2001 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

EXPENSE ANALYSIS (as % of Net Revenues)

Average

+25% Profit

+25% Growth

Compensation Expense Total Payroll

58.4%

52.6% 10.4% 63.0%

59.4%

Benefits

8.7%

7.9%

Total Compensation

67.0%

67.3%

Selling Expenses

T & E/Conventions

1.4% 0.8% 1.1% 3.4% 3.6% 1.1% 0.7% 1.2% 0.8% 0.6% 1.2% 1.0% 0.6% 0.4% 0.6% 1.0% 0.4% 0.8% 1.5% 1.7% 0.3% 1.0% 1.1% 5.6%

1.8% 0.8% 1.3% 3.9% 3.7% 1.0% 0.7% 1.1% 0.9% 0.3% 1.3% 0.6% 0.3% 0.3% 0.2% 0.9% 0.4% 0.3% 0.3% 1.9% 0.2% 0.4% 0.1% 3.0%

2.0% 1.2% 0.9% 4.1% 3.1% 0.9% 0.5% 1.0% 0.9% 0.7% 1.2% 1.0% 0.8% 0.6% 0.6% 0.6% 0.4% 1.2% 0.2% 1.3% 0.3% 0.3% 0.1% 2.3%

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

14.1%

12.0%

13.4%

Administrative Expenses Amortization

Depreciation Officer Life

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

90.1%

82.0% 18.0%

87.1% 12.9%

9.9%

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

90