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2013 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
79
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
49.0%
42.2%
50.8%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.4%
1.2%
4.1%
Total Payroll
51.3%
43.4%
55.0%
Benefits: Payroll Taxes
3.4%
3.0%
3.2%
Benefits: Retirement
1.5%
1.5%
2.1%
Benefits: Insurance
3.3%
2.7%
3.0%
Benefits: Other
0.1%
0.0%
0.1%
Total Benefits
8.3%
7.2%
8.5%
Total Compensation
59.6%
50.6%
63.4%
Selling Expenses
T&E/Conventions
1.2%
0.7%
1.0%
Auto Expenditures
0.9%
0.4%
0.8%
Auto Depreciation
0.1%
0.0%
0.2%
Total Auto
1.1%
0.4%
1.0%
Advertising/Promotions
1.4%
1.1%
0.6%
Total Selling
3.7%
2.3%
2.6%
Operating Expenses
Occupancy Expenditures
4.1%
2.7%
3.8%
Occupancy Depreciation/Amortization
0.3%
0.4%
0.2%
Total Occupancy
4.3%
3.1%
4.1%
Office Equipment Expenditures
0.3%
0.3%
0.2%
Office Equipment Depreciation
0.6%
0.1%
0.1%
Total Office Equipment
0.9%
0.4%
0.3%
IT (Information Technology)
1.9%
1.8%
1.7%
IT Depreciation/Amortization
0.3%
0.1%
0.1%
Total IT
2.1%
1.9%
1.7%
Telephone
0.7%
0.8%
0.5%
Postage
0.4%
0.5%
0.4%
Supplies/Printing
1.1%
0.9%
0.9%
Dues/Subscriptions/Contributions
0.9%
0.7%
0.9%
Taxes/Licenses
0.5%
0.2%
0.3%
Insurance
1.6%
1.4%
1.6%
Professional Fees
0.8%
0.5%
0.8%
Bad Debts
0.1%
0.1%
0.1%
Outside Services
0.8%
0.3%
0.6%
Education/Training
0.4%
0.3%
0.3%
Miscellaneous
0.5%
0.3%
0.5%
Total Operating
15.1%
11.2%
12.9%
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