing expertise. Later, I was also the first hire with decades of experience, comprehensive marketing expertise, a rolodex to pull from, and team building and leadership experience. I guarantee in the latter, the strategy was better, the team was more aligned to skills needed, the execution was faster, and big problems were quickly identified and solved swiftly.
You may ask, what is a Fractional CMO?
A Fractional CMO is an experienced marketing professional who works with companies on a part-time or project basis, providing strategic guidance and leadership in marketing efforts. Unlike a full-time CMO, who is employed by a single company, a fractional CMO serves multiple clients simultaneously, bringing their expertise and insights to each engagement.
A Fractional CMO is typically a seasoned marketing executive with a wealth of experience across various industries. They possess a broad skill set encompassing marketing strategy, branding, digital marketing, lead generation, marketing automation, and more. By leveraging their expertise, companies can gain access to high-level marketing guidance without the cost of a full-time commitment. To learn more about what does a Fractional CMO mean, go here.
There’s an outdated pattern
Early-stage SaaS companies get their first round of funding and they are advised to hire their first marketing role. But, too often, companies rush to fill this role with a full-time hire, typically a product marketer or a demand generation manager, or, on some occasions, a few junior marketers with little leadership or accountability. The strategic implications of these hires are not fully appreciated. Noted it’s a great learning experience for the hire. But, this approach, often results in a disjointed marketing strategy and a steep learning curve for the individual that can lead to burnout, missed opportunities and failure that eventually impedes the company’s progress.
So why is this the norm?
Let’s face it. It’s cheaper…but, is it?
Let’s take a look at the numbers. Most first hires are director-level “heads of” and are expected to do strategy and execute. They have a few years of experience but typically only in one marketing pillar.
This seems pretty obvious but the Fractional CMO needs a doer and sometimes they need to work more hours, especially early on. High-quality marketers, happy to learn and execute can be found for $60K. You just have to be creative where you hire. In this scenario, the cost is still less. And the hours worked are more. Plus there are additional dollars to spend elsewhere.
When you hire a Fractional CMO, you get value in more than just dollars
Let’s explore the multifaceted benefits beyond mere cost considerations:
- Decades of experience: A Fractional CMO brings a wealth of experience spanning a decade or more. They offer invaluable insights and strategic direction honed through years of industry experience.
- Holistic marketing proficiency: With experience across all facets of marketing – including brand, product, and growth marketing – a Fractional CMO ensures comprehensive coverage of marketing functions. This minimizes gaps and maximizes impact.
- Immediate process implementation: Equipped with established processes and methodologies, a Fractional CMO can expedite the setup and optimization of marketing operations from day one, accelerating time-to-market and driving efficiency.
- CEO offloading: By assuming responsibility for marketing leadership, a Fractional CMO alleviates the CEO’s burden. This allows the CEO to focus on broader strategic initiatives and overall business growth.
- Efficient team management: From hiring and managing internal team members to overseeing contractors and agencies, a Fractional CMO streamlines the entire marketing ecosystem. This ensures seamless coordination and optimal resource utilization.
In contrast, the traditional first hire often falls short in critical areas:
- Tactical focus with limited strategy: An individual lacking strategic acumen may excel in executing tasks but often struggles to envision and implement overarching marketing strategies. This can hinder long-term growth and success.
- Responsibility in a black box: Entrusting all marketing responsibilities to a single hire, or a group of junior hires, without adequate strategic support or clarity can lead to inefficiencies, missed targets, and organizational silos.
- High risk of burnout: The overwhelming pressure to juggle a myriad of tasks without sufficient guidance or support increases the likelihood of burnout. In fact, this risk of burnout is highest among marketers – 83.3%, jeopardizing both individual well-being and organizational success.
- CEO dependency for management: Without strong leadership and autonomy, the first hire may resort to constant reliance on the CEO for direction and decision-making, stalling progress. The CEO may be limited in their marketing knowledge which can lead to costly decisions.
- Limited experience and accountability: With minimal experience and accountability, the traditional first hire may struggle to navigate complex marketing challenges, resulting in suboptimal performance and outcomes
In conclusion, the decision to hire a Fractional CMO for marketing leadership in early-stage SaaS companies transcends mere cost considerations; it is a strategic imperative. By leveraging decades of experience, comprehensive expertise, and efficient resource management, a Fractional CMO empowers companies to navigate the complexities of the marketing landscape and first Go-to-Market with confidence and agility, setting the stage for sustainable growth and long-term success.
