SMB Nation Blog

SMB Nation has been serving the Bainbridge Island area since 2001, providing IT Support such as technical helpdesk support, computer support, and consulting to small and medium-sized businesses.

2016 Salary Survey Results – Part III: Forward Looking Statements

2016 Salary Survey Results – Part III: Forward Looking Statements

Time to look forward to the future in the SMB partner community. You will recall that we have presented two prior installments on our annual salary survey in past issues (Educated and Income) I’d encourage you to refill your coffee (or your beer), review those prior installments before proceeding further. I’ll wait here.

Welcome back! 

If anything, entrepreneurs are optimistic. I use that label because, in our past installments (read above), you are the founder and owner of your partner practice (MSP, CSP, consulting practice, reseller), etc. But even I was surprised how positive you are right here, right now. When asked if you expected positive compensation growth in 2016, 62% of you replied affirmative. The positive growth categories ranged from +1% to +50%. The greatest positive response grouping was 1% to +10% growth. The “break-even” crowd came in at 27.27%. The “Nabobs of Negativity” forecasting income contraction only amounted to 10.92%. While I’m no Nate Silver who is arguably the world’s best statistician, I can predict positive growth with a 90%+ confidence level in 2016. You can take that to the bank. Hell go out and buy a new car!

Your overall economic sentiment strongly correlated to the income assessment above. An even greater majority (62.44%) weighed in as Moderately Optimistic/Optimistic). The break-even crowd was 23.64% and the pessimist totaled 14.55%. To be clear, economic sentiment is more of an emotional measure.

Don’t Worry, Be Happy! 

Studies show that over 70% of “employees” are unhappy at work (Gallup). But “we” in the SMB partner community are exactly the opposite. A whopping 89% of you enjoy your job as a partner, MSP, CSP, VAR, reseller, consultant…whatever the heck you call yourself! I’ve always said that to outside observers. You guys love what you do first and foremost. And as I alluded to in my roadshow article here, you entered this business as a technical professional and you still like to geek out at workshops. Only 11% of you don’t like your work. We know who you are (yes – we’re watching you!).


In my next installment of the annual salary survey, we’ll dig a bit deeper into company and customer size and discover if size really matters.

Continue reading
915 Hits

2016 Salary Survey Results – Part II: F/T, Salaried, Six Figures

2016 Salary Survey Results – Part II: F/T, Salaried, Six Figures

As our 2016 salary survey journey continues, we are getting closer to what matters most: money. Last time, in Part I, we established you are well-experienced, educated and the owner. All highly desirable demographic characteristics. Let’s go a layer deeper.

Employment
You are full-time in your company. In fact, you’re likely working overtime! Very few were part-timers. With that said, you’re a W-2 employee in the US (this was nearly 60% of your income) followed by additional income in the form of owner draws and dividends (30%). Makes sense for anyone who has run a small business.

Compensation
Looking more specifically at compensation, the most common response was salary with bonus (39%). Very few of you were working for an hourly wage. And only one respondent had a commission-only position. Your actual compensation clusters in the range of $91,000 to $150,000 USD. Impressive. The exact average (mean) compensation was, wait for it, was $91,000 to $100,000 which is consistent with prior years of survey. The most frequent response (mode) was exactly tied in the range of two categories: $91,000 to $100,000 and $101,000 to $125,000. All of this supports our long-running narrative that “our people make $100,000 USD per year.”

Company Revenue
Vendors and sponsors, in an eternal quest to turn geeks into resellers, are always seeking out the “big guys” at the expense of not showing love to the little guy. Our survey results offer both. The most popular response (mode) for company revenue was $1-million to $3-million, a full 29% above the next category. The average (mean) response was $251,000 to $300,000. Why is this? That’s because we have a double bell curve. We have a cluster of responses in the $51,000 to $200,000 company revenue range that is dragging down the overall average. I’d offer this is the one-person shop. But the cluster between $500,000 and $10,000,000 ($10M) represents50% of the responses (OK actually 49.99%). Something for everyone.

So what’s it all mean. A “B” grade that you’re hanging in there during changing times, transforming compensation models and shifting technology paradigms. Staying even is the new win. Congratulations.

Next week we will look into forward looking statements. Join us right here in the SMB Sunday paper!

PS – Want to make more? Attend our Office 365/Windows 10 Roadshow! Phoenix is May 10th following by Los Angeles and San Francisco. Learn more at 2016roadshow.smbnation.com.

Continue reading
1593 Hits
1 Comment

2016 SMB Salary Survey Results: Educated and Educated!

2016 SMB Salary Survey Results: Educated and Educated!

Hear Ye! Hear Ye! The 2016 SMB Salary Survey is now complete. I’m excited to share results over the next few weeks. Let’s get started.

Education
As we always knew – we’re educated. The facts are this. 
• SMB 2016 four-year degree attainment: 44%
• US Average: 32%
The difference is 31.58 percent or nearly one-third. This isn’t a huge surprise as we’re in a technical professional field where education isn’t only a tool but the road to greater professional competence and success.

Age
Oh my! The majority of the respondents were 51-58 in age with no one between 18-25. Houston we have a problem! Close behind was the 43-50 age group. Interestingly I’m seeing young people engage in other areas of technology such as coding, a byproduct of Coder DoJo and Hour of Code in our schools. The median age in the US labor force is roughly 42 years old. By the way, our older demographic suggests there will be a wave of consolidations in the near future. More on that in a future column.

Job Title
Here is the best news of all in my opinion. Over 80 percent (actually 81.49%) of us are business owners, a highly desirable group for several reasons. First, you have much more experience and business acumen than you likely acknowledge. You’re not some corporate Dilbert in a cubicle repeats the same tasks daily. You’re much closer to a wild catter solving new problems daily. You’re something of a risk taker, forgoing the gold watch after 30-years of corporate service. Right on! We are real people living in the real world! You can count yourself as someone who has started, own and operated a business – experience you can’t buy.

IT Experience
This is good and bad news and goes right to the heart of start-over challenges. The good news is that you are certainly competent in your profession (16+ years in IT). The bad news, in my humble opinion, is you might be stuck in your ways. My evidence is both quantitative and qualitative: survey results and conversations. My concern is that you are likely riding the server-side down to the bottom and not tapping your business acumen to perhaps provide Marketing 2.0 consulting services (CRM list AttachedApps; marketing automation systems like Marketo). Experience is a double edged sword. You don’t want too little; you don’t want too much. Like porridge, you want it just right. You read it here first!

Continue reading
1282 Hits
4 Comments

Don’t Miss: 2016 Salary Survey Closes March 31st

Don’t Miss: 2016 Salary Survey Closes March 31st

Hey there, Hi there, Ho there!

We need your support! In order to have a representative data set of the state of SMB compensation and activities, we need more participation. Think of this as Karma Dollars! You contribute your information (confidentially) and you benefit from seeing more rich results (literally). Think of it as crowd sourcing meets the sharing economy.

With respect to viewing this survey from a start-up perspective, I have a story to share. Earlier this month I met a young man at the Channel Partners conference in Las Vegas. He had recently completed college and was all bright eyed and bushy tailed. He sincerely wanted to know what line of work to go into with respect to information technology (IT). He was looking at traditional networking as an MSP. He was looking at telecom as a consultant/sales agent (that is still the predominant audience at Channel Partners). This salary survey can truly benefit our start-up kid! Why? Because he can decide if these professional career paths work for him. The world is his oyster and he can compare our MSP/CSP world to opportunities in Big Data (that conference was upstairs at LeadsCon), online commerce, mobility and even Internet of Things (IoT). That’s that start-up hook to the salary survey.

Discover more and participate in the 2016 Salary Survey here

Continue reading
1172 Hits
2 Comments

SMB Salary Survey for 2016 is OPEN!

 

Wonder how you measure up? Here is your chance to both provide community data and then discover the results in a future blog. Think of it as training data for a BIG DATA experiment in SMB. You can participate confidentially and contribute to the data set. The more participants we have, the greater the value of the data. Again, we’ll happily share the results with you.

Thank you in advance and participate in the survey here: https://www.surveymonkey.com/r/salary2016

We appreciate the generous support of Atera (www.atera.com) in underwriting this community survey.

salary survey artowrk

Continue reading
2099 Hits
1 Comment