2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $5,000,000 AND $10,000,000

EXPENSE ANALYSIS A.

Expenses Analysis (as a % of Net Revenues)

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

Compensation Expense Total Payroll

57.3% 8.5% 65.9% 1.3% 0.7% 1.2% 3.3% 3.2% 0.9% 0.6% 1.1% 0.7% 0.4% 1.5% 1.0% 0.5% 0.4% 0.6% 1.0% 0.3% 0.6% 1.2% 1.4% 0.3% 0.6% 1.1% 4.7% 12.8% 86.6% 13.4%

55.1% 8.4% 63.5% 1.1% 0.5% 0.7% 2.3% 2.8% 1.0% 0.5% 0.9% 0.6% 0.3% 0.9% 0.6% 0.4% 0.2% 0.6% 0.7% 0.3% 0.3% 0.3% 1.5% 0.1% 0.1% 0.8% 2.9% 10.1% 78.8% 21.2%

60.1% 10.1% 70.2% 1.1% 0.7% 1.0% 2.8% 3.6% 0.9% 0.6% 0.9% 0.5% 0.7% 1.4% 0.8% 0.5% 0.2% 0.8% 0.9% 0.2% 0.6% 1.1% 1.1% 0.3% 0.2% 0.6% 3.3% 12.8%

Benefits

PROFILE

Total Compensation

Selling Expenses

T&E/Conventions

Automobile

Advertising/Promotions

Total Selling

REVENUES/ EXPENSES

Operating Expenses Occupancy

Telephone

Postage

Supplies/Printing

FINANCIAL STABILITY

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

Professional Fees

Equipment Rental/Maintenance

Bad Debts

EMPLOYEE OVERVIEW

Outside Services

Information Technology Education/Training

Miscellaneous

Total Operating

PRODUCER INFO

Administrative Expenses Amortization

Depreciation Officer-Life

Interest

SERVICE STAFF INFO

Other

Total Administrative

Total Expenses Pre-Tax Profit

88.4 89.1%

10.9%

TECHNOLOGY

80%

Average

70%

60%

+25% Profit

+25% Growth

50%

INSURANCE CARRIERS

40%

30%

% Total Net Revenue 20%

10%

APPENDIX

Compensation Expense

Operating Expense

Administrative Expense

Selling Expense

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