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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%
1.9%
2.7%
Automobile
0.9%
0.9%
0.8%
Advertising/Promotions
0.8%
1.0%
1.0%
Total Selling
4.0%
3.8%
4.5%
Operating Expenses
Occupancy
3.7%
3.7%
3.3%
Telephone
1.0%
0.7%
1.3%
Postage
0.6%
0.6%
0.6%
Supplies/Printing
1.2%
0.9%
1.1%
Dues/Subscriptions/Contributions
0.8%
0.6%
0.9%
Taxes/Licenses
0.3%
0.4%
0.2%
Insurance
1.5%
1.4%
1.6%
Professional Fees
1.2%
1.5%
1.2%
Equip Rental/Maint
0.7%
0.9%
0.7%
Bad Debts
0.2%
0.1%
0.3%
Outside Services
0.8%
0.6%
0.9%
Data Processing
1.1%
0.8%
0.8%
Education/Training
0.4%
0.3%
0.5%
Miscellaneous
0.4%
0.5%
0.5%
Total Operating
13.9%
12.9%
13.9%
Administrative Expenses
Amortization
1.1%
1.2%
0.7%
Depreciation
1.8%
1.1%
2.0%
Officer Life
0.1%
0.1%
0.1%
Interest
0.6%
0.6%
0.3%
Other
0.9%
1.2%
0.0%
Total Administrative
4.5%
4.1%
3.1%
Total Expenses
88.4%
79.5%
88.7%
Pre-Tax Profit
11.6%
20.5%
11.3%
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
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 85
2003 Best Practices Study