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Analysis of Agencies with Revenues
Between $5,000,000 and $10,000,000
EXPENSE ANALYSIS
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expense
Total Payroll
57.3%
46.6%
54.5%
Benefits
8.2%
6.7%
8.4%
Total Compensation
65.4%
53.3%
62.9%
Selling Expenses
T & E/Conventions
1.3%
1.5%
1.3%
Automobile
0.9%
1.0%
0.5%
Advertising/Promotions
0.9%
0.9%
1.2%
Total Selling
3.2%
3.3%
3.0%
Operating Expenses
Occupancy
3.9%
3.4%
3.0%
Telephone
1.0%
1.0%
1.0%
Postage
0.7%
0.7%
0.6%
Supplies/Printing
1.2%
0.9%
1.2%
Dues/Subscriptions/Contributions
0.7%
0.6%
0.7%
Taxes/Licenses
0.4%
0.4%
0.5%
Insurance
1.0%
0.8%
0.7%
Professional Fees
1.2%
1.3%
0.7%
Equip Rental/Maint
0.5%
0.5%
0.5%
Bad Debts
0.3%
0.2%
0.1%
Outside Services
0.5%
0.5%
0.5%
Data Processing
1.0%
0.9%
0.7%
Education/Training
0.4%
0.3%
0.3%
Miscellaneous
0.8%
0.9%
0.9%
Total Operating
13.6%
12.3%
11.4%
Administrative Expenses
Amortization
1.1%
1.5%
0.6%
Depreciation
2.0%
1.8%
1.8%
Officer Life
0.2%
0.1%
0.1%
Interest
0.9%
1.4%
0.6%
Other
0.8%
0.7%
0.6%
Total Administrative
5.1%
5.4%
3.8%
Total Expenses
87.3%
74.4%
81.1%
Pre-Tax Profit
12.7%
25.6%
18.9%
Information Technology Expense (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Total IT Expense for Fiscal Yr
(1)
2.0%
1.8%
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
79