2006 Best Practices Study

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

EXPENSE ANALYSIS

A.

Expenses Analysis (as a % of Net Revenues)

2006

+25% Profit

+25% Growth

Average

Compensation Expense Total Payroll

55.1%

47.5%

57.4%

Benefits

9.1%

8.8%

9.6%

PROFILE

Total Compensation

64.2%

56.3%

66.7%

Selling Expenses

T&E/Conventions

1.1% 0.8% 1.3% 3.2% 3.3% 0.7% 0.6% 1.0% 0.8% 0.3% 1.8% 0.8% 0.5% 0.2% 0.6% 1.1% 0.4% 0.5% 0.8% 1.3% 0.4% 0.4% 1.1% 4.0%

0.8% 0.6% 0.8% 2.2% 3.1% 0.7% 0.5% 0.9% 0.7% 0.2% 1.9% 0.6% 0.4% 0.3% 0.4% 0.8% 0.3% 0.8% 0.5% 1.4% 0.2% 0.3% 0.1% 2.5% 11.7% 72.6% 27.4%

0.9% 0.8% 0.9% 2.5% 2.6% 0.6% 0.6% 0.8% 0.8% 0.6% 1.8% 0.9% 0.4% 0.3% 0.4% 1.1% 0.4% 0.7% 0.6% 0.9% 0.2% 0.8% 1.9% 4.4%

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

12.7%

12.0%

PRODUCER INFO

Administrative Expenses Amortization

Depreciation Officer-Life

Interest

SERVICE STAFF INFO

Other

Total Administrative

Total Expenses Pre-Tax Profit

84.2% 15.8%

85.6% 14.4%

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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