2010 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
74
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
49.1%
46.2%
47.9%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
3.9%
1.4%
3.6%
Total Payroll
53.0%
47.6%
51.6%
Benefits: Payroll Taxes
3.6%
3.8%
3.3%
Benefits: Retirement
2.0%
1.3%
2.1%
Benefits: Insurance
3.8%
3.4%
3.6%
Benefits: Other
0.2%
0.2%
0.3%
Total Benefits
9.6%
8.7%
9.3%
Total Compensation
62.7%
56.3%
60.9%
Selling Expenses
T&E/Conventions
1.2%
1.0%
1.4%
Auto Expenditures
1.0%
0.8%
0.9%
Auto Depreciation
0.0%
0.0%
-0.4%
Total Auto
0.9%
0.8%
0.5%
Advertising/Promotions
2.0%
1.7%
1.5%
Total Selling
4.1%
3.5%
3.4%
Operating Expenses
Occupancy Expenditures
4.2%
3.9%
3.9%
Occupancy Depreciation/Amortization
0.4%
0.4%
0.4%
Total Occupancy
4.5%
4.3%
4.2%
Office Equipment Expenditures
0.5%
0.3%
0.4%
Office Equipment Depreciation
0.5%
0.1%
0.2%
Total Office Equipment
1.0%
0.4%
0.6%
IT (Information Technology)
1.8%
1.8%
1.4%
IT Depreciation/Amortization
0.3%
0.1%
0.3%
Total IT
2.1%
1.9%
1.8%
Telephone
0.9%
0.9%
0.7%
Postage
0.5%
0.6%
0.4%
Supplies/Printing
1.0%
1.1%
1.0%
Dues/Subscriptions/Contributions
0.7%
0.5%
0.8%
Taxes/Licenses
0.4%
0.3%
0.3%
Insurance
1.6%
1.5%
1.8%
Professional Fees
0.9%
0.6%
1.2%
Bad Debts
0.2%
0.1%
0.1%
Outside Services
0.5%
0.3%
0.5%
Education/Training
0.3%
0.3%
0.4%
Miscellaneous
0.3%
0.2%
0.1%
Total Operating
14.9%
13.2%
14.0%
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