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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
34
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
2011 Best
Practices Study
Agencies with
Revenues Between
$1,250,000 and
$2,500,000
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
47.8%
37.1%
49.5%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
1.8%
0.1%
2.6%
Total Payroll
49.6%
37.2%
52.1%
Benefits: Payroll Taxes
3.6%
2.3%
3.2%
Benefits: Retirement
1.6%
2.3%
1.9%
Benefits: Insurance
3.5%
3.1%
2.5%
Benefits: Other
0.2%
0.1%
0.0%
Total Benefits
8.9%
7.7%
7.7%
Total Compensation
58.5%
44.8%
59.8%
Selling Expenses
T&E/Conventions
1.0%
1.1%
1.1%
Auto Expenditures
0.9%
0.8%
1.3%
Auto Depreciation
0.2%
0.2%
0.2%
Total Auto
1.1%
1.0%
1.5%
Advertising/Promotions
1.3%
1.1%
1.1%
Total Selling
3.4%
3.2%
3.8%
Operating Expenses
Occupancy Expenditures
5.0%
4.1%
5.0%
Occupancy Depreciation/Amortization
0.2%
0.0%
0.0%
Total Occupancy
5.2%
4.1%
5.0%
Office Equipment Expenditures
0.3%
0.4%
0.2%
Office Equipment Depreciation
0.2%
0.1%
0.0%
Total Office Equipment
0.5%
0.5%
0.2%
IT (Information Technology)
2.0%
2.1%
2.3%
IT Depreciation/Amortization
0.2%
0.1%
0.3%
Total IT
2.2%
2.2%
2.6%
Telephone
0.9%
0.8%
1.1%
Postage
0.5%
0.5%
0.4%
Supplies/Printing
1.0%
0.8%
1.2%
Dues/Subscriptions/Contributions
0.9%
1.0%
0.5%
Taxes/Licenses
0.5%
0.7%
0.3%
Insurance
1.7%
1.5%
1.3%
Professional Fees
0.9%
1.0%
0.9%
Bad Debts
0.0%
0.1%
0.1%
Outside Services
0.5%
0.0%
0.3%
Education/Training
0.4%
0.8%
0.2%
Miscellaneous
0.3%
0.4%
0.2%
Total Operating
15.5%
14.5%
14.4%
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