116 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
116
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Note: See page 163 for an explanation of column headings
Expenses
(as % of Net Revenues)
Average
Top 25% Profit Top 25% Growth
COMPENSATION EXPENSES
Payroll: Employee
53.6%
49.7%
50.3%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
1.1%
0.9%
1.5%
Total Payroll
54.7%
50.6%
51.8%
Benefits: Payroll Taxes
3.2%
2.8%
3.3%
Benefits: Retirement
1.3%
1.1%
1.1%
Benefits: Insurance
3.4%
3.0%
3.3%
Benefits: Other
0.2%
0.1%
0.2%
Total Benefits
8.1%
7.1%
7.9%
Total Compensation
62.8%
57.7%
59.7%
SELLING EXPENSES
T&E/Conventions
1.3%
1.4%
1.4%
Auto Expenditures
0.6%
0.5%
0.6%
Auto Depreciation
0.0%
0.0%
0.0%
Total Auto
0.7%
0.5%
0.6%
Advertising/Promotions
1.2%
1.0%
1.6%
Total Selling
3.1%
2.9%
3.5%
OPERATING EXPENSES
Occupancy Expenditures
3.5%
3.0%
3.7%
Occupancy Depreciation/Amortization
0.2%
0.1%
0.2%
Total Occupancy
3.7%
3.1%
3.9%
Office Equipment Expenditures
0.4%
0.2%
0.4%
Office Equipment Depreciation
0.4%
0.3%
0.3%
Total Office Equipment
0.7%
0.5%
0.7%
IT (Information Technology)
2.3%
2.6%
1.9%
IT Depreciation/Amortization
0.2%
0.1%
0.1%
Total IT
2.5%
2.6%
1.9%
Telephone
0.5%
0.5%
0.5%
Postage
0.3%
0.2%
0.3%
Supplies/Printing
0.7%
0.7%
0.7%
Dues/Subscriptions/Contributions
0.8%
1.2%
0.6%
Taxes/Licenses
0.4%
0.3%
0.3%
Insurance
1.2%
1.0%
1.0%
Professional Fees
1.2%
1.9%
0.9%
Bad Debts
0.1%
0.1%
0.2%
Outside Services
0.8%
0.6%
0.2%
Education/Training
0.4%
0.4%
0.5%
Miscellaneous
0.5%
0.3%
1.2%
Total Operating
13.8%
13.6%
12.8%
continued on next page