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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
58
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
2012 Best
Practices Study
Agencies with
Revenues Between
$2,500,000 and
$5,000,000
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
47.7%
48.2%
42.9%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
3.1%
1.5%
2.7%
Total Payroll
52.5%
49.1%
52.4%
Benefits: Payroll Taxes
3.5%
3.4%
3.4%
Benefits: Retirement
2.0%
1.6%
2.3%
Benefits: Insurance
3.6%
2.7%
2.2%
Benefits: Other
0.2%
0.1%
0.1%
Total Benefits
9.2%
7.8%
8.0%
Total Compensation
61.8%
57.5%
60.4%
Selling Expenses
T&E/Conventions
1.1%
0.6%
1.3%
Auto Expenditures
0.9%
0.6%
1.1%
Auto Depreciation
0.1%
0.0%
0.1%
Total Auto
1.0%
0.6%
1.2%
Advertising/Promotions
1.8%
0.7%
1.8%
Total Selling
3.8%
2.9%
4.3%
Operating Expenses
Occupancy Expenditures
4.0%
2.9%
3.6%
Occupancy Depreciation/Amortization
0.3%
0.4%
0.1%
Total Occupancy
4.3%
3.3%
3.7%
Office Equipment Expenditures
0.3%
0.1%
0.1%
Office Equipment Depreciation
0.4%
0.0%
0.1%
Total Office Equipment
0.7%
0.2%
0.3%
IT (Information Technology)
1.8%
1.9%
1.5%
IT Depreciation/Amortization
0.3%
0.2%
0.6%
Total IT
2.1%
2.1%
2.1%
Telephone
0.7%
0.7%
0.6%
Postage
0.5%
0.6%
0.4%
Supplies/Printing
0.9%
0.9%
0.8%
Dues/Subscriptions/Contributions
0.8%
0.6%
1.0%
Taxes/Licenses
0.4%
0.3%
0.7%
Insurance
1.6%
1.1%
1.2%
Professional Fees
0.8%
0.5%
0.5%
Bad Debts
0.1%
0.0%
0.1%
Outside Services
0.7%
0.1%
0.4%
Education/Training
0.4%
0.4%
0.3%
Miscellaneous
0.4%
0.5%
0.4%
Total Operating
14.6%
11.6%
12.5%
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