EP39: When does it make sense to bring on a Fractional CMO?

by | Jun 3, 2025 | Marketing, Podcast, SaaS | 0 comments

At DemandMaven, we’re all about helping SaaS companies understand and navigate their growth challenges. In this week’s episode of the In Demand Podcast, Asia and Kim dive into the world of fractional CMOs—what they do, when you might need one, and how they compare to full-time marketing executives.

What exactly is a CMO responsible for?

A Chief Marketing Officer’s role boils down to three core responsibilities:

  1. Budget management: Keeping costs aligned with business goals and ensuring proper ROI
  2. Strategy development: Setting the vision and direction for marketing initiatives
  3. Team leadership: Building and inspiring the right marketing team

As Asia explains, “A CMO is someone who is ultimately hiring the team, inspiring the team, and hopefully never firing the team, but ultimately ensuring that budget and strategy are always in check.” The exact balance between these three pillars varies by organization. In some companies, budget management takes precedence, while others might prioritize strategic vision or team building depending on their specific needs and growth stage.

Full-time vs. Fractional CMO: When does each make sense?

The decision between hiring a full-time or fractional CMO typically comes down to two key factors:

Cost considerations

Full-time CMOs command significant salaries—typically starting at $200-250K in the US market. Fractional CMOs provide access to high-level marketing leadership without the full-time expense.

Bandwidth requirements

Not every company needs a full-time CMO. If you estimate needing 10-20 hours per week of strategic marketing leadership, a fractional approach might be perfect. As Asia notes from her experience as both an accidental and intentional fractional CMO, “The telltale sign for hiring full-time is if your executive team is running circles around the fractional CMO. If they’re constantly behind the ball because everyone else is moving faster than they are, that’s when you need to consider a full-time position.”

Signs you might need a CMO (fractional or otherwise)

Consider bringing in CMO-level leadership when:

  • The CEO is no longer able to effectively lead the marketing function
  • Your investments aren’t yielding expected results
  • You’ve got multiple marketing specialists (demand gen, ABM, product marketing, etc.) without strategic coordination
  • You’re struggling to measure marketing ROI and determine where to make your next investments

The CMO vs. VP of Marketing distinction

What separates a true CMO from a VP of Marketing? According to Asia, the key difference lies in strategic thinking: “A great CMO thinks like a CEO and a CFO simultaneously, with a deep understanding of how marketing works. They’re concerned with markets, geolocations, products, and investment allocation across these variables.” In contrast, VPs of Marketing typically focus more on channel-level strategy and program execution—they may be excellent at optimizing specific marketing functions but might not yet have developed the high-level strategic perspective required of a CMO.

Setting up for success with a fractional CMO

If you’re considering bringing on a fractional CMO, here are some practical tips:

  1. Start with a trial period: Before fully committing, implement a 90-day trial to ensure alignment
  2. Look for industry fit: Seek someone with relevant SaaS or industry experience
  3. Clarify expectations: Understand what style of CMO you need—visionary, operational, or somewhere in between
  4. Set clear time horizons: A great executive always thinks across multiple time frames—two weeks, 60 days, and two quarters ahead

The balancing act of fractional leadership

One interesting benefit of fractional CMOs is their forced focus. With limited hours, they must concentrate on the highest-impact initiatives rather than getting bogged down in day-to-day busywork. As Asia puts it, “Having less time has forced me to aggressively focus. Not everything actually is going to move the needle. To me, 80% of the result comes from 20% of the work.” However, this comes with the challenge of maintaining momentum and ensuring the fractional executive isn’t inadvertently becoming a bottleneck as other departments scale.

Final thoughts

Whether you’re considering a fractional CMO or evaluating your current marketing leadership structure, the key is matching your business needs with the right level of strategic oversight. A fractional approach can provide the perfect balance for companies that need high-level marketing vision without the full-time investment—especially during crucial growth transitions.

Interested in exploring whether a fractional CMO might be right for your SaaS business? Get in touch with us at Demand Maven to discuss your growth challenges.

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