2009 WIC Compensation Survey Findings

Key Findings and Conclusions from 8th Annual Survey

Total Sample: 274 respondents; 67% from the WIC community

Key Findings

The economy has impacted revenues: the biggest challenge is finding clients with budget
Respondents have a positive mindset: 35% anticipate revenues will increase in the next 12 months
Most are busy actively networking, marketing, and improving their offerings
The data gathered on business practices has been very consistent over the history of the survey

Overall Key Trends

Social networking has arrived: it is used most often for credibility, awareness, and to build brand
Consultants are using fewer subcontractors and subcontracting out work less often
Networking, marketing, and building relationships are still key ways to build a consulting business
This year respondents say having a positive mindset and thinking creatively, out of the box, are key factors as well
Consultants are finding new ways to add value for clients: new products, new services, new markets, and new ways to work more closely with existing clients
Others are focused on cutting costs, some have lowered rates; many are taking on smaller projects or shorter-term assignments

Revenue/Rate Trends

Median revenue is down 30% this year, from $150K in 2008 to $115K in 2009
Only 41% of consultants increased their revenues last year (compared to 77% in 2008); 35% expect revenues to increase in the next 12 months, and 25% expect revenues to stay stable
Average hourly rates, project fees, and monthly retainer fees all declined this year

Top 20% Consultants—Best Practices

The top 20% of respondents in terms of revenue provide a view of best practices that can benefit all consultants
Respondents in this group are more likely to:
- Base project fees on ROI and/or value to the client vs. target hourly rates
- Charge monthly retainer fees than the group as a whole
- Use subcontractors (74% vs. 56% of the group as whole) and to mark up their subcontractors’ fees; and of this group, 44% use more than 5 subcontractors

Demographics of the Sample

Respondents were 93% female, 7% male
Eighty-one percent (81%) of respondents are located in the Bay Area, 5% in other parts of CA, 14% outside CA
Virtually all respondents have at least a Bachelor’s degree; almost half have a Master’s degree, PhD, or professional certification
Sixty-five percent (65%) of the sample have more than 7 years experience in consulting; 42% have more than 10 years
Respondents are in a variety of stages of the consulting lifecycle: 43% are refining their business to increase efficiency and profitability; 26% are managing a mature business; 21% are developing their core business and 7% are just launching or getting started
In terms of business structure, 65% of respondents are sole proprietors; 34% are incorporated or LLCs