111 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
111
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
Key Benchmarks
Mgmt. Perspectives
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
50.7%
40.4%
55.3%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.8%
6.2%
1.7%
Total Payroll
53.5%
46.7%
57.0%
Benefits: Payroll Taxes
3.3%
3.0%
3.4%
Benefits: Retirement
1.3%
0.9%
0.9%
Benefits: Insurance
3.4%
2.9%
2.8%
Benefits: Other
0.3%
0.2%
0.2%
Total Benefits
8.3%
6.9%
7.3%
Total Compensation
61.8%
53.6%
64.3%
Selling Expenses
T&E/Conventions
1.0%
0.6%
1.2%
Auto Expenditures
0.7%
0.6%
0.6%
Auto Depreciation
0.1%
0.2%
0.2%
Total Auto
0.8%
0.8%
0.9%
Advertising/Promotions
1.5%
1.6%
1.4%
Total Selling
3.3%
2.9%
3.5%
Operating Expenses
Occupancy Expenditures
4.1%
4.1%
3.6%
Occupancy Depreciation/Amortization
0.2%
0.1%
0.2%
Total Occupancy
4.3%
4.2%
3.7%
Office Equipment Expenditures
0.5%
0.4%
0.3%
Office Equipment Depreciation
0.2%
0.1%
0.2%
Total Office Equipment
0.7%
0.4%
0.5%
IT (Information Technology)
1.9%
1.8%
1.7%
IT Depreciation/Amortization
0.2%
0.1%
0.0%
Total IT
2.2%
1.9%
1.8%
Telephone
0.8%
0.7%
0.8%
Postage
0.4%
0.4%
0.3%
Supplies/Printing
0.8%
0.7%
0.8%
Dues/Subscriptions/Contributions
0.7%
0.4%
0.8%
Taxes/Licenses
0.4%
0.3%
0.4%
Insurance
1.5%
1.6%
1.3%
Professional Fees
1.0%
1.0%
1.4%
Bad Debts
0.1%
0.0%
0.0%
Outside Services
0.6%
0.5%
0.9%
Education/Training
0.3%
0.3%
0.2%
Miscellaneous
0.4%
0.4%
0.3%
Total Operating
14.2%
13.0%
13.3%
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