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Women in Consulting Compensation Survey

Women in Consulting, with which SAC® has an alliance, recently released a survey which they have kindly allowed me to share with readers here. You can contact WIC at: http://womeninconsulting.com/

WIC 2008 Compensation & Best Practices Survey
Key Findings & Conclusions
Seventh Annual Survey

Total Sample: 178 respondents; 65% from WIC community
Key Learning:
 Business trends remain positive; the economy is not hurting consultants.
 Consultants are making their businesses more profitable.
 Consultants see a big shift in their revenue levels, profitability and sophistication
of their businesses between 3-6 years after they start doing business.
 The data gathered on business practices has been very consistent over the
history of the survey.
Overall Key Trends:
 Social networking is becoming more prevalent and important.
 Technology is impacting the way we work with our clients – both positively and
negatively.
 Virtual consulting teams are becoming more common.
 Clients are increasingly concerned with containing costs, but are willing to make
the investment when they understand the value they will receive.
 In consulting, experience counts more than being young and hip.
 There are more consultants to compete with, some of whom are not very
qualified or experienced.
 Clients are increasingly concerned with risks and security.
Revenue/Rate Trends:
 Average revenue continues to go up each year—currently at $203K.
 70% of consultants increased their revenues last year and 60% expect to do the
same in the next 12 months.
 Average hourly rates, project fees, and monthly retainer fees all increased this
year.

Top 20% Consultants - Best Practices:
 The top 20% of respondents in terms of revenue earned provide a view of best
practices that could benefit all consultants:
o They base project fees on value to the client vs. target hourly rates
o They’re able to maintain stable profits even when revenue declines
o They’re more likely to charge monthly retainer fees than the group as a
whole
o They’re more likely to set fees based on ROI and/or value to the client
o They’re also more likely to use subcontractors and to mark up their fees
 Over half use 5+ subcontractors
o They’re much more likely to charge some percentage of their fee upfront
o They spend more time on marketing than the group as a whole
Demographics of the Sample:
 Respondents were 91% female, 9% male.
 84% of respondents are located in the Bay Area, 5% in other parts of CA, 12%
outside CA.
 Virtually all respondents have at least a Bachelor’s degree; more than half have a
Master’s degree, PhD or professional certification.
 65% of the sample has over 7 years experience in consulting; 34% have more
than 10 years.
 Respondents are in all stages of the consulting lifecycle: 42% are maintaining
their business at the current level; 32% are developing their business; 9% are
just launching or getting started, 7% are managing a mature practice.
 62% are sole proprietors; 20% are incorporated; 18% are LLCs or partnerships.

© Women in Consulting 2008. Reprinted with permission.

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Posted by Alan Weiss on June 23rd, 2008 filed in Announcements |

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