hat is fractional consulting?
Should you seek out these types of engagements?
Imagine this: you’re a seasoned consultant juggling multiple clients, and yet, you’re not quite where you want to be.
The long hours, the endless proposals — it’s all adding up.
But your revenue?
Not so much.
Enter fractional consulting. Increasing in popularity it can be seen as a blend between what is typically considered ‘consulting’ and ‘contracting’. But there’s more to it than that…for consultants keen to level up.
Fractional consulting refers to a consulting business model where the consultant offers their expertise on a part-time basis.
Fractional consultants are like secret weapons, slipping into high-level roles at companies that need top-tier expertise without the full-time commitment.
For example, a fractional marketing consultant (or fractional CMO) might work with a client for 1 day out of the week.
You get to focus on strategy, drive results, and build deeper relationships with your clients — all while maintaining your freedom.
It’s consulting on your terms with a focus on what moves the needle for your clients and your bottom line.
Fractional consulting is gaining in popularity, but it’s nothing new.
It’s very similar to a concept that we’ve been advocating for years: the “pay for access” consulting retainer.
These can be very profitable engagements. However, they can be tricky to win without the right strategy.
What Is Fractional Consulting?
Fractional consulting refers to the practice of hiring an expert for a specific role on a part-time or “fractional” basis.
Instead of committing to a full-time employee, companies engage a consultant to provide expertise and leadership for a limited amount of time each week or month.
For example, a company might hire a fractional CFO or financial consultant to work one day a week rather than hiring a full-time CFO as an employee. And this fractional model is becoming increasingly popular across industries.
The term “fractional” originated in the finance sector, where companies started hiring part-time CFOs to manage their financial strategies without the cost of a full-time executive.
As the concept gained traction, it spread to other roles, including marketing (fractional CMOs), operations, and IT.
The rise of remote work and the gig economy further accelerated the adoption of fractional consulting, as businesses sought flexible solutions to access top-tier talent.
One of the main reasons companies seek fractional consulting is the ability to tap into expert knowledge without the long-term commitment or expense of a full-time hire.
A startup, for example, might need high-level strategic guidance from a CMO but can’t afford to pay for someone at that level full-time. By hiring a fractional CMO, they get the leadership they need, but scaled to fit their budget. This enables them to grow strategically while managing costs.
Fractional consulting differs from project-based consulting in key ways.
In project-based consulting, a consultant is hired to complete a specific project with a defined start and end date.
For example, an ERP consultant might be brought in to lead the implementation of a new ERP system. Once the project is complete, the engagement ends.
In contrast, a fractional consultant works on an ongoing basis, often taking on a leadership role. They integrate into the company’s daily operations, but only for a fraction of their time. This allows them to guide strategy while working with multiple clients.
The key distinction between a fractional consultant and a full-time employee (FTE) lies in the time commitment and flexibility.
A full-time employee is fully dedicated to one organization, with all the responsibilities that come with it, including benefits, overhead, and full-time salary.
For example, a company hiring a full-time CFO would expect that individual to manage all financial matters on a day-to-day basis.
On the other hand, a fractional financial consultant might work for two or three companies, offering strategic advice and oversight — but not handle daily tasks.
Fractional consulting gives businesses a flexible, cost-effective way to access high-level expertise.
And it offers consultants the chance to work with multiple clients.
Here’s what Kathy Keating, fractional CTO and Clarity Coaching client, says about her fractional consulting engagements:
“I am somewhat of a turnaround expert for my area (project technology) as I’ve done this in a full-time capacity for several companies. I like organizational transformation, and I have a deep understanding of how complex it can be. By having accountability for the mission of an area of a company for a longer engagement time period, and having the ability to drive all aspects of what can address the systemic challenges a business is facing, is very interesting to me.
I love taking struggling companies and help them turn into well-functioning growth companies. I get to be a deeply integrated strategic advisor to the company. This brings me joy, and I want to be doing more of what brings me joy.”
Pros & Cons Of Fractional Consulting
Understanding the pros and cons of fractional consulting will help you determine if this model aligns with your business and lifestyle goals.
Pros of Fractional Consulting
- Work With Multiple Clients: One of the main advantages of fractional consulting is that it operates similarly to traditional consulting. As a fractional consultant, you have the freedom to work with multiple clients simultaneously, just like in a typical consulting retainer model. For example, a solo consultant specializing in operations management could serve as a fractional COO for three different companies, each requiring strategic guidance but not full-time support. This allows you to diversify your client base and income streams, reducing reliance on a single source of revenue (like a “whale” client).
- Personalized Schedule: Another benefit is the ability to customize your schedule. As a fractional consultant, you can set how many hours or days you commit to each client. If you’re working with a startup as a fractional CMO, you might dedicate Mondays and Thursdays to that client, while reserving the rest of the week for other engagements or to work “on” the business. This flexibility is appealing to consultants who value control over their time and workload.
- Remote/Hybrid-Friendly: Fractional consulting also lends itself well to remote or hybrid work models. You don’t need to be physically present at a client’s office every day. Many fractional consultants work entirely remotely, attending meetings via video calls and collaborating online. For example, a fractional CTO helping a SaaS company with its technology roadmap might only visit the office quarterly, while performing the majority of their work from home or another location.
Cons of Fractional Consulting
Despite the benefits, fractional consulting comes with its challenges.
- Conflicting Demands: One of the biggest risks is managing conflicting demands across multiple clients. Juggling several clients at once can lead to scheduling issues, communication breakdowns, or conflicting priorities. For instance, a fractional financial consultant might find two clients both needing urgent attention on the same day, creating stress and reducing the quality of service. Hiring an administrative assistant becomes a must to help manage your time and tasks.
- Risk Becoming Like An Employee: Another downside is the potential for fractional roles to blur the line between consultant and employee. A fractional consultant often works so closely with a small number of clients that they start to resemble an employee rather than a consultant. Instead of maintaining the autonomy and variety of traditional consulting, you might end up feeling tied down to two or three clients, each expecting you to behave like their full-time executive. This dynamic can reduce the flexibility and independence that most consultants seek in their business. If you want to offer fractional consulting services, you must become firm in your ability to avoid scope creep.
Here’s what Christopher A. Baumbauer, founder of Atelier Solutions and Clarity Coaching client, says about fractional consulting engagements:
“The nice things about the fractional consulting engagement is that it provides my clients an easy way to access my expertise when they need it most (usually the beginning of the project, and then tapering off as they go towards implementation) and a constant stream of revenue. The primary drawback is that one client can easily monopolize your time depending on the phase of their project.”
“If you choose this type of offering, you must be very clear about the boundaries and the scope of the engagement. Otherwise, it can easily go out of control for everyone.”
If the pros of fractional consulting appeal to you, next I’ll share how to approach and win these types of engagements.
Should You Play Into The Fractional Consulting Trend? (& How To Do It)
Does fractional consulting sound appealing to you?
If so, here are a few things to consider to see if it’s the right fit for you and your business — and how to go about approaching clients about a new fractional consulting offer.
Does It Fit Within Your Business Model and Goals?
Before diving into fractional consulting, it’s important to assess whether it aligns with your business model and personal goals.
As a solo consultant, your lifestyle and income objectives play a huge role in deciding if this path is right for you.
Fractional consulting offers flexibility, but it also demands a consistent commitment to clients on a weekly or monthly basis.
Think about how much control you want over your time. If you’re someone who values a lot of freedom in your schedule and prefers short-term projects, fractional consulting might not be the best fit.
For instance, if you enjoy taking a month off between engagements or prefer working on one-off strategic projects, a more traditional consulting approach might be better.
On the other hand, if you want predictable income while maintaining the ability to work with multiple clients, fractional consulting could provide a steady stream of revenue without tying you to one full-time role.
Also, consider your income goals.
Fractional consulting allows you to charge retainers or ongoing fees, which offer greater financial stability.
A solo consultant working as a fractional CMO for three clients could bring in a stable monthly income from each, reducing the volatility that comes with project-based engagements.
If predictable, recurring income is important to you, fractional consulting is a great option.
Are Your Ideal Clients Looking For Fractional Consulting?
It’s not enough to decide you want to offer fractional consulting. You need to know if your clients are even looking for it.
Research your industry to determine if there’s demand for fractional roles.
For example, if you’re a marketing consultant, are ideal clients in your space actively looking for fractional CMOs?
One way to find out is by surveying your current and potential clients.
Ask them if they would consider hiring fractional consultants for specific roles.
Look at trends in your industry. If you see more companies advertising fractional executive roles or if conversations about fractional leadership are increasing, this could indicate growing demand.
For instance, in industries like SaaS or tech startups, many companies need senior leadership but don’t yet have the budget to hire full-time executives. This is where a fractional model fits well.
Strategic Recommendations To Win Fractional Consulting Engagements
If you decide that fractional consulting is the right path for you, it’s essential to position yourself effectively and go after these opportunities strategically.
The first step is to create a strategic offer that clearly communicates the value you’ll bring as a fractional consultant.
Craft a package that includes your services, time commitment, and deliverables. Most importantly, think about the outcomes the access to your expertise will help create for your clients.
For example, if you’re offering fractional COO services, outline what responsibilities you’ll take on (e.g., overseeing operations, setting up systems, managing teams) and how much of your time will be dedicated to the client each week or month.
Once your offer is ready, start reaching out to clients and having conversations.
Fractional consulting is often relationship-driven, so focus on building connections with clients who could benefit from your expertise on a part-time basis.
For example, you might approach a past client and suggest they bring you in as a fractional CFO to handle their financial strategy without the need for a full-time hire.
Tailor your messaging to emphasize the benefits of fractional consulting, such as flexibility, return on investment, access to high-level expertise, and peace of mind.
Here’s what Kathy Keating says about how to win these types of engagements:
“Look for the problem the CEO has that needs to be solved. Align your value proposition directly to this problem. Show that you have a framework you can apply to address that problem. A fractional consultant needs to see themselves as “the ‘product’ that can solve the CEO’s problem”. Too often fractional consultants try to sell their skills (e.g. I know how to be a CxO). CEOs aren’t buying skills when they hire a fractional, they are buying the person that has the ability to solve their problem.”
Like everything else in consulting, networking plays a big role.
Attend industry events or join relevant online communities where potential clients might be discussing fractional roles.
Offer insights into how you’ve helped other businesses in fractional engagements and share case studies when possible.
This builds credibility and helps you position yourself as the go-to consultant for these types of roles.
Lastly, don’t be afraid to experiment.
You might start by offering fractional consulting as part of a broader range of services and see how your clients respond.
Over time, you’ll adjust your approach based on demand and feedback, ensuring it aligns with both your clients’ needs and your long-term business goals.
Get Help Winning More Fractional Consulting Engagements
Do you want to learn how to position yourself and your business to win fractional consulting engagements?
Or perhaps you’re learning how to differentiate yourself from your competition, create irresistible offers, and build a more profitable consulting firm?
If you’re looking to grow and scale your consulting business, we have coaches and an entire community that can help.
Not only do many of the consultants in our community have experience with fractional consulting — but they’ve built and offered retainer services, productized services, and value-based offers as well.
And we can help you do the same.
In our Clarity Coaching program, our coaches have helped over 1000 consultants to build a more strategic, profitable, and scalable, consulting business.
Learn More About Clarity Coaching
We’ll work hands-on with you to develop a strategic plan and then dive deep and work through your ideal client clarity, strategic messaging, consulting offers, fees and pricing, business model optimization, and help you to set up your marketing engine and lead generation system to consistently attract ideal clients.
You’ll learn how to generate more profit with every project you take on — and how to land more clients than ever before. Learn more about Clarity Coaching and get in touch to talk about your situation and goals.
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