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How to Approach Pricing Your Fractional Services: A Guide for New Consultants

Writer's picture: Ketan PanditKetan Pandit

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So, you've taken the leap into the world of fractional work – congratulations! Whether you're a CMO, CTO, or any other executive offering your expertise on a fractional basis, one of the most challenging and often confusing aspects you'll face is pricing your services. Let's tackle this head-on with some practical advice and what worked for me.


Think of Your Services as Art


Here's an interesting way to look at it: pricing your fractional services is much like pricing art. Just as an artist's work is valued based on what collectors are willing to pay, your expertise and time have a market-driven value. But unlike art, we can approach this with a bit more strategy.


You are the only one who knows the value of your time. A common error is to breakdown your last drawn monthly salary into hourly rates and quote that. This is the quickest way to out price yourself at the beginning. I know some product manager experts who charge $3000 an hour, and an event expert who charges $15000 for 30 min consulting. BUT, they took years before they go here, on the back of consistently delivering solid value day in and day out.


Build your street cred (LinkedIn cred works only so far), before you start over valuing your time.


The Reality Check: Setting Expectations


One common mistake I see new fractional executives make is trying to match their full-time salary with a single client. Let's be clear: that's not typically how fractional work succeeds. Instead, the beauty of fractional work lies in building a portfolio of clients that collectively provide both financial stability and professional diversity.


Your first client will likely not pay you your first price. But that will give you an indicator of what your baseline can look like. With your second and third clients, this is a good price point to start with.


Time is Your Currency


The key to successful pricing starts with time management. Here's a practical approach:


  1. Define clear time commitments (for example, 10 hours per week)

  2. Set explicit boundaries around these commitments - what you will do, and what falls outside the purview

  3. Track your tasks, and time spent on them diligently. This is as much for your time optimization, as much as the clients.


The Market Context Matters for Fractional Pricing


When setting your rates, consider this crucial question: "If a company is paying X amount for Y hours of your time per month, how does that compare to hiring a full-time resource?" This comparison helps both you and your potential clients understand the value proposition. Remember, they're getting executive-level expertise without the full-time executive price tag.



Finding Your Sweet Spot


Pricing isn't a one-and-done decision. It's an iterative process that you'll refine through:

  1. Market feedback

  2. Client conversations

  3. Your growing experience

  4. The value you deliver


Remember, it's okay to adjust your prices as you learn more about the market and your own value proposition. The key is to start somewhere, remain flexible, and adjust based on real-world feedback.


Parting Thoughts


As you embark on your fractional journey, remember that pricing is both an art and a tactic. Don't be afraid to test different approaches and learn from each client interaction. The goal is to find that sweet spot where your expertise is valued appropriately, your clients see clear ROI, and you're building a sustainable business model.


Your fractional career is an exciting journey of continuous learning and adaptation. Embrace the process, stay confident in your value, and keep refining your approach as you grow. Once you commit to a price and a client, make sure you are over delivering each and every time.


Need more clarity?


Book time with me, and I will help you as much as possible -




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© 2025 Ketan Pandit.

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