2001 Best Practices Study

Analysis of Agencies with Revenues Greater Than $10,000,000

EXPENSE ANALYSIS (as % of Net Revenues)

Average

+25% Profit

+25% Growth

Compensation Expense Total Payroll

55.9%

52.3%

55.5%

Benefits

8.8%

6.7%

8.2%

Total Compensation

64.8%

59.0%

63.7%

Selling Expenses

T & E/Conventions

2.6% 1.1% 1.1% 4.8% 4.1% 1.3% 0.7% 1.4% 0.8% 0.3% 1.3% 1.6% 0.7% 0.2% 0.8% 1.2% 0.4% 0.5% 1.3% 2.0% 0.2% 0.8% 0.1% 4.4%

2.4% 1.0% 1.0% 4.4% 3.4% 1.0% 0.7% 1.4% 0.9% 0.3% 1.2% 2.4% 0.8% 0.1% 0.6% 1.0% 0.3% 0.2% 1.3% 1.7% 0.2% 0.9% 0.0% 4.1%

2.3% 1.1% 1.1% 4.5% 3.9% 1.1% 0.7% 1.3% 0.8% 0.3% 1.2% 1.5% 0.7% 0.1% 1.2% 0.9% 0.3% 0.5%

Automobile

Advertising/Promotions

Total Selling

Operating Expenses Occupancy

Telephone

Postage

Supplies/Printing

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

Professional Fees Equip Rental/Maint

Bad Debts

Outside Services Data Processing Education/Training

Miscellaneous

Total Operating

15.1%

14.2%

14.5%

Administrative Expenses Amortization

1.3% 1.7% 0.2% 0.6% -0.1% 3.8% 86.6% 13.4%

Depreciation Officer Life

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

89.1% 10.9%

81.7% 18.3%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% % Net Revenue

Compensation

Selling

Operating

Adminstrative

Average +25% Profit

+25% Growth

136