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%

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