2000 Best Practices Study

III. Expenses (Agencies with Revenues Between $500,000 and $1,250,000)

Average +25% Profit +25% Growth

Compensation Expense Total Payroll

52.2% 53.5% 53.5%

Benefits

8.5%

8.2%

5.2%

Total Compensation

60.7% 61.7% 58.7%

Selling Expenses

T & E/Conventions

1.5% 1.4% 2.0% 4.9% 4.7% 1.7% 1.0% 1.5% 0.9% 0.6% 1.8% 1.3% 0.8% 0.5% 1.5% 0.5% 0.4% 1.2% 2.2% 0.4% 0.9% 0.2% 4.9%

1.1% 1.0% 1.5% 3.6% 3.6% 1.3% 0.9% 1.5% 0.7% 0.3% 2.2% 0.7% 0.3% 0.2% 1.1% 0.2% 0.5% 0.2% 1.9% 0.2% 0.4% 0.0% 2.8%

1.4% 1.7% 1.7% 4.9% 4.7% 1.5% 0.9% 1.6% 0.7% 0.8% 1.6% 2.6% 0.6% 0.0% 0.3% 1.2% 0.4% 0.3% 0.8% 0.9% 0.7% 1.0% 0.0% 3.4%

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

0.0% -0.1%

Miscellaneous

Total Operating

17.2% 13.4% 17.4%

Administrative Expenses Amortization

Depreciation Officer Life

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

87.7% 81.5% 84.4% 12.3% 18.5% 15.6%

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 Between $500,000 and $1,250,000

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