2015 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

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

38.2%

28.2%

31.9% 12.6% 44.5%

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

5.3%

0.9%

Total Payroll

43.5%

29.1%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.3% 1.3% 2.8% 0.3% 7.7% 1.1% 1.6% 0.1% 1.7% 1.7% 4.2% 0.1% 4.3% 0.3% 0.1% 0.4% 2.3% 0.1% 2.4% 1.3% 0.4% 1.3% 1.0% 0.8% 1.8% 0.7% 0.0% 0.3% 0.3% 0.6%

2.1% 1.3% 0.7% 1.0% 5.1% 1.0% 1.2% 0.0% 1.2% 2.2% 2.5% 0.0% 2.5% 0.2% 0.0% 0.2% 1.1% 0.0% 1.1% 0.8% 0.3% 1.5% 0.5% 0.4% 1.0% 0.4% 0.0% 0.0% 0.1% 0.5%

3.1% 0.7% 2.7% 0.0% 6.5% 1.1% 1.1% 0.0% 1.1% 1.6% 5.2% 0.1% 5.3% 0.4% 0.0% 0.4% 2.5% 0.0% 2.5% 1.4% 0.4% 1.3% 1.4% 0.7% 2.1% 0.5% 0.0% 0.4% 0.3% 2.3%

Benefits: Other

Total Benefits

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

51.1%

34.1%

50.9%

Total Auto

Advertising/Promotions

Total Selling

4.5%

4.5%

3.8%

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 Under $1,250,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

12

Miscellaneous

Total Operating

15.7%

9.4%

19.0%

continued on next page

Note: See page 163 for an explanation of column headings