Retainer, equity or performance: how fractional CROs are paid
The cleanest structure is a fixed monthly retainer for a defined number of days, with advisory equity only where a board prefers it and performance components only on numbers the CRO actually controls.
Retainer. A fixed monthly fee for an agreed number of days a week and a defined scope, with named milestones. Predictable for the company, and it keeps the relationship an operating one. This is how I work; terms are on Work With Me.
Equity. Advisory-sized grants are reasonable when the board wants alignment on a long build; large grants are a warning sign in either direction. A fractional operator paid mostly in equity has an incentive to stay indispensable, and a company that offers mostly equity is often signaling it cannot fund the build.
Performance. Bonuses tied to bookings work only when the CRO controls the whole path to a booking — which, in a founder-led company with a nine-month enterprise cycle, they do not by day ninety. Tie performance to leading indicators the CRO owns (coverage, win rate, hires ramped) or to revenue at the horizon the cycle allows.
What to avoid. Commission-only “fractional” arrangements are lead-generation deals wearing an executive title, and they select for people who chase volume over system. Hourly billing invites the wrong conversation about every meeting.
Write it down. Days, scope, milestones, exit terms and who owns the work product. Everything I build is documented and stays with the company; that clause is worth more than the fee.
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