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Analysis of Agencies with Revenues
Between $1,250,000 and $2,500,000
EXPENSE ANALYSIS
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expense
Total Payroll
52.7%
44.0%
54.4%
Benefits
8.7%
7.7%
9.1%
Total Compensation
61.4%
51.7%
63.5%
Selling Expenses
T & E/Conventions
1.2%
1.7%
1.2%
Automobile
1.1%
1.1%
1.1%
Advertising/Promotions
1.6%
1.5%
1.8%
Total Selling
3.9%
4.3%
4.1%
Operating Expenses
Occupancy
4.4%
4.3%
4.2%
Telephone
1.5%
1.4%
1.3%
Postage
0.8%
0.8%
0.6%
Supplies/Printing
1.3%
1.4%
1.2%
Dues/Subscriptions/Contributions
1.0%
0.8%
1.0%
Taxes/Licenses
0.4%
0.3%
0.8%
Insurance
1.4%
1.4%
1.0%
Professional Fees
0.8%
0.9%
1.1%
Equip Rental/Maint
0.7%
0.7%
0.8%
Bad Debts
0.1%
0.0%
0.1%
Outside Services
0.5%
0.8%
0.5%
Data Processing
0.9%
1.0%
1.0%
Education/Training
0.4%
0.4%
0.6%
Miscellaneous
0.5%
0.3%
1.0%
Total Operating
14.8%
14.5%
15.3%
Administrative Expenses
Amortization
1.2%
0.3%
2.0%
Depreciation
1.7%
1.2%
1.2%
Officer Life
0.4%
0.3%
0.5%
Interest
1.0%
0.6%
1.5%
Other
0.4%
0.6%
0.5%
Total Administrative
4.7%
2.9%
5.6%
Total Expenses
84.8%
73.3%
88.5%
Pre-Tax Profit
15.2%
26.7%
11.5%
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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