64 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
64
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
45.5%
36.1%
45.4%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.9%
4.3%
5.0%
Total Payroll
48.4%
40.4%
50.5%
Benefits: Payroll Taxes
3.3%
2.7%
3.0%
Benefits: Retirement
1.6%
1.8%
1.4%
Benefits: Insurance
3.3%
3.0%
2.9%
Benefits: Other
0.2%
0.0%
0.1%
Total Benefits
8.5%
7.5%
7.4%
Total Compensation
56.9%
47.9%
57.9%
SELLING EXPENSES
T&E/Conventions
1.3%
1.2%
1.4%
Auto Expenditures
0.9%
0.6%
0.8%
Auto Depreciation
0.2%
0.3%
0.2%
Total Auto
1.1%
0.9%
1.0%
Advertising/Promotions
1.6%
1.9%
1.6%
Total Selling
4.0%
4.1%
4.0%
OPERATING EXPENSES
Occupancy Expenditures
4.0%
3.5%
3.7%
Occupancy Depreciation/Amortization
0.2%
0.1%
0.0%
Total Occupancy
4.2%
3.6%
3.7%
Office Equipment Expenditures
0.3%
0.2%
0.4%
Office Equipment Depreciation
0.4%
0.3%
0.4%
Total Office Equipment
0.7%
0.5%
0.8%
IT (Information Technology)
2.1%
1.4%
2.0%
IT Depreciation/Amortization
0.2%
0.1%
0.1%
Total IT
2.3%
1.5%
2.1%
Telephone
0.6%
0.6%
0.6%
Postage
0.4%
0.5%
0.3%
Supplies/Printing
1.0%
0.9%
0.9%
Dues/Subscriptions/Contributions
0.8%
0.7%
0.9%
Taxes/Licenses
0.4%
0.5%
0.5%
Insurance
1.4%
1.1%
1.2%
Professional Fees
0.6%
0.5%
0.6%
Bad Debts
0.1%
0.0%
0.1%
Outside Services
0.7%
0.1%
0.9%
Education/Training
0.4%
0.4%
0.3%
Miscellaneous
0.4%
0.5%
0.6%
Total Operating
14.0%
11.4%
13.3%
continued on next page