2006 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000

EXPENSE ANALYSIS

A.

Expenses Analysis (as a % of Net Revenues)

2006

+25% Profit

+25% Growth

Average

Compensation Expense Total Payroll

53.3%

42.5%

51.5%

Benefits

9.1%

7.1%

7.8%

PROFILE

Total Compensation

62.4%

49.6%

59.3%

Selling Expenses

T&E/Conventions

1.1% 0.9% 1.5% 3.4% 3.5% 0.8% 0.6% 1.2% 0.9% 0.5% 1.7% 0.8% 0.5% 0.2% 0.6% 1.3% 0.4% 0.4% 0.7% 1.5% 0.3% 0.3% 0.2% 3.0%

1.1% 1.0% 0.9% 3.0% 4.0% 0.9% 0.6% 1.1% 0.8% 0.2% 1.5% 0.7% 0.5% 0.1% 0.4% 1.5% 0.4% 0.4% 0.7% 1.3% 0.4% 0.3% 0.3% 3.0%

1.1% 0.8% 1.2% 3.1% 3.2% 0.7% 0.7% 1.0% 0.8% 0.2% 1.7% 0.6% 0.4% 0.2% 0.7% 1.4% 0.4% 0.4% 0.5% 1.5% 0.1% 0.2% 0.4% 2.6%

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

13.1%

13.2%

12.3%

PRODUCER INFO

Administrative Expenses Amortization

Depreciation Officer-Life

Interest

SERVICE STAFF INFO

Other

Total Administrative

Total Expenses Pre-Tax Profit

82.0% 18.0%

68.8% 31.2%

77.3% 22.7%

70%

TECHNOLOGY

Average

60%

+25% Profit

50%

+25% Growth

40%

INSURANCE CARRIERS

30%

20%

% Net Revenue

10%

0%

Compensation Expense

Operating Expense

Administrative Expense

Selling Expense

2006 Best Practices Study

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