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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
58
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
2011 Best
Practices Study
Agencies with
Revenues Between
$2,500,000 and
$5,000,000
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
49.0%
46.4%
47.8%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
4.3%
3.3%
2.8%
Total Payroll
53.3%
49.7%
50.6%
Benefits: Payroll Taxes
3.5%
3.2%
3.3%
Benefits: Retirement
2.0%
1.9%
2.2%
Benefits: Insurance
3.7%
3.0%
2.8%
Benefits: Other
0.2%
0.0%
0.1%
Total Benefits
9.4%
8.1%
8.4%
Total Compensation
62.6%
57.8%
59.0%
Selling Expenses
T&E/Conventions
1.2%
1.0%
1.3%
Auto Expenditures
0.9%
0.7%
0.6%
Auto Depreciation
0.2%
0.1%
0.2%
Total Auto
1.0%
0.8%
0.8%
Advertising/Promotions
1.9%
1.3%
1.6%
Total Selling
4.1%
3.1%
3.7%
Operating Expenses
Occupancy Expenditures
4.2%
4.0%
3.6%
Occupancy Depreciation/Amortization
0.3%
0.4%
0.5%
Total Occupancy
4.5%
4.4%
4.1%
Office Equipment Expenditures
0.4%
0.3%
0.3%
Office Equipment Depreciation
0.4%
0.1%
0.3%
Total Office Equipment
0.8%
0.4%
0.6%
IT (Information Technology)
1.7%
1.2%
1.5%
IT Depreciation/Amortization
0.3%
0.1%
0.5%
Total IT
1.9%
1.2%
2.0%
Telephone
1.1%
1.8%
0.8%
Postage
0.5%
0.5%
0.4%
Supplies/Printing
1.0%
0.9%
1.1%
Dues/Subscriptions/Contributions
0.8%
0.6%
0.8%
Taxes/Licenses
0.5%
0.4%
0.4%
Insurance
1.6%
1.4%
1.1%
Professional Fees
1.1%
1.0%
1.1%
Bad Debts
0.2%
0.2%
0.2%
Outside Services
0.7%
0.3%
0.7%
Education/Training
0.4%
0.3%
0.4%
Miscellaneous
0.3%
0.5%
0.2%
Total Operating
15.3%
13.9%
13.8%
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