2001 Best Practices Study

Analysis of Agencies with Revenues Less Than $500,000

EXPENSE ANALYSIS (as % of Net Revenues)

Average

+25% Profit

+25% Growth

Compensation Expense Total Payroll

43.1%

31.5%

29.6%

Benefits

6.9%

6.4%

3.3%

Total Compensation

50.1%

37.9%

32.9%

Selling Expenses

T & E/Conventions

1.3% 2.9% 2.6% 6.8% 5.6% 2.2% 1.1% 2.1% 1.1% 1.0% 2.1% 0.8% 0.8% 0.2% 0.4% 2.2% 0.5% 0.7%

0.9% 2.5% 2.1% 5.4% 3.6% 1.9% 1.0% 2.2% 0.8% 0.9% 2.3% 0.9% 0.8% 0.0% 0.2% 2.0% 0.5% 0.2%

1.8% 2.5% 2.3% 6.5% 5.0% 2.1% 1.0% 2.0% 1.2% 0.3% 2.5% 0.8% 0.8% 0.0% 0.1% 3.5% 0.5% 0.3% 0.8% 1.1% 0.3% 0.7% 3.3% 6.2%

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

20.9%

17.4%

20.1%

Administrative Expenses Amortization

-0.5% 1.3% 0.4% 1.8% 1.2% 4.2% 81.9% 18.1%

-4.6% 0.6% 0.6% 0.3% 0.0% -3.0% 57.7% 42.3%

Depreciation Officer Life

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

65.7% 34.3%

10.0% 20.0% 30.0% 40.0% 50.0% 60.0% % Net Revenue

-10.0% 0.0%

Compensation

Selling

Operating

Adminstrative

Average +25% Profit

+25% Growth

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