Fractional Director Pricing Models: What Works (and What Doesn’t)

The Pricing Question Every Fractional Director Faces

You’ve left corporate, set up your practice, and now comes the tricky part: what do you charge?

Search “fractional director rates UK” and you’ll see everything from £500 day rates to £5,000/month retainers. The spread is huge — and confusing.

So which pricing models actually work for Fractional Directors? And which ones undermine your credibility?

The Common Models in Play

Here’s what we see most often:

  1. Day Rates

    • Simple, flexible, easy to explain.

    • But they can make you look like a contractor rather than a strategic leader.

  2. Hourly Rates

    • Occasionally used when testing the market.

    • Almost always a mistake — it devalues your expertise and creates scope creep.

  3. Project Fees

    • Good for specific, time-bound work (audits, playbooks, restructuring).

    • Not ideal if you’re aiming for long-term leadership impact.

  4. Monthly Retainers

    • The most common model for Fractional Directors.

    • Signals stability and positions you as part of the leadership team.

  5. Equity or Hybrid Deals

    • Attractive on paper, but risky unless carefully structured.

    • Works only if you truly believe in the company’s future and have legal safeguards.

What Works Best

For most fractional CMOs, CFOs, or COOs, the monthly retainer model works best. It:

  • Reinforces your positioning as a director, not a freelancer.

  • Creates predictable income for you and predictable support for your client.

  • Reflects the long-term, strategic nature of your work.

Project fees can complement this — especially when scoping or onboarding — but a retainer builds trust and signals seriousness.

What Doesn’t Work

  • Hourly billing. It commoditises your experience. SMEs hire you for outcomes, not hours.

  • Undercutting to win work. It might get you in the door, but it erodes trust.

  • Ambiguity. If a client doesn’t know what they’re paying for, credibility suffers.

Pricing as a Credibility Signal

Pricing isn’t just a financial decision — it’s a credibility signal. Charging £80/hour makes you look like a freelancer. Charging £2–5k/month positions you as a senior leader.

The number itself matters less than the message it sends: “I’m a trusted partner at the leadership table, not another consultant on the side.”

Getting Clarity

If you’re unsure how to structure your offers, you’re not alone. Many directors struggle with pricing because it feels personal. But when you align your model with your value, it becomes a strategic tool.

That’s where the Fractional Link Membership comes in — it helps you stand out not just by what you charge, but by the credibility that backs it. Learn more about us or get in touch directly via contact.

 

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