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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
55.9%
52.3%
55.5%
Benefits
8.8%
6.7%
8.2%
Total Compensation
64.8%
59.0%
63.7%
Selling Expenses
T & E/Conventions
2.6%
2.4%
2.3%
Automobile
1.1%
1.0%
1.1%
Advertising/Promotions
1.1%
1.0%
1.1%
Total Selling
4.8%
4.4%
4.5%
Operating Expenses
Occupancy
4.1%
3.4%
3.9%
Telephone
1.3%
1.0%
1.1%
Postage
0.7%
0.7%
0.7%
Supplies/Printing
1.4%
1.4%
1.3%
Dues/Subscriptions/Contributions
0.8%
0.9%
0.8%
Taxes/Licenses
0.3%
0.3%
0.3%
Insurance
1.3%
1.2%
1.2%
Professional Fees
1.6%
2.4%
1.5%
Equip Rental/Maint
0.7%
0.8%
0.7%
Bad Debts
0.2%
0.1%
0.1%
Outside Services
0.8%
0.6%
1.2%
Data Processing
1.2%
1.0%
0.9%
Education/Training
0.4%
0.3%
0.3%
Miscellaneous
0.5%
0.2%
0.5%
Total Operating
15.1%
14.2%
14.5%
Administrative Expenses
Amortization
1.3%
1.3%
1.3%
Depreciation
2.0%
1.7%
1.7%
Officer Life
0.2%
0.2%
0.2%
Interest
0.8%
0.9%
0.6%
Other
0.1%
0.0%
-0.1%
Total Administrative
4.4%
4.1%
3.8%
Total Expenses
89.1%
81.7%
86.6%
Pre-Tax Profit
10.9%
18.3%
13.4%
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
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