2001 Best Practices Study
Analysis of Agencies with Revenues Less Than $500,000
EXPENSE ANALYSIS (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expense Total Payroll
43.1%
31.5%
29.6%
Benefits
6.9%
6.4%
3.3%
Total Compensation
50.1%
37.9%
32.9%
Selling Expenses
T & E/Conventions
1.3% 2.9% 2.6% 6.8% 5.6% 2.2% 1.1% 2.1% 1.1% 1.0% 2.1% 0.8% 0.8% 0.2% 0.4% 2.2% 0.5% 0.7%
0.9% 2.5% 2.1% 5.4% 3.6% 1.9% 1.0% 2.2% 0.8% 0.9% 2.3% 0.9% 0.8% 0.0% 0.2% 2.0% 0.5% 0.2%
1.8% 2.5% 2.3% 6.5% 5.0% 2.1% 1.0% 2.0% 1.2% 0.3% 2.5% 0.8% 0.8% 0.0% 0.1% 3.5% 0.5% 0.3% 0.8% 1.1% 0.3% 0.7% 3.3% 6.2%
Automobile
Advertising/Promotions
Total Selling
Operating Expenses Occupancy
Telephone
Postage
Supplies/Printing
Dues/Subscriptions/Contributions
Taxes/Licenses
Insurance
Professional Fees Equip Rental/Maint
Bad Debts
Outside Services Data Processing Education/Training
Miscellaneous
Total Operating
20.9%
17.4%
20.1%
Administrative Expenses Amortization
-0.5% 1.3% 0.4% 1.8% 1.2% 4.2% 81.9% 18.1%
-4.6% 0.6% 0.6% 0.3% 0.0% -3.0% 57.7% 42.3%
Depreciation Officer Life
Interest
Other
Total Administrative
Total Expenses Pre-Tax Profit
65.7% 34.3%
10.0% 20.0% 30.0% 40.0% 50.0% 60.0% % Net Revenue
-10.0% 0.0%
Compensation
Selling
Operating
Adminstrative
Average +25% Profit
+25% Growth
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