2013 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

Key Benchmarks Mgmt. Perspectives Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Expenses (as % of Net Revenues)

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

50.7%

40.4%

55.3%

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

2.8%

6.2%

1.7%

Total Payroll

53.5%

46.7%

57.0%

Benefits: Payroll Taxes Benefits: Retirement

3.3% 1.3% 3.4% 0.3% 8.3%

3.0% 0.9% 2.9% 0.2% 6.9%

3.4% 0.9% 2.8% 0.2% 7.3%

Benefits: Insurance

Benefits: Other

Total Benefits

Total Compensation

61.8%

53.6%

64.3%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.0% 0.7% 0.1% 0.8% 1.5%

0.6% 0.6% 0.2% 0.8% 1.6%

1.2% 0.6% 0.2% 0.9% 1.4%

Total Auto

Advertising/Promotions

Total Selling

3.3%

2.9%

3.5%

Operating Expenses Occupancy Expenditures

4.1% 0.2% 4.3% 0.5% 0.2% 0.7% 1.9% 0.2% 2.2% 0.8% 0.4% 0.8% 0.7% 0.4% 1.5% 1.0% 0.1% 0.6% 0.3% 0.4%

4.1% 0.1% 4.2% 0.4% 0.1% 0.4% 1.8% 0.1% 1.9% 0.7% 0.4% 0.7% 0.4% 0.3% 1.6% 1.0% 0.0% 0.5% 0.3% 0.4%

3.6% 0.2% 3.7% 0.3% 0.2% 0.5% 1.7% 0.0% 1.8% 0.8% 0.3% 0.8% 0.8% 0.4% 1.3% 1.4% 0.0% 0.9% 0.2% 0.3%

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

2013 Best Practices Study

Dues/Subscriptions/Contributions

Taxes/Licenses

Agencies with Revenues Between $5,000,000 and $10,000,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

111

Miscellaneous

Total Operating

14.2%

13.0%

13.3%

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