Cost Comparison: FTE CRO vs Fractional VP / CRO at Seed to Series 'A' Stage
| Full-Time VP Sales | Fractional CRO [Flexible Service Agreement] | |
|---|---|---|
| Base Salary [UK/EMEA] | £ 120,000 - £ 180,000 / year + Any Expenses [ie: £ 10,000 - £ 15000 per Month] | £ 3,000 - £ 8,000 / month [depending on scope of engagement ie; days per week/month and deliverables] + Expenses |
| Equity | 1% - 4% Typical | None [Or negotiable in place of bonus for Revenue Growth if in scope] |
| Benefits - Example Health Cover | £ 3,000 / year | Not Applicable |
| Pension @ 5% Basic | £ 6,000 - £ 9,000/year | Not Applicable |
| Employers National Insurance | 15% of Basic Salary - £ 18,000 - £ 27,000 / year | Not Applicable |
| Total Annual Costs [Fixed] | £ 147,000 - £ 216,000/year | £ 36,000 - £ 96,000/year [depending on scope of engagement [ |
| Flexible Costs | ||
| Bonus / Commission [On Target Earnings] | 1x Basic Salary ie: £ 120,000 - £ 160,000/year | Included in Fixed Fee |
| 1st Year Recruitment Fees @ 20% Base | £ 24,000 - £ 36,000 | Not Applicable |
| Commitment | Full-Time / Long Term | Min 3 Months engagement with 1 Month Notice Period Each-Way, after Month 2 |
| Speed to Impact from decision to hire | 4 - 9 Months [Recruitment + Notice + Ramp-up] | Immediate Engagement with new business with minimal Ramp-up |
| 3 Months Notice [if does not work out] | Cost £ 30,000 - £ 45,000 + Pension + Commission [if any] | 1 Month Notice issued within the scope of the engagement so no extra costs. |
Why Invest in a Fractional CRO from Nature Scale?
We bring the professional Sales & Marketing skills and deep experience, at a fraction of the cost as illustrated above, with the flexibility you need for your Business.
For the Founders, we will inject the following into the discussion around Revenue Growth and Scaling, and provide tools to share your numbers with Investors and Stakeholders when it's time to report.
