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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
82
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
2011 Best
Practices Study
Agencies with
Revenues Between
$5,000,000 and
$10,000,000
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
51.7%
43.6%
48.8%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
5.7%
8.2%
7.9%
Total Payroll
57.3%
51.8%
56.7%
Benefits: Payroll Taxes
3.2%
2.7%
2.8%
Benefits: Retirement
1.8%
1.5%
2.8%
Benefits: Insurance
3.8%
3.1%
4.2%
Benefits: Other
0.3%
0.3%
0.2%
Total Benefits
9.2%
7.6%
9.9%
Total Compensation
66.5%
59.4%
66.6%
Selling Expenses
T&E/Conventions
0.9%
0.7%
0.6%
Auto Expenditures
0.7%
0.7%
0.5%
Auto Depreciation
0.1%
0.1%
0.1%
Total Auto
0.8%
0.8%
0.6%
Advertising/Promotions
1.5%
1.2%
2.1%
Total Selling
3.2%
2.6%
3.3%
Operating Expenses
Occupancy Expenditures
4.4%
3.9%
4.6%
Occupancy Depreciation/Amortization
0.2%
0.1%
0.1%
Total Occupancy
4.7%
4.0%
4.7%
Office Equipment Expenditures
0.4%
0.2%
0.2%
Office Equipment Depreciation
0.3%
0.0%
0.2%
Total Office Equipment
0.6%
0.3%
0.4%
IT (Information Technology)
1.7%
1.4%
1.3%
IT Depreciation/Amortization
0.3%
0.1%
0.3%
Total IT
2.0%
1.5%
1.6%
Telephone
0.7%
0.7%
0.6%
Postage
0.4%
0.4%
0.4%
Supplies/Printing
0.7%
0.7%
0.7%
Dues/Subscriptions/Contributions
0.8%
0.6%
0.5%
Taxes/Licenses
0.3%
0.2%
0.3%
Insurance
1.6%
1.5%
1.2%
Professional Fees
0.8%
0.6%
0.5%
Bad Debts
0.1%
0.1%
0.1%
Outside Services
0.6%
0.4%
0.3%
Education/Training
0.3%
0.3%
0.3%
Miscellaneous
0.3%
0.3%
0.2%
Total Operating
13.9%
11.5%
11.8%
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