Navigating Growth: Why a Fractional CRO Might Be Your Best Bet
In a recent exploratory call with a client, I encountered a common scenario: the desire to rapidly scale the business, expand into Enterprise sales, and resolve issues with past low-performing hires. The client was losing business, far below growth projections and asked for recommendations.
My answer was to hire a part-time Chief Revenue Officer (CRO) who could also personally sell for the first 3-6 months. I suggested 20 hours per week, a significantly lower cost than a full-time equivalent. The client countered, questioning why a part-time CRO would be preferable to a full-time sales rep - especially when the cost was about the same.
I like challenges like this. They push me to dive deeper and back up my recommendations with solid evidence.
The Case for a Fractional CRO
Here’s what the numbers reveal:
Cost Efficiency: Hiring a fractional CRO is not only more affordable—saving around $20,000 in the first year—but it also delivers better results.
Strategic and Tactical Advantage: A fractional CRO offers both high-level strategic oversight and hands-on execution, enabling faster and more sustainable growth. Finding a mid-level sales rep who can balance these roles is like finding a unicorn, and in the meantime, you risk creating a revolving door of turnover.
Comprehensive Cost Comparison: When evaluating the cost of a full-time employee (FTE), it’s crucial to consider all associated expenses:
Benefits: Health insurance, retirement plans, etc.
Draw for Ramp Time: Investment needed to get the rep up to speed.
Commission: Payout for meeting 100% attainment.
Other Costs: Approximately 60% of On-Target Earnings (OTE), including training, tech licenses, onboarding, and hiring expenses in those first months.
Managerial Costs: If you’re managing the rep yourself, factor in your hourly rate and the time you'll spend, or include the cost if a Customer Success leader/other leader is involved.
Even if you discount some of these costs, the total expense of a full-time hire will most definitely exceed that of a fractional CRO.
The Fractional CRO Advantage
A fractional CRO hourly rate might seem pricey per hour, but when you weigh it against the hidden costs of a full-time hire, it often proves to be the more cost-effective choice. Here’s why:
Initial Phase: In the first 1-3 months, a fractional CRO builds essential disciplines, preparing you to hire a sales rep successfully. They are also building playbooks, revenue operations practices, sharpening messaging, working with marketing to change the materials, creating a lead gen practice and more.
We Provide Options for Ongoing Support: After the initial phase, you can either keep the CRO for fewer hours to coach the new reps or move on. You’re not tied to us forever.
Exploring Options and Costs
If you're still hesitant about the costs, consider these strategies:
Negotiate: Discuss budget flexibility with the fractional CRO. They might adjust their compensation structure with more commission or equity, or modify benefits to fit your budget.
Try Before Committing: A fractional CRO offers the flexibility to test the waters without a long-term commitment. You can pivot if the results don’t meet your expectations.
Final Thoughts
Be realistic about your own capacity to drive growth. While you may see some progress on your own, doubling the size of your business demands focused, expert guidance.
With a fractional CRO, you minimize financial risk while maximizing potential returns. Take the opportunity to compare and see the benefits for yourself—there’s no obligation, and you can always adjust the course as needed.
In short, explore creative solutions with a fractional CRO and evaluate the difference in output over the first few months. The strategic and financial benefits often make it a better choice for ambitious growth.
If you’d like to talk through the numbers and how I build out a comparison, book time below. And, as always, feel free to argue with me in the comments below.