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Analysis of Agencies with Revenues
Between $1,250,000 and $2,500,000
EXPENSE ANALYSIS
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expense
Total Payroll
54.6%
48.1%
50.8%
Benefits
9.1%
10.1%
10.8%
Total Compensation
63.7%
58.2%
61.7%
Selling Expenses
T & E/Conventions
1.3%
1.7%
1.4%
Automobile
1.0%
1.0%
0.9%
Advertising/Promotions
1.5%
1.3%
1.7%
Total Selling
3.8%
4.0%
4.1%
Operating Expenses
Occupancy
4.2%
3.6%
4.0%
Telephone
1.2%
1.3%
1.3%
Postage
0.7%
0.5%
0.5%
Supplies/Printing
1.1%
0.9%
0.9%
Dues/Subscriptions/Contributions
1.0%
0.7%
1.1%
Taxes/Licenses
0.4%
0.1%
0.3%
Insurance
1.6%
1.5%
1.5%
Professional Fees
0.8%
0.7%
0.8%
Equip Rental/Maint
0.5%
0.5%
0.5%
Bad Debts
0.1%
0.1%
0.1%
Outside Services
0.9%
0.6%
0.3%
Data Processing
1.4%
1.2%
1.7%
Education/Training
0.4%
0.2%
0.6%
Miscellaneous
0.4%
0.1%
0.5%
Total Operating
14.7%
12.0%
14.0%
Administrative Expenses
Amortization
0.8%
0.4%
0.0%
Depreciation
1.5%
1.0%
1.5%
Officer Life
0.4%
0.6%
0.5%
Interest
0.6%
0.2%
0.4%
Other
0.5%
0.5%
0.6%
Total Administrative
3.8%
2.8%
3.0%
Total Expenses
85.9%
77.0%
82.7%
Pre-Tax Profit
14.1%
23.0%
17.3%
Information Technology Expense (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Total IT Expense for Fiscal Yr
(1)
1.9%
1.4%
2.0%
(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%
60.0%
70.0%
% Net Revenue
Compensation
Selling
Operating
Adminstrative
Average +25% Profit
+25% Growth
Page 43
2003 Best Practices Study