2001 Best Practices Study

Analysis of Agencies with Revenues Between $500,000 and $1,250,000

EXPENSE ANALYSIS (as % of Net Revenues)

Average

+25% Profit

+25% Growth

Compensation Expense Total Payroll

47.7%

45.2%

45.6%

Benefits

7.6%

8.2%

6.1%

Total Compensation

55.3%

53.4%

51.7%

Selling Expenses

T & E/Conventions

1.2% 1.4% 1.8% 4.4% 4.9% 1.7% 1.0% 1.3% 1.0% 0.8% 1.6% 0.7% 0.7% 0.0% 0.7% 1.3% 0.4% 1.4% 1.6% 1.8% 0.2% 1.4% 0.1% 5.0% 17.6% 82.3% 17.7%

1.3% 1.1% 1.2% 3.6% 4.1% 1.5% 1.0% 1.4% 1.0% 0.8% 1.6% 0.6% 0.7% 0.1% 0.3% 0.9% 0.5% 0.4% 0.4% 1.4% 0.3% 0.2% 0.3% 2.6% 15.0% 74.5% 25.5%

0.9% 1.4% 1.9% 4.2% 4.0% 1.9% 1.0% 1.4% 0.9% 0.8% 1.4% 0.8% 0.8% 0.2% 0.8% 1.6% 0.3% 0.8% 1.4% 1.8% 0.3% 1.2% 0.2% 4.9% 16.8% 77.6% 22.4%

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

Administrative Expenses Amortization

Depreciation Officer Life

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% % Net Revenue

Compensation

Selling

Operating

Adminstrative

Average +25% Profit

+25% Growth

45