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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
106
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
2011 Best
Practices Study
Agencies with
Revenues Between
$10,000,000 and
$25,000,000
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
54.8%
51.7%
53.4%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
3.4%
1.3%
1.5%
Total Payroll
58.1%
53.0%
54.9%
Benefits: Payroll Taxes
3.2%
3.0%
3.2%
Benefits: Retirement
1.7%
1.6%
1.4%
Benefits: Insurance
3.4%
3.0%
2.9%
Benefits: Other
0.5%
0.1%
0.3%
Total Benefits
8.8%
7.6%
7.8%
Total Compensation
67.0%
60.7%
62.7%
Selling Expenses
T&E/Conventions
1.5%
1.8%
1.8%
Auto Expenditures
0.8%
0.7%
0.6%
Auto Depreciation
0.1%
0.1%
0.0%
Total Auto
0.8%
0.8%
0.7%
Advertising/Promotions
0.9%
0.9%
0.7%
Total Selling
3.3%
3.4%
3.2%
Operating Expenses
Occupancy Expenditures
4.1%
3.5%
3.9%
Occupancy Depreciation/Amortization
0.2%
0.2%
0.2%
Total Occupancy
4.3%
3.6%
4.1%
Office Equipment Expenditures
0.4%
0.3%
0.3%
Office Equipment Depreciation
0.4%
0.2%
0.6%
Total Office Equipment
0.7%
0.5%
0.9%
IT (Information Technology)
1.4%
0.9%
1.4%
IT Depreciation/Amortization
0.3%
0.2%
0.3%
Total IT
1.7%
1.1%
1.7%
Telephone
0.6%
0.6%
0.6%
Postage
0.3%
0.3%
0.3%
Supplies/Printing
0.6%
0.4%
0.5%
Dues/Subscriptions/Contributions
0.6%
0.4%
0.7%
Taxes/Licenses
0.3%
0.4%
0.4%
Insurance
1.4%
0.9%
1.1%
Professional Fees
1.1%
1.2%
0.9%
Bad Debts
0.2%
0.2%
0.1%
Outside Services
1.0%
0.7%
0.9%
Education/Training
0.3%
0.2%
0.2%
Miscellaneous
0.4%
0.2%
0.2%
Total Operating
13.5%
10.8%
12.6%
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