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2013 Best
Practices Study
Agencies
with
Revenues
Under
$1,250,000
15
Analysis of Agencies with Revenues Under $1,250,000
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
40.7%
35.9%
34.8%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
3.4%
1.9%
5.0%
Total Payroll
44.1%
37.8%
39.8%
Benefits: Payroll Taxes
3.8%
2.8%
3.2%
Benefits: Retirement
1.3%
0.9%
0.6%
Benefits: Insurance
2.7%
1.0%
2.9%
Benefits: Other
0.3%
0.7%
0.6%
Total Benefits
8.2%
5.4%
7.3%
Total Compensation
52.2%
43.2%
47.1%
Selling Expenses
T&E/Conventions
1.0%
0.6%
0.7%
Auto Expenditures
1.5%
1.6%
1.0%
Auto Depreciation
0.7%
0.9%
1.0%
Total Auto
2.2%
2.4%
2.0%
Advertising/Promotions
2.3%
2.5%
2.9%
Total Selling
5.5%
5.6%
5.7%
Operating Expenses
Occupancy Expenditures
5.4%
5.2%
6.2%
Occupancy Depreciation/Amortization
0.2%
0.0%
0.0%
Total Occupancy
5.6%
5.2%
6.2%
Office Equipment Expenditures
0.4%
0.5%
0.2%
Office Equipment Depreciation
0.2%
0.6%
0.4%
Total Office Equipment
0.6%
1.1%
0.6%
IT (Information Technology)
2.3%
1.4%
2.6%
IT Depreciation/Amortization
0.1%
0.2%
0.1%
Total IT
2.4%
1.6%
2.7%
Telephone
1.3%
1.0%
0.9%
Postage
0.6%
0.4%
0.6%
Supplies/Printing
1.1%
0.9%
1.2%
Dues/Subscriptions/Contributions
1.1%
0.8%
1.4%
Taxes/Licenses
0.9%
0.4%
0.5%
Insurance
1.8%
1.0%
2.1%
Professional Fees
0.6%
0.5%
0.7%
Bad Debts
0.1%
0.1%
0.1%
Outside Services
0.4%
0.2%
1.0%
Education/Training
0.3%
0.2%
0.4%
Miscellaneous
0.7%
0.1%
1.2%
Total Operating
17.4%
13.6%
19.5%
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