2011 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

Key Benchmarks Profile

Expenses (as % of Net Revenues)

Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

49.0%

46.4%

47.8%

Payroll: “Non-Employee” - 1099 Producers/Temp Help

4.3%

3.3%

2.8%

Total Payroll

53.3%

49.7%

50.6%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.5% 2.0% 3.7% 0.2% 9.4%

3.2% 1.9% 3.0% 0.0% 8.1%

3.3% 2.2% 2.8% 0.1% 8.4%

Benefits: Other

Total Benefits

Total Compensation

62.6%

57.8%

59.0%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.2% 0.9% 0.2% 1.0% 1.9% 4.1% 4.2% 0.3% 4.5% 0.4% 0.4% 0.8% 1.7% 0.3% 1.9% 1.1% 0.5% 1.0% 0.8% 0.5% 1.6% 1.1% 0.2% 0.7% 0.4% 0.3%

1.0% 0.7% 0.1% 0.8% 1.3% 3.1% 4.0% 0.4% 4.4% 0.3% 0.1% 0.4% 1.2% 0.1% 1.2% 1.8% 0.5% 0.9% 0.6% 0.4% 1.4% 1.0% 0.2% 0.3% 0.3% 0.5%

1.3% 0.6% 0.2% 0.8% 1.6% 3.7% 3.6% 0.5% 4.1% 0.3% 0.3% 0.6% 1.5% 0.5% 2.0% 0.8% 0.4% 1.1% 0.8% 0.4% 1.1% 1.1% 0.2% 0.7% 0.4% 0.2%

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

Insurance

Professional Fees

2011 Best Practices Study

Bad Debts

Outside Services Education/Training

Agencies with Revenues Between $2,500,000 and $5,000,000

Miscellaneous

Total Operating

15.3%

13.9%

13.8%

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