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Analysis of Agencies with Revenues
Between $2,500,000 and $5,000,000
EXPENSE ANALYSIS
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expense
Total Payroll
58.4%
52.6%
59.4%
Benefits
8.7%
10.4%
7.9%
Total Compensation
67.0%
63.0%
67.3%
Selling Expenses
T & E/Conventions
1.4%
1.8%
2.0%
Automobile
0.8%
0.8%
1.2%
Advertising/Promotions
1.1%
1.3%
0.9%
Total Selling
3.4%
3.9%
4.1%
Operating Expenses
Occupancy
3.6%
3.7%
3.1%
Telephone
1.1%
1.0%
0.9%
Postage
0.7%
0.7%
0.5%
Supplies/Printing
1.2%
1.1%
1.0%
Dues/Subscriptions/Contributions
0.8%
0.9%
0.9%
Taxes/Licenses
0.6%
0.3%
0.7%
Insurance
1.2%
1.3%
1.2%
Professional Fees
1.0%
0.6%
1.0%
Equip Rental/Maint
0.6%
0.3%
0.8%
Bad Debts
0.4%
0.3%
0.6%
Outside Services
0.6%
0.2%
0.6%
Data Processing
1.0%
0.9%
0.6%
Education/Training
0.4%
0.4%
0.4%
Miscellaneous
0.8%
0.3%
1.2%
Total Operating
14.1%
12.0%
13.4%
Administrative Expenses
Amortization
1.5%
0.3%
0.2%
Depreciation
1.7%
1.9%
1.3%
Officer Life
0.3%
0.2%
0.3%
Interest
1.0%
0.4%
0.3%
Other
1.1%
0.1%
0.1%
Total Administrative
5.6%
3.0%
2.3%
Total Expenses
90.1%
82.0%
87.1%
Pre-Tax Profit
9.9%
18.0%
12.9%
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
90