90 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
90
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
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
50.7%
44.6%
46.8%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.9%
6.5%
4.1%
Total Payroll
53.5%
51.1%
51.0%
Benefits: Payroll Taxes
3.2%
2.8%
3.0%
Benefits: Retirement
1.6%
1.2%
2.1%
Benefits: Insurance
3.2%
2.7%
2.7%
Benefits: Other
0.5%
0.0%
0.8%
Total Benefits
8.5%
6.8%
8.7%
Total Compensation
62.1%
57.9%
59.7%
SELLING EXPENSES
T&E/Conventions
1.1%
0.8%
1.1%
Auto Expenditures
0.7%
0.7%
0.5%
Auto Depreciation
0.1%
0.1%
0.1%
Total Auto
0.9%
0.9%
0.6%
Advertising/Promotions
1.4%
1.3%
1.2%
Total Selling
3.3%
3.0%
3.0%
OPERATING EXPENSES
Occupancy Expenditures
4.2%
4.8%
3.2%
Occupancy Depreciation/Amortization
0.1%
0.1%
0.1%
Total Occupancy
4.3%
4.9%
3.3%
Office Equipment Expenditures
0.5%
0.3%
0.7%
Office Equipment Depreciation
0.5%
0.3%
0.0%
Total Office Equipment
1.0%
0.6%
0.7%
IT (Information Technology)
2.0%
1.5%
1.9%
IT Depreciation/Amortization
0.2%
0.0%
0.2%
Total IT
2.2%
1.5%
2.0%
Telephone
0.6%
0.5%
0.4%
Postage
0.4%
0.5%
0.2%
Supplies/Printing
0.7%
0.5%
0.6%
Dues/Subscriptions/Contributions
0.8%
0.7%
0.7%
Taxes/Licenses
0.4%
0.5%
0.7%
Insurance
1.5%
1.7%
1.6%
Professional Fees
0.9%
0.7%
0.7%
Bad Debts
0.1%
0.0%
0.0%
Outside Services
0.7%
0.6%
1.0%
Education/Training
0.4%
0.3%
0.6%
Miscellaneous
0.4%
0.5%
0.4%
Total Operating
14.3%
13.6%
13.0%
continued on next page