2000 Best Practices Study

III. Expenses (Agencies with Revenues Greater Than $10,000,000)

Average +25% Profit +25% Growth

Compensation Expense Total Payroll

56.9% 54.7% 58.5%

Benefits

9.4%

9.1%

9.6%

Total Compensation

66.2% 63.8% 68.1%

Selling Expenses

T & E/Conventions

2.5% 1.1% 1.0% 4.7% 4.0% 1.4% 0.8% 1.4% 0.9% 0.3% 1.2% 1.3% 0.7% 0.3% 0.5% 1.0% 0.4% 0.8% 1.4% 1.9% 0.2% 0.8% 0.9% 5.2%

2.8% 1.0% 1.0% 4.8% 3.0% 1.3% 0.8% 1.3% 0.9% 0.4% 1.1% 1.6% 1.1% 0.1% 0.5% 0.3% 0.5% 0.2% 0.7% 2.3% 0.1% 1.0% 0.1% 4.3%

2.6% 1.3% 0.9% 4.8% 3.4% 1.7% 0.8% 1.2% 1.1% 0.4% 0.9% 1.1% 0.7% 0.2% 0.9% 1.2% 0.4% 0.5% 0.7% 1.8% 0.2% 0.2% 0.0% 2.9%

Automobile

Advertising/Promotions

Total Selling

Operating Expenses Occupancy

Telephone

Postage

Supplies/Printing

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

Professional Fees Equip Rental/Maint Outside Services Data Processing Education/Training Bad Debts

Miscellaneous

Total Operating

15.0% 13.1% 14.6%

Administrative Expenses Amortization

Depreciation Officer Life

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

91.2% 86.0% 90.3%

8.8% 14.0%

9.7%

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

Analysis of Agencies with Revenues Greater Than $10,000,000

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