68 / 113
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
68 of 113
III. Expenses (Agencies with Revenues Between $2,500,000 and $5,000,000)
Average +25% Profit +25% Growth
Compensation Expense
Total Payroll
57.1% 58.1% 63.1%
Benefits
8.2%
6.9%
7.7%
Total Compensation
65.3% 65.0% 70.7%
Selling Expenses
T & E/Conventions
1.5%
2.2%
1.3%
Automobile
1.0%
1.1%
0.8%
Advertising/Promotions
1.5%
1.3%
0.7%
Total Selling
4.1%
4.5%
2.8%
Operating Expenses
Occupancy
4.1%
4.0%
3.7%
Telephone
1.3%
1.0%
1.2%
Postage
0.9%
0.7%
0.6%
Supplies/Printing
1.5%
1.2%
1.1%
Dues/Subscriptions/Contributions
0.8%
0.6%
0.7%
Taxes/Licenses
0.5%
0.8%
0.8%
Insurance
1.5%
1.3%
1.4%
Professional Fees
1.0%
1.2%
1.1%
EquipRental/Maint
0.4%
0.4%
0.4%
Bad Debts
0.2%
0.1%
0.1%
Outside Services
0.5%
0.1%
0.4%
Data Processing
1.3%
1.3%
1.3%
Education/Training
0.4%
0.3%
0.4%
Miscellaneous
0.4%
0.3%
0.3%
Total Operating
14.7% 13.4% 13.5%
Administrative Expenses
Amortization
1.3%
0.1%
0.6%
Depreciation
1.7%
0.9%
1.5%
Officer Life
0.3%
0.3%
0.3%
Interest
1.2%
0.3%
0.5%
Other
0.5%
0.0%
0.2%
Total Administrative
4.9%
1.5%
3.0%
Total Expenses
88.9% 84.4% 90.1%
Pre-Tax Profit
11.1% 15.6%
9.9%
0.0%
20.0%
40.0%
60.0%
80.0%
% Net Revenue
Compensation
Selling
Operating
Adminstrative
Average +25% Profit
+25% Growth