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2015 Best

Practices Study

164

2015 Best Practices Study

Key Benchmarks

Profile

Revenues

Expenses

Profitability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

13.

Miscellaneous

— Income from countersignatures fees, gains/losses on fixed or intangible assets, life insurance

proceeds

14.

Gross Revenues

— The sum of items 6, 11, 12 & 13

15.

Brokerage Commission Expense

— Commissions paid to other agencies or outside brokers. Does NOT

include in-house producers that are paid on a 1099.

16.

Net Revenues

— Gross Revenues less Brokerage Commission Expense

EXPENSES

(as reported for most recently completed fiscal year-end and stated as a percentage of net revenues)

Compensation

Payroll:

The following payroll breakdown is for the entire agency including agency owners:

17.

Employees

— Salaries, commissions, bonuses, management fees, and discretionary owner compensation

18.

“Non-Employees” 1099 Producers /Temporary Help

— Commissions, bonuses for agency’s producers

compensated on 1099. (Does not include producers/agencies to which you pay outside broker commissions.)

Also includes expenses for outside temporary staffing, temp-to-perm staffing expenses, etc.

19.

Total Payroll

— The sum of items 17 - 18

Benefits:

20.

Payroll Taxes

— All payroll taxes

(SS, FICA, FUTA, etc.)

21.

Retirement

— Expenses related to a 401(k), ESOP/ESOT, miscellaneous retirement benefits

22.

Insurance

— Health ins, medical reimbursements, life ins (

except “key man” life

), disability insurance

23.

Other

– Wellness programs, health club memberships, gifts, etc.

24.

Total Benefits

— The sum of items 20-23

25.

Total Compensation

— The sum of items 19 & 24

Selling

26.

Travel & Entertainment/Conventions

— Airfare, meals, hotels, social/country club dues, convention related

expenses (

Excludes professional dues/memberships

)

27.

Auto Expenditures

— Lease, gas, maintenance/repair, employee parking, mileage allowances, etc.

28.

Auto Depreciation

— Depreciated expense for current year that is associated with auto only

29.

Total Auto

— The sum of items 27 & 28

30.

Advertising / Promotion

— Promotional / advertising materials, target marketing services, fees paid to

advertising or public relations agencies, media buys, contest rewards, customer relations functions, gifts,

telemarketing, etc.

31.

Total Selling

— The sum of items 26, 29 & 30

Operating

32.

Occupancy Expenditures

— Total rent, utilities, building/grounds maintenance, property taxes, janitorial

services, storage & other building related expense. (

net rental/sublet income against Occupancy Expense

)

33.

Occupancy Depreciation/Amortization

— Building depreciation, leasehold amortization

34.

Total Occupancy

— The sum of items 32 & 33

35.

Office Equipment Expenditures

— Leases and expensed equipment purchases including copier leasing/

maintenance, telephone & fax leasing/maintenance, postage meters lease/maintenance, office furniture &

fixtures leasing/maintenance

(Excludes IT equipment)