Fractional COO rates: $150-500/hour vs $200K+ full-time. When to hire one, what they do, and how to find the right fit.
What is a Fractional COO? Costs, Benefits, and When You Need One
You're growing fast. Operations are chaos. You need someone to fix it.
But a full-time COO costs $200,000-400,000 per year—before equity, benefits, and bonus. For a company doing $2-10M in revenue, that's not just expensive. It's often impossible.
Enter the fractional COO.
What is a Fractional COO?
A fractional COO is an experienced operations executive who works with your company part-time or on contract. You get executive-level operational leadership without the full-time cost.
Think of it like this:
| Hire Type |
Time Commitment |
Annual Cost |
Best For |
| Full-time COO |
40-60 hrs/week |
$200K-400K+ |
Companies $20M+ |
| Fractional COO |
5-20 hrs/week |
$60K-150K |
Companies $2M-20M |
| Operations Consultant |
Project-based |
$15K-50K |
Specific problems |
| Operations Manager |
40 hrs/week |
$60K-100K |
Execution, not strategy |
The fractional model gives you the strategic brain without the full-time price tag.
What Does a Fractional COO Actually Do?
This varies by company, but here's what most fractional COOs spend their time on:
Strategic Operations
Process Architecture
- Design scalable operational systems
- Create standard operating procedures (SOPs)
- Build workflows that don't depend on the founder
Team Structure
- Define roles and responsibilities
- Create accountability systems
- Build performance frameworks
Technology & Systems
- Evaluate and implement operational software
- Design automation strategies
- Integrate disconnected systems
Tactical Execution
Problem-Solving
- Identify operational bottlenecks
- Resolve cross-team conflicts
- Fix broken processes
Project Management
- Lead critical operational initiatives
- Manage vendor relationships
- Oversee system implementations
Hiring & Training
- Build job descriptions
- Create onboarding programs
- Develop training systems
Fractional COO Pricing: What Does It Actually Cost?
Here's what the market looks like in 2025:
Hourly Rates
| Experience Level |
Hourly Rate |
| Entry-level fractional |
$150-250/hour |
| Mid-level (10+ years) |
$250-400/hour |
| Senior (C-suite experience) |
$400-500+/hour |
Monthly Retainers
Most fractional COOs work on retainer rather than hourly. Here's the typical range:
| Engagement Level |
Hours/Week |
Monthly Cost |
| Advisory only |
2-5 hours |
$2,000-5,000 |
| Part-time strategic |
5-10 hours |
$5,000-10,000 |
| Embedded leadership |
15-20 hours |
$12,000-20,000 |
Project-Based Pricing
Some fractional COOs work on specific projects:
| Project Type |
Typical Cost |
Duration |
| Operational audit |
$5,000-15,000 |
2-4 weeks |
| Process redesign |
$10,000-30,000 |
1-3 months |
| System implementation |
$15,000-50,000 |
2-6 months |
| Scaling preparation |
$20,000-75,000 |
3-6 months |
Full-Time COO vs Fractional COO: The Real Math
Let's compare actual costs for a company doing $5M in revenue:
Option 1: Full-Time COO
| Cost Category |
Annual Amount |
| Base salary |
$180,000 |
| Benefits (20%) |
$36,000 |
| Bonus (15%) |
$27,000 |
| Equity (varies) |
$20,000-50,000 |
| Recruiting fees (25%) |
$45,000 (one-time) |
| Onboarding time |
$15,000 (productivity loss) |
| Year 1 Total |
$323,000-373,000 |
| Ongoing Annual |
$263,000-313,000 |
Option 2: Fractional COO (10 hours/week)
| Cost Category |
Annual Amount |
| Monthly retainer ($8,000) |
$96,000 |
| Additional project work |
$10,000-20,000 |
| Annual Total |
$106,000-116,000 |
Savings: $150,000-250,000 per year
And here's the thing most people miss: the fractional COO often has more relevant experience. They've solved your exact problem at 10 other companies. A full-time hire is learning on your dime.
When You Need a Fractional COO (The Warning Signs)
Not every company needs one. But if you're seeing these signs, it's time:
1. The Founder is the Bottleneck
Symptoms:
- Every decision requires your input
- You're in too many meetings
- Strategic work keeps getting pushed
- You're doing $50/hour work instead of CEO work
Reality check: Your time as founder is worth $500-2,000/hour in value creation. Every hour you spend on operations is an hour not spent on growth.
2. Things Keep Breaking
Symptoms:
- Customer complaints are increasing
- Deadlines are regularly missed
- Quality is inconsistent
- "We used to be better at this"
Reality check: What worked at 10 people doesn't work at 25. Growth creates complexity, and complexity requires systems.
3. You're About to Scale
Symptoms:
- Major fundraise incoming
- Big customer acquisition pending
- Preparing for acquisition
- Rapid hiring planned
Reality check: Scaling broken operations just creates bigger broken operations. Fix the foundation first.
4. You Know What's Wrong But Can't Fix It
Symptoms:
- You can list the operational problems
- Previous attempts to fix them failed
- You don't have time to manage the fix
- You need someone to own it
Reality check: Identifying problems is step one. Fixing them requires dedicated attention and expertise you don't have bandwidth for.
When You Don't Need a Fractional COO
Be honest with yourself. Sometimes other solutions are better:
You need an Operations Manager, not a COO, if:
- Problems are execution, not strategy
- You have the systems, just need someone to run them
- Budget is under $60K/year for this role
- You can provide the strategic direction yourself
You need a Consultant, not a fractional COO, if:
- You have one specific problem to solve
- You need expertise but not ongoing leadership
- Budget is under $25K for the project
- Timeframe is under 3 months
You need a Full-time COO if:
- Revenue is above $20M
- Operational complexity requires daily attention
- You can afford $250K+ compensation
- You're preparing for major exit or IPO
How to Find a Fractional COO
Where to Look
Specialized Platforms:
- Chief.com (senior executives)
- Toptal (vetted professionals)
- PartnerHero (operations specialists)
Traditional Channels:
- LinkedIn (search "fractional COO" + your industry)
- Executive recruiting firms
- Angel investor networks
- Founder communities
Referrals:
- Other founders at your stage
- Your investors' portfolio companies
- Industry peers who've used one
What to Look For
Must-haves:
- Experience in your company size range (±50%)
- Track record of solving your specific problems
- Communication style that fits your culture
- Available for your required time commitment
Nice-to-haves:
- Industry experience (but not essential)
- Experience with your tool stack
- Located in your timezone
- Startup experience if you're a startup
Red Flags
Avoid fractional COOs who:
- Have never been a full-time operator
- Can't provide specific references
- Want to sell you consulting projects
- Focus on theory over execution
- Have never worked with companies your size
The Interview Process
What to Ask
Experience Questions:
- "Tell me about a company similar to ours where you helped scale operations."
- "What's the biggest operational problem you've solved, and how?"
- "Describe a time you failed operationally. What did you learn?"
Approach Questions:
4. "How would you assess our operations in the first 30 days?"
5. "What's your framework for prioritizing operational improvements?"
6. "How do you handle resistance to process changes?"
Practical Questions:
7. "What would our working relationship look like day-to-day?"
8. "How do you measure success in a fractional role?"
9. "What's your typical engagement length with companies like ours?"
Trial Period
Before committing to a long engagement:
- Start with a paid assessment (2-4 weeks, $5K-15K)
- Review their findings (do they understand your real problems?)
- Evaluate working style (do you communicate well?)
- Check references again (now with specific questions)
- Agree on success metrics (what does "working" look like?)
Making the Most of Your Fractional COO
Once you've hired one, maximize the value:
Set Clear Priorities
Don't ask them to boil the ocean. Pick 2-3 major operational improvements and focus there first.
Good priorities:
- "Fix our customer onboarding process"
- "Build hiring and training systems"
- "Implement project management across teams"
Bad priorities:
- "Make operations better"
- "Fix everything"
- "Help where needed"
Give Them Authority
A fractional COO without authority is just an expensive advisor. They need:
- Access to leadership meetings
- Ability to make process decisions
- Budget for tools and changes
- Support from the founder
Protect Their Time
If you're paying $300/hour, don't waste it:
- Come to meetings prepared
- Have data ready when requested
- Remove blockers quickly
- Make decisions when needed
Plan for Transition
Eventually you'll either:
- Graduate to a full-time COO
- Build internal operations capability
- Continue with fractional support
A good fractional COO will help you plan this transition. They should be building systems that outlast them.
Frequently Asked Questions
What is a fractional COO?
A fractional COO is an experienced operations executive who works with your company part-time (typically 5-20 hours per week) rather than full-time. You get C-level operational leadership and expertise without the $200K-400K full-time salary, making it ideal for companies in the $2M-20M revenue range that need strategic operations help but can't justify or afford a full-time executive.
How much does a fractional COO cost?
Fractional COO costs range from $150-500 per hour or $5,000-20,000 per month on retainer, depending on experience level and time commitment. Most engagements run $8,000-12,000 monthly for 10-15 hours per week. This compares to $200,000-400,000+ annually for a full-time COO, representing savings of $150,000-250,000 per year.
When should you hire a fractional COO?
Hire a fractional COO when the founder is the operational bottleneck, things keep breaking as you scale, you're preparing for rapid growth, or you know what's broken but can't fix it yourself. The ideal time is when you're between $2M-20M in revenue and operations are holding back growth but you can't justify full-time executive compensation.
What's the difference between a fractional COO and operations manager?
A fractional COO provides strategic leadership—designing systems, solving complex problems, and setting operational direction—while an operations manager focuses on execution of existing processes. COOs work at the executive level on 10-20 hours weekly, operations managers work full-time on day-to-day tasks. If you need strategy, hire fractional COO; if you need execution, hire operations manager.
How long do fractional COO engagements last?
Most fractional COO engagements last 6-18 months, either ending when systems are built and handed off to internal team, transitioning to a full-time COO hire, or continuing indefinitely for companies that prefer the fractional model. Start with a 3-month trial to ensure fit before committing to longer engagements.
Can a fractional COO work remotely?
Most fractional COOs work remotely with periodic on-site visits, making them effective across time zones and geographies. The part-time nature (10-15 hours weekly) means they're typically available for key meetings and focused work sessions rather than requiring daily presence. Remote work actually increases your talent pool beyond your local market.
Compare Fractional COO Providers
When evaluating fractional COO services, understand how different providers approach the work. We've compared Cedar Operations against major alternatives:
Operations-Focused Comparisons:
Revenue Operations Comparisons:
Consulting Approach Comparisons:
Framework & Automation Comparisons:
The Bottom Line
A fractional COO bridges the gap between "we need operational leadership" and "we can't afford $300K for a full-time executive."
For companies in the $2M-20M revenue range, it's often the smartest investment you can make:
- Access to executive expertise at fractional cost
- Experience from multiple companies, not just one
- Flexibility to scale up or down as needed
- No long-term commitment until you're ready
If your operations are breaking under growth, you know what needs to change but can't do it yourself, and you're not ready for a full-time executive hire—start talking to fractional COOs.
The best time was before you hit the wall. The second best time is now.
Cedar Operations is an operations consulting firm that builds and implements systems—the same systems a fractional COO would design, but delivered as project-based engagements with 2-3 week implementation timelines. If you need ongoing executive leadership, hire a fractional COO. If you need working systems built fast, schedule a free assessment →
Related reading:
CEDAR OPERATIONS