65 / 168
2014 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
65
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
Average
+25% Profit
+25% Growth
Administrative Expenses
Amortization of Intangibles
1.5%
1.1%
1.3%
Officer Life
0.2%
0.1%
0.3%
Interest
0.7%
0.5%
0.6%
Other
0.3%
0.0%
0.0%
Total Administrative
2.7%
1.7%
2.2%
Total Expenses
79.5%
64.8%
82.4%
Pre-Tax Profit (Loss)
20.5%
35.2%
17.6%
EBITDA
23.6%
37.1%
20.2%
Average
+25% Profit
+25% Growth
Expense Growth Over Prior Year
Compensation Expense
7.4%
2.7%
14.3%
Selling Expense
13.9%
8.8%
18.9%
Operating Expense
5.9%
13.9%
7.0%
Administrative Expense
-3.8%
-1.5%
8.3%
Expenses
(as % of Net Revenues) —
continued
Expenses
(as % of Net Revenues)
Compensation
Selling
Operating
Administrative
0%
10%
20%
30%
40%
50%
60%
Average
+25% Profit
+25% Growth
3.9% 2.1% 4.0%
14.1%
11.6%
14.8%
2.7% 1.7% 2.2%
58.8%
61.3%
49.4%