Are you a Fractional Executive or a Consultant?
Infinia ·
While talking with hundreds of Fractional CXOs, it became clear that most are just consultants with a better title. They offer services, not outcomes.
An outcome is the result of the service you offer. A service is just some labor you will perform for a price.
Labor is a commodity. An outcome creates value.
Let’s see where you rank:
A Quick Test
On a scale of 0 to 5, where 5 is the most accurate, enter a score for each statement below:
- I talk to clients about the services I provide.
- I have pricing based on industry standards.
- I charge less when less work is involved.
- I deliver reports but rarely get asked about business strategy.
Your Score
If you scored 10 or more, you are likely operating as a consultant, not a Fractional Executive.
Remember:
A Fractional CXO talks about outcomes. A consultant talks about services provided.
A Fractional CXO prices their work based on the value generated.
A consultant sets prices based on what competitors charge.
A Fractional CXO charges based on the outcome and value provided.
A consultant charges based on the labor and time spent.
A Fractional CXO is given a seat at the executive table.
A consultant delivers reports.
A Few Things to Consider
Do clients say “thank you”?
If not, you may be working with the wrong clients.
Executives respect other executives and are grateful for the value they deliver.
Do clients pay on time?
Executives who value your contribution will pay you on time.
If a client consistently waits to pay an invoice, it may be a sign that they do not fully value your contribution.
Do clients complain about price?
Clients who receive tremendous value from your work rarely complain about the cost.
That is because your fee represents only a small percentage of the value you provide.
If they do complain, ask:
“Compared to what?”
Do clients ignore your advice?
That is a major red flag.
It may signal that they view you as a necessary expense rather than a trusted executive partner.
The Client Persona
The first thing you must do is limit the scope of your offering.
Clearly define:
- Who you serve
- The dream outcome they receive from working with you
- The non-negotiable things you require from every client
What you need are clients you love to work with—customers who value what you provide and have the resources to pay for it.
Ask yourself:
- What industry are they in?
- How do they respond to your work?
- What value do they place on the relationship?
- Do they give you a place at the executive table?
Once you understand who you should serve, everything else becomes much easier.
The Problem to Solve
No one wants:
- Another screen to log into
- Another bill to pay
- Another system to maintain
- Another thing to keep up with
What they actually want is a solution to their most pressing problem.
The outcome you provide must solve the client's most painful problem.
When it does, your value increases exponentially.
You know you are solving the right problem when the sales conversation becomes less about pitching and more about asking questions.
For example:
- How long has this problem been going on?
- Who else—or what else—does this affect?
- What have you tried in the past to solve it?
- Why do you think that did not work?
- What happens if you do nothing?
The ideal conversation concludes with the prospect asking:
“How much is it, and how do we get started?”
At that point, you are no longer convincing them that they need your services.
They already understand the value of the outcome.
Conclusion
Not everyone is capable of becoming a Fractional CXO.
Some people will never make the leap from consultant to executive partner.
The difference is not simply experience, knowledge, or expertise.
The difference is learning to:
- Serve the right customer
- Solve the right problem
- Focus on outcomes instead of services
- Price according to value instead of labor
- Earn a seat at the executive table
The difference-maker is serving the right customer who has the right problem—and positioning yourself as the executive who can solve it.