175 / 204
2013 Best
Practices Study
Agencies
with
Revenues
Over
$25,000,000
175
Analysis of Agencies with Revenues Over $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
52.0%
48.8%
54.7%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
3.3%
1.4%
2.3%
Total Payroll
55.3%
50.2%
57.0%
Benefits: Payroll Taxes
2.9%
2.3%
2.6%
Benefits: Retirement
1.9%
1.1%
1.4%
Benefits: Insurance
3.2%
2.4%
2.7%
Benefits: Other
0.9%
2.1%
2.2%
Total Benefits
8.8%
7.9%
8.9%
Total Compensation
64.1%
58.1%
65.8%
Selling Expenses
T&E/Conventions
2.1%
2.0%
1.9%
Auto Expenditures
0.7%
0.3%
0.7%
Auto Depreciation
0.1%
0.0%
0.0%
Total Auto
0.8%
0.3%
0.7%
Advertising/Promotions
0.9%
0.6%
0.8%
Total Selling
3.8%
2.9%
3.4%
Operating Expenses
Occupancy Expenditures
3.5%
3.6%
3.5%
Occupancy Depreciation/Amortization
0.3%
0.1%
0.2%
Total Occupancy
3.7%
3.8%
3.7%
Office Equipment Expenditures
0.5%
0.5%
0.4%
Office Equipment Depreciation
0.3%
0.1%
0.3%
Total Office Equipment
0.8%
0.6%
0.7%
IT (Information Technology)
1.6%
1.5%
1.3%
IT Depreciation/Amortization
0.4%
0.3%
0.5%
Total IT
2.0%
1.8%
1.8%
Telephone
0.6%
0.5%
0.6%
Postage
0.3%
0.2%
0.2%
Supplies/Printing
0.6%
0.7%
0.5%
Dues/Subscriptions/Contributions
0.7%
0.5%
0.7%
Taxes/Licenses
0.3%
0.3%
0.3%
Insurance
1.2%
1.4%
1.1%
Professional Fees
1.2%
0.9%
1.1%
Bad Debts
0.1%
0.2%
0.0%
Outside Services
0.8%
0.9%
1.1%
Education/Training
0.3%
0.1%
0.2%
Miscellaneous
0.6%
0.9%
0.2%
Total Operating
13.2%
12.9%
12.2%
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