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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
51.4%
50.7%
51.1%
Benefits
8.0%
6.7%
7.2%
Total Compensation
59.5%
57.4%
58.2%
Selling Expenses
T & E/Conventions
1.2%
0.9%
0.5%
Automobile
1.4%
1.4%
1.6%
Advertising/Promotions
1.6%
1.0%
2.0%
Total Selling
4.3%
3.4%
4.0%
Operating Expenses
Occupancy
4.6%
2.5%
4.7%
Telephone
1.7%
1.6%
1.5%
Postage
1.0%
0.8%
0.9%
Supplies/Printing
1.4%
1.3%
1.2%
Dues/Subscriptions/Contributions
1.0%
0.6%
0.8%
Taxes/Licenses
0.7%
1.2%
1.2%
Insurance
1.7%
1.6%
1.7%
Professional Fees
0.8%
0.5%
0.5%
Equip Rental/Maint
0.7%
0.5%
0.3%
Bad Debts
0.1%
0.1%
0.0%
Outside Services
0.5%
0.4%
0.1%
Data Processing
1.8%
1.3%
1.7%
Education/Training
0.4%
0.4%
0.6%
Miscellaneous
1.7%
0.1%
5.3%
Total Operating
18.1%
12.9%
20.5%
Administrative Expenses
Amortization
0.9%
-4.0%
-2.9%
Depreciation
1.5%
1.9%
1.6%
Officer Life
0.2%
0.4%
0.1%
Interest
1.7%
1.2%
0.3%
Other
0.1%
0.2%
0.2%
Total Administrative
4.3%
-0.4%
-0.7%
Total Expenses
86.1%
73.3%
82.0%
Pre-Tax Profit
13.9%
26.7%
18.0%
Information Technology Expense (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Total IT Expense for Fiscal Yr
(1)
2.3%
1.5%
2.0%
(1)
Includes hardware/software leasing, supplies, maintenance & maintenance contracts, training, data communications,
website development/maintenance, computer depreciation, and software amortization
-10.0%
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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