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2010 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
104
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
52.7%
45.5%
48.2%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
5.0%
5.1%
8.4%
Total Payroll
57.7%
50.6%
56.6%
Benefits: Payroll Taxes
3.1%
2.8%
2.9%
Benefits: Retirement
1.9%
1.4%
1.4%
Benefits: Insurance
3.6%
3.0%
2.9%
Benefits: Other
0.3%
0.3%
0.2%
Total Benefits
8.9%
7.5%
7.4%
Total Compensation
66.6%
58.1%
64.0%
Selling Expenses
T&E/Conventions
0.9%
0.8%
0.8%
Auto Expenditures
0.8%
0.7%
0.9%
Auto Depreciation
0.1%
0.2%
0.2%
Total Auto
0.9%
0.9%
1.1%
Advertising/Promotions
1.3%
0.8%
1.8%
Total Selling
3.1%
2.5%
3.6%
Operating Expenses
Occupancy Expenditures
4.2%
3.8%
4.7%
Occupancy Depreciation/Amortization
0.2%
0.2%
0.2%
Total Occupancy
4.4%
4.0%
4.9%
Office Equipment Expenditures
0.3%
0.2%
0.4%
Office Equipment Depreciation
0.3%
0.1%
0.1%
Total Office Equipment
0.7%
0.3%
0.5%
IT (Information Technology)
1.5%
1.3%
1.6%
IT Depreciation/Amortization
0.3%
0.2%
0.2%
Total IT
1.8%
1.5%
1.8%
Telephone
0.8%
0.7%
1.0%
Postage
0.5%
0.4%
0.4%
Supplies/Printing
0.8%
0.8%
0.8%
Dues/Subscriptions/Contributions
0.8%
0.8%
0.7%
Taxes/Licenses
0.4%
0.3%
0.2%
Insurance
1.5%
1.4%
1.3%
Professional Fees
0.8%
1.0%
1.1%
Bad Debts
0.1%
0.1%
0.1%
Outside Services
0.6%
0.5%
0.6%
Education/Training
0.3%
0.3%
0.4%
Miscellaneous
0.3%
0.3%
0.5%
Total Operating
13.6%
12.4%
14.2%
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