By now, you’ve probably heard about the fractional CMO—a marketing leader contracted to work a limited number of hours a week instead of as a full-time executive.
The fractional CMO is a solution to a problem, and it can be a good one. Companies get CMO-level expertise at a reduced rate, and CMOs get better work-life balance. It begs the question: Could clients and agencies do the same thing? What if there was a “fractional agency” model?
A fractional agency approach would provide a small, dedicated team of experts who can scale their support based on the client’s evolving needs. It’s not a retainer or a traditional project-based model; there’s an assumption that you’ll always be working on something for the client, just not at the same scale month to month. You end up with a flexible work solution that benefits both parties.
Addressing the naysayers
A fractional agency approach is admittedly less of a distinct third offering than a more traditional approach, but I think of it more as the best of both worlds. A successful fractional agency that sells will contribute a lot more to stability than a retainer-based approach with no buyers.
If we could, of course we would all go back to the retainers of yesteryear. They offered the most stability for the agency, which in turn gave clients the kind of creative, strategic partnerships only time can build. And for some clients, a retainer model is still going to get them the best value for their spend.
But many clients can’t work like that. Just look at the numbers: Marketing budgets are a shadow of their former selves, having decreased almost 19% since 2022. And even if a client can afford a retainer model, sometimes their stakeholders refuse on principle to engage in retainer relationships because they’ve been burned in the past by disreputable partners. Those clients often opt for project-based models, which could lead to onboarding many agencies in the same length of time as the traditional retainer.
What we’re doing isn’t working
Project-based models allow clients to engage with agencies on only their most pressing needs, but their drawback is that they lack the strategic depth that an agency can bring over time. Even retainer models have their downsides—if there isn’t consistent work, the ability to appropriately plan, and opportunity for an agency to provide value, the entire relationship could be at risk. And both retainer and project-based models can become mired in scope creep, which requires tedious contract adjustments on both sides.