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2010 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
44
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
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
47.4%
36.0%
46.9%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.0%
0.7%
1.7%
Total Payroll
49.4%
36.7%
48.6%
Benefits: Payroll Taxes
3.3%
2.3%
4.3%
Benefits: Retirement
1.8%
2.1%
1.5%
Benefits: Insurance
3.3%
2.6%
3.6%
Benefits: Other
0.2%
0.1%
0.1%
Total Benefits
8.7%
7.2%
9.5%
Total Compensation
58.1%
43.8%
58.1%
Selling Expenses
T&E/Conventions
1.0%
1.2%
0.8%
Auto Expenditures
0.8%
0.8%
0.6%
Auto Depreciation
0.2%
0.2%
0.1%
Total Auto
1.0%
0.9%
0.7%
Advertising/Promotions
1.2%
1.1%
1.2%
Total Selling
3.2%
3.2%
2.7%
Operating Expenses
Occupancy Expenditures
4.9%
4.6%
4.8%
Occupancy Depreciation/Amortization
0.2%
-0.1%
-0.1%
Total Occupancy
5.0%
4.4%
4.7%
Office Equipment Expenditures
0.4%
0.5%
0.6%
Office Equipment Depreciation
0.4%
0.3%
0.1%
Total Office Equipment
0.9%
0.8%
0.7%
IT (Information Technology)
1.8%
1.9%
1.7%
IT Depreciation/Amortization
0.2%
0.2%
0.1%
Total IT
2.0%
2.1%
1.8%
Telephone
1.0%
0.8%
0.9%
Postage
0.5%
0.5%
0.5%
Supplies/Printing
1.0%
1.0%
1.1%
Dues/Subscriptions/Contributions
0.8%
0.7%
0.6%
Taxes/Licenses
0.4%
0.4%
0.5%
Insurance
1.7%
1.4%
1.8%
Professional Fees
1.0%
1.1%
0.7%
Bad Debts
0.1%
0.2%
0.1%
Outside Services
0.6%
0.0%
0.2%
Education/Training
0.4%
0.4%
0.3%
Miscellaneous
0.3%
0.1%
0.4%
Total Operating
15.7%
13.7%
14.3%
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