143 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
143
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
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
55.6%
53.9%
52.3%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.6%
0.2%
5.0%
Total Payroll
58.2%
54.1%
57.3%
Benefits: Payroll Taxes
3.2%
2.5%
3.2%
Benefits: Retirement
1.6%
1.5%
1.6%
Benefits: Insurance
3.1%
3.4%
3.2%
Benefits: Other
0.6%
1.5%
0.4%
Total Benefits
8.5%
9.0%
8.4%
Total Compensation
66.7%
63.1%
65.7%
Selling Expenses
T&E/Conventions
1.5%
1.6%
1.9%
Auto Expenditures
0.6%
0.8%
0.8%
Auto Depreciation
0.1%
0.1%
0.0%
Total Auto
0.7%
0.9%
0.8%
Advertising/Promotions
1.2%
1.0%
1.2%
Total Selling
3.4%
3.4%
3.9%
Operating Expenses
Occupancy Expenditures
3.9%
3.4%
4.1%
Occupancy Depreciation/Amortization
0.2%
0.2%
0.0%
Total Occupancy
4.0%
3.6%
4.2%
Office Equipment Expenditures
0.3%
0.1%
0.4%
Office Equipment Depreciation
0.3%
0.2%
0.2%
Total Office Equipment
0.7%
0.3%
0.6%
IT (Information Technology)
1.9%
1.8%
1.7%
IT Depreciation/Amortization
0.3%
0.2%
0.3%
Total IT
2.3%
2.0%
2.0%
Telephone
0.6%
0.6%
0.9%
Postage
0.3%
0.2%
0.3%
Supplies/Printing
0.6%
0.7%
0.6%
Dues/Subscriptions/Contributions
0.7%
0.8%
0.6%
Taxes/Licenses
0.4%
0.4%
0.4%
Insurance
1.3%
1.3%
1.3%
Professional Fees
1.1%
1.1%
1.2%
Bad Debts
0.0%
0.1%
0.1%
Outside Services
1.0%
0.9%
1.3%
Education/Training
0.3%
0.3%
0.3%
Miscellaneous
0.4%
0.4%
0.3%
Total Operating
13.7%
12.7%
14.1%
continued on next page