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AGENCIES WITH REVENUES BETWEEN $1,250,000 AND $2,500,000
38
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
50.4%
51.7%
49.5%
Benefits
8.4%
7.3%
7.2%
Total Compensation
58.8%
59.0%
56.7%
Selling Expenses
T&E/Conventions
1.4%
1.4%
1.7%
Automobile
1.2%
1.1%
1.4%
Advertising/Promotions
1.6%
1.1%
1.5%
Total Selling
4.1%
3.6%
4.6%
Operating Expenses
Occupancy
3.8%
3.0%
3.8%
Telephone
0.9%
1.0%
0.9%
Postage
0.7%
0.7%
0.7%
Supplies/Printing
1.4%
1.1%
1.3%
Dues/Subscriptions/Contributions
0.8%
0.5%
0.8%
Taxes/Licenses
0.6%
0.2%
0.3%
Insurance
2.1%
2.3%
2.4%
Professional Fees
0.8%
0.6%
0.6%
Equipment Rental/Maintenance
0.4%
0.5%
0.5%
Bad Debts
0.2%
0.1%
0.1%
Outside Services
0.7%
0.1%
0.1%
Information Technology
1.5%
0.8%
1.4%
Education/Training
0.4%
0.2%
0.4%
Miscellaneous
0.5%
0.3%
0.1%
Total Operating
14.9%
11.5%
13.2%
Administrative Expenses
Amortization
1.0%
0.1%
0.7%
Depreciation
1.5%
1.5%
2.6%
Officer-Life
0.3%
0.5%
0.4%
Interest
0.6%
0.1%
0.2%
Other
2.1%
6.8%
2.1%
Total Administrative
5.6%
8.9%
6.0%
Total Expenses
83.4%
83.1%
80.6%
Pre-Tax Profit
16.6%
16.9%
19.4%
% Net Revenue
Average
+25% Profit
+25% Growth
30%
20%
10%
0%
Compensation
Expense
Selling
Expense
Operating
Expense
Administrative
Expense
50%
40%
60%