2014 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

Key Benchmarks

Expenses (as % of Net Revenues)

Profile

Revenues Expenses

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

43.9%

32.5%

34.0%

Profitability

Payroll: “Non-Employee” - 1099 Producers/Temp Help

2.9%

3.0%

5.4%

Employee Overview

Total Payroll

46.8%

35.5%

39.4%

Benefits: Payroll Taxes Benefits: Retirement

3.5% 1.5% 3.1% 0.4% 8.5%

3.2% 0.5% 2.5% 0.2% 6.3%

4.0% 0.3% 3.6% 0.4% 8.4%

Producer Info

Service Staff Info

Benefits: Insurance

Benefits: Other

Technology

Total Benefits

Insurance Carriers

Total Compensation

55.3%

41.7%

47.8%

Appendix

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.4% 1.0% 0.2% 1.2% 1.6%

2.1% 1.3% 0.2% 1.5% 1.2%

1.2% 0.6% 0.1% 0.7% 1.7%

Total Auto

Advertising/Promotions

Total Selling

4.2%

4.7%

3.7%

Operating Expenses Occupancy Expenditures

5.3% 0.1% 5.4% 0.4% 0.5% 0.9% 2.3% 0.2% 2.4% 0.9% 0.4% 1.1% 0.8% 0.4% 1.4% 0.9% 0.1% 0.5% 0.5% 0.4%

6.0% 0.0% 6.0% 0.9% 0.2% 1.1% 1.5% 0.0% 1.5% 0.6% 0.4% 1.7% 0.6% 0.4% 1.1% 1.7% 0.4% 0.1% 0.4% 0.1%

6.0% 0.0% 6.1% 0.4% 1.2% 1.6% 1.7% 0.1% 1.8% 0.7% 0.3% 1.6% 0.6% 0.4% 1.0% 1.8% 0.5% 0.6% 0.4% 0.5%

Occupancy Depreciation/Amortization

Total Occupancy

Office Equipment Expenditures Office Equipment Depreciation Total Office Equipment IT (Information Technology) IT Depreciation/Amortization

Total IT

Telephone

Postage

Supplies/Printing

2014 Best Practices Study

Dues/Subscriptions/Contributions

Taxes/Licenses

Agencies with Revenues Between $1,250,000 and $2,500,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

38

Miscellaneous

Total Operating

16.1%

16.1%

17.8%

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