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%

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