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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%
1.1%
1.1%
Automobile
0.8%
0.5%
0.9%
Advertising/Promotions
0.9%
0.9%
1.0%
Total Selling
2.8%
2.6%
3.0%
Operating Expenses
Occupancy
3.7%
3.3%
3.6%
Telephone
0.9%
1.1%
0.8%
Postage
0.7%
0.6%
0.6%
Supplies/Printing
1.2%
0.9%
1.0%
Dues/Subscriptions/Contributions
0.7%
0.6%
0.8%
Taxes/Licenses
0.4%
0.6%
0.4%
Insurance
1.2%
0.9%
1.2%
Professional Fees
1.2%
1.0%
1.6%
Equip Rental/Maint
0.5%
0.4%
0.4%
Bad Debts
0.3%
0.5%
0.2%
Outside Services
0.5%
0.5%
0.3%
Data Processing
1.1%
1.3%
1.3%
Education/Training
0.4%
0.3%
0.4%
Miscellaneous
0.9%
1.1%
0.6%
Total Operating
13.6%
12.9%
13.0%
Administrative Expenses
Amortization
1.3%
1.3%
1.5%
Depreciation
1.7%
2.2%
1.3%
Officer Life
0.3%
0.3%
0.2%
Interest
1.2%
1.3%
1.8%
Other
1.2%
1.6%
0.5%
Total Administrative
5.8%
6.7%
5.3%
Total Expenses
87.5%
77.6%
88.0%
Pre-Tax Profit
12.5%
22.4%
12.0%
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
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 72
2003 Best Practices Study