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2010 Best
Practices Study
Agencies
with Revenues
Under $1,250,000
14
Analysis of Agencies with Revenues Under $1,250,000
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
43.2%
38.1%
41.2%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
3.3%
0.8%
2.2%
Total Payroll
46.5%
38.9%
43.4%
Benefits: Payroll Taxes
3.8%
3.4%
3.8%
Benefits: Retirement
1.5%
1.1%
1.0%
Benefits: Insurance
3.0%
2.3%
3.5%
Benefits: Other
0.1%
0.0%
0.2%
Total Benefits
8.5%
6.8%
8.5%
Total Compensation
55.0%
45.7%
51.9%
Selling Expenses
T&E/Conventions
1.3%
1.0%
1.8%
Auto Expenditures
1.4%
1.5%
1.4%
Auto Depreciation
0.4%
0.0%
0.3%
Total Auto
1.7%
1.5%
1.7%
Advertising/Promotions
1.6%
1.6%
1.8%
Total Selling
4.6%
4.1%
5.3%
Operating Expenses
Occupancy Expenditures
4.9%
3.5%
5.2%
Occupancy Depreciation/Amortization
0.2%
0.0%
0.0%
Total Occupancy
5.2%
3.5%
5.3%
Office Equipment Expenditures
0.5%
0.4%
0.6%
Office Equipment Depreciation
0.2%
0.0%
0.3%
Total Office Equipment
0.7%
0.4%
0.9%
IT (Information Technology)
1.9%
0.8%
2.1%
IT Depreciation/Amortization
0.3%
0.0%
0.1%
Total IT
2.1%
0.8%
2.3%
Telephone
1.4%
1.5%
1.2%
Postage
0.6%
0.5%
0.7%
Supplies/Printing
1.5%
1.5%
1.9%
Dues/Subscriptions/Contributions
1.1%
1.2%
1.1%
Taxes/Licenses
0.4%
0.5%
0.6%
Insurance
2.0%
1.3%
1.6%
Professional Fees
0.7%
0.5%
0.4%
Bad Debts
0.2%
0.1%
0.4%
Outside Services
0.3%
0.1%
0.3%
Education/Training
0.4%
0.4%
0.5%
Miscellaneous
0.7%
0.5%
0.9%
Total Operating
17.2%
12.9%
18.0%
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