2010 Best Practices Study
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
Mgmt. Perspectives
Expenses (as % of Net Revenues)
Profile
Revenues
Average
+25% Profit
+25% Growth
Compensation Expenses Payroll: Employee
Expenses
47.4%
36.0%
46.9%
Profitability
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.0%
0.7%
1.7%
Total Payroll
49.4%
36.7%
48.6%
Employee Overview
Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance
3.3% 1.8% 3.3% 0.2% 8.7%
2.3% 2.1% 2.6% 0.1% 7.2%
4.3% 1.5% 3.6% 0.1% 9.5%
Producer Info
Staff Service Info
Benefits: Other
Technology
Total Benefits
Total Compensation
58.1%
43.8%
58.1%
Insurance Carriers
Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation
1.0% 0.8% 0.2% 1.0% 1.2% 3.2% 4.9% 0.2% 5.0% 0.4% 0.4% 0.9% 1.8% 0.2% 2.0% 1.0% 0.5% 1.0% 0.8% 0.4% 1.7% 1.0% 0.1% 0.6% 0.4% 0.3%
1.2% 0.8% 0.2% 0.9% 1.1% 3.2% 4.6% -0.1% 4.4% 0.5% 0.3% 0.8% 1.9% 0.2% 2.1% 0.8% 0.5% 1.0% 0.7% 0.4% 1.4% 1.1% 0.2% 0.0% 0.4% 0.1% 13.7%
0.8% 0.6% 0.1% 0.7% 1.2% 2.7%
Appendix
Total Auto
Advertising/Promotions
Total Selling
Operating Expenses Occupancy Expenditures
4.8% -0.1% 4.7% 0.6% 0.1% 0.7% 1.7% 0.1% 1.8% 0.9% 0.5% 1.1% 0.6% 0.5% 1.8% 0.7% 0.1% 0.2% 0.3% 0.4%
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 $1,250,000 and $2,500,000
Outside Services Education/Training
Miscellaneous
Total Operating
15.7%
14.3%
continued on next page
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