2001 Best Practices Study

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

58.6%

51.5%

60.5%

Benefits

8.0%

6.9%

6.8%

Total Compensation

66.6%

58.4%

67.3%

Selling Expenses

T & E/Conventions

1.4% 0.9% 1.1% 3.4% 4.3% 1.3% 0.8% 1.3% 0.7% 0.6% 1.1% 1.2% 0.6% 0.1% 0.6% 1.0% 0.4% 1.0% 1.0% 2.1% 0.3% 1.1% 0.4% 4.9%

1.6% 1.2% 0.9% 3.7% 4.2% 1.2% 0.7% 1.0% 0.7% 0.4% 1.3% 1.4% 0.8% 0.1% 0.4% 1.0% 0.3% 0.6% 1.1% 1.6% 0.3% 0.8% 0.0% 3.7%

1.4% 0.8% 1.2% 3.5% 4.7% 1.6% 0.9% 1.5% 0.8% 0.9% 0.9% 1.1% 0.8% 0.2% 0.7% 1.4% 0.4% 1.8% 1.1% 1.6% 0.3% 1.1% 0.1% 4.1%

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

15.2%

14.0%

17.7%

Administrative Expenses Amortization

Depreciation Officer Life

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

90.1%

79.8% 20.2%

92.6%

9.9%

7.4%

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

112