2015 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Key Benchmarks Profile

Expenses (as % of Net Revenues)

Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Average

Top 25% Profit Top 25% Growth

COMPENSATION EXPENSES Payroll: Employee

53.6%

49.7%

50.3%

Payroll: “Non-Employee” - 1099 Producers/Temp Help

1.1%

0.9%

1.5%

Total Payroll

54.7%

50.6%

51.8%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.2% 1.3% 3.4% 0.2% 8.1% 1.3% 0.6% 0.0% 0.7% 1.2% 3.5% 0.2% 3.7% 0.4% 0.4% 0.7% 2.3% 0.2% 2.5% 0.5% 0.3% 0.7% 0.8% 0.4% 1.2% 1.2% 0.1% 0.8% 0.4% 0.5%

2.8% 1.1% 3.0% 0.1% 7.1% 1.4% 0.5% 0.0% 0.5% 1.0% 3.0% 0.1% 3.1% 0.2% 0.3% 0.5% 2.6% 0.1% 2.6% 0.5% 0.2% 0.7% 1.2% 0.3% 1.0% 1.9% 0.1% 0.6% 0.4% 0.3%

3.3% 1.1% 3.3% 0.2% 7.9% 1.4% 0.6% 0.0% 0.6% 1.6% 3.7% 0.2% 3.9% 0.4% 0.3% 0.7% 1.9% 0.1% 1.9% 0.5% 0.3% 0.7% 0.6% 0.3% 1.0% 0.9% 0.2% 0.2% 0.5% 1.2%

Benefits: Other

Total Benefits

Total Compensation SELLING EXPENSES T&E/Conventions Auto Expenditures Auto Depreciation

62.8%

57.7%

59.7%

Total Auto

Advertising/Promotions

Total Selling

3.1%

2.9%

3.5%

OPERATING EXPENSES Occupancy Expenditures

Occupancy Depreciation/Amortization

Total Occupancy

Office Equipment Expenditures Office Equipment Depreciation Total Office Equipment IT (Information Technology) IT Depreciation/Amortization

Total IT

Telephone

Postage

Supplies/Printing

2015 Best Practices Study

Dues/Subscriptions/Contributions

Taxes/Licenses

Agencies with Revenues Between $10,000,000 and $25,000,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

116

Miscellaneous

Total Operating

13.8%

13.6%

12.8%

continued on next page

Note: See page 163 for an explanation of column headings