2013 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

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

40.7%

35.9%

34.8%

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

3.4%

1.9%

5.0%

Total Payroll

44.1%

37.8%

39.8%

Benefits: Payroll Taxes Benefits: Retirement

3.8% 1.3% 2.7% 0.3% 8.2%

2.8% 0.9% 1.0% 0.7% 5.4%

3.2% 0.6% 2.9% 0.6% 7.3%

Benefits: Insurance

Benefits: Other

Total Benefits

Total Compensation

52.2%

43.2%

47.1%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.0% 1.5% 0.7% 2.2% 2.3%

0.6% 1.6% 0.9% 2.4% 2.5%

0.7% 1.0% 1.0% 2.0% 2.9%

Total Auto

Advertising/Promotions

Total Selling

5.5%

5.6%

5.7%

Operating Expenses Occupancy Expenditures

5.4% 0.2% 5.6% 0.4% 0.2% 0.6% 2.3% 0.1% 2.4% 1.3% 0.6% 1.1% 1.1% 0.9% 1.8% 0.6% 0.1% 0.4% 0.3% 0.7%

5.2% 0.0% 5.2% 0.5% 0.6% 1.1% 1.4% 0.2% 1.6% 1.0% 0.4% 0.9% 0.8% 0.4% 1.0% 0.5% 0.1% 0.2% 0.2% 0.1%

6.2% 0.0% 6.2% 0.2% 0.4% 0.6% 2.6% 0.1% 2.7% 0.9% 0.6% 1.2% 1.4% 0.5% 2.1% 0.7% 0.1% 1.0% 0.4% 1.2%

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 Under $1,250,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

15

Miscellaneous

Total Operating

17.4%

13.6%

19.5%

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