On-demand directors have long been present within the marketing world (and elsewhere), providing companies and organisations with high-level expertise without the hefty price tag or commitment. Recently, another, rival term, has emerged: fractional director. This has become increasingly commonplace and, in some instances, appears to have taken over from the on-demand director. But what is it, and how does it differ from an on-demand director?
Many growing organisations understand the need for an experienced marketing director, but may not have the resources to justify the expense. Historically this has often resulted in an inexperienced but practical manager who can do the broad marketing, but without strategy or challenge. This situation, plus the add-on costs of employment, has seen the rise of companies using fractional and on-demand directors.
Having either a fractional or an on-demand director can bring a wealth of benefits. Before we get into the nitty-gritty, what are these?
- Access to highly experienced professionals, whose expertise becomes embedded within the company/organisation
- Lower costs than direct employment
- A fresh perspective that enables unbiased opinions and marketing that challenges rather than follows
- A high level of strategic agility allows them to step in quickly with immediate direction
- Infilling whilst searching for a permanent employee or other resource gap
What is a fractional director?
A fractional director offers exactly what the name suggests: a company pays for a percentage of their expertise, say 25%, providing consistent leadership and strategic direction without the full-time commitment. The benefits are also good for both sides; the director has a regular income but with the capacity and availability for other clients, and the company gets someone who becomes a part of the team and therefore familiar with the intricacies of the organisation.
You could see them as a quasi, part-time employee, which, for many organisations, is a great arrangement.
What is an on-demand director?
This differs from a fractional director in that an organisation gets what it needs when required, rather than a similar level of continuous involvement.
At MSP Reach, for instance, we often work on a sliding scale; a fixed monthly payment that can be reduced in quiet months and increased in busy ones. This approach works well for companies with project-based work, or who wish to have month-by-month control over their cash flow.
How might this play out?
An on-demand director is contracted to work 6 days a month, but this is reduced to 3 in quiet times or at year-end when a business might be trying to conserve cash. Conversely, this could be increased to 10 days in busier periods, or if extra assistance is required to help deliver a major project.
Like a fractional director, an on-demand director provides agility to marketing output. Both fractional and on-demand directors can act as a bridge between lower-level employees and the board, which is imperative; a lower-level employee tends to do as they are told, whilst a senior marketeer will challenge and question strategies and decisions based on their wealth of experience.
So, what do I need?
Fractional versus on-demand directorship massively depends on individual needs and appetite.
Both solutions have the benefit of providing organisations with access to tried-and-tested suppliers, rather than needing to go through a search process for each additional skill that might be required, whether design, SEO or research. And, above all, they give a senior-level resource at a fraction of the cost of a full-time employee.
Where a fractional director can be more beneficial is when a company or organisation needs consistent, ongoing leadership. This can be useful in long-term planning and brand development, team stability, and will be a consistent and predictable cost.
However, where an on-demand director prevails is for flexible and specialised expertise without a longer commitment. They can be used to fill knowledge gaps within teams, providing more niche knowledge that might be missing from a smaller or more junior department. It can also be a much faster response, which can be useful in project or leadership transitions.
Where does MSP Reach come in?
With over 20 years of experience under our belt, we are pros at identifying what needs to be done to refine a system, streamline processes, and transform department output. Send us a message, and we can schedule a phone call or chat however works best for you, and begin to identify an actionable plan for future success.