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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
82
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
2012 Best
Practices Study
Agencies with
Revenues Between
$5,000,000 and
$10,000,000
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
52.1%
47.0%
56.6%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
5.5%
5.6%
1.8%
Total Payroll
57.6%
52.6%
58.4%
Benefits: Payroll Taxes
3.3%
2.9%
3.3%
Benefits: Retirement
1.8%
1.4%
2.0%
Benefits: Insurance
3.6%
3.2%
2.6%
Benefits: Other
0.2%
0.2%
0.1%
Total Benefits
8.9%
7.7%
8.0%
Total Compensation
66.6%
60.2%
66.5%
Selling Expenses
T&E/Conventions
1.0%
0.8%
1.2%
Auto Expenditures
0.8%
0.8%
0.8%
Auto Depreciation
0.1%
0.1%
0.1%
Total Auto
0.9%
0.9%
1.0%
Advertising/Promotions
1.2%
1.1%
1.4%
Total Selling
3.1%
2.9%
3.5%
Operating Expenses
Occupancy Expenditures
4.4%
4.8%
4.2%
Occupancy Depreciation/Amortization
0.3%
0.1%
0.1%
Total Occupancy
4.7%
4.9%
4.3%
Office Equipment Expenditures
0.4%
0.4%
0.2%
Office Equipment Depreciation
0.2%
0.1%
0.1%
Total Office Equipment
0.6%
0.5%
0.4%
IT (Information Technology)
1.9%
1.5%
1.5%
IT Depreciation/Amortization
0.3%
0.1%
0.3%
Total IT
2.1%
1.5%
1.8%
Telephone
0.7%
0.6%
0.5%
Postage
0.4%
0.3%
0.3%
Supplies/Printing
0.7%
0.6%
0.7%
Dues/Subscriptions/Contributions
0.7%
0.6%
0.9%
Taxes/Licenses
0.4%
0.3%
0.4%
Insurance
1.5%
1.5%
1.2%
Professional Fees
0.9%
0.6%
1.0%
Bad Debts
0.1%
0.0%
0.0%
Outside Services
0.7%
1.0%
0.7%
Education/Training
0.3%
0.4%
0.3%
Miscellaneous
0.2%
0.1%
0.2%
Total Operating
14.0%
13.0%
12.6%
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