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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
51.1%
39.5%
50.5%
Benefits
7.9%
7.1%
7.3%
Total Compensation
59.0%
46.6%
57.9%
Selling Expenses
T & E/Conventions
1.1%
1.3%
1.0%
Automobile
1.1%
1.0%
1.3%
Advertising/Promotions
1.7%
2.0%
1.3%
Total Selling
3.9%
4.3%
3.5%
Operating Expenses
Occupancy
4.4%
4.2%
4.3%
Telephone
1.4%
1.5%
1.3%
Postage
0.7%
0.6%
0.7%
Supplies/Printing
1.2%
1.2%
1.3%
Dues/Subscriptions/Contributions
1.0%
0.7%
0.6%
Taxes/Licenses
0.4%
0.2%
0.2%
Insurance
1.4%
1.2%
1.1%
Professional Fees
0.7%
1.0%
0.8%
Equip Rental/Maint
0.7%
0.5%
0.8%
Bad Debts
0.2%
0.2%
0.2%
Outside Services
0.7%
0.4%
0.4%
Data Processing
1.2%
0.9%
1.3%
Education/Training
0.4%
0.2%
0.2%
Miscellaneous
0.6%
0.2%
0.8%
Total Operating
14.9%
13.2%
14.0%
Administrative Expenses
Amortization
0.8%
0.1%
0.3%
Depreciation
1.6%
1.0%
1.1%
Officer Life
0.4%
0.5%
0.3%
Interest
0.7%
0.2%
0.4%
Other
1.4%
0.8%
0.7%
Total Administrative
4.8%
2.7%
2.9%
Total Expenses
82.6%
66.8%
78.2%
Pre-Tax Profit
17.4%
33.2%
21.8%
Information Technology Expense (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Total IT Expense for Fiscal Yr
(1)
1.8%
1.2%
1.6%
(1)
Includes hardware/software leasing, supplies, maintenance & maintenance contracts, training, data communications,
website development/maintenance, computer depreciation, and software amortization
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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