2003 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

EXPENSE ANALYSIS (as % of Net Revenues)

Average

+25% Profit

+25% Growth

Compensation Expense Total Payroll

54.6%

48.1% 10.1% 58.2%

50.8% 10.8% 61.7%

Benefits

9.1%

Total Compensation

63.7%

Selling Expenses

T & E/Conventions

1.3% 1.0% 1.5% 3.8% 4.2% 1.2% 0.7% 1.1% 1.0% 0.4% 1.6% 0.8% 0.5% 0.1% 0.9% 1.4% 0.4% 0.4% 0.8% 1.5% 0.4% 0.6% 0.5% 3.8%

1.7% 1.0% 1.3% 4.0% 3.6% 1.3% 0.5% 0.9% 0.7% 0.1% 1.5% 0.7% 0.5% 0.1% 0.6% 1.2% 0.2% 0.1% 0.4% 1.0% 0.6% 0.2% 0.5% 2.8%

1.4% 0.9% 1.7% 4.1% 4.0% 1.3% 0.5% 0.9% 1.1% 0.3% 1.5% 0.8% 0.5% 0.1% 0.3% 1.7% 0.6% 0.5% 0.0% 1.5% 0.5% 0.4% 0.6% 3.0%

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

14.7%

12.0%

14.0%

Administrative Expenses Amortization

Depreciation Officer Life

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

85.9% 14.1%

77.0% 23.0%

82.7% 17.3%

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

Information Technology Expense (as % of Net Revenues)

Average

+25% Profit

+25% Growth

Total IT Expense for Fiscal Yr (1)

1.9%

1.4%

2.0%

(1) Includes hardware/software leasing, supplies, maintenance & maintenance contracts, training, data communications, website development/maintenance, computer depreciation, and software amortization

Page 43 2003 Best Practices Study