Hire a Fractional CMO (What to put inside your Contract Template)

As a Startup you need to be moving fast. Hiring a Fractional CMO gets you that much needed agility. A Fractional CMO can quickly:

• Give Leadership overall Stability
• Align the message to the Founder's vision
• Set the proper framework to grow the company

Be not afraid of going slowly, be afraid only of standing still

– Chinese Proverb

This is not legal advice. Its intended as an overview of the elements that go inside a CMO's contract.

Please consult a lawyer to draw up your contract.

Contract Template to help hire a Fractional CMO

To ensure smooth operations, align your expectations with the CMO's goals.

Discuss openly and document the outcome in a well-structured Fractional CMO contract.

Use the following 7 points as a template for your Fractional CMO contract:

1. Scope of Work

• Description: Clearly outline the specific responsibilities, tasks, and projects the Fractional CMO will handle.
• Risk Mitigation: This ensures there is no ambiguity about the role, preventing scope creep and misunderstandings about duties.

This Scope of Work (SOW) outlines the services and responsibilities of the Fractional Chief Marketing Officer (CMO) for [Software Company Name]. The Fractional CMO will provide strategic and operational marketing leadership to support the company’s business goals and objectives.

2. Performance Metrics and KPIs

• Description: Define clear, measurable goals and key performance indicators (KPIs) that the Fractional CMO is expected to achieve.
• Risk Mitigation: Provides a basis for evaluating the CMO's performance, ensuring that the startup can assess whether the investment is yielding the desired results.

3. Time Commitment

• Description: Specify the number of hours or days per week/month the CMO is expected to work.
• Risk Mitigation: Ensures that both parties have a clear understanding of the time commitment, preventing over-reliance or under-utilization of the CMO’s services.

4. Compensation and Payment Terms

• Description: Detail the payment structure, including rates, payment schedules, and any performance-based incentives.
• Risk Mitigation: Clearly defined compensation terms prevent disputes over payment and ensure the CMO is motivated to meet performance targets.

5. Confidentiality and Non-Disclosure Agreements (NDAs)

• Description: Include clauses to protect the startup’s confidential information and intellectual property.
• Risk Mitigation: Ensures that sensitive information is protected, preventing the risk of data leaks or misuse of proprietary information.

6. Termination Clause

• Description: Outline the conditions under which either party can terminate the agreement, including notice periods and any penalties.
• Risk Mitigation: Provides a clear exit strategy if the partnership is not working out, protecting the startup from being locked into a non-beneficial agreement.

7. Intellectual Property Rights

• Description: Specify the ownership of any intellectual property or marketing materials created during the tenure.

• Risk Mitigation: Ensures that the startup retains ownership of all materials and strategies developed, avoiding disputes over IP rights.

This list is not exhaustive, but has the fundamental points to protect both parties interest and keep their goals aligned. 

Additional considerations when Hiring a Fractional CMO

1. Conflict of Interest Clause: To prevent the CMO from working with competitors or engaging in activities that could conflict with the startup’s interests.

2. Regular Reporting and Communication: To ensure consistent updates on progress, challenges, and achievements.

3. Review and Feedback Mechanism: Establish a system for regular performance reviews and feedback to align expectations and address issues promptly.

Incorporating these elements into a Fractional CMO contract clarifies the engagement for both the startup and the CMO, reducing risks and fostering a successful partnership.