64 / 168
2014 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
64
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
47.6%
40.4%
50.0%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.7%
1.0%
2.4%
Total Payroll
50.3%
41.4%
52.4%
Benefits: Payroll Taxes
3.4%
3.0%
3.5%
Benefits: Retirement
1.5%
1.5%
1.3%
Benefits: Insurance
3.4%
2.9%
3.9%
Benefits: Other
0.2%
0.5%
0.1%
Total Benefits
8.6%
8.0%
8.9%
Total Compensation
58.8%
49.4%
61.3%
Selling Expenses
T&E/Conventions
1.3%
0.8%
1.4%
Auto Expenditures
0.9%
0.3%
1.1%
Auto Depreciation
0.2%
0.1%
0.2%
Total Auto
1.1%
0.4%
1.3%
Advertising/Promotions
1.5%
0.9%
1.3%
Total Selling
3.9%
2.1%
4.0%
Operating Expenses
Occupancy Expenditures
4.1%
3.3%
5.1%
Occupancy Depreciation/Amortization
0.2%
0.1%
0.0%
Total Occupancy
4.4%
3.4%
5.1%
Office Equipment Expenditures
0.3%
0.2%
0.3%
Office Equipment Depreciation
0.3%
0.1%
0.3%
Total Office Equipment
0.6%
0.3%
0.5%
IT (Information Technology)
1.9%
1.6%
2.4%
IT Depreciation/Amortization
0.1%
0.0%
0.2%
Total IT
2.1%
1.6%
2.5%
Telephone
0.7%
0.6%
0.7%
Postage
0.4%
0.5%
0.5%
Supplies/Printing
0.9%
0.8%
1.0%
Dues/Subscriptions/Contributions
0.8%
0.6%
1.0%
Taxes/Licenses
0.3%
0.4%
0.3%
Insurance
1.5%
1.4%
1.3%
Professional Fees
0.7%
0.6%
0.5%
Bad Debts
0.1%
0.3%
0.1%
Outside Services
0.7%
0.3%
0.5%
Education/Training
0.4%
0.3%
0.4%
Miscellaneous
0.4%
0.4%
0.4%
Total Operating
14.1%
11.6%
14.8%
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