12 / 168
2014 Best
Practices Study
Agencies
with
Revenues
Under
$1,250,000
12
Analysis of Agencies with Revenues Under $1,250,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
39.7%
31.9%
40.5%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
4.3%
0.8%
3.8%
Total Payroll
44.0%
32.7%
44.3%
Benefits: Payroll Taxes
3.9%
2.7%
3.0%
Benefits: Retirement
1.4%
1.3%
1.5%
Benefits: Insurance
3.0%
0.7%
3.2%
Benefits: Other
0.3%
0.9%
0.2%
Total Benefits
8.6%
5.6%
7.9%
Total Compensation
52.5%
38.3%
52.2%
Selling Expenses
T&E/Conventions
1.2%
0.6%
1.0%
Auto Expenditures
1.5%
0.9%
1.5%
Auto Depreciation
0.4%
0.0%
0.5%
Total Auto
2.0%
0.9%
2.0%
Advertising/Promotions
2.0%
2.1%
2.5%
Total Selling
5.1%
3.5%
5.5%
Operating Expenses
Occupancy Expenditures
4.7%
4.1%
4.1%
Occupancy Depreciation/Amortization
0.4%
0.1%
0.1%
Total Occupancy
5.0%
4.2%
4.3%
Office Equipment Expenditures
0.3%
0.2%
0.0%
Office Equipment Depreciation
0.1%
0.0%
0.1%
Total Office Equipment
0.4%
0.2%
0.1%
IT (Information Technology)
2.6%
1.8%
2.2%
IT Depreciation/Amortization
0.1%
0.0%
0.1%
Total IT
2.7%
1.8%
2.4%
Telephone
1.3%
1.0%
1.2%
Postage
0.5%
0.3%
0.5%
Supplies/Printing
1.4%
1.2%
1.6%
Dues/Subscriptions/Contributions
1.2%
0.9%
0.9%
Taxes/Licenses
0.8%
0.5%
1.7%
Insurance
2.1%
1.4%
1.7%
Professional Fees
0.6%
0.5%
0.8%
Bad Debts
0.0%
0.0%
0.1%
Outside Services
0.6%
0.0%
0.9%
Education/Training
0.3%
0.2%
0.2%
Miscellaneous
0.5%
0.1%
0.2%
Total Operating
17.3%
12.4%
16.5%
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