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AGENCIES WITH REVENUES BETWEEN $500,000 AND $1,250,000
22
2006
PROFILE
REVENUES/
EXPENSES
FINANCIAL
STABILITY
EMPLOYEE
OVERVIEW
PRODUCER
INFO
SERVICE
STAFF
INFO
TECHNOLOGY
INSURANCE
CARRIERS
2006 Best Practices Study
EXPENSE ANALYSIS
A.
Expenses Analysis (as a % of Net Revenues)
Average
+25%
Profit
+25%
Growth
Compensation Expense
Total Payroll
44.4%
30.8%
34.4%
Benefits
9.6%
6.7%
11.0%
Total Compensation
54.0%
37.5%
45.4%
Selling Expenses
T&E/Conventions
0.9%
0.7%
1.1%
Automobile
1.5%
1.2%
1.5%
Advertising/Promotions
1.8%
1.4%
1.5%
Total Selling
4.2%
3.2%
4.0%
Operating Expenses
Occupancy
3.5%
2.4%
3.3%
Telephone
1.2%
1.1%
1.1%
Postage
0.7%
0.7%
0.8%
Supplies/Printing
1.2%
1.4%
1.3%
Dues/Subscriptions/Contributions
0.8%
0.5%
0.5%
Taxes/Licenses
0.5%
0.5%
0.3%
Insurance
1.7%
1.8%
1.8%
Professional Fees
0.7%
0.6%
0.8%
Equipment Rental/Maintenance
0.7%
0.3%
0.7%
Bad Debts
0.1%
0.0%
0.2%
Outside Services
0.6%
0.1%
0.2%
Information Technology
1.3%
1.2%
1.3%
Education/Training
0.4%
0.4%
0.2%
Miscellaneous
0.7%
0.1%
0.3%
Total Operating
14.1%
11.3%
12.9%
Administrative Expenses
Amortization
0.8%
0.0%
0.0%
Depreciation
0.7%
0.4%
0.3%
Officer-Life
0.3%
0.1%
0.2%
Interest
0.6%
0.1%
0.4%
Other
0.3%
0.0%
0.0%
Total Administrative
2.8%
0.6%
0.9%
Total Expenses
75.0%
52.7%
63.2%
Pre-Tax Profit
25.0%
47.3%
36.8%
% Net Revenue
Average
+25% Profit
+25% Growth
30%
20%
10%
0%
Compensation
Expense
Selling
Expense
Operating
Expense
Administrative
Expense
50%
40%
60%