Short answer: A fractional CMO is a part time senior marketer who sets strategy, priorities and measurement. An agency is a team that carries out specific work such as content, ads or outbound. If you do not know what to do, hire the CMO. If you know what to do but lack hands, hire the agency. Many SaaS companies eventually use both.
- Fractional CMO: direction, priorities, hiring and budget decisions.
- Agency: execution in one or more channels.
What is a fractional CMO?
A fractional chief marketing officer works with a company for a set number of hours or days each month. They are usually experienced operators who have run marketing before. Typical work includes setting positioning, choosing channels, building the plan, managing vendors, hiring, and reporting to the founders or board.
They usually do not produce all the work themselves. Their value is judgment: knowing what to do first, what to stop, and who should do it.
What does a SaaS marketing agency do?
An agency supplies a team for execution. Depending on the type, that might be writers and SEO specialists, paid media buyers, designers, or an outbound team that builds lists and sends emails. Agencies bring process and capacity, and you can start quickly without hiring.
Their weakness is that they often work inside their specialty. An SEO agency will usually recommend SEO. That is natural, but it means you still need someone to decide whether SEO is the right bet for you.
How do a fractional CMO and an agency compare?
| Question | Fractional CMO | Agency |
|---|---|---|
| Main output | Strategy, priorities, oversight | Campaigns, content, leads |
| Best at | Deciding what to do | Doing it at volume |
| Typical pricing | Monthly retainer for part time hours | Retainer, project or performance fee |
| Time to visible output | Plan in weeks, results depend on others | Depends on channel, can be weeks |
| Risk | Good plan, nobody to execute | Good execution on the wrong plan |
| Accountability | To your leadership team | To the contract scope |
When should a SaaS company hire a fractional CMO?
- You have no senior marketer and need someone to set direction.
- Your messaging is unclear and your sales team tells different stories.
- You are spending money on several vendors and cannot tell what works.
- You are preparing to hire a full time head of marketing and want help scoping the role.
- You are early stage and cannot yet justify a full time executive.
A fractional CMO is also useful for choosing and managing agencies. Ask any CMO candidate how they would run that process, and what they would want to see in an agency’s proposal. For a wider view of the market, see our list of SaaS marketing agencies.
When should a SaaS company hire an agency?
- You know your target buyer and offer, and need work done.
- You need to start in weeks, not after a hiring search.
- You want a specialist skill you cannot justify full time, such as paid search or cold email.
- Your team is small and your workload is spiky.
If your main need is conversations with a defined list of companies, an outbound specialist can run that channel while your team focuses on product and sales. See the options in outsourced lead generation.
What does each one cost?
Prices vary widely by experience, market and scope, so treat any single number with caution. A fractional CMO usually costs less per month than a full time executive, because you buy part of their time. An agency costs depend on the channel and scope. Our post on lead generation pricing explains typical structures.
For outbound, our own plans run $1,500, $3,000 or $6,500 a month depending on volume and whether meeting booking is included. Other firms will differ, so compare scope, not just price.
Can you use both?
Yes, and it is a common setup. The fractional CMO decides the plan and measures results. One or more agencies carry out the channels. The CMO holds agencies to account, which is hard for a busy founder to do alone.
The risk is a large stack of cost. Start with the minimum: one strategist and one channel. Add more only when the first one proves itself.
A simple decision guide
- No plan and no team: fractional CMO first.
- A clear plan and no team: agency.
- A plan, a team and a gap in one channel: specialist agency for that channel.
- A big budget, many vendors and unclear results: fractional CMO to sort it out.
How do you judge a fractional CMO?
Ask for a 90 day plan before you sign. A good one will describe what they will review first, which decisions they will make by when, and how success is measured. Talk to people they have worked with. Check that their experience matches your stage and your buyer type, since running marketing for a consumer app is very different from selling to enterprise IT.
Also agree on the basics: hours per month, response times, who they report to, and how they work with your sales lead. Marketing and sales must share definitions, such as what counts as a qualified lead, or the plan will fall apart.
What mistakes should you avoid?
- Hiring a strategist and expecting them to do all the work.
- Hiring an agency and expecting them to define your market for you.
- Giving no access to sales calls, customers or data.
- Judging either one in the first month.
- Skipping a clear definition of success, such as qualified demos or pipeline.
Need the outbound channel covered? Next Reply builds the target list, which you approve, writes and sends the cold emails from separate warmed domains, and hands you the replies. Growth and Scale plans also book meetings. See SaaS lead generation →
Frequently asked questions
Is a fractional CMO the same as a consultant?
They overlap. A fractional CMO usually acts as part of the leadership team, with ongoing responsibility. A consultant often delivers advice or a project and leaves.
How many hours does a fractional CMO work?
It varies. Some work a few days a month and others a few days a week. Agree on hours, availability and deliverables in writing.
Can an agency replace a CMO?
Some agencies offer strategy, but they have an incentive to sell their own services. An independent view can be valuable.
Which is better for an early stage startup?
Often neither at first. Founder led selling and one focused channel can be enough. See early stage SaaS marketing.
Want the outbound piece handled?
Book a call and tell us about your target accounts. We will outline a campaign you approve before anything is sent. It goes live within 14 days.