2006 Best Practices Study

AGENCIES WITH REVENUES UNDER $500,000

EXPENSE ANALYSIS

A.

Expenses Analysis (as a % of Net Revenues)

2006

+25% Profit

+25% Growth

Average

Compensation Expense Total Payroll

38.5%

31.1%

42.2%

Benefits

8.1%

3.4%

5.7%

PROFILE

Total Compensation

46.6%

34.5%

47.9%

Selling Expenses

T&E/Conventions

1.5% 3.1% 2.9% 7.5% 4.5% 1.9% 0.7% 1.4% 1.8% 1.7% 3.4% 1.0% 0.6% 0.5% 0.3% 2.1% 0.6% 0.4% 0.3% 1.9% 0.4% 0.6% 0.1% 3.4%

0.7% 2.9% 2.5% 6.1% 3.3% 1.2% 0.5% 1.2% 1.8% 0.8% 1.8% 0.6% 1.0% 0.3% 0.1% 2.3% 0.7% 0.0% 0.6% 2.1% 0.6% 0.3% 0.3% 4.0%

2.0% 1.9% 2.4% 6.4% 3.2% 1.4% 0.7% 1.0% 1.9% 0.2% 2.6% 0.6% 0.9% 0.4% 0.6% 2.6% 0.4% 0.0% 0.0% 1.7% 0.4% 0.7% 0.0% 2.8%

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

20.8%

15.7%

16.5%

PRODUCER INFO

Administrative Expenses Amortization

Depreciation Officer-Life

Interest

SERVICE STAFF INFO

Other

Total Administrative

Total Expenses Pre-Tax Profit

78.2% 21.8%

60.4% 39.6%

73.6% 26.4%

60%

TECHNOLOGY

Average

50%

+25% Profit

40%

+25% Growth

INSURANCE CARRIERS

30%

20%

% Net Revenue

10%

0%

Compensation Expense

Operating Expense

Administrative Expense

Selling Expense

2006 Best Practices Study

6