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EXPENSE ANALYSIS
A.
Expenses Analysis (as a % of Net Revenues)
Average
+25%
Profit
+25%
Growth
Compensation Expense
Total Payroll
53.3%
42.5%
51.5%
Benefits
9.1%
7.1%
7.8%
Total Compensation
62.4%
49.6%
59.3%
Selling Expenses
T&E/Conventions
1.1%
1.1%
1.1%
Automobile
0.9%
1.0%
0.8%
Advertising/Promotions
1.5%
0.9%
1.2%
Total Selling
3.4%
3.0%
3.1%
Operating Expenses
Occupancy
3.5%
4.0%
3.2%
Telephone
0.8%
0.9%
0.7%
Postage
0.6%
0.6%
0.7%
Supplies/Printing
1.2%
1.1%
1.0%
Dues/Subscriptions/Contributions
0.9%
0.8%
0.8%
Taxes/Licenses
0.5%
0.2%
0.2%
Insurance
1.7%
1.5%
1.7%
Professional Fees
0.8%
0.7%
0.6%
Equipment Rental/Maintenance
0.5%
0.5%
0.4%
Bad Debts
0.2%
0.1%
0.2%
Outside Services
0.6%
0.4%
0.7%
Information Technology
1.3%
1.5%
1.4%
Education/Training
0.4%
0.4%
0.4%
Miscellaneous
0.4%
0.4%
0.4%
Total Operating
13.1%
13.2%
12.3%
Administrative Expenses
Amortization
0.7%
0.7%
0.5%
Depreciation
1.5%
1.3%
1.5%
Officer-Life
0.3%
0.4%
0.1%
Interest
0.3%
0.3%
0.2%
Other
0.2%
0.3%
0.4%
Total Administrative
3.0%
3.0%
2.6%
Total Expenses
82.0%
68.8%
77.3%
Pre-Tax Profit
18.0%
31.2%
22.7%
AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000
54
2006
PROFILE
REVENUES/
EXPENSES
FINANCIAL
STABILITY
EMPLOYEE
OVERVIEW
PRODUCER
INFO
SERVICE
STAFF
INFO
TECHNOLOGY
INSURANCE
CARRIERS
2006 Best Practices Study
% Net Revenue
Average
+25% Profit
+25% Growth
30%
20%
10%
0%
Compensation
Expense
Selling
Expense
Operating
Expense
Administrative
Expense
50%
40%
60%
70%