Fractional CMOs—High-End Real Estate Marketing Expertise Minus the High Costs: Q&A with 7 Rivers Marketing’s Shannon Bedinger

These days, success for commercial real estate companies requires emphasis on competitive advantages. This is where a high-level, strategy-oriented marketing plan (or plans) can help. However, smaller or medium-sized companies might not have the resources to pay the salary, benefits and payroll taxes of a full-time and experienced marketing executive.  

Shannon Bedinger, founder of 7 Rivers Marketing, suggested that integrating a fractional chief marketing officer (CMO) into a real estate company’s C-suite can offer proven marketing expertise while keeping personnel costs in line. Connect CRE recently spoke with Bedinger about fractional CMOs and what they bring to the real estate table.

Connect CRE: What, exactly, is a fractional CMO?

Shannon Bedinger: Fractional CMOs fall under the growing category of fractional hiring. Fractional hiring allows a company to add an experienced, executive-level specialist to its executive team. Fractional CMOs might work 20 hours a week for a few months, or 40 hours a week for several months or even years.

Connect CRE: Isn’t that like freelancing?

Shannon Bedinger: There are similarities. Freelancers and fractional experts operate under 1099 contracts. Clients don’t withhold taxes from payments or offer full-time benefits. Also, freelancers and fractionals work for several clients at a time.

But while freelancers are hired for specific projects, fractional experts oversee the big picture, implementing strategies based on analyses. For example, a marketing CMO could plan advanced, executive-level marketing approaches and evaluation, supervise the implementation and ongoing management of social media, direct mail and email campaigns, or build and lead marketing teams.

Connect CRE: Is fractional hiring a new concept?

Shannon Bedinger: It started in academia and has taken off in the technology and finance industries. It’s just beginning to impact real estate. In our case, fractional CMO expertise helped build, implement, and monitor marketing efforts for real estate projects throughout Houston, such as Pennzoil Place, Four Oaks Place, the Watermark District, and the Lone Star District. We’ve developed and led marketing campaigns resulting in 2 billion impressions and significantly improved client reach through the fractional approach.

Connect CRE: How do commercial real estate companies benefit from a fractional CMO?

Shannon Bedinger: Working with a fractional CMO allows companies to work with a high-level executive with industry experience for less cost than a full-time hire. The company doesn’t have to worry about payroll taxes or benefits.

Also, the fractional CMO’s experience means they already know real estate language and how the industry operates. They can hit the ground running, saving time and costs.

Fractional CMOs are helpful for real estate firms that are starting out or in growth mode. These experts can also add skills and knowledge to existing marketing teams.

Connect CRE: How are CRE firms reacting to this trend?

Shannon Bedinger: As I mentioned earlier, fractional hiring is a new concept in the industry. Companies are understandably wary about what it might mean. Plus, there are certain negative assumptions. One is that a fractional CMO might give confidential information to competitors. Another is that a fractional expert won’t be committed to a certain company because they work with many clients.

None of this is true. Fractional CMOs—and other fractional executives—pride themselves on being trustworthy, honest, and deeply committed to their clients. A reliable fractional CMO with real estate experience knows better than to release confidential information to anyone, let alone competitors. They’re also dedicated to bringing 100% to a company’s marketing efforts.

Connect CRE: What due diligence should CRE firms conduct when hiring a fractional CMO?

Shannon Bedinger: Check the track record. How did the individual improve client reach, brand building, and revenue goals? How effective were campaigns and other marketing efforts in reaching specific objectives? Also, that fractional CMO should come to you with an in-depth real estate background. That individual should come with many years of experience in high-level marketing positions with successful real estate companies.

Don’t be afraid to ask for references from current or former clients. Checking with those who rely on fractional CMOs for their efforts provides valuable information and assurances.

Connect CRE: What else would you like to add?

Shannon Bedinger: I think as costs and competition continue to be overriding concerns, fractional CMOs can help real estate companies improve marketing outreach that boosts revenues, while reducing personnel expenses. Not all CRE companies need that fractional expertise. But those who need help with issues like audience targeting, marketing leadership, and concise messaging could do well by bringing a fractional CMO on board for assistance.