12 / 168
2015 Best
Practices Study
Agencies
with
Revenues
Under
$1,250,000
12
Analysis of Agencies with Revenues Under $1,250,000
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
38.2%
28.2%
31.9%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
5.3%
0.9%
12.6%
Total Payroll
43.5%
29.1%
44.5%
Benefits: Payroll Taxes
3.3%
2.1%
3.1%
Benefits: Retirement
1.3%
1.3%
0.7%
Benefits: Insurance
2.8%
0.7%
2.7%
Benefits: Other
0.3%
1.0%
0.0%
Total Benefits
7.7%
5.1%
6.5%
Total Compensation
51.1%
34.1%
50.9%
SELLING EXPENSES
T&E/Conventions
1.1%
1.0%
1.1%
Auto Expenditures
1.6%
1.2%
1.1%
Auto Depreciation
0.1%
0.0%
0.0%
Total Auto
1.7%
1.2%
1.1%
Advertising/Promotions
1.7%
2.2%
1.6%
Total Selling
4.5%
4.5%
3.8%
OPERATING EXPENSES
Occupancy Expenditures
4.2%
2.5%
5.2%
Occupancy Depreciation/Amortization
0.1%
0.0%
0.1%
Total Occupancy
4.3%
2.5%
5.3%
Office Equipment Expenditures
0.3%
0.2%
0.4%
Office Equipment Depreciation
0.1%
0.0%
0.0%
Total Office Equipment
0.4%
0.2%
0.4%
IT (Information Technology)
2.3%
1.1%
2.5%
IT Depreciation/Amortization
0.1%
0.0%
0.0%
Total IT
2.4%
1.1%
2.5%
Telephone
1.3%
0.8%
1.4%
Postage
0.4%
0.3%
0.4%
Supplies/Printing
1.3%
1.5%
1.3%
Dues/Subscriptions/Contributions
1.0%
0.5%
1.4%
Taxes/Licenses
0.8%
0.4%
0.7%
Insurance
1.8%
1.0%
2.1%
Professional Fees
0.7%
0.4%
0.5%
Bad Debts
0.0%
0.0%
0.0%
Outside Services
0.3%
0.0%
0.4%
Education/Training
0.3%
0.1%
0.3%
Miscellaneous
0.6%
0.5%
2.3%
Total Operating
15.7%
9.4%
19.0%
continued on next page