2010 Best Practices Study
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Mgmt. Perspectives
Expenses (as % of Net Revenues)
Profile
Revenues
Average
+25% Profit
+25% Growth
Compensation Expenses Payroll: Employee
Expenses
54.0%
48.5%
51.7%
Profitability
Payroll: “Non-Employee” - 1099 Producers/Temp Help
4.8%
3.2%
5.8%
Total Payroll
58.8%
51.6%
57.5%
Employee Overview
Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance
3.1% 1.6% 3.2% 0.7% 8.6%
3.1% 1.8% 3.0% 0.0% 7.9%
3.0% 0.9% 2.6% 0.2% 6.8%
Producer Info
Staff Service Info
Benefits: Other
Technology
Total Benefits
Total Compensation
67.3%
59.6%
64.2%
Insurance Carriers
Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation
1.4% 0.8% 0.1% 0.8% 0.8% 3.0% 4.1% 0.2% 4.3% 0.4% 0.4% 0.8% 1.3% 0.4% 1.7% 0.7% 0.3% 0.6% 0.6% 0.3% 1.4% 1.0% 0.1% 1.0% 0.3% 0.5%
1.4% 0.8% 0.0% 0.8% 0.6% 2.8% 3.3% 0.3% 3.6% 0.3% 0.3% 0.6% 1.2% 0.4% 1.6% 0.5% 0.3% 0.5% 0.5% 0.2% 1.4% 1.1% 0.1% 0.4% 0.2% 0.5%
1.7% 0.7% 0.1% 0.8% 0.9% 3.5% 3.6% 0.1% 3.8% 0.3% 0.3% 0.6% 0.9% 0.5% 1.4% 0.6% 0.3% 0.7% 0.5% 0.3% 1.1% 1.1% 0.2% 0.6% 0.3% 0.6%
Appendix
Total Auto
Advertising/Promotions
Total Selling
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
Dues/Subscriptions/Contributions
Taxes/Licenses
2010 Best Practices Study
Insurance
Professional Fees
Bad Debts
Agencies with Revenues Between $10,000,000 and $25,000,000
Outside Services Education/Training
Miscellaneous
Total Operating
13.7%
11.4%
12.1%
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