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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
57.3%
56.0%
62.1%
Benefits
8.5%
7.4%
7.7%
Total Compensation
65.8%
63.4%
69.8%
Selling Expenses
T & E/Conventions
1.2%
1.7%
1.1%
Automobile
0.9%
0.8%
0.6%
Advertising/Promotions
1.2%
1.0%
1.5%
Total Selling
3.4%
3.5%
3.1%
Operating Expenses
Occupancy
3.7%
3.6%
3.9%
Telephone
1.1%
1.0%
1.1%
Postage
0.7%
0.6%
0.6%
Supplies/Printing
1.2%
1.1%
1.1%
Dues/Subscriptions/Contributions
0.9%
0.7%
0.8%
Taxes/Licenses
0.5%
0.3%
0.3%
Insurance
1.2%
0.9%
0.9%
Professional Fees
1.1%
0.7%
0.9%
Equip Rental/Maint
0.7%
0.8%
0.3%
Bad Debts
0.3%
0.2%
0.1%
Outside Services
0.7%
0.7%
0.6%
Data Processing
1.2%
0.9%
1.3%
Education/Training
0.4%
0.3%
0.5%
Miscellaneous
0.5%
0.2%
0.9%
Total Operating
14.3%
12.2%
13.2%
Administrative Expenses
Amortization
1.3%
0.7%
0.8%
Depreciation
1.4%
1.3%
1.4%
Officer Life
0.3%
0.4%
0.3%
Interest
1.1%
0.6%
0.8%
Other
0.5%
0.0%
0.1%
Total Administrative
4.6%
3.0%
3.4%
Total Expenses
88.2%
82.0%
89.5%
Pre-Tax Profit
11.8%
18.0%
10.5%
Information Technology Expense (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Total IT Expense for Fiscal Yr
(1)
1.9%
1.6%
1.8%
(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%
70.0%
% Net Revenue
Compensation
Selling
Operating
Adminstrative
Average +25% Profit +25% Growth
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