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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
106
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
2012 Best
Practices Study
Agencies with
Revenues Between
$10,000,000 and
$25,000,000
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
55.4%
52.7%
56.4%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
3.5%
1.2%
2.6%
Total Payroll
59.0%
53.9%
59.1%
Benefits: Payroll Taxes
3.2%
2.8%
3.2%
Benefits: Retirement
1.5%
1.1%
1.8%
Benefits: Insurance
3.5%
3.2%
2.8%
Benefits: Other
0.6%
1.6%
0.2%
Total Benefits
8.8%
8.6%
8.0%
Total Compensation
67.8%
62.6%
67.1%
Selling Expenses
T&E/Conventions
1.5%
1.4%
1.9%
Auto Expenditures
0.7%
0.9%
0.6%
Auto Depreciation
0.1%
0.0%
0.1%
Total Auto
0.8%
1.0%
0.6%
Advertising/Promotions
1.1%
0.8%
1.3%
Total Selling
3.4%
3.2%
3.8%
Operating Expenses
Occupancy Expenditures
4.2%
3.2%
4.7%
Occupancy Depreciation/Amortization
0.1%
0.0%
0.1%
Total Occupancy
4.3%
3.3%
4.9%
Office Equipment Expenditures
0.4%
0.3%
0.2%
Office Equipment Depreciation
0.4%
0.2%
0.4%
Total Office Equipment
0.7%
0.5%
0.6%
IT (Information Technology)
1.6%
1.3%
1.5%
IT Depreciation/Amortization
0.4%
0.2%
0.3%
Total IT
1.9%
1.5%
1.8%
Telephone
0.6%
0.7%
0.6%
Postage
0.3%
0.3%
0.3%
Supplies/Printing
0.6%
0.5%
0.5%
Dues/Subscriptions/Contributions
0.6%
0.5%
0.5%
Taxes/Licenses
0.3%
0.4%
0.4%
Insurance
1.3%
1.1%
1.0%
Professional Fees
1.0%
0.9%
1.5%
Bad Debts
0.1%
0.1%
0.1%
Outside Services
1.0%
1.1%
1.0%
Education/Training
0.3%
0.2%
0.3%
Miscellaneous
0.4%
0.2%
0.3%
Total Operating
13.5%
11.0%
13.9%
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