2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $10,000,000 AND $25,000,000

EXPENSE ANALYSIS A.

Expenses Analysis (as a % of Net Revenues)

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

Compensation Expense Total Payroll

57.6% 8.9% 66.5% 1.4% 0.7% 1.0% 3.1% 3.7% 0.7% 0.5% 0.9% 0.7% 0.3% 1.6% 1.2% 0.4% 0.2% 0.7% 1.1% 0.4% 0.6% 1.0% 1.3% 0.3% 0.6% 0.5% 3.7% 13.0% 86.3% 13.7%

52.2% 7.5% 59.6% 1.4% 0.7% 0.9% 3.0% 3.3% 0.6% 0.5% 0.9% 0.7% 0.3% 1.7% 0.7% 0.5% 0.2% 0.6% 0.9% 0.3% 0.2% 0.7% 1.3% 0.2% 0.3% 0.3% 2.9% 11.4%

57.5% 10.6% 68.0% 1.4% 0.6% 1.0% 3.0% 3.1% 0.8% 0.6% 1.0% 0.6% 0.3% 1.3% 1.0% 0.3% 0.2% 0.6% 0.8% 0.3% 0.5% 1.1% 1.6% 0.4% 1.2% 1.5% 5.8% 11.5%

Benefits

PROFILE

Total Compensation

Selling Expenses

T&E/Conventions

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

PRODUCER INFO

Administrative Expenses Amortization

Depreciation Officer-Life

Interest

SERVICE STAFF INFO

Other

Total Administrative

Total Expenses Pre-Tax Profit

76.9% 88.88.4 88.4%

23.1%

11.6%

TECHNOLOGY

70%

Average

60%

+25% Profit

50%

+25% Growth

INSURANCE CARRIERS

40%

30%

20%

% Total Net Revenue

10%

APPENDIX

Compensation Expense

Operating Expense

Administrative Expense

Selling Expense

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