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Analysis of Agencies with Revenues
Less Than $500,000
EXPENSE ANALYSIS
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expense
Total Payroll
41.5%
28.3%
36.0%
Benefits
6.9%
5.0%
4.6%
Total Compensation
48.4%
33.3%
40.6%
Selling Expenses
T & E/Conventions
1.7%
1.0%
1.1%
Automobile
2.0%
2.5%
2.4%
Advertising/Promotions
2.5%
1.6%
2.1%
Total Selling
6.2%
5.0%
5.6%
Operating Expenses
Occupancy
4.7%
3.6%
3.9%
Telephone
2.1%
1.9%
1.9%
Postage
1.1%
0.9%
0.8%
Supplies/Printing
2.0%
1.9%
2.3%
Dues/Subscriptions/Contributions
1.3%
1.0%
1.3%
Taxes/Licenses
1.3%
0.8%
2.3%
Insurance
1.9%
1.1%
2.3%
Professional Fees
0.9%
0.5%
1.1%
Equip Rental/Maint
0.8%
0.2%
1.0%
Bad Debts
0.1%
0.0%
0.1%
Outside Services
0.5%
0.1%
0.9%
Data Processing
2.7%
1.5%
1.8%
Education/Training
0.5%
0.1%
0.7%
Miscellaneous
0.6%
0.4%
0.4%
Total Operating
20.5%
14.0%
20.9%
Administrative Expenses
Amortization
0.7%
2.0%
1.4%
Depreciation
2.3%
1.8%
2.2%
Officer Life
0.2%
0.2%
0.1%
Interest
1.2%
0.4%
0.2%
Other
0.2%
0.5%
0.5%
Total Administrative
4.4%
4.9%
4.5%
Total Expenses
79.5%
57.2%
71.5%
Pre-Tax Profit
20.5%
42.8%
28.5%
Information Technology Expense (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Total IT Expense for Fiscal Yr
(1)
3.1%
2.0%
2.6%
(1)
Includes hardware/software leasing, supplies, maintenance & maintenance contracts, training, data communications,
website development/maintenance, computer depreciation, and software amortization
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
% Net Revenue
Compensation
Selling
Operating
Adminstrative
Average +25% Profit
+25% Growth
Page 14
2003 Best Practices Study