Fractional Product Leadership: Your Step-By-Step Guide
How to become, and succeed at one of the most intriguing product jobs - the fractional VP of Product or CPO. Insights from 20 interviews
It might be the hottest job in the product world right now - the fractional CPO. On LinkedIn, it seems like just about everyone wants to be one.
But few know how to become one. At least sustainably.
It might seem obvious that you could get 1-2 clients from your network. But a consistent pipeline?
That seems much more daunting.
In today’s post, we’re going to give you the step-by-step guide on how to not just become a fractional CPO or VP of Product, but make your living as one.
Introducing Jason
Jason is a fractional product leader, coach and consultant himself, host of the One Knight in Product podcast, and One Knight in Product newsletter.
You might know him from one of his killer PM memes.
Today’s Post
Words: 16,144 | Est. Reading Time: 73 mins
We’ve talked to 20 real-life fractional PMs/ product leaders/ execs to get you a holistic ‘how to’ on the career:
Interim v Fractional v Consultant
History of the role
Market and pay
If you only have 1 minute…
Fractional Product Leaders Can Charge High Day Rates, But Often Prioritize Flexibility Over Income: While it may seem counterintuitive, many fractional product leaders aim to charge 40-50% more per day than what a full-time employee in a similar role would make. The rationale? They're not only providing their expertise, but also the flexibility and added value that comes with being a fractional resource. Practically, these higher rates cover missing employment benefits, as well as providing security if there are gaps between contracts. On top of that, many fractionals actually trade these hourly rates to make the same as they used to, but working less time.
Fractional Leaders Love Going Wide: A common theme across all fractional leaders that we spoke to is that they love getting involved with lots of different types of companies. While some acknowledge that the constant context-switching can be tough, and that they miss having a long-term stake in the products they work with, the general sentiment is that the pros outweigh the cons. It’s just as much about being a continuous learning journey as being able to work part-time.
Fractional Doesn't Mean Peripheral: Despite working on a part-time or project basis, fractional product leaders can make a profound impact on the companies they work with. By focusing on high-leverage areas like strategy, process design, and capability building, they can shape the long-term trajectory of a product and organization. Their outside perspective and diverse experience often allow them to drive change in ways that full-time employees cannot.
Fractional Leaders Are Perpetual Entrepreneurs: While the allure of fractional work is often the flexibility and variety, it comes with a constant hustle to keep the pipeline full. Fractional leaders must continuously network, market themselves, and seek out new opportunities. Even with a stable of clients, they can never rest on their laurels. It's a life of perpetual entrepreneurship, requiring a blend of product management expertise, marketing savvy, and sales craft.
1. Fractional Product Leader 101
Nothing stays the same in the world of startups and scale-ups for long. Recently, a new breed of product leader has emerged: the fractional one.
But what exactly is a fractional product leader, and how do they differ from their interim and consultant counterparts?
1.1 Interim v Fractional v Consultant
Before we explore the world of fractional product leadership, it's important to understand the different types of non-traditional product leadership roles.
Each has its own unique characteristics, advantages, and challenges.
1.1.1 Interim Leaders: Full-Time, Short-Term
Interim leaders step into a full-time role for a limited time, fully immersed in day-to-day operations. They're there to bridge the gap, keep things running smoothly, and then pass the baton.
I think Interim roles tend to be closer to full-time. Often when someone suddenly leaves a role.
—Sergio Pereira, Fractional CTO and CPO since 2015
Interim leaders are often brought in during times of transition or crisis, when a sudden vacancy needs to be filled. They provide stability and keep the product moving forward until a permanent leader can be found.
The way I describe this for my clients is: Interim is more of a fully embedded, operational role. It's no different from a full-time CPO role, except I have an end date in mind.
—Harpal Singh, Fractional since 2013
Another scenario for interim is if someone goes on maternity or paternity leave. This is especially common in Europe, where those leaves are longer.
Because they're fully embedded in the organization, interim leaders have the opportunity to make a significant impact in a short amount of time.
1.1.2 Consultants and Coaches: Targeted and Strategic
Consultants and coaches bring a different approach to product management. They're brought in to provide targeted expertise and strategic guidance, rather than day-to-day operational leadership.
Consultants are often brought in to solve a specific problem or to bring a fresh perspective to a challenge the company is facing.
Some companies want you to be an active part of the team. Others are much more consulting, where you're much more of an advisor.
—Nadia Tosheva, Fractional since 2019
Coaches, on the other hand, come to focus on individuals, not the company as a whole.
There is a lot of debate around what a “product coach” really means.
Marty Cagan comes down firmly on the side of product coaches needing to have exceptional product management CVs.
Coaching purists will say that coaches really need to be experts in coaching.
In any case, coaches work with individuals or groups to help make them make progress in their careers. And, for some people exploring fractional roles, it turns out that this is exactly what they really want to spend their time on.
Two days a week fractional PMing is more or less the same as being a PM at Google, but for two days a week. However, the coaching and training and lecturing part is a completely different style of work that I'm enjoying much more today, and I just wanna do more of that.
—Nesrine Changuel, Product Coach and Former Senior PM at Google
On the other hand, many of the fractional leaders we spoke to also offer coaching on the side, as part of a portfolio of contracts. It can fit in nicely between the cracks. As an example, both Aakash and Jason are active coaches alongside their other work.
1.1.3 Fractional Leaders: Adaptive and Embedded
Fractional leadership can combine elements of both interim leadership and consulting. Fractional leaders are adaptive and embedded, filling gaps in the product organization while providing strategic guidance.
Unlike interim leaders, fractional leaders are generally not full-time employees. They typically work on a retainer basis, dedicating a set number of hours per week or month to the company.
Fractional CPO work is a type of consultancy. But typically fractional work refers to monthly work with a fixed retainer, which refers to certain hours of work.
—Sergio Pereira, Fractional CTO and CPO since 2015
Fractional leaders are often brought in when a company needs product leadership but isn't ready for a full-time hire. They can help bridge the gap between the founder-led product era and the hiring of a full-time product leader.
Another common use case is when a more established non-product organization is trying to kick start their product transformation and need someone to come in and set things moving (and potentially hire another, full-time person once the initial work is done).
I learned to stop thinking about it as a product management role and start thinking about as: there is product management work. There is product management to be done within the company. There could be others already doing that work. So I'm trying to understand where are the gaps in the product management work.
—Sarah Timms, Fractional since 2016
Some key attributes of a successful fractional leader include:
Adaptability
The ability to context switch
Ruthlessly prioritizing with no qualms about what falls through
Being able to get up-to-speed with a new organization’s context fast
Every company is different, with its own unique culture, challenges, and opportunities. Fractional leaders need to be able to quickly assess the situation and determine where they can add the most value.
But fractional leaders aren't trying to do it all. They're strategic about where they focus their energy.
As a fractional, I try to explicitly say I'm not going to do all of the things. I try not to be a jack of all trades.
—Dave Martin, Fractional since 2015
Generally, the ultimate goal of a fractional engagement is often (but not always) to work yourself out of a job by helping the company reach a point where they can bring on a full-time leader.
Success for my fractional engagement usually means getting made redundant.
—Sergio Pereira, Fractional CTO and CPO since 2015
1.1.4 Choosing the Right Fit
So how do you choose between interim, fractional, and consulting roles? It all comes down to your skills, preferences, and career goals, as well as the needs of the organization. You will need to be able to demonstrate significant experience at the level you are aiming for.
Generally, when it comes to the different types of roles you could go for, consider that:
Interim roles are best for people who…
Want to use their experience in a variety of sequential contexts
Still want to get involved full-time in day to day operations
Are not going to get too attached to their team or the product given that it’s a fixed-term role
Consulting & coaching roles are best for people who…
Want to use their experience on specific projects or with specific people
Are looking to work more on an arms’ length basis
Are happy operating mainly through other people
Fractional roles are best for people who…
Want to use their experience in a variety of parallel contexts
Don’t want to get involved full-time in day to day operations
Are confident saying “no” to all but the highest-leverage tasks
It’s also fair to say that, depending on the terms of your engagement, you may find some of these aspects common across the board.
Ultimately, the right fit will depend on your skills, experience, and career goals, as well as the needs and culture of your potential clients.
And here’s the thing: you can always pursue a mix. (We’ll discuss this more in section 2.)
1.2 History of the Role
Now that we understand the different types of non-traditional product leadership roles, let's explore how the fractional model came to be.
Consulting has been around since the dawn of commerce. And fractional accounting roles has been around for centuries.
But it's only in the last few decades that fractional work has extended into other domains.
We break this down into 5 specific time periods:
1.2.1 ERA 1 - The Early Days
The concept of fractional product leadership started to gain traction in the 90s. From the people we talked to, those were the earliest signs:
Back in the 1990s (I’m dating myself) it was known as “interim management.” It was mostly a role for companies that needed a transformation or turnaround.
—Jeanette Cajide, Interim/ Fractional COO & CPO since 2009
Since 2001, I had people call me up and ask me for this. There was demand for interim product leaders. Just as there was demand for interim individual product managers.
—Rich Mironov, Interim/Fractional Product Leader since 2001
At the time, the idea of a part-time or temporary product leader was still novel. Companies were used to hiring full-time, permanent employees for these roles.
But as the startup ecosystem began to mature, companies started to see the value in bringing in experienced product leaders on a part-time or project basis.
They realized that they could get the expertise they needed without the long-term commitment or cost of a full-time hire.
1.2.2 ERA 2 - The Rise of the Fractional CTO
One of the first R&D roles to really embrace the fractional model was the CTO.
This comes from the US mainly, the CTOs in Denver who have been doing these engagements. They coined CTO as a service, and then fractional CTO.
—Sergio Pereira, Fractional CTO and CPO since 2015
Startups often need technical leadership, but they may not have the budget or the need for a full-time CTO. Bringing in a fractional CTO allows them to get the strategic guidance they need, while still being mindful of their resources.
The success of the fractional CTO model paved the way for other fractional C-suite roles, including the fractional CPO.
People loved how execution-oriented fractional roles are.
I think today people are tired of consultants who give advice but don’t have execution experience. Fractional roles are all about execution
—Jeanette Cajide, Interim/ Fractional COO & CPO since 2009
1.2.3 ERA 3 - Overcoming Skepticism
Despite the early success of fractional CTOs, the idea of a fractional product leader was still met with skepticism in some circles.
Fractional wasn't the terminology in 2013. 50% of my engagements resulted in “F*ck off! It won't work! I cannot believe you would talk about this! How could a role as integral as product leadership be an outsider role?’
—Harpal Singh, Fractional since 2013
There was a belief that product leadership was too integral to the company to be done by an outsider. How could someone who wasn't fully embedded in the organization possibly provide effective product leadership?
But as more and more companies began to experiment with fractional product roles, they started to see the value. They realized that an experienced product leader could provide significant value, even on a part-time or project basis.
In the last 5 years, that problem has completely gone. The companies that reach out, they understand fractional work.
—Harpal Singh, Fractional since 2013
This shift in mindset opened the door for the fractional product leader role to really take off.
1.2.4 ERA 4 - The ZIRP Era
The fractional model really hit its stride in the latest zero interest rate policy (ZIRP) era.
With easy access to capital, startups were growing faster than ever before. They needed experienced product leadership to help them scale, but they often couldn't justify a full-time hire.
Fractional product leaders were the perfect solution. They could provide the expertise and guidance startups needed, without the long-term commitment or cost.
1.2.5 ERA 5 - Post-ZIRP
Interestingly, the end of ZIRP hasn’t had the same effect on fractional roles as it has had on full-time roles.
Because in a post-ZIRP world, with tighter budgets and slowing growth, some full-time roles convert to fractional.
Companies are realizing that fractional roles can provide a level of flexibility and expertise that's hard to find in a full-time hire.
So, there has been a decline, but a small one.
It’s not just fractional product, either. The overall fractional market is doing well, supported by continued growth in CFOs and CMOs.
I had a conversation with someone who manages a platform for placing fractionals. And he said the biggest market for fractional roles is not CTO or CPO. It's finance and marketing, fractional CMOs, fractional CFOs.
—Sergio Pereira, Fractional CTO and CPO since 2015
This returns back to the first chapter of our history. Those roles that created fractional are sustaining it.
But, the overall mood suggests that the fractional model is not just a passing trend, but a fundamental shift in how companies think about leadership roles.
And as the overall business world continues to evolve, the demand for fractional product leadership is likely to only continue to grow.
1.3 Market for Fractional Leaders and Pay
As the demand for fractional product leaders continues to grow, the market is becoming more established and diverse.
In this section, we’ll break down the most common markets for fractional leaders, the rise of fractional agencies, compensation to expect, and the challenges of the market.
1.3.1 The Most Common Markets for Fractional Leaders
The Early-Stage Startup Sweet Spot
One of the most compelling markets for fractional product leaders is early-stage startups. These companies often need the expertise of a seasoned product leader, but may not have the resources or the need for a full-time chief product officer (CPO).
Early-stage startups, particularly those at the Series A or B stage, are often at a critical inflection point:
They've validated their idea, raised some capital, and are now looking to scale.
But they may not yet have the product-market fit, the processes, or the team in place to do so effectively.
This is where a fractional product leader can be invaluable. They can provide the strategic guidance and hands-on execution that startups need to navigate this challenging phase.
Generally, startups that are series A/ series B, when the founder is stepping back from the product leader role, I'm doing that classic bridge between the founder stepping back and a full-time product hire.
—Ed Biden, Former Guest Author, Fractional since 2022
Fractional product leaders can help startups in a multitude of ways. But these 4 situations are especially common:
Like Ed mentioned, when a founder is stepping back
You need senior talent but can only afford fractional
Transforming from a feature factory
Investing in new things after a fund-raise
It’s a simple value proposition: fractional product leaders bring the expertise and experience of a seasoned product executive, but at a fraction of the cost of a full-time hire.
I've learned I can spend a day a week in an organization of a certain size, that couldn't afford a full-time product leader, early scaler, and provide real value and help them. And the time to stop working with them is when they've reached that scale that they can afford a full-time.
—Dave Martin, Fractional since 2015
This service-market fit has created a good market for roles in early-stage startups.
Beyond Startups: A Broader Market
While early-stage startups are a natural fit for fractional product leaders, the market extends far beyond just startups.
Even larger, more established companies are starting to bring in fractional leaders for specific initiatives or to supplement their existing product teams.
The lack of a product leader has many of the symptoms all up the size chain.
—Rich Mironov, Interim/Fractional Product Leader since 2001
There are several scenarios where a larger company might benefit from a fractional product leader, but these are the 5 we heard most often:
Launching a new product or entering a new market
Filling a gap in product leadership during a transition or search for a full-time leader
Bringing in specialized expertise, such as experience with a particular technology or industry
Providing expertise to help a product transformation effort in a company with weak product muscles
Helping to clean up when everything has fallen apart and set the stage for a permanent hire to be successful
As you can guess by all these scenarios, this broader job market of May 2024 presents a significant opportunity for fractional product leaders. With all the layoffs and product turnover, every product org has one of those ailments it seems.
The bigger company trend is new, but spreading. And both sides have incentive to:
For fractional leaders: by being able to serve companies at various stages and sizes, they can diversify their client base and create a more sustainable fractional career.
For companies: It presents an opportunity to tap into product leadership expertise in a more flexible and cost-effective way. Rather than committing to a full-time executive, they can bring in the specific expertise they need, when they need it.
1.3.2 The Emergence of Fractional Product Agencies
As the market for fractional product leadership grows, we're starting to see the emergence of dedicated fractional product agencies. These firms specialize in providing fractional product leadership services to companies.
Some notable examples include:
These agencies operate on a similar model to traditional consulting firms, but with a specific focus on product leadership. They have a roster of experienced product executives that they match with client companies based on their specific needs and challenges.
For companies, working with a fractional product agency can simplify the process of finding and engaging a fractional leader.
The agency can handle the sourcing, vetting, and matching of leaders to projects but, in some cases, the fractional consultant is still responsible for their own lead development too.
Being part of an agency can also provide a level of continuity and support throughout the engagement.
For fractional product leaders, Joining an agency can provide a steadier stream of projects and income. It can also provide a community of peers and support for the administrative and business development aspects of fractional work.
Being part of an organization can give you a built-in support and collaboration network, and make you feel less alone on your journey.
We do have quite a lot of internal debates and discussions about product. The reason why we've come together is because we want to develop ourselves within the the team.
—Emilie Lindström, Fractional Product Consultant at Value Rebels
However, working with an agency also means giving up some autonomy and a portion of your billings. Fractional leaders need to weigh these trade-offs against the benefits of independent work.
As the fractional model continues to gain traction, we can expect to see this ecosystem continue to mature and expand.
1.3.3 Compensation: Rates and Factors
One of the most common questions prospective fractional product leaders have is, "How much can I expect to earn?" As with many aspects of fractional work, the answer is, "It depends."
Globally, rates can range from $100-$1500/day.
5 main factors determine where you end up within that:
Location: Rates tend to be higher in major tech hubs like the San Francisco Bay Area, New York, Berlin, and London. But these are also the places with the most demand.
Specialization: Leaders with deep expertise in a particular industry, technology, or type of product may be able to charge a premium. The fractional leaders we spoke to who were paid the most were highly niched, liked ‘risk models for subprime borrowers in Europe.’
Experience: More experienced leaders with a proven track record can command higher rates.
Company stage: Early-stage startups may have tighter budgets, while later-stage companies may be willing to pay more for experienced leadership.
Engagement structure: Project-based work may be priced differently than ongoing retainer arrangements.
If you really want some general benchmarks for fractional product leader rates, here’s what you’ll want to keep in mind:
India/Pakistan/Africa are on the low-end
In the UK, senior fractional product leaders typically charge a day rate in the range of £750-1,250
Bay Area startups on the higher end of that spectrum, up to $1500, or even more for unicorn candidates with a niche speciality
It’s the basic spread of tech investment.
Bay Area startups will pay the most in that range, and random startups in Europe will pay the least.
—Sergio Pereira, Fractional CTO and CPO since 2015
The way to make sense of it all is that: most people are charging a higher day rate than an equivalent full-time role.
Take your market, and bump the rate about 40%.
Salaries vary around the world, and economic cycles play a role - but I feel like I should charge about 40-50% more than what a full-time role would be making all-in, including benefits.
—Rich Mironov, Interim/Fractional Product Leader since 2001
The way to command those higher rates? Definitely develop a specialization or niche. This could be deep expertise in a particular industry, a type of product, or a stage of company.
The rate goes up with niching down. When the company wants someone and that someone must be me, it reduces competition.
—Sergio Pereira, Fractional CTO and CPO since 2015
By becoming the go-to expert in a specific area, fractional leaders can differentiate themselves in the market and justify higher rates. However, specialization also means narrowing your potential client base, so it's a trade-off that each fractional leader needs to weigh for themselves.
The basic rhythm is that consultants and fractionals start off wide and have to take just about anything but, over time, they start to niche down. It’s generally seen as a bad sign if freelancers don’t niche down once they’ve found their feet.
1.3.4 The Challenges of the Fractional Market
Do these rates mean you are rich? Not exactly.
Despite the growth and opportunity in the fractional product leadership market, it's not without its challenges.
If you’re in the US, you have to pay for benefits and employer’s tax. Plus, wherever you are, one of the biggest challenges is the variability and unpredictability of work.
Unlike a traditional full-time job, fractional leaders don't have a guaranteed steady paycheck. They need to constantly hustle to line up their next project or client.
This hustle can be especially challenging in an economic downturn, when companies may be tightening their budgets and cutting back on external spending.
I'm very much doubting whether I'll stay fractional. Because it's been quite hard lately, if I'm honest. I've done this for nearly 5 years now.
—Nadia Tosheva, Fractional since 2019
You have to build a cushion for these gaps between projects.
In general, fractionals we talked to earned slightly less, or up to, how much they used to earn full-time. They trade further income for much greater flexibility, variety, and the pleasure of doing their own thing.
Another challenge is the increasing competition in the fractional market.
As with almost anything in tech, budgets are tighter. There have been so many layoffs. There's so much on the supply side of things that it's a saturated market from that perspective.
—Nadia Tosheva, Fractional since 2019
As more product leaders turn to fractional work, either by choice or necessity, the market is becoming more crowded. This can make it harder for individual leaders to stand out and secure clients.
Despite these challenges, the outlook for the fractional product leadership market remains strong. As more and more companies recognize the value of flexible, expert leadership, the demand for fractional product leaders is only set to grow.
For those who can navigate the challenges and deliver real value to their clients, fractional product leadership can be a rewarding and lucrative career path.
It offers the opportunity to work with a diverse range of companies, but on your terms.
Read on for your full toolkit of resources—including key channels to get clients, terms and conditions, and 7 full-length interviews. Most people would charge you $500+ for this:
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