Most startups pay a fractional CMO on a monthly retainer of $8K-$18K. You can layer short-burst hourly work or small equity chips to match cash flow, urgency, and runway just lock everything in a 90-day rolling contract.
1.Why Your Payment Model Matters
- Runway pressure – cash is king while rounds stay slow.
- Shifting priorities – board feedback can flip GTM focus overnight.
- Talent expectations – senior marketers favor flexible, portfolio careers.
The right structure keeps burn predictable and your CMO focused.
2 The Three Core Models
| Model | Typical Cash Cost | Upsides | Drawbacks | Best For |
| Hourly | $200-$450 per hour | Pay only for work used | Hard to forecast, weak alignment | Quick audits or emergency help |
| Monthly Retainer | $8 K-$18 K flat | Fixed spend, sprint cadence | Pay even when priorities shift | Ongoing GTM ownership, Series A/B |
| Equity-Heavy | 0.25-1 % options plus < $5 K cash | Aligns CMO with exit value, lowers burn | Tough to attract top talent without cash | Pre-seed, runway under 6 mo |
Rule: If you need more than 40 hours a month, the retainer wins on cost and momentum.
3.Hybrid Formulas
- Retainer + Hourly Spike – Retainer covers roadmap, hourly bank funds launch crunches or board decks.
- Retainer + Performance Bonus – Bonus triggers on revenue or pipeline targets, so cash burn stays fixed until goals land.
- Retainer + Token Equity – 0.1-0.3 % options vest quarterly to signal long-term skin in the game without big dilution.
Hybrids mix predictability with upside – ideal for fast-moving Series A/B teams.
4.Quick Decision Matrix
| Question | Hourly | Retainer | Add Equity |
| Scope still fuzzy? | ✔︎ | ||
| Need a 90-day GTM sprint? | ✔︎ | ||
| Runway under 9 months? | ✔︎ | ||
| Want CMO in every board deck? | ✔︎ | ✔︎ |
5.Founder-Friendly Negotiation Tips
- Define outputs, not hours – agree on deliverables.
- Cap rollover – unused hours expire after 30 days.
- Use a 30-day kill clause – lowers perceived risk and reduces rates.
- Tie bonuses to tracked KPIs – CAC payback, pipeline coverage, ARR.
- Set strike price and vesting upfront – avoid cap-table friction later.
6.Two-Week Implementation Checklist
| Day | Action | Owner |
| 1-3 | Draft scope with three measurable outcomes | CEO |
| 4-5 | Choose model and cash range | CFO |
| 6-10 | Negotiate kill clause, bonus triggers, equity terms | CEO & CMO |
| 11-12 | Update cap-table software | Legal |
| 13-14 | Sign 90-day rolling agreement | All parties |
Key Takeaways
- Hourly fits one-off audits or crisis work.
- Retainers deliver the most strategic lift per dollar during active growth sprints.
- Equity sweetens deals when cash is tight, but only if both sides commit for 12+ months.
- Hybrids let you tailor burn, incentives, and focus without bloating the budget.
Ready to crunch your numbers? Talk to us!
