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Analysis of Agencies with Revenues
Between $500,000 and $1,250,000
EXPENSE ANALYSIS
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expense
Total Payroll
47.7%
45.2%
45.6%
Benefits
7.6%
8.2%
6.1%
Total Compensation
55.3%
53.4%
51.7%
Selling Expenses
T & E/Conventions
1.2%
1.3%
0.9%
Automobile
1.4%
1.1%
1.4%
Advertising/Promotions
1.8%
1.2%
1.9%
Total Selling
4.4%
3.6%
4.2%
Operating Expenses
Occupancy
4.9%
4.1%
4.0%
Telephone
1.7%
1.5%
1.9%
Postage
1.0%
1.0%
1.0%
Supplies/Printing
1.3%
1.4%
1.4%
Dues/Subscriptions/Contributions
1.0%
1.0%
0.9%
Taxes/Licenses
0.8%
0.8%
0.8%
Insurance
1.6%
1.6%
1.4%
Professional Fees
0.7%
0.6%
0.8%
Equip Rental/Maint
0.7%
0.7%
0.8%
Bad Debts
0.0%
0.1%
0.2%
Outside Services
0.7%
0.3%
0.8%
Data Processing
1.3%
0.9%
1.6%
Education/Training
0.4%
0.5%
0.3%
Miscellaneous
1.4%
0.4%
0.8%
Total Operating
17.6%
15.0%
16.8%
Administrative Expenses
Amortization
1.6%
0.4%
1.4%
Depreciation
1.8%
1.4%
1.8%
Officer Life
0.2%
0.3%
0.3%
Interest
1.4%
0.2%
1.2%
Other
0.1%
0.3%
0.2%
Total Administrative
5.0%
2.6%
4.9%
Total Expenses
82.3%
74.5%
77.6%
Pre-Tax Profit
17.7%
25.5%
22.4%
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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