2004 Best Practices Study

AGENCIES WITH REVENUES UNDER $500,000

EXPENSE ANALYSIS A.

Expenses Analysis (as a % of Net Revenues)

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

Compensation Expense Total Payroll

41.3% 8.5% 49.8% 1.4% 2.3% 2.6% 6.3% 4.4% 1.9% 0.8% 1.7% 1.2% 1.8% 2.8% 1.0% 0.5% 0.2% 0.4% 2.0% 0.4% 0.7% 0.2% 2.5% 0.3% 0.6% 0.7% 4.3% 19.8% 80.2% 19.8%

26.7% 2.8% 29.5% 0.8% 3.4% 3.0% 7.3% 5.2% 1.5% 0.6% 2.1% 0.6% 1.8% 1.4% 1.7% 0.2% 0.0% 0.4% 1.4% 0.4% 0.8% 0.4% 1.7% 0.6% 0.4% 0.5% 3.6% 18.1% 58.4% 41.6%

37.1% 10.8% 47.9% 1.1% 2.1% 2.7% 5.9% 3.3% 1.8% 0.8% 1.3% 0.8% 1.8% 4.4% 0.8% 0.6% 0.0% 0.3% 1.3% 0.3% 0.8% 0.4% 2.7% 0.3% 0.3% 0.0% 3.7% 18.3%

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

.4 75.8%

24.2%

TECHNOLOGY

60%

Average

50%

+25% Profit

40%

+25% Growth

INSURANCE CARRIERS

30%

20%

% Total Net Revenue

10%

APPENDIX

0%

Compensation Expense

Operating Expense

Administrative Expense

Selling Expense

16