In order to expand your customer base and increase your financial advisory firm’s revenue, you need to invest in marketing. But bringing on a full-time marketing executive might not be the most beneficial option. With the rise of remote and freelance workers in the U.S., many small businesses are outsourcing their marketing efforts to a Fractional CMO.
Fractional CMO vs. Traditional CMO? Here are six reasons why that might be the right move for you.
1. Cost
Traditional CMO
The average salary of a full-time, in-house CMO is between $150k and $250k. You also pay for their benefits, a 401(k), bonuses and potentially a relocation fee if you’re trying to poach an out-of-towner. This base cost doesn’t include the cost of freelancers, a team of specialists or the tools required to execute the CMO’s strategy.
Fractional CMO
When working with a Fractional CMO, costs are significantly reduced. Fractional CMOs can be paid by project, or on a monthly retainer if you’re looking for ongoing content. Either way, you’re only paying for the work you need.
2. Digital Marketing Tools
Traditional CMO
After hiring a CMO, he or she will likely need access to digital tools, platforms and certifications needed to run your marketing initiatives—each of which is an additional cost to your business.
Fractional CMO
Your Fractional CMO is responsible for any digital tools he or she needs to do their job well. And because they’re using these tools for all clients, you’re not absorbing the costs. Need a platform for running digital ads? We’ve got one. Looking for a Storybrand-certified content creator? We’ve got you covered. Need a fully designed infographic to send to clients? We have a whole suite of design tools and designers who are skilled at using them.
3. Access to Marketing Specialists
Traditional CMO
Spending several years at one company, a traditional CMO hasn’t been exposed to many specialists and is likely contractually forbidden from brining old team members over to your company. And even if they know the perfect designer or copywriter, any new hire comes with a salary and benefits.
Fractional CMO
A Fractional CMO has a network of freelance marketing specialists of varying experience levels and price points that are available for long-term or project work. So you’ll get C-level strategy and tactical assistance. At Peregrine, we roll the cost of designers, copywriters and web developers into our packages, so you won’t pay extra fees when it comes to executing deliverables.
4. Experience
Traditional CMO
A traditional CMO will likely have deep experience in your industry and is likely familiar with the marketing tactics frequently used by financial advisory firms. While they are equipped to execute on tried-and-true tactics, their experience is limited and can result in stale ideas.
Fractional CMO
Fractional CMOs are working with a number of clients of varying sizes, and they sometimes dip into different industries. They’ve been exposed to various marketing problems, tactics and solutions, so they’re able to think outside the box and deliver fresh ideas.
5. Objective Advice
Traditional CMO
Traditional CMOs know your company inside and out, and are deeply invested in the business you’re building. So when a message isn’t working or a directional shift is needed, they can become too attached to the brand they’ve worked hard to establish and struggle to let go.
Fractional CMO
Fractional CMOs offer an outside perspective and are able to offer objective advice without worrying about offending the boss and losing their job. Because they’re not deeply integrated into the company, they are able to cut or alter marketing efforts, branding or messaging that isn’t working.
6. Length of Relationship
Traditional CMO
The average CMO remains on staff for 44 months, which means every 3 1/2 years, you need to spend months conducting a CMO search, wooing candidates and onboarding them.
Fractional CMO
Your relationship with a CMO lasts as long as you have the need for one. Because Fractional CMOs have the flexibility and freedom to take on various projects and aren’t bogged down by office politics, they have nothing pulling or driving them away from your business.
Want to learn more about what the Fractional CMOs and marketing experts at Peregrine can do for you? Contact us today.