2003 Best Practices Study
Analysis of Agencies with Revenues Greater Than $10,000,000
EXPENSE ANALYSIS (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expense Total Payroll
56.7%
51.9%
58.3%
Benefits
9.4%
6.8%
8.9%
Total Compensation
66.0%
58.7%
67.2%
Selling Expenses
T & E/Conventions
2.3% 0.9% 0.8% 4.0% 3.7% 1.0% 0.6% 1.2% 0.8% 0.3% 1.5% 1.2% 0.7% 0.2% 0.8% 1.1% 0.4% 0.4% 1.1% 1.8% 0.1% 0.6% 0.9% 4.5%
1.9% 0.9% 1.0% 3.8% 3.7% 0.7% 0.6% 0.9% 0.6% 0.4% 1.4% 1.5% 0.9% 0.1% 0.6% 0.8% 0.3% 0.5% 1.2% 1.1% 0.1% 0.6% 1.2% 4.1%
2.7% 0.8% 1.0% 4.5% 3.3% 1.3% 0.6% 1.1% 0.9% 0.2% 1.6% 1.2% 0.7% 0.3% 0.9% 0.8% 0.5% 0.5% 0.7% 2.0% 0.1% 0.3% 0.0% 3.1%
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
13.9%
12.9%
13.9%
Administrative Expenses Amortization
Depreciation Officer Life
Interest
Other
Total Administrative
Total Expenses Pre-Tax Profit
88.4% 11.6%
79.5% 20.5%
88.7% 11.3%
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)
2.1%
1.5%
1.8%
(1) Includes hardware/software leasing, supplies, maintenance & maintenance contracts, training, data communications, website development/maintenance, computer depreciation, and software amortization
Page 85 2003 Best Practices Study
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