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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
42.1%
24.8%
37.5%
Benefits
6.7%
5.4%
5.4%
Total Compensation
48.8%
30.2%
42.9%
Selling Expenses
T & E/Conventions
1.5%
1.2%
1.6%
Automobile
2.5%
2.1%
3.9%
Advertising/Promotions
2.6%
2.4%
2.8%
Total Selling
6.6%
5.7%
8.3%
Operating Expenses
Occupancy
5.0%
2.9%
5.1%
Telephone
2.0%
1.9%
1.8%
Postage
1.1%
1.0%
1.1%
Supplies/Printing
1.8%
2.0%
1.3%
Dues/Subscriptions/Contributions
1.1%
0.7%
1.0%
Taxes/Licenses
1.5%
0.6%
0.6%
Insurance
1.9%
1.9%
2.0%
Professional Fees
0.8%
0.5%
1.3%
Equip Rental/Maint
0.9%
0.6%
2.2%
Bad Debts
0.3%
0.4%
0.1%
Outside Services
0.4%
0.0%
0.5%
Data Processing
2.0%
2.8%
0.8%
Education/Training
0.4%
0.6%
0.5%
Miscellaneous
0.5%
0.3%
0.1%
Total Operating
19.7%
16.0%
18.3%
Administrative Expenses
Amortization
1.2%
1.6%
2.2%
Depreciation
1.4%
0.4%
0.7%
Officer Life
0.2%
0.2%
0.5%
Interest
1.6%
0.6%
1.4%
Other
0.4%
0.5%
0.1%
Total Administrative
4.9%
3.2%
4.9%
Total Expenses
80.0%
55.1%
74.4%
Pre-Tax Profit
20.0%
44.9%
25.6%
Information Technology Expense (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Total IT Expense for Fiscal Yr
(1)
3.0%
4.1%
1.5%
(1)
Includes hardware/software leasing, supplies, maintenance & maintenance contracts, training, data communications,
website development/maintenance, computer depreciation, and software amortization
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
% Net Revenue
Compensation
Selling
Operating
Adminstrative
Average +25% Profit +25% Growth
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