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Analysis of Agencies with Revenues
Greater Than $10,000,000
EXPENSE ANALYSIS
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expense
Total Payroll
56.6%
51.8%
56.5%
Benefits
9.2%
7.9%
8.4%
Total Compensation
65.9%
59.7%
64.9%
Selling Expenses
T & E/Conventions
2.5%
1.9%
2.9%
Automobile
1.0%
0.8%
1.3%
Advertising/Promotions
0.9%
0.7%
0.7%
Total Selling
4.3%
3.5%
4.9%
Operating Expenses
Occupancy
4.0%
3.8%
3.7%
Telephone
1.1%
1.0%
1.1%
Postage
0.7%
0.8%
0.7%
Supplies/Printing
1.3%
1.4%
1.1%
Dues/Subscriptions/Contributions
0.8%
0.6%
0.8%
Taxes/Licenses
0.4%
0.4%
0.3%
Insurance
1.3%
1.7%
1.4%
Professional Fees
1.2%
1.1%
1.8%
Equip Rental/Maint
0.7%
1.1%
0.8%
Bad Debts
0.2%
0.1%
0.3%
Outside Services
0.7%
0.9%
0.9%
Data Processing
1.2%
0.7%
1.0%
Education/Training
0.4%
0.3%
0.4%
Miscellaneous
0.5%
0.5%
0.6%
Total Operating
14.4%
14.3%
14.9%
Administrative Expenses
Amortization
1.2%
1.3%
0.5%
Depreciation
1.8%
1.7%
1.3%
Officer Life
0.2%
0.3%
0.2%
Interest
0.8%
1.2%
0.3%
Other
0.8%
0.6%
1.3%
Total Administrative
4.8%
5.0%
3.7%
Total Expenses
89.5%
82.5%
88.4%
Pre-Tax Profit
10.5%
17.5%
11.6%
Information Technology Expense (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Total IT Expense for Fiscal Yr
(1)
2.4%
1.8%
2.0%
(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
95