38 / 168
2014 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
38
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
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
43.9%
32.5%
34.0%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.9%
3.0%
5.4%
Total Payroll
46.8%
35.5%
39.4%
Benefits: Payroll Taxes
3.5%
3.2%
4.0%
Benefits: Retirement
1.5%
0.5%
0.3%
Benefits: Insurance
3.1%
2.5%
3.6%
Benefits: Other
0.4%
0.2%
0.4%
Total Benefits
8.5%
6.3%
8.4%
Total Compensation
55.3%
41.7%
47.8%
Selling Expenses
T&E/Conventions
1.4%
2.1%
1.2%
Auto Expenditures
1.0%
1.3%
0.6%
Auto Depreciation
0.2%
0.2%
0.1%
Total Auto
1.2%
1.5%
0.7%
Advertising/Promotions
1.6%
1.2%
1.7%
Total Selling
4.2%
4.7%
3.7%
Operating Expenses
Occupancy Expenditures
5.3%
6.0%
6.0%
Occupancy Depreciation/Amortization
0.1%
0.0%
0.0%
Total Occupancy
5.4%
6.0%
6.1%
Office Equipment Expenditures
0.4%
0.9%
0.4%
Office Equipment Depreciation
0.5%
0.2%
1.2%
Total Office Equipment
0.9%
1.1%
1.6%
IT (Information Technology)
2.3%
1.5%
1.7%
IT Depreciation/Amortization
0.2%
0.0%
0.1%
Total IT
2.4%
1.5%
1.8%
Telephone
0.9%
0.6%
0.7%
Postage
0.4%
0.4%
0.3%
Supplies/Printing
1.1%
1.7%
1.6%
Dues/Subscriptions/Contributions
0.8%
0.6%
0.6%
Taxes/Licenses
0.4%
0.4%
0.4%
Insurance
1.4%
1.1%
1.0%
Professional Fees
0.9%
1.7%
1.8%
Bad Debts
0.1%
0.4%
0.5%
Outside Services
0.5%
0.1%
0.6%
Education/Training
0.5%
0.4%
0.4%
Miscellaneous
0.4%
0.1%
0.5%
Total Operating
16.1%
16.1%
17.8%
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