2006 Best Practices Study

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

EXPENSE ANALYSIS

A.

Expenses Analysis (as a % of Net Revenues)

2006

+25% Profit

+25% Growth

Average

Compensation Expense Total Payroll

50.4%

51.7%

49.5%

Benefits

8.4%

7.3%

7.2%

PROFILE

Total Compensation

58.8%

59.0%

56.7%

Selling Expenses

T&E/Conventions

1.4% 1.2% 1.6% 4.1% 3.8% 0.9% 0.7% 1.4% 0.8% 0.6% 2.1% 0.8% 0.4% 0.2% 0.7% 1.5% 0.4% 0.5% 1.0% 1.5% 0.3% 0.6% 2.1% 5.6%

1.4% 1.1% 1.1% 3.6% 3.0% 1.0% 0.7% 1.1% 0.5% 0.2% 2.3% 0.6% 0.5% 0.1% 0.1% 0.8% 0.2% 0.3% 0.1% 1.5% 0.5% 0.1% 6.8% 8.9% 11.5% 83.1% 16.9%

1.7% 1.4% 1.5% 4.6% 3.8% 0.9% 0.7% 1.3% 0.8% 0.3% 2.4% 0.6% 0.5% 0.1% 0.1% 1.4% 0.4% 0.1% 0.7% 2.6% 0.4% 0.2% 2.1% 6.0%

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

14.9%

13.2%

PRODUCER INFO

Administrative Expenses Amortization

Depreciation Officer-Life

Interest

SERVICE STAFF INFO

Other

Total Administrative

Total Expenses Pre-Tax Profit

83.4% 16.6%

80.6% 19.4%

60%

TECHNOLOGY

Average

50%

+25% Profit

40%

+25% Growth

30%

INSURANCE CARRIERS

20%

% Net Revenue

10%

0%

Compensation Expense

Operating Expense

Administrative Expense

Selling Expense

2006 Best Practices Study

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