Latest / Freelance Careers with Fexingo: Independent Work, Consulting, and Self-Employment / How Freelancers Can Use Fractional Roles for Stability
Transcript
- Lucas: So, a few weeks ago I was talking to a friend who's a CFO — a traditional full-time CFO at a mid-size manufacturing firm. And he mentioned that his neighbor, who's also a CFO, hasn't had a single full-time job in three years. Luna: Wait, what? How do you make a living as a CFO without a company? Lucas: Exactly what I asked. Turns out, he does fractional CFO work. He's the CFO for four small companies at once — each one pays him a monthly retainer for about ten hours of work. He clears around $600,000 a year, and none of those companies could afford a full-time CFO. Luna: Fractional work. I've been hearing that term more and more. It's not just CFOs, right? Lucas: Not at all. Fractional roles are spreading fast. We're talking fractional CMOs, fractional CTOs, fractional HR directors, even fractional general counsel. The idea is simple — you're an experienced senior professional, but instead of one employer, you work for three or four at a time, part-time. And here's the key — they all get your expertise without the full-time cost. Luna: So it's like a retainer model, but specifically for executive or senior-level roles. What's driving this? Lucas: I think two big things. First, companies — especially small to midsize ones — need high-level strategy but can't justify a $400,000 salary plus benefits for a full-time executive. A fractional CMO might cost $12,000 a month, and that buys them maybe two days a week of real strategic work. Luna: That's cheaper than a full-time marketing director, let alone a CMO. Lucas: Exactly. Second, the talent side. A lot of experienced professionals are burned out on corporate politics. They want autonomy, variety, and the ability to choose their projects. Fractional work gives them that. They're essentially running a portfolio of clients, not a career ladder. Luna: I can see the appeal. But isn't it risky? You're essentially a freelancer — no benefits, no stability, no severance. Lucas: That's the tradeoff. But a lot of fractional workers argue that the risk is actually lower. If you have four clients and one leaves, you still have three. You're not one bad quarter away from a layoff. Plus, because you're in high demand, you can often replace a lost client within a month or two. Luna: Okay, so who's a good candidate for fractional work? I'm guessing it's not for someone just starting their career. Lucas: Not at all. You really need ten-plus years of experience in a specific function. The whole value proposition is that you've seen it all before. A fractional CFO is expected to walk in and immediately spot cash flow problems, set up reporting systems, and advise the CEO on fundraising. You can't do that with three years of experience. Luna: So it's a mid-to-late career move. What skills are most in demand for fractional roles? Lucas: Finance and accounting are probably the biggest — fractional CFOs and controllers. Marketing is huge too, especially for companies that need to build a brand or launch a product. Then HR, particularly for companies that need to set up hiring processes or deal with compliance. And technology — fractional CTOs are common for startups that need to oversee development without a full-time tech lead. Luna: I've actually seen a few fractional marketing roles myself. The rates can be pretty good — I've heard of fractional CMOs charging $10,000 to $15,000 a month for two days a week. Lucas: That's right. The typical range for a fractional executive is $8,000 to $20,000 a month per client, depending on the function and the company size. And most fractional workers have between two and four clients. So you can do the math — a three-client portfolio at $12,000 each is $432,000 a year. Luna: That's a solid income. But how do you actually find these clients? It's not like you can search 'fractional CFO job' on LinkedIn and get a hundred listings. Lucas: It's definitely relationship-based. Most fractional work comes through your network. Former colleagues who've started companies, board members you've worked with, or referrals from other fractional professionals. There are also a few platforms like Fractional.ai or Catalant, but the best clients are usually warm introductions. Luna: So you have to be good at networking. That's a skill in itself. Lucas: Absolutely. And you have to be good at selling yourself. When you pitch a fractional role, you're not applying for a job — you're proposing a solution to a business problem. You need to articulate very clearly: 'Here's what I'll do for you in the first 30 days, here's how I'll measure success, and here's what it costs.' Luna: That's a very different mindset from 'I need a job, here's my resume.' Lucas: Totally different. And the best fractional workers treat it like running a business. They have a website, a clear service offering, a contract template, and they track their time meticulously. Because when you're billing by the hour or by the month, your efficiency directly impacts your income. Luna: Let's talk about the downsides. What are the biggest mistakes people make when they start fractional work? Lucas: Overcommitting is number one. It's easy to say yes to too many clients because the money is tempting. But if you're working 60 hours a week across four clients, you're not really enjoying the freedom. And you risk burning out or delivering poor work, which kills your reputation. Luna: So how do you know how many clients is the right number? Lucas: Start with one or two and see how many hours they actually take. Most fractional roles end up being more than the client estimates. A 'ten hours a week' role can easily become fifteen. So you need buffer. Also, you need to be very disciplined about scope creep. If a client starts asking for extra work, you have to say, 'Sure, that's outside our agreement — here's my rate for additional hours.' Luna: That requires confidence — especially if you're new to the arrangement. Lucas: It does. But the beauty of fractional work is that you're an outsider from the start. You're not an employee, so you don't have to worry about being seen as 'not a team player.' You're a vendor. And vendors set boundaries. Luna: I also imagine the tax situation is more complex. Multiple 1099s, quarterly estimated taxes, maybe a solo 401. Lucas: Absolutely. And health insurance. You have to budget for all of that. The gross income looks great, but after self-employment tax and benefits, it's less than you think. I'd recommend working with a CPA who specializes in freelancers from the start. Luna: So what's the one concrete step someone should take if they're considering fractional work? Lucas: I'd say assess your current network. Make a list of 50 people you've worked with in the past — former bosses, colleagues, clients. Then reach out to ten of them and say, 'I'm considering offering fractional consulting in X area. Do you know any companies that might need that kind of help?' Not asking for a job — just asking for insight. That alone will tell you if there's demand. Luna: And if the response is positive, you start building from there. Lucas: Exactly. And remember, the goal isn't to replace a full-time job — it's to build a portfolio that gives you more control, more variety, and potentially more income. It's a different way of thinking about your career. Luna: Speaking of thinking differently about your career — you know, this show is something we build because we believe in helping people make smart moves. And if you've gotten useful ideas from episodes like this one, a couple of dollars a month is genuinely what keeps these going. Buy me a coffee dot com slash fexingo. It's that simple. Lucas: Yeah, we're not doing this for a big media company — it's just us. And listener support is what keeps it ad-free and focused on real advice. So if it's added value for you, that link is buy me a coffee dot com slash fexingo. And now back to the topic — one thing I want to emphasize about fractional work is that it's not for everyone, but for those who have the skills and the network, it can be a game changer. Luna: It's definitely a shift from the traditional career path. But as more companies embrace flexibility, I think we'll see fractional roles become a standard option for senior professionals. Lucas: I agree. And if you're already a freelancer, this could be the next step — from project-based work to ongoing strategic partnerships. It's worth exploring. Luna: Absolutely. Thanks for the conversation, Lucas. Lucas: Always a pleasure, Luna. Talk soon.