Getting Outsourced CMO Services or Hiring an In-House CMO? – How to Pick the Right Choice

With growth goals in mind and marketing dollars in hand, you’re ready to bring in an experienced Chief Marketing Officer (CMO) to lead your marketing strategy. 

But should you opt for a full-time, in-house CMO, or an outsourced expert who can bring leadership and expertise on a flexible basis? 

Many young companies today face this dilemma, especially when high costs and availability are factors. 

Let’s break down each option, so you can choose the right fit for your needs.

Key Differences Between an Outsourced CMO and an In-House CMO

When choosing between an outsourced and in-house CMO, it helps to understand the fundamental differences in how each one operates within your company.

Outsourced CMOs offer flexibility. Often brought in part-time or as fractional CMOs, they provide leadership tailored to your immediate business needs. You get the benefit of a seasoned marketing executive without the need for long-term commitments.

In-House CMOs bring deep integration. As a permanent addition to your team, an in-house CMO can become immersed in your company culture and strategies, which makes them ideal for long-term brand consistency and growth.

An outsourced CMO is ideal for companies needing flexibility and quick implementation, while an in-house CMO may suit those ready to invest in a dedicated, committed leader.

Let’s take a look at the details.

What You Need to Know Outsourced CMO Services (or CMO-as-a-Service)

Outsourced CMOs are often the right fit for companies at an earlier stage of growth or those that need flexibility in their marketing function. Because of the relative speed, flexibility, and low cost, young companies can instantly get started with an experienced CMO without the concerns that come with a full-time hire.

Here’s why outsourcing may work best for a startup:

Speed in Implementing Marketing Strategy

An outsourced CMO will get your marketing strategy up and running much faster than a traditional in-house hire. Outsourced CMOs bring streamlined onboarding and frameworks to start high-impact work immediately.

For companies looking to get started quickly, outsourced CMOs eliminate the lengthy search and onboarding process. Unlike an in-house leader—who may require months of recruiting, hiring, and ramp-up time—outsourced CMOs hit the ground running, and bring tried-and-tested systems and processes that align with your business.

Cost-Effectiveness within Your Marketing Budget

Another important benefit of outsourcing your marketing leadership is cost. 

Experienced CMOs command high salaries! The costs add up quickly when you factor in benefits, bonuses, and other employee-related expenses. 

For example, Glassdoor places the average U.S. CMO salary between $252,000 and $478,000. Comparatively, outsourced CMO services are structured on a part-time or project basis, so you’re paying only for what you need. 

Outsourced CMOs provide a flexible, scalable solution.

Do you only need part-time coaching? Or you need more support when launching a set of campaigns and less once they’re up and running? Going with a CMO-as-a-service option puts flexibility in your marketing function and cuts back on wasted marketing dollars. 

Additionally, compared to hiring through a marketing agency, an outsourced CMO provides industry-specific marketing experience and expertise at a lower cost. This makes it a more cost-effective solution for businesses looking to maximize their marketing budget.

Outsourcing is ideal for companies looking to maximize impact without committing to a full in-house team.

Flexibility to Adapt as Your Needs Evolve

CMOs have one of the highest turnover rates in the C-suite, with an average tenure of just 4.1 years. Given the significant time and resources needed to onboard an in-house CMO, the risk of turnover is high.

Outsourced fractional CMOs offer a more adaptable solution. 

They’re designed to fill in leadership gaps and take on specific projects. When it’s time to bring in an in-house team or adjust your strategy, an outsourced CMO can transition out with minimal disruption. Many outsourced CMOs also offer support in hiring and training your future marketing team, leaving you with a scalable, sustainable marketing function.

When to Consider an Outsourced CMO Over an In-House CMO

An outsourced CMO could be the ideal choice for your company if:

• You’re a startup or growth-stage company that needs fast, impactful marketing leadership.
• You need executive marketing support but aren’t ready to commit to a full-time hire.
• You’re looking for a cost-effective way to access high-level marketing expertise.
• Your business needs vary throughout the year, and flexibility is key.

If any of these scenarios sound like your company, then an outsourced CMO may be the best choice to support your growth journey.

If you’re a B2B SaaS company in your growth stage and looking for an experienced fractional CMO and a team of seasoned SaaS marketing experts, Kalungi is here to help. Our fractional CMO services offer flexible, scalable support to accelerate your marketing strategy and hit your growth goals.

Let’s discuss how we can build a custom solution to drive results for your company. Schedule a discovery call here and learn more about how Kalungi can support your growth journey.

Here’s What Building an In-House Marketing Team Means

Going with the traditional route of hiring an in-house CMO can provide deeper integration and commitment, which can be invaluable for companies that need a dedicated marketing leader. 

Here’s why an in-house CMO may be the right option for your company:

Specialized Industry Expertise

While outsourced CMOs can quickly adapt to new industries, an in-house CMO has the time and focus to become an expert in yours. They’ll understand your audience, market trends, and competitive landscape on a deeper level, allowing them to shape a highly tailored marketing strategy.

In specialized industries, having a CMO who knows the nuances of your market can lead to stronger positioning and messaging, ultimately driving long-term growth.

Strong Investment in Your Company’s Success

A major benefit of an internal CMO for many businesses will be that of long-term commitment to your company. 

If their salary, performance reviews, and job security are all tied to the success of their marketing efforts and thus the company as a whole, they will naturally be more driven in their work. Here they focus on and are rewarded for results rather than deliverables.

Though an outsourced CMO may never fully be a part of your team, a handy solution is finding a fractional CMO who will sign on for performance-tied compensation. A fractional CMO acts as a member of your leadership team and truly “owns” the marketing function, unlike consultants, who tend to be more project-based and less engaged.

If a significant portion of their payout is tied to the results they produce, they are much more likely to focus on whatever it takes to produce great results rather than simply trying to tick off the boxes on the projects they signed up for.

When to Consider an In-House CMO Over an Outsourced CMO

An in-house CMO may be the right choice if:

• You’re an established company with long-term growth plans and stable resources.
• Your industry requires deep, specific knowledge to execute effective marketing.
• You want to build a cohesive, full-time marketing team under one leader.
• You value direct alignment with your company culture and strategic goals.

If these factors are high priorities for your business, an in-house CMO may be the better fit.

Key Considerations for Choosing Between Outsourced and In-House CMO Services

Whether your company needs an in-house or an outsourced fractional CMO depends on its immediate and long-term needs, as well as your resources. Here are some key questions to ask as you evaluate both options:

• How quickly do you need results? If speed is essential, an outsourced CMO can start driving strategy right away.
• What’s your budget? Outsourcing is more cost-effective, but an in-house CMO may deliver deeper, long-term value.
• Is flexibility important? If your needs vary or you’re unsure of the role’s scope, outsourcing provides more adaptability.
• How specific are your industry requirements? An in-house CMO can develop a deep, focused understanding of your market over time.

Whether you choose an in-house or outsourced CMO, both have unique benefits that can drive growth, boost revenue, and help you reach your business goals. If you’re ready to commit to an in-house team member, posting the job and interviewing candidates is the next step.

However, if your business needs flexibility, speed, and expert-level guidance without a long-term commitment, outsourcing might be a better fit. If you’re a SaaS executive looking to outsource a fractional CMO, let’s jump on a discovery call to discuss next steps.

Let’s Discuss Your Marketing Leadership Needs

Kalungi’s fractional CMO services are designed to support B2B SaaS companies like yours with flexible, growth-focused leadership that’s as committed to your success as you are. With our pay-for-performance model, you’ll only pay for measurable results, so you can have confidence that your investment is driving growth.

Ready to unlock impactful results without the full-time commitment? Schedule a discovery call and let’s explore how we can drive your business forward.