On the surface, it’s a compelling proposition: faster, cheaper, scalable. But beneath the surface lies what I believe is a fundamental truth: when it comes to critical leadership roles like sales, AI alone is not enough.
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Family-owned businesses are the backbone of many economies - including the US and Canada, where they account for 87% of all companies. When these businesses seek to accelerate growth or modernize their sales function, they increasingly turn to fractional sales leaders.
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In several conversations over the years, founders have told me that they prefer a VP of Sales to be a W2 employee rather than a 1099 contractor, citing concerns over access to and control of sensitive business information.
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Many companies are turning to fractional sales leaders to drive growth without the commitment of a full-time executive. These seasoned professionals offer strategic sales expertise on a part-time basis, providing flexibility and cost-effectiveness.
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To better understand the financial opportunity within this market, we attempt to calculate the Total Addressable Market (TAM) and the Serviceable Accessible Market (SAM) for fractional sales leadership, using a purely demand-centric approach.
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“How much is it?” It’s a fair question. But when it comes at the very start—before any discussion of process, deliverables, or outcomes—it presents a challenge.
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To better understand the financial opportunity within this market, we attempted to calculate the Total Addressable Market (TAM) and the Serviceable Accessible Market (SAM) for fractional sales leadership, using different approaches, and leveraging available macro-data, data from our own recent study, and documented assumptions.
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When it comes to leadership, there’s no room for compromise. The stakes are too high, and the potential cost of missteps is far greater than the upfront savings of hiring cheap talent.
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The temptation to save money by hiring less experienced candidates is understandable – after all, everyone has to start somewhere, right? But in sales leadership, that well-intentioned frugality often leads to expensive lessons.
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Understanding this window is critical for the business in order to optimize the value of a fractional executive. And equally critical for the Executive themselves to understand and target their Ideal Client Profile.
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