Circulation Salary Survey: In this downsized market, publishers are capitalizing on the growing pool of out-of-work circulators by demanding more and paying less

Folio: The Magazine for Magazine Management, Dec 1, 2001 by Geoff Van Dyke

Nick Cavnar, asked for his insight on the state of the job market, thinks for a minute and says, "Well, things aren't totally desperate." After all, you can still get a circ director gig in Duluth. "No, really," laughs the vice president of circulation and databases for Hanley-Wood, LLC. "Advanstar has been trying to fill that position for months, and people aren't so desperate that they're willing to move to Duluth--yet."

But those long, cold Minnesota winters might start looking downright cozy if things don't turn around soon. As the media recession drags on and publishing enterprises continue to contract, circulation departments are shedding all but the most critical positions. "We used to have six people in a stand-alone circ department, and now it's down to three or four," says Susan Allyn, circulation director for FHM "And I'm talking about a bustling magazine like FHM I had a bigger staff for Bon Appetit than I do for FHM, and I have four times the newsstand sales."

Managers are working with skeleton crews and doing more for less than they were a year ago, echoes Michelle McKeon, circulation manager at Penn Well Corporation's advanced technology division. "Companies are trimming the fat, and what's left is lean and Mean" - and underpaid.

It seems that the sudden glut of circulation talent is driving down salaries among the still-employed. In fact, Folio:'s 17th annual circulation salary survey found that after five years of steady, significant growth, 2001 compensation among circulation directors was flat at $77,927. And compensation at the circulation manager level dropped by almost II percent, to $40,888.

Publishers who are hiring know they have the upper hand, says Nicole Bowman, a former subscription director who was laid off in June. And the going market value of a circulator is dropping before her eyes, she says. "I got a call from a recruiter for an associate circulation director position. But the company [initiated] a job freeze, so the interview never came to pass," says Bowman. "Then I got a call from the same headhunter saying that the position had opened up again, only this time the salary was lower."

That exchange is a stark contrast to market conditions just a year ago, when publishers were still competing with one another and cash-infused dot-coins for circulation talent. "Until recently, salaries were mostly going up because there was a shortage of people," says Mark Tavarozzi, vice president of circulation for Entrepreneur. But with all the magazines closings of late-well, it's no surprise that salaries are stagnant or sinking, he says.

However, as ad pages fall into a deeper abyss and corporate brass call on circulators to squeeze more profits from readers, salaries for directors are likely to stay stable. "Publishers need directors to act as their business managers and to make sure that cost-saving measures are implemented," says Micki LaPorte, group circulation director, Cahners Business Information. Holding on to someone who can navigate everything from the new audit bureau rules to the ongoing newsstand crisis will be critical. But the same may not be true for those on the lower rung. Manager salaries may continue to freefall because, as LaPorte says, "there simply are more managers available than directors."

While Folio.'s annual circulation salary survey seeks to spotlight industry wide trends and average compensation for directors and managers, this year our inquiries sought greater detail. We interviewed 65 publishers, circulators, headhunters, consultants and former and current employees to arrive at estimated earnings for circ directors at specific companies. In the case of circulation managers and assistants, we garnered the average salaries at specific magazines.

Companies named in this report were given the opportunity to comment on what we are printing. All declined to comment.

CIRCULATION DIRECTOR

DEMOGRAPHIC BREAKOUTS


By Age

UNDER 35 YEARS                $72,759
35-39                         $84,004
40-45                         $76,179
46                            $79,449

Responsible For

1 MAGAZINE                    $65,667
2 TO 3 MAGAZINES              $76,807
4 TO 6 MAGAZINES
6 MAGAZINES OR MORE           $84,183

By Number of Employess
Supervised

FEWER THAN 2                  $55,657
2 TO 3                        $72,963
4 TO 5                        $79,298
6 OR MORE                    $102,641

By Circulation

LESS THAN 50,000              $53,411
50,000-99,999                 $64,047
100,000-499,999               $85,034
500,000 OR MORE              $104,796

By Circulation Type

PAID                          $82,878
NONPAID                       $68,841

By Frequency

WEEKLY/BIWEEKLY               $78,193
MONTHLY                       $82,241
BIMONTHLY                     $62,255

By Company Revenue

LESS THAN $5 MILLION          $50,793
$5 MILLION TO $24.9 MILLION   $80,310
$25 MILLION OR MORE           $94,976

By Auditing Company

ABC                           $90,279
BPA                           $73,695
A DEMOGRAPHIC SNAPSHOT

                                Business  Consumer

ACE                             46        40
YEARS WORKING IN CIRCULATION    16.6      12.1
YEARS WITH PRESENT COMPANY      8.5       6.5
YEARS IN CURRENT POSITION       5.4       3.7
FULL-TIME PERSONNEL SUPERVISED  6         5
MAGAZINES WORKED ON             8         6

BONUSES: 67.5% of circulation directors expect to receive a bonus,
compared to 69.9% in 2000. The average amount they expect is $10,454.

LOWEST AND HIGHEST SALARIES REPORTED: $27,000/$175,000
CIRCULATION MANAGER

DEMOGRAPHIC BREAKOUTS


By Age

UNDER 35 YEARS               $43,570
35-39                        $37,954
45                               (*)

Responsible For

1 MAGAZINE                   $36,988
2 TO 3 MAGAZINES             $40,757
4 MAGAZINES OR MORE          $43,479

By Number of Employees
Supervised

NONE                         $37,629
ONE                          $39,944
MORE THAN ONE                $45,292

By Circulation

LESS THAN 50,000             $34,980
50,000-99,999                $43,162
100,000-499,999              549,173
500,000 OR MORE              $50,500

By Circulation Type

PAID                         $39,914
NONPAID                      $41,926

By Frequency

WEEKLY/BIWEEKLY              $46,909
MONTHLY                      $41,208
BIMONTHLY                    $39,023

By Company Revenue

LESS THAN $5 MILLION         $34,121
$5 MILLION TO $24.9 MILLION  $42,138
$25 MILLION OR MORE          $51,915

By Auditing Company

ABC                          $44,493
BPA                          $43,368

(*)NOT ENOUGH INFORMATION SUPPLIED TO REPORT RESULTS
A DEMOGRAPHIC SNAPSHOT

                                Business  Consumer

AGE                             38        38
YEARS WORKING IN CIRCULATION    7.7       8.6
YEARS WITH PRESENT COMPANY      8.2       7.2
YEARS IN CURRENT POSITION       3.5       5.1
FULL-TIME PERSONNEL SUPERVISED  2         2
MAGAZINES WORKED ON             4         5

BONUSES: 43.8% of circulation managers expect to receive a bonus in
2001, compared to 44.5% in 2000. The average bonus they expect to
receive is $3,042.

LOWEST AND HIGHEST SALARIES REPORTED: $23,000/$82,000
EARNINGS ABSTRACT

DURATION AND DOLLARS BY YEARS IN CIRCULATION

Circulation Director  Average

Less than 7 years     $59,512
7 to 11 years         $80,375
12 to 18 years        $78,470
More than 18 years    $89,880

Circulation Manager

Less than 4 years     $33,378
4 to 10 years         $45,243
More than 10 years    $40,936

BY YEARS AT PRESENT COMPANY

Circulation Director  Average

Less than 2 years     $68,747
2 to 4 years          $78,076
5 to 8 years          $81,418
More than 8 years     $76,716

Circulation Manager

Less than 3 years     $33,614
3 to 7 years          $47,394
More than 7 years     $40,131

BY YEARS IN CURRENT POSITION

Circulation Director  Average

Less than 2 years     $75,564
2 to 3 years          $80,283
4 to 5 years          $82,044
More than 5 years     $72,571

Circulation Manager

Less than 2 years     $36,669
2 to 4 years          $41,097
More than 4 years     $44,116
AVERAGE SALARY

       CONSUMER          BUSINESS

1997   $64,458           $57,993           $61,512
1998   $67,530 ( 4.8%)   $62,892 ( 8.4%)   $65.327 ( 6.2%)
1999   $75,311 ( 11.5%)  $70,430 ( 12.0%)  $72,992 ( 11.7%)
2000   $77,639 ( 3.1%)   $77,910 ( 10.6%)  $77,774 ( 6.6%)
2001   $81.569 ( 5.1%)   $73,467 (-5.7%)   $77,927 ( 0.2%)

Note: Table made from bar graph
AVERAGE SALARY

      CONSUMER          BUSINESS

1997  $37,192           $34,041           $35,497
1998  $36,587 (-1.6%)   $37,430 ( 10.0%)  $37,040 ( 4.3%)
1999  $39,841 ( 8.9%)   $40,807 ( 9.0%)   $40,354 ( 8.9%)
2000  $46,897 ( 17.7%)  $44,935 ( 10.1%)  $45,915 ( 13.8%)
2001  $38,653 (-17.6%)  $42,285 (-5.9%)   $40,888 (-10.9%)

Note: Table made from bar graph
RATIO OF

                      MEN    WOMEN

CIRCULATION DIRECTOR  45.5%  54.5%
CIRCULATION MANAGER   14.1%  85.9%

Note: Table made from pie chart.
PAYCHECK EQUITY

               CIRCULATION DIRECTOR  CIRCULATION MANAGER

MALE                 $82,600               $43,209
FAMALE               $74,016               $40,505

COMPENSATION BY REGION

               CIRCULATION DIRECTOR  CIRCULATION MANAGER

NORTHEAST            $85,813               $45,216
SOUTH                $74,671               $38,178
NORTH CENTRAL        $56,964               $37,375
WEST                 $84,678               $44,472

Note: Table made from bar graph