This is absolutely correct. Most people tend to fear step one much more then they should. I recently changed jobs and their offer was exactly what I was making at my full time job and my side jobs. I asked for a 5-10% bump, got it and now I have a new job (and I'm pretty happy about it). What surprised me the most was that I wasn't worth some arbitrary number to them, or a potential value that I wanted to be worth. I was worth exactly what I was able to get other people to pay for me, and a little more because they needed me too.
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This is absolutely correct. Most people tend to fear step one much more then they should. I recently changed jobs and their offer was exactly what I was making at my full time job and my side jobs. I asked for a 5-10% bump, got it and now I have a new job (and I'm pretty happy about it). What surprised me the most was that I wasn't worth some arbitrary number to them, or a potential value that I wanted to be worth. I was worth exactly what I was able to get other people to pay for me, and a little more because they needed me too.
In step 1, it's also very important to put a dollar value to various non-comp issues.
E.g., if a bank wants me to work for them, it will cost them $50k more than a startup.