90 / 168
2014 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
90
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
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
50.2%
43.5%
48.3%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
3.0%
6.6%
2.7%
Total Payroll
53.2%
50.1%
51.0%
Benefits: Payroll Taxes
3.3%
2.7%
2.9%
Benefits: Retirement
1.5%
1.4%
1.2%
Benefits: Insurance
3.4%
2.6%
3.2%
Benefits: Other
0.3%
0.0%
0.1%
Total Benefits
8.5%
6.8%
7.4%
Total Compensation
61.7%
56.9%
58.4%
Selling Expenses
T&E/Conventions
1.0%
0.5%
0.8%
Auto Expenditures
0.8%
0.7%
0.8%
Auto Depreciation
0.1%
0.3%
0.3%
Total Auto
0.9%
1.0%
1.1%
Advertising/Promotions
1.3%
1.3%
1.1%
Total Selling
3.2%
2.7%
3.0%
Operating Expenses
Occupancy Expenditures
4.2%
4.4%
4.1%
Occupancy Depreciation/Amortization
0.1%
0.1%
0.1%
Total Occupancy
4.3%
4.5%
4.2%
Office Equipment Expenditures
0.5%
0.3%
0.3%
Office Equipment Depreciation
0.5%
0.1%
0.3%
Total Office Equipment
0.9%
0.3%
0.6%
IT (Information Technology)
1.9%
1.7%
1.9%
IT Depreciation/Amortization
0.2%
0.2%
0.1%
Total IT
2.1%
1.9%
2.0%
Telephone
0.7%
0.6%
0.5%
Postage
0.4%
0.4%
0.4%
Supplies/Printing
0.7%
0.6%
0.7%
Dues/Subscriptions/Contributions
0.8%
0.5%
0.4%
Taxes/Licenses
0.5%
0.4%
0.4%
Insurance
1.5%
1.5%
1.1%
Professional Fees
0.8%
0.7%
0.7%
Bad Debts
0.1%
0.0%
0.1%
Outside Services
0.6%
0.3%
0.6%
Education/Training
0.4%
0.3%
0.3%
Miscellaneous
0.6%
0.5%
0.5%
Total Operating
14.5%
12.5%
12.3%
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