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In an ever-growing economy determined to make money, product management has become one of the most sought-after careers, with Indeed ranking it among the top 10 jobs in the United States in 2023. This article will break down the average product manager salary and the various factors that influence how much one can expect to earn. In addition, it will look at what the position of a product manager entails and the requirements to become one.
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What does a product manager do?
Successful product managers need to create a strong cohesion amongst cross-functional teams, as well as determine the overall product strategy, its features and development, and a business trajectory.
They need to understand the target consumer market and competitors’ products to develop a unique product vision that has worth for customers.
A product manager’s responsibilities include:
- Analyzing customer needs and current market trends;
- Presenting ideas for new products and features;
- Working with cross-functional teams (engineering, sales, marketing, and support teams) to develop and pursue product strategy;
- Interpreting market data to develop sales strategies and define product objectives for practical marketing ideas;
- Translating product strategy into detailed requirements for prototype construction and final product developments by engineering teams;
- Incorporating consumer feedback in product features;
- Conducting market research to monitoring the performance of competitors’ products;
- Developing, implementing, maintaining, and adjusting production timelines across multiple departments;
- Reviewing new product ideas and strategizing suitable to-market plans;
- Managing testing to detect and fix issues for required improvements;
- Tracking product success;
- Developing the business case for new business ventures.
Educational requirements:
- Bachelor’s degree in a relevant discipline (product design, business administration, computer science, engineering, marketing);
- Product management certifications such as AIPMM, One Week PM or Sum Foundations Training;
- Optional but popular: Masters degree (MBA).
Essential skills/qualifications:
- Outstanding knowledge of market trends;
- Being able to create technical product specifications, detailed requirements, and product features for new products;
- Knowledge of user experience (UX) best practices;
- Critical thinking and analytical skills;
- Teamwork;
- Leadership and the ability to take the initiative;
- Creative problem-solving;
- Time management;
- Communication skills.
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Factors determining a product manager’s salary
1. Location
The national average product manager salary is approximately $116,888, with the highest wages being in major metropolitan areas on the East and West coast. But when the cost of living is factored in, most urban areas that offer the highest effective pay (meaning the salaries are higher and the cost of living is lower) are in the middle or south part of the country – Chicago, Dallas, Atlanta.
While relocating might present a lucrative opportunity, it is crucial to consider general median salaries and cost of living when reviewing product manager salary offerings.
2. Level of education
Most product managers have a Bachelor’s degree, and many have an advanced degree like an MBA. The field of study you have chosen for your completed degree will determine which industry you’ll be headed to work in and, therefore, the pay you can expect, with tech companies offering the beefiest salaries.
Getting a degree in finance, computer science, or business administration can provide a sufficient foundation for developing the technical and analytical skills needed to manage a product. Still, with an abundance of online courses to choose from, product managers can build out competitive skills beyond a relevant degree and work experience, by obtaining professional certifications and periodically enrolling in continuing education courses.
3. Industry
Another factor that affects the salary of a product manager is what industry the job is in. Indeed, jobs in faster-growing sectors like technology, hospitality, and retail tend to be the most profitable option.
For instance, a product manager can expect to make $114,839 annually while working in retail. Meanwhile, product managers working for hospitality or technology companies can expect respectively $114,288 and $114,210. The lowest salaries are in the manufacturing industry, offering a yearly salary of $106,561.
Source: Indeed.com
4. Experience
Generally, the product manager’s salary will increase with years of experience and continuous employment.
As of December 2023, an entry-level product manager with 0-2 years of experience typically earns an average salary of $82,942. Those in a mid-career stage with 3-6 years of experience have an average annual income of $111,729. Meanwhile, a senior product manager with 7-12 years of experience typically receives an average yearly salary of $201,528.
Perks and benefits of the job
On top of a competitive salary, a product manager can expect various perks, including:
- Health, vision, and dental insurance;
- 401 (k) retirement savings plan;
- Paid vacation;
- Stock options;
- Commuter assistance;
- Parental/family leave;
- Fitness club discounts.
In conclusion
To sum up, those interested in becoming a product manager should always consider the several factors that play into the salary. Think of the state you would like to practice in, the amount of education you are willing to pursue, and most importantly, the industry you’d like to work in. The opportunity to move up with experience is tremendous, and choosing tech as your field of expertise will offer a lucrative career path for the foreseeable future.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about product manager salary
What salary can you expect as a product manager?
The average base salary for a property manager in the United States is $116,000 per year. This figure, however, can fluctuate based on various factors such as the individual’s skills, experience level, the employer, additional income like bonuses and tips, and geographical location.
What factors play into the salary?
Salaries can depend on several circumstances, including the education, industry expertise, and experience of a product manager, as well as their geographical location. However, one of the main factors to consider is industry, with tech companies leading the way big time. Indeed, with the mind-blowing advances in technology to better every inch of our daily lives, the job with the most growth and prospects will be in tech.
What are the tasks of a product manager?
A product manager’s primary objective is to help a company push a product to life by forecasting and researching the consumer market, tactical planning, and developing sales strategies. They are responsible for uniting teams of different expertise. Most importantly, bridging gaps between engineering- and commercially-oriented teams to bring product vision to fruition. It is essential that they stay up-to-date with market trends and competition as well as apply consumer feedback to product design.
How can you become a product manager?
Statistically, it looks like that over half of product managers hold a Bachelor’s degree, with the other half having obtained a Master’s (MBA). It seems, therefore, that advanced education might be the way to go for gaining an edge over other applicants and securing a lucrative career.
How much is a senior level product manager salary?
A senior-level product manager typically earns an average annual salary of around $202,000. This figure can vary based on factors like industry, location, and the specific company they work for.
How much is Google product manager salary?
According to Glassdoor, as of December 2023, the total estimated compensation for a product manager at Google is approximately $286,082 per year.
How much is Amazon product manager salary?
According to Glassdoor, as of December 2023, the total estimated annual compensation for a product manager at Amazon is around $240,773.
How much is Microsoft product manager salary?
According to Glassdoor, as of December 2023, the total estimated salary for a product manager at Micorsoft is around $233,138.
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