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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
43.1%
31.5%
29.6%
Benefits
6.9%
6.4%
3.3%
Total Compensation
50.1%
37.9%
32.9%
Selling Expenses
T & E/Conventions
1.3%
0.9%
1.8%
Automobile
2.9%
2.5%
2.5%
Advertising/Promotions
2.6%
2.1%
2.3%
Total Selling
6.8%
5.4%
6.5%
Operating Expenses
Occupancy
5.6%
3.6%
5.0%
Telephone
2.2%
1.9%
2.1%
Postage
1.1%
1.0%
1.0%
Supplies/Printing
2.1%
2.2%
2.0%
Dues/Subscriptions/Contributions
1.1%
0.8%
1.2%
Taxes/Licenses
1.0%
0.9%
0.3%
Insurance
2.1%
2.3%
2.5%
Professional Fees
0.8%
0.9%
0.8%
Equip Rental/Maint
0.8%
0.8%
0.8%
Bad Debts
0.2%
0.0%
0.0%
Outside Services
0.4%
0.2%
0.1%
Data Processing
2.2%
2.0%
3.5%
Education/Training
0.5%
0.5%
0.5%
Miscellaneous
0.7%
0.2%
0.3%
Total Operating
20.9%
17.4%
20.1%
Administrative Expenses
Amortization
-0.5%
-4.6%
0.8%
Depreciation
1.3%
0.6%
1.1%
Officer Life
0.4%
0.6%
0.3%
Interest
1.8%
0.3%
0.7%
Other
1.2%
0.0%
3.3%
Total Administrative
4.2%
-3.0%
6.2%
Total Expenses
81.9%
57.7%
65.7%
Pre-Tax Profit
18.1%
42.3%
34.3%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
% Net Revenue
Compensation
Selling
Operating
Adminstrative
Average +25% Profit
+25% Growth
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