38 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
38
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
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
46.0%
43.8%
45.3%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.2%
0.1%
5.9%
Total Payroll
48.3%
43.9%
51.2%
Benefits: Payroll Taxes
3.7%
2.9%
3.6%
Benefits: Retirement
1.8%
1.2%
1.2%
Benefits: Insurance
2.8%
2.2%
2.4%
Benefits: Other
0.2%
0.2%
0.5%
Total Benefits
8.5%
6.4%
7.8%
Total Compensation
56.8%
50.3%
59.0%
SELLING EXPENSES
T&E/Conventions
1.6%
1.8%
1.9%
Auto Expenditures
1.1%
1.4%
1.0%
Auto Depreciation
0.2%
0.2%
0.1%
Total Auto
1.3%
1.5%
1.0%
Advertising/Promotions
1.6%
0.8%
3.2%
Total Selling
4.5%
4.2%
6.2%
OPERATING EXPENSES
Occupancy Expenditures
5.8%
5.7%
6.8%
Occupancy Depreciation/Amortization
0.1%
0.2%
0.0%
Total Occupancy
5.9%
5.9%
6.8%
Office Equipment Expenditures
0.5%
0.6%
0.5%
Office Equipment Depreciation
0.6%
0.0%
1.4%
Total Office Equipment
1.0%
0.6%
1.9%
IT (Information Technology)
2.4%
2.0%
3.0%
IT Depreciation/Amortization
0.1%
0.0%
0.1%
Total IT
2.5%
2.0%
3.1%
Telephone
1.0%
0.7%
1.0%
Postage
0.4%
0.4%
0.4%
Supplies/Printing
1.0%
1.1%
1.1%
Dues/Subscriptions/Contributions
0.8%
0.4%
1.0%
Taxes/Licenses
0.4%
0.4%
0.3%
Insurance
1.6%
1.5%
1.3%
Professional Fees
0.8%
0.4%
1.2%
Bad Debts
0.1%
0.0%
0.0%
Outside Services
0.6%
0.1%
0.4%
Education/Training
0.4%
0.3%
0.4%
Miscellaneous
0.6%
0.0%
1.2%
Total Operating
16.8%
14.0%
20.2%
continued on next page