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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
10
Analysis of Agencies with Revenues Under $1,250,000
2011 Best
Practices Study
Agencies with
Revenues
Under
$1,250,000
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
43.4%
36.0%
38.4%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.3%
1.1%
0.6%
Total Payroll
45.7%
37.1%
39.1%
Benefits: Payroll Taxes
4.1%
3.0%
4.0%
Benefits: Retirement
1.9%
1.0%
2.3%
Benefits: Insurance
3.7%
2.7%
3.7%
Benefits: Other
0.2%
0.0%
0.4%
Total Benefits
9.9%
6.8%
10.3%
Total Compensation
55.6%
43.9%
49.3%
Selling Expenses
T&E/Conventions
1.3%
1.0%
1.5%
Auto Expenditures
1.6%
1.3%
1.6%
Auto Depreciation
0.3%
0.1%
0.3%
Total Auto
1.9%
1.3%
2.0%
Advertising/Promotions
1.5%
1.7%
1.5%
Total Selling
4.7%
4.0%
5.0%
Operating Expenses
Occupancy Expenditures
5.3%
4.4%
4.8%
Occupancy Depreciation/Amortization
0.2%
0.0%
0.0%
Total Occupancy
5.5%
4.4%
4.9%
Office Equipment Expenditures
0.4%
0.6%
0.4%
Office Equipment Depreciation
0.1%
0.1%
0.1%
Total Office Equipment
0.6%
0.6%
0.5%
IT (Information Technology)
2.0%
1.1%
2.0%
IT Depreciation/Amortization
0.3%
0.0%
0.1%
Total IT
2.3%
1.1%
2.1%
Telephone
1.5%
1.4%
1.2%
Postage
0.7%
0.6%
0.6%
Supplies/Printing
1.7%
1.9%
2.2%
Dues/Subscriptions/Contributions
1.0%
1.1%
0.9%
Taxes/Licenses
0.4%
0.6%
0.4%
Insurance
1.8%
1.5%
1.8%
Professional Fees
0.6%
0.5%
0.6%
Bad Debts
0.1%
0.0%
0.0%
Outside Services
0.3%
0.1%
0.3%
Education/Training
0.4%
0.3%
0.3%
Miscellaneous
0.8%
0.4%
0.7%
Total Operating
17.5%
14.6%
16.5%
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