Is a Fractional Leader Actually Cheaper Than a Full-Time VP?
Founders search for this constantly: Is a fractional VP cheaper than a full-time executive? What does a fractional leader cost? Is fractional operations worth it?
Here is the short answer upfront.
A fractional VP is almost always more affordable, faster to ramp, and lower risk than hiring a full-time VP or COO. Most founders save $200,000 to $300,000 in the first year alone.
Fractional VP vs Full-Time VP: What Founders Miss
This is the decision that keeps founders stuck.
You know you are buried in day-to-day work. You know you need a senior operator, a fractional COO, or a VP who actually knows how to fix broken processes and build systems.
Then you do the math on a full-time hire. The salary. The recruiter fees. The benefits. The equity. The onboarding time. The entire process feels like lighting cash on fire.
At Plan + Pivot Collective, we help founders understand the real financial picture and choose the most capital-efficient leadership model. Here is the breakdown.
Full-Time VP Cost Breakdown: Why It Hits $300k Fast
When founders search for full-time VP cost, they usually look at one number: salary.
That is the mistake.
Here is what you are actually committing to when you hire a full-time VP of Operations, VP of Marketing, or VP of Merchandising.
Salary
A strong VP in retail or consumer goods runs $180,000 to $250,000.
Recruiter fees
A 20 to 30 percent recruiter fee adds $40,000 to $60,000.
Benefits and taxes
Insurance, payroll taxes, 401k match, PTO. Expect another $45,000 to $65,000.
Bonuses and equity
Senior leaders expect performance bonuses and equity.
Onboarding
A full-time VP takes 3 to 6 months to ramp. That is another $100,000 spent before results appear.
Total first-year cash burn
$300,000 to $400,000 before you know if the hire is right.
If it is a bad hire, add severance and another recruiter fee.
Fractional VP Cost Breakdown: The Capital-Efficient Model
This is why founders search for fractional VP cost or fractional COO pricing.
The model is cleaner and more efficient.
Monthly retainer
Most fractional leaders charge $7,500 to $15,000 per month for 10 to 15 hours a week.
Extra costs
Zero.
No recruiter fees
No benefits
No bonus
No equity
No payroll tax
No severance
You pay one monthly invoice for strategy and execution.
Total first-year cash burn
$60,000 to $120,000.
This creates a savings of more than $200,000 compared to a full-time executive hire.
Speed: The ROI Founders Forget
Most founders search for help because they need results quickly. This is where fractional leadership wins.
A full-time VP requires 6 months to onboard.
A fractional VP delivers value in 6 days.
They have already solved your problem for other brands. They know the systems, the processes, and the playbooks. They do not require training. They only need Slack access and your P and L.
You are not buying 40 hours of management. You are buying 10 to 15 hours of focused, senior-level execution.
The Off-Ramp Advantage: Reduced Risk
If you hire a full-time VP and realize 60 days later that it is a mismatch, you are stuck.
Firing an executive is expensive and complicated.
If a fractional VP is not the right fit, you send one email. The engagement ends.
Fractional leadership provides founders with a safe and flexible way to test senior leadership before committing long term.
What Founders Are Really Buying: Outcomes
The smartest founders are not buying hours. They are buying outcomes.
Lower CAC
Better operations
Cleaner data
Higher margins
A real plan
Aligned teams
Fewer fires
More growth
A fractional VP, fractional COO, or fractional operations leader gives you these outcomes without requiring a $300,000 commitment.
This is why fractional leadership has become the preferred approach for growth-stage brands in apparel, CPG, beauty, home, and DTC.
SEO Summary for Google
A fractional VP costs $7,500 to $15,000 per month and saves founders $200,000 to $300,000 per year compared to hiring a full-time VP. There are no recruiter fees, benefits, equity, or severance. Fractional leaders ramp in days instead of months and reduce hiring risk for retail, DTC, and consumer brands.
Ready to see what a fractional leader could unlock in your business?
Book a call. Let us help you build the right leadership structure without burning cash.
FAQs About Fractional Leadership
How much does a fractional VP cost?
Engagements with Plan + Pivot Collective range from $7,500 to $15,000 per month, giving founders senior-level expertise at a fraction of the cost of a full-time executive.How long is a fractional VP engagement?
Most partnerships last 3 to 12 months, enough to stabilize operations, rebuild systems, and create a path to long-term growth. Many brands continue because of the consistent value delivered.How does a fractional VP work on a part-time schedule?
Plan + Pivot leaders integrate efficiently through structured touchpoints, clear communication, and targeted execution, maximizing impact without excess hours or overhead.Can one fractional leader handle ops, product, and planning?
Yes. Our leaders bring cross-functional expertise across operations, product, planning, and merchandising, delivering fast and measurable results.Is fractional leadership sustainable for growth?
Absolutely. Plan + Pivot supports both emerging and established brands, providing flexible, high-value executive leadership that scales with your business.
