2010 Best Practices Study
Analysis of Agencies with Revenues Under $1,250,000
Mgmt. Perspectives
Expenses (as % of Net Revenues)
Profile
Revenues
Average
+25% Profit
+25% Growth
Compensation Expenses Payroll: Employee
Expenses
43.2%
38.1%
41.2%
Profitability
Payroll: “Non-Employee” - 1099 Producers/Temp Help
3.3%
0.8%
2.2%
Total Payroll
46.5%
38.9%
43.4%
Employee Overview
Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance
3.8% 1.5% 3.0% 0.1% 8.5%
3.4% 1.1% 2.3% 0.0% 6.8%
3.8% 1.0% 3.5% 0.2% 8.5%
Producer Info
Staff Service Info
Benefits: Other
Technology
Total Benefits
Total Compensation
55.0%
45.7%
51.9%
Insurance Carriers
Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation
1.3% 1.4% 0.4% 1.7% 1.6% 4.6% 4.9% 0.2% 5.2% 0.5% 0.2% 0.7% 1.9% 0.3% 2.1% 1.4% 0.6% 1.5% 1.1% 0.4% 2.0% 0.7% 0.2% 0.3% 0.4% 0.7%
1.0% 1.5% 0.0% 1.5% 1.6% 4.1% 3.5% 0.0% 3.5% 0.4% 0.0% 0.4% 0.8% 0.0% 0.8% 1.5% 0.5% 1.5% 1.2% 0.5% 1.3% 0.5% 0.1% 0.1% 0.4% 0.5%
1.8% 1.4% 0.3% 1.7% 1.8% 5.3% 5.2% 0.0% 5.3% 0.6% 0.3% 0.9% 2.1% 0.1% 2.3% 1.2% 0.7% 1.9% 1.1% 0.6% 1.6% 0.4% 0.4% 0.3% 0.5% 0.9%
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 Under $1,250,000
Outside Services Education/Training
Miscellaneous
Total Operating
17.2%
12.9%
18.0%
continued on next page
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