2006 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $500,000 AND $1,250,000

EXPENSE ANALYSIS

A.

Expenses Analysis (as a % of Net Revenues)

2006

+25% Profit

+25% Growth

Average

Compensation Expense Total Payroll

44.4%

30.8%

34.4% 11.0% 45.4%

Benefits

9.6%

6.7%

PROFILE

Total Compensation

54.0%

37.5%

Selling Expenses

T&E/Conventions

0.9% 1.5% 1.8% 4.2% 3.5% 1.2% 0.7% 1.2% 0.8% 0.5% 1.7% 0.7% 0.7% 0.1% 0.6% 1.3% 0.4% 0.7% 0.8% 0.7% 0.3% 0.6% 0.3% 2.8%

0.7% 1.2% 1.4% 3.2% 2.4% 1.1% 0.7% 1.4% 0.5% 0.5% 1.8% 0.6% 0.3% 0.0% 0.1% 1.2% 0.4% 0.1% 0.0% 0.4% 0.1% 0.1% 0.0% 0.6% 11.3% 52.7% 47.3%

1.1% 1.5% 1.5% 4.0% 3.3% 1.1% 0.8% 1.3% 0.5% 0.3% 1.8% 0.8% 0.7% 0.2% 0.2% 1.3% 0.2% 0.3% 0.0% 0.3% 0.2% 0.4% 0.0% 0.9%

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

14.1%

12.9%

PRODUCER INFO

Administrative Expenses Amortization

Depreciation Officer-Life

Interest

SERVICE STAFF INFO

Other

Total Administrative

Total Expenses Pre-Tax Profit

75.0% 25.0%

63.2% 36.8%

60%

TECHNOLOGY

Average

50%

+25% Profit

40%

+25% Growth

30%

INSURANCE CARRIERS

20%

% Net Revenue

10%

0%

Compensation Expense

Operating Expense

Administrative Expense

Selling Expense

2006 Best Practices Study

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