[cal5k]

Exactly. The answer offered here is surprisingly ignorant and one-dimensional. The reality is that there aren't two types of software development companies, there are a spectrum of them.

At our company, because we don't sell products, client interaction, requirements gathering, coaching, politicking, etc. are all extremely important functions. It's really, really hard to find people who get our industry and can do this well. Often because of this they command a high salary.

On the flip side, we pay our developers above-market rates, and again it depends on their skill level and interaction with our clients and even with each other. Scrum Masters will earn more than developers (in most cases, not all). Senior developers will earn good money too. An entry-level developer will earn about the same as an "analyst" or product manager.