2001 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

EXPENSE ANALYSIS (as % of Net Revenues)

Average

+25% Profit

+25% Growth

Compensation Expense Total Payroll

52.7%

44.0%

54.4%

Benefits

8.7%

7.7%

9.1%

Total Compensation

61.4%

51.7%

63.5%

Selling Expenses

T & E/Conventions

1.2% 1.1% 1.6% 3.9% 4.4% 1.5% 0.8% 1.3% 1.0% 0.4% 1.4% 0.8% 0.7% 0.1% 0.5% 0.9% 0.4% 0.5% 1.2% 1.7% 0.4% 1.0% 0.4% 4.7%

1.7% 1.1% 1.5% 4.3% 4.3% 1.4% 0.8% 1.4% 0.8% 0.3% 1.4% 0.9% 0.7% 0.0% 0.8% 1.0% 0.4% 0.3% 0.3% 1.2% 0.3% 0.6% 0.6% 2.9%

1.2% 1.1% 1.8% 4.1% 4.2% 1.3% 0.6% 1.2% 1.0% 0.8% 1.0% 1.1% 0.8% 0.1% 0.5% 1.0% 0.6% 1.0% 2.0% 1.2% 0.5% 1.5% 0.5% 5.6%

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

14.8%

14.5%

15.3%

Administrative Expenses Amortization

Depreciation Officer Life

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

84.8% 15.2%

73.3% 26.7%

88.5% 11.5%

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

68