2006 Best Practices Study

AGENCIES WITH REVENUES OVER $25,000,000

EXPENSE ANALYSIS

A.

Expenses Analysis (as a % of Net Revenues)

2006

+25% Profit

+25% Growth

Average

Compensation Expense Total Payroll

54.6% 10.5% 65.2%

54.3% 10.7% 65.0%

55.9% 10.2% 66.1%

Benefits

PROFILE

Total Compensation

Selling Expenses

T&E/Conventions

2.3% 1.0% 1.1% 4.4% 3.6% 0.7% 0.5% 1.2% 0.9% 0.3% 2.2% 1.2% 0.5% 0.1% 0.8% 1.4% 0.3% 0.3% 1.1% 1.5% 0.1% 0.7% 0.1% 3.5%

1.4% 0.8% 1.2% 3.4% 3.1% 0.6% 0.4% 1.4% 0.8% 0.2% 2.0% 0.9% 0.6% 0.0% 0.8% 0.7% 0.2% 0.1%

3.0% 1.1% 1.3% 5.3% 3.1% 0.7% 0.4% 1.0% 1.0% 0.3% 2.6% 1.6% 0.7% 0.1% 0.8% 1.0% 0.4% 0.5%

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

13.8%

11.7%

14.1%

PRODUCER INFO

Administrative Expenses Amortization

0.6% 1.2% 0.1% 0.3% -0.2% 2.0% 82.1% 17.9%

0.9% 1.6% 0.1% 0.5% -0.1% 3.1% 88.7% 11.3%

Depreciation Officer-Life

Interest

SERVICE STAFF INFO

Other

Total Administrative

Total Expenses Pre-Tax Profit

86.8% 13.2%

70%

TECHNOLOGY

Average

60%

+25% Profit

50%

+25% Growth

40%

INSURANCE CARRIERS

30%

20%

% Net Revenue

10%

0%

Compensation Expense

Operating Expense

Administrative Expense

Selling Expense

2006 Best Practices Study

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