164 / 191
2010 Best
Practices Study
Agencies
with Revenues
Over $25,000,000
164
Analysis of Agencies with Revenues Over $25,000,000
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
55.7%
51.4%
57.4%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
0.2%
0.2%
0.1%
Total Payroll
55.9%
51.6%
57.5%
Benefits: Payroll Taxes
3.3%
2.9%
3.3%
Benefits: Retirement
2.2%
2.5%
3.8%
Benefits: Insurance
3.4%
3.2%
4.1%
Benefits: Other
0.6%
0.1%
0.3%
Total Benefits
9.5%
8.7%
11.5%
Total Compensation
65.4%
60.3%
69.0%
Selling Expenses
T&E/Conventions
1.9%
1.7%
2.2%
Auto Expenditures
0.6%
0.4%
0.6%
Auto Depreciation
0.1%
0.3%
0.2%
Total Auto
0.8%
0.8%
1.0%
Advertising/Promotions
1.0%
0.9%
1.2%
Total Selling
3.5%
3.3%
4.2%
Operating Expenses
Occupancy Expenditures
3.4%
2.6%
3.2%
Occupancy Depreciation/Amortization
0.3%
0.2%
0.3%
Total Occupancy
3.6%
2.8%
3.6%
Office Equipment Expenditures
0.5%
0.5%
0.6%
Office Equipment Depreciation
0.4%
0.6%
0.4%
Total Office Equipment
0.9%
1.0%
1.0%
IT (Information Technology)
1.3%
1.0%
1.2%
IT Depreciation/Amortization
0.6%
0.6%
0.8%
Total IT
1.9%
1.5%
1.9%
Telephone
0.7%
0.9%
0.7%
Postage
0.4%
0.4%
0.3%
Supplies/Printing
0.7%
0.6%
0.7%
Dues/Subscriptions/Contributions
0.7%
0.6%
0.8%
Taxes/Licenses
0.3%
0.3%
0.3%
Insurance
1.7%
1.9%
1.9%
Professional Fees
1.1%
0.5%
1.3%
Bad Debts
0.1%
0.2%
0.0%
Outside Services
0.7%
0.2%
0.4%
Education/Training
0.3%
0.2%
0.2%
Miscellaneous
1.2%
3.6%
1.0%
Total Operating
14.3%
14.6%
14.3%
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