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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
130
2011 Best
Practices Study
Agencies
with Revenues
Over
$25,000,000
Analysis of Agencies with Revenues Over $25,000,000
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
53.3%
49.7%
50.1%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.2%
0.3%
8.1%
Total Payroll
55.5%
49.9%
58.2%
Benefits: Payroll Taxes
3.2%
3.0%
3.0%
Benefits: Retirement
2.0%
2.8%
1.3%
Benefits: Insurance
3.5%
3.4%
3.6%
Benefits: Other
0.5%
0.1%
0.1%
Total Benefits
9.3%
9.2%
8.1%
Total Compensation
64.8%
59.2%
66.3%
Selling Expenses
T&E/Conventions
2.0%
2.2%
2.4%
Auto Expenditures
0.5%
0.4%
0.7%
Auto Depreciation
0.1%
0.3%
0.0%
Total Auto
0.6%
0.6%
0.7%
Advertising/Promotions
0.8%
0.9%
1.3%
Total Selling
3.5%
3.7%
4.4%
Operating Expenses
Occupancy Expenditures
3.5%
2.6%
3.3%
Occupancy Depreciation/Amortization
0.4%
0.2%
0.6%
Total Occupancy
3.9%
2.7%
3.9%
Office Equipment Expenditures
0.5%
0.5%
0.6%
Office Equipment Depreciation
0.4%
0.6%
0.1%
Total Office Equipment
0.8%
1.1%
0.8%
IT (Information Technology)
1.3%
1.1%
1.4%
IT Depreciation/Amortization
0.5%
0.5%
0.7%
Total IT
1.8%
1.6%
2.1%
Telephone
0.7%
0.8%
0.8%
Postage
0.4%
0.3%
0.4%
Supplies/Printing
0.7%
0.7%
0.9%
Dues/Subscriptions/Contributions
0.7%
0.6%
0.8%
Taxes/Licenses
0.3%
0.2%
0.3%
Insurance
1.4%
1.3%
1.5%
Professional Fees
1.1%
0.5%
0.6%
Bad Debts
0.1%
0.1%
0.0%
Outside Services
0.9%
0.7%
1.3%
Education/Training
0.2%
0.2%
0.3%
Miscellaneous
1.4%
3.4%
2.8%
Total Operating
14.5%
14.4%
16.5%
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