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Analysis of Agencies with Revenues
Between $500,000 and $1,250,000
EXPENSE ANALYSIS
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expense
Total Payroll
52.1%
51.5%
51.7%
Benefits
8.9%
6.7%
7.3%
Total Compensation
61.0%
58.2%
59.0%
Selling Expenses
T & E/Conventions
1.3%
0.9%
2.2%
Automobile
1.6%
1.5%
2.0%
Advertising/Promotions
1.6%
1.2%
1.7%
Total Selling
4.4%
3.5%
5.9%
Operating Expenses
Occupancy
4.4%
3.1%
4.8%
Telephone
1.6%
1.3%
1.5%
Postage
0.9%
0.9%
1.0%
Supplies/Printing
1.8%
1.4%
2.5%
Dues/Subscriptions/Contributions
1.0%
0.8%
1.5%
Taxes/Licenses
0.3%
0.2%
0.5%
Insurance
1.9%
1.2%
2.2%
Professional Fees
0.8%
0.7%
0.8%
Equip Rental/Maint
0.6%
0.4%
1.1%
Bad Debts
0.2%
0.1%
0.1%
Outside Services
0.6%
0.2%
0.5%
Data Processing
2.2%
2.0%
2.2%
Education/Training
0.5%
0.4%
0.8%
Miscellaneous
1.3%
3.7%
0.5%
Total Operating
18.1%
16.4%
19.8%
Administrative Expenses
Amortization
0.6%
-4.7%
2.4%
Depreciation
1.4%
1.5%
2.1%
Officer Life
0.2%
0.2%
0.2%
Interest
1.7%
0.1%
1.5%
Other
0.0%
0.0%
0.0%
Total Administrative
3.8%
-2.9%
6.2%
Total Expenses
87.3%
75.3%
91.0%
Pre-Tax Profit
12.7%
24.7%
9.0%
Information Technology Expense (as % of Net Revenues)
Average
+25% Profit
+25% Growth
Total IT Expense for Fiscal Yr
(1)
2.9%
2.9%
3.6%
(1)
Includes hardware/software leasing, supplies, maintenance & maintenance contracts, training, data communications,
website development/maintenance, computer depreciation, and software amortization
-10.0%
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
Page 28
2003 Best Practices Study