6 / 123
AGENCIES WITH REVENUES UNDER $500,000
6
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
38.5%
31.1%
42.2%
Benefits
8.1%
3.4%
5.7%
Total Compensation
46.6%
34.5%
47.9%
Selling Expenses
T&E/Conventions
1.5%
0.7%
2.0%
Automobile
3.1%
2.9%
1.9%
Advertising/Promotions
2.9%
2.5%
2.4%
Total Selling
7.5%
6.1%
6.4%
Operating Expenses
Occupancy
4.5%
3.3%
3.2%
Telephone
1.9%
1.2%
1.4%
Postage
0.7%
0.5%
0.7%
Supplies/Printing
1.4%
1.2%
1.0%
Dues/Subscriptions/Contributions
1.8%
1.8%
1.9%
Taxes/Licenses
1.7%
0.8%
0.2%
Insurance
3.4%
1.8%
2.6%
Professional Fees
1.0%
0.6%
0.6%
Equipment Rental/Maintenance
0.6%
1.0%
0.9%
Bad Debts
0.5%
0.3%
0.4%
Outside Services
0.3%
0.1%
0.6%
Information Technology
2.1%
2.3%
2.6%
Education/Training
0.6%
0.7%
0.4%
Miscellaneous
0.4%
0.0%
0.0%
Total Operating
20.8%
15.7%
16.5%
Administrative Expenses
Amortization
0.3%
0.6%
0.0%
Depreciation
1.9%
2.1%
1.7%
Officer-Life
0.4%
0.6%
0.4%
Interest
0.6%
0.3%
0.7%
Other
0.1%
0.3%
0.0%
Total Administrative
3.4%
4.0%
2.8%
Total Expenses
78.2%
60.4%
73.6%
Pre-Tax Profit
21.8%
39.6%
26.4%
% Net Revenue
Average
+25% Profit
+25% Growth
30%
20%
10%
0%
Compensation
Expense
Selling
Expense
Operating
Expense
Administrative
Expense
50%
40%
60%