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$140k base is within the market band for a "good-but-not-great" Generic Engineer outside of FANG. "Say who?". Says the market -as long as businesses can place b
by e1g 7y ago
$140k base is within the market band for a "good-but-not-great" Generic Engineer outside of FANG. "Say who?". Says the market -as long as businesses can place butts into seats at this rate, the price is right. Companies complain about the lack of talent like people complain about rent - I too want a better piece for less money, it's true.
> Is there some though leader going around in the startup space that is pushing a "140k should be enough for anyone" story?
Imagine a super lean startup with a handful of people. Engineer wants $200k, her manager reasonably expects a premium on that, and the CTO/CEO is one level higher. Now it costs $1M/yr for 3 people's fully loaded comp and a closet at WeWork. Yes, Google & co can pay this and more because 1) their main challenge is how to build warehouses fast enough to store all that incoming cash and 2) they don't pay people to work there, they pay people to not work at competitors or start their own thing. Elsewhere, this comp strategy is commercial suicide, unless you're building logistic apps for the cartel or doing gambling, which is about the same thing.
From another angle, there are silverback VCs saying their CEOs should not be paid more than $150k. Jungle rules take over, and it's quite understandable that people two levels below shouldn't have salaries higher than the head of the troops.
> How can I possibly be worth the exactly same amount across each of my different skills to different business models in different niches?
What that Generic Engineer does is about as interesting as what a generic accountant does - i.e. not at all, and will change in 2-3 years anyway. Frontend/backend/ops use different acronyms, but engineers will engineer. For example, look at people involved in the revenue pipeline: pre-sales, post-sales, customer success, relationship manager, account executive, etc. These are all totally unique snowflake special roles until you take half a step back and hey from here I can barely tell them apart from marketing or customer service folks.
> I am happy to be paid out of the money that I went out and brought in, but every company I have talked to is incredibly allergic to any suggestion that I be paid real money for the value I deliver
The process of writing software is among the trivial parts of building a software startup. Development work is rarely connected to cashflows, and should not be incentivized as a rev-share based on specific feature/module. How much $$ is it worth to do CI/CD, or SSO? No one would do that work. Even if there was a feature requested by a big client, how much of that money should go to the UX person, QA person, sys admin, lawyer who reviewed the contracts, sales person who negotiated the deal, the property manage who keeps the roof over your head etc. Firms exist as a way to removing transaction costs among these professionals, who create more value together than independently. Suggesting you 'deserve' X% is a signal that you may undervalue contributions from professions other than your own and that feeds the default "bad culture fit" world view.
> when I offer to focus exclusively on a single business as an employee then suddenly they can only see 1/3rd the value in the same work!
"I love you, but we let's stay friends" means she doesn't love you. If you have a relationship with existing clients, know they business, and they decline you offers to get more serious for <50% TCO, this is a big red flag. Maybe they don't have the money etc, but more likely they do not see value in the work which should be fascinating to dissect and understand, before re-packaging yourself to strangers.
- macando 7y agoIt's possible to put a price tag on a new SaaS feature. You can say "In one of my previous companies we implemented exports to CSV, Excel, PDF and our customers loved it. We can offer that feature". You deliver it and they bump the price of their mid tier to $X + $3. Done!
- e1g 7y agoLet's try to price out couple features - 1. Spotify expects 2019 sales to grow by 20-30% but profitability is still MIA and their net loss will be $300M. Let's say they are thinking to add a feature to generate Excel extracts of your playlists. You are the product owner for the desktop app, and the senior developer calls a meeting to say they had done market research and 300 upvotes on /r/spotify say this is a good feature, and he's open to all reasonable rev-share offers to implement it. However, if the percentage is not reasonable, his team is not going to want to work on this feature. How do you negotiate? 2. Apple announced animoji as one of headline features for an iOS release. There was a group of designers and animators working on the Alien animoji. The Alian animjoi was used in an ad with Childish Gambino to promote the feature. iOS itself is free, but Apple makes money on hardware with TrueDepth cameras that make animojis possible. In the fiscal quarter following that iOS release, Apple scrapped together ~$10B in profit from iPhones. What portion of that should be assigned to the designer who used Illustrator to create assets for the Alien animoji, TrueDepth camera people, marketing team who worked on WWDC slides and TV ads, and celebrity team + lawyers who negotiated with Gambino?
- macando 7y agoSpotify and Apple are big, publicly traded companies. People working on their new features are seniors compensated well above 140k. In a small SaaS startup if you can design products and code your contribution can be measured in terms of money. The thing is this clashes with culture of most startups. In their eyes, commission based compensation is for sales people, not for engineers.
- confusedapp 7y ago