When I jumped into fractional marketing, I thought, This can’t be that hard, right? Spoiler alert: it was a lot more complicated than I expected. Things like health insurance, taxes, and figuring out who my ideal clients were weren’t exactly obvious at the start. If you’re thinking about becoming a fractional consultant, here’s a guide I wish I had from the get-go to help you avoid the trial-and-error phase I went through.
1. Get Your Health Insurance in Check
One of the first things I had to figure out was health insurance (and let’s just say it wasn’t fun). Here’s what I learned:
- COBRA is an option if you want to keep your old plan for a while, but it can get expensive fast.
- Marketplace Plans offer solid coverage, and depending on your income, you might qualify for subsidies to bring down costs.
- Freelancer’s Groups like the Freelancer’s Union sometimes offer group plans that are worth checking out.
You’re also going to need to think about retirement savings and other benefits—because now, you’re the one in charge of it all. I ended up working with a financial advisor to help me think through all of this.
2. Understand Your Taxes Before They Sneak Up on You
One of the biggest surprises? How much more complicated taxes are when you’re self-employed. Here’s what I figured out:
- Self-employment tax is real—you’re covering both the employer and employee portions of Social Security and Medicare.
- You’ll need to make quarterly estimated tax payments. The IRS doesn’t want to wait until April to get its cut.
- Track every business expense—from software to coffee meetings. They add up, and come tax time, you’ll be glad you kept those receipts. I use QuickBooks to keep it organized.
- If taxes make your head spin (like they did mine), do yourself a favor and hire an accountant. It’s worth it.
3. Find Your Niche and Stick to It
When I first started, I tried to market myself to anyone who’d listen. Bad idea. Things got way easier once I narrowed my focus. Here’s how I did it:
- Start with industries you know. It’s easier to build trust when you already speak the language. I have spent a ton of time in HR Tech for example, so that’s where a lot of my early clients came from.
- Figure out the specific problems you’re best at solving. For me, it was helping startups build out their marketing strategy, with a specific focus on demand generation.
- Decide whether you want to work with corporates, mid-sized companies, or startups—each comes with its own vibe and expectations.
- Lean on your network. Honestly, a lot of my early clients came from relationships I built on LinkedIn.
- Join Slack groups. I joined a few go-to-market and women focused slack groups that have been a great resource.
4. Set Up Your Business and Pick a Pricing Model
At some point, you’ll need to make things official with your business. Here’s what worked for me:
- I went with an LLC for liability protection, but starting as a sole proprietor works too if you want to keep things simple at first. I eventually switched to an S-Corp, but I would highly recommend you chat with an accountant on what makes sense for you.
- Have contracts and invoices ready from the start—Quickbooks makes it easy to manage these.
- Play around with pricing models (hourly, project-based, or retainer). I’ve found that retainers are great for building long-term relationships, but project fees can be good for quick wins.
5. Market Yourself Like a Pro
Even if you’re great at what you do, clients won’t magically show up. You need to get out there and market yourself. Here’s what worked for me:
- Build a simple website. Even a basic landing page that shows what you do and who you help will make a difference.
- Share what you know—write blog posts, post on LinkedIn, or run webinars. It’s an easy way to show off your expertise and build trust.
- Stay active on LinkedIn. Engage with posts, comment on relevant content, and post your own insights to stay on people’s radar.
- Ask for referrals. A lot of my best clients came through word-of-mouth recommendations. Don’t be shy about asking happy clients to spread the word.
6. Be Ready for a Learning Curve
The truth is, going fractional comes with ups and downs. It took me a while to land the right clients and build a steady income, and there were moments when I wondered if I’d made the right choice. But if you stick with it, stay organized, and keep building your network, it gets easier—and it’s worth it.
Final Thoughts
If you’re thinking about becoming a fractional consultant, go in with your eyes open. Plan ahead for things like health insurance, taxes, and marketing, and don’t try to be everything to everyone—find your niche and own it. It might take some time to get traction, but once you do, you’ll have the freedom to work on your terms. And honestly, that makes the whole journey worth it.
