2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $1,250,000 AND $2,500,000

EXPENSE ANALYSIS A.

Expenses Analysis (as a % of Net Revenues)

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

Compensation Expense Total Payroll

49.0% 8.5% 57.5% 1.2% 1.1% 1.7% 4.0% 3.8% 1.2% 0.7% 1.4% 0.9% 1.1% 1.8% 0.8% 0.5% 0.0% 0.8% 1.3% 0.4% 0.6% 0.7% 1.7% 0.3% 0.3% 1.5% 4.5% 15.6% 81.6% 18.4%

36.2% 7.9% 44.1%

48.8% 7.7% 56.6% 1.4% 1.2% 1.5% 4.1% 3.3% 1.3% 0.7% 1.2% 0.9% 1.0% 1.4% 1.1% 0.9% 0.2% 0.3% 1.2% 0.5% 0.3% 1.5% 1.9% 0.5% 0.6% 0.8% 5.3% 14.4%

Benefits

PROFILE

Total Compensation

Selling Expenses

T&E/Conventions

1.3% 1.4% 1.2% 3.8%

Automobile

Advertising/Promotions

Total Selling

REVENUES/ EXPENSES

Operating Expenses Occupancy

3.3% 1.4% 0.8% 1.0% 0.7% 1.7% 1.4% 0.6% 0.4% -0.3% 0.1% 0.9% 0.4% 0.4% 12.8%

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

0.1% 1.1% 0.5% 0.0% 4.9% 6.6%

Depreciation Officer-Life

Interest

SERVICE STAFF INFO

Other

Total Administrative

Total Expenses Pre-Tax Profit

67.3% 32.7%

.88.4 80.4%

19.6%

TECHNOLOGY

70%

Average

60%

+25% Profit

50%

+25% Growth

INSURANCE CARRIERS

40%

30%

20%

% Total Net Revenue

10%

APPENDIX

Compensation Expense

Operating Expense

Administrative Expense

Selling Expense

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