2010 Best Practices Study
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
Mgmt. Perspectives
Expenses (as % of Net Revenues)
Profile
Revenues
Average
+25% Profit
+25% Growth
Compensation Expenses Payroll: Employee
Expenses
49.1%
46.2%
47.9%
Profitability
Payroll: “Non-Employee” - 1099 Producers/Temp Help
3.9%
1.4%
3.6%
Total Payroll
53.0%
47.6%
51.6%
Employee Overview
Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance
3.6% 2.0% 3.8% 0.2% 9.6%
3.8% 1.3% 3.4% 0.2% 8.7%
3.3% 2.1% 3.6% 0.3% 9.3%
Producer Info
Staff Service Info
Benefits: Other
Technology
Total Benefits
Total Compensation
62.7%
56.3%
60.9%
Insurance Carriers
Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation
1.2% 1.0% 0.0% 0.9% 2.0% 4.1% 4.2% 0.4% 4.5% 0.5% 0.5% 1.0% 1.8% 0.3% 2.1% 0.9% 0.5% 1.0% 0.7% 0.4% 1.6% 0.9% 0.2% 0.5% 0.3% 0.3%
1.0% 0.8% 0.0% 0.8% 1.7% 3.5% 3.9% 0.4% 4.3% 0.3% 0.1% 0.4% 1.8% 0.1% 1.9% 0.9% 0.6% 1.1% 0.5% 0.3% 1.5% 0.6% 0.1% 0.3% 0.3% 0.2%
1.4% 0.9% -0.4% 0.5% 1.5% 3.9% 0.4% 4.2% 0.4% 0.2% 0.6% 1.4% 0.3% 1.8% 0.7% 0.4% 1.0% 0.8% 0.3% 1.8% 1.2% 0.1% 0.5% 0.4% 0.1% 14.0% 3.4%
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 $2,500,000 and $5,000,000
Outside Services Education/Training
Miscellaneous
Total Operating
14.9%
13.2%
continued on next page
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