What is the fully burdened cost of a W2 executive?

$250K base becomes $330K+ when you add FICA (7.65%), benefits ($15-25K), 401k match, equity/bonus, recruiting fees ($30-50K), and onboarding costs. A mis-hire adds $300-500K in severance and re-recruitment.

How does fractional GTM leadership reduce cost?

Sobo experts cost $60-120K/year with zero recruiting fees, zero benefits overhead, and month-to-month flexibility. Same 15+ years of experience at 65-75% lower total burden.

How fast can a fractional leader deliver ROI?

Most fractional engagements are ROI-positive within 30 days. A W2 hire typically takes 6 months to reach break-even productivity.

When should I hire full-time instead of fractional?

Only when the role requires 40+ hours/week of ongoing maintenance work. Strategic 'fix' roles — implementing systems, building playbooks, solving bottlenecks — are ideal for fractional.

The Executive TCO Spec: Fractional vs. Full-Time

Total Cost of Ownership: Financial Architecture

W2 Executive — Fully Burdened

Base Salary$250,000

FICA Taxes (7.65%)+$19,125

Benefits Package+$15-25K

401k Match + Equity+$10-20K

Recruiting Fee (25%)+$62,500

Onboarding (lost productivity)+$15-30K

Year 1 Total$371-407K

+ 40% mis-hire risk = potential $500K+ write-off

Sobo expert

Monthly Engagement$5-10K/mo

Annual Cost$60-120K

Benefits / FICA$0

Recruiting Fee$0

OnboardingProductive Day 1

Severance Risk$0

Year 1 Total$60-120K

Month-to-month. Scale up or down anytime.

Potential Overhead Reduction: 65-75%

Same caliber expertise. Zero hidden costs. Zero commitment risk.

Speed to Impact: 6 Months vs. 30 Days

Speed to Value: W2 Hire vs. Sobo Fractional

Month 1

Recruiting & Interviewing

Still searching. $15-25K in recruiter fees committed.

Diagnostic + Immediate Execution

CRM audit complete. Pipeline gaps identified. Quick wins live.

Month 3

Onboarding & Learning Culture

New hire learning internal politics, systems, and team dynamics.

First Strategic Milestone Achieved

Playbook built. Rep coaching running. Conversion rates improving.

Month 6

Break-Even Point (Maybe)

Best case: starting to contribute. 40% chance they've already quit or been fired.

Process Hardened & Scaling

Systems institutionalized. Team self-sufficient. Ready to scale or exit.

Don't guess on your next $250K hire. Audit your P&L first.

Sobo's diagnostic engine determines whether you need a "fix" (fractional) or "maintain" (full-time) leader — using your actual data.

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Risk & Friction: The Costs Nobody Budgets For

Risk & Friction Table

Cost Category

W2 Full-Time

Sobo Fractional

Recruiting Fee

25% of salary ($60K+)

Severance Risk

3-6 months pay ($62-125K)

Month-to-month. Cancel anytime.

Benefits & FICA

$35-45K/year

Included in fixed fee

Onboarding Drag

3-6 months reduced output

Productive Day 1

Mis-Hire Probability

~40% within 18 months

Data-verified match

Re-Recruitment Cost

$150-250K (if it fails)

Swap expert. Zero cost.

The "Fix vs. Maintain" Decision Framework

Not every role should be fractional. Use this rule: Maintain roles require 40+ hours/week of ongoing operational work — hire full-time. Fix roles — implementing systems, building playbooks, solving bottlenecks — are ideal for experts who've solved this problem 10+ times before.

Fix roles (fractional): GTM strategy, pipeline architecture, sales playbook, process automation, turnaround leadership
Maintain roles (full-time): Day-to-day sales management, account management, ongoing customer success

Cross-Reference: ROI Calculator

Want to model the exact savings for your business? Use our expert ROI Calculator to input your specific salary bands, team size, and growth targets.

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Run Your Custom ROI Calculation

Sobo's diagnostic engine analyzes your actual P&L, pipeline data, and team structure to determine whether fractional or full-time is the right model — and matches you to the expert who fits.

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The Executive TCO Spec: Fractional vs. Full-Time — The $330K Decision