2003 Best Practices Study
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
EXPENSE ANALYSIS (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expense Total Payroll
57.0%
47.5%
58.6%
Benefits
8.3%
8.1%
8.2%
Total Compensation
65.3%
55.5%
66.7%
Selling Expenses
T & E/Conventions
1.1% 0.8% 0.9% 2.8% 3.7% 0.9% 0.7% 1.2% 0.7% 0.4% 1.2% 1.2% 0.5% 0.3% 0.5% 1.1% 0.4% 0.9% 1.3% 1.7% 0.3% 1.2% 1.2% 5.8% 13.6% 87.5% 12.5%
1.1% 0.5% 0.9% 2.6% 3.3% 1.1% 0.6% 0.9% 0.6% 0.6% 0.9% 1.0% 0.4% 0.5% 0.5% 1.3% 0.3% 1.1% 1.3% 2.2% 0.3% 1.3% 1.6% 6.7% 12.9% 77.6% 22.4%
1.1% 0.9% 1.0% 3.0% 3.6% 0.8% 0.6% 1.0% 0.8% 0.4% 1.2% 1.6% 0.4% 0.2% 0.3% 1.3% 0.4% 0.6% 1.5% 1.3% 0.2% 1.8% 0.5% 5.3% 13.0% 88.0% 12.0%
Automobile
Advertising/Promotions
Total Selling
Operating Expenses Occupancy
Telephone
Postage
Supplies/Printing
Dues/Subscriptions/Contributions
Taxes/Licenses
Insurance
Professional Fees Equip Rental/Maint
Bad Debts
Outside Services Data Processing Education/Training
Miscellaneous
Total Operating
Administrative Expenses Amortization
Depreciation Officer Life
Interest
Other
Total Administrative
Total Expenses Pre-Tax Profit
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% % Net Revenue
Compensation
Selling
Operating
Adminstrative
Average +25% Profit
+25% Growth
Information Technology Expense (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Total IT Expense for Fiscal Yr (1)
2.0%
1.9%
2.2%
(1) Includes hardware/software leasing, supplies, maintenance & maintenance contracts, training, data communications, website development/maintenance, computer depreciation, and software amortization
Page 72 2003 Best Practices Study
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