2000 Best Practices Study

III. Expenses (Agencies with Revenues Between $5,000,000 and $10,000,000)

Average +25% Profit +25% Growth

Compensation Expense Total Payroll

57.0% 52.1% 59.5%

Benefits

8.0%

7.3%

9.1%

Total Compensation

65.0% 59.4% 68.7%

Selling Expenses

T & E/Conventions

2.0% 0.9% 1.1% 4.0% 4.2% 1.5% 0.7% 1.3% 0.8% 0.5% 1.2% 1.0% 0.7% 0.2% 0.7% 1.2% 0.4% 1.0% 0.9% 2.0% 0.1% 1.2% 0.0% 4.2%

1.7% 0.7% 0.9% 3.3% 3.1% 1.1% 0.7% 1.1% 0.9% 0.2% 1.1% 0.8% 0.2% 0.3% 0.4% 1.3% 0.5% 0.5% 1.0% 2.0% 0.5% 0.0% 3.7%

1.8% 0.9% 1.2% 3.9% 3.8% 1.5% 0.7% 0.8% 0.8% 0.1% 1.2% 0.7% 0.5% 0.1% 0.7% 1.1% 0.3% 0.6% 0.5% 1.5% 0.7% 0.1% 2.8%

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

15.2% 12.2% 12.9%

Administrative Expenses Amortization

Depreciation Officer Life

0.1% -0.1%

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

88.4% 78.6% 88.2% 11.6% 21.4% 11.8%

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 $5,000,000 and $10,000,000

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