2013 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

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

52.0%

48.8%

54.7%

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

3.3%

1.4%

2.3%

Total Payroll

55.3%

50.2%

57.0%

Benefits: Payroll Taxes Benefits: Retirement

2.9% 1.9% 3.2% 0.9% 8.8%

2.3% 1.1% 2.4% 2.1% 7.9%

2.6% 1.4% 2.7% 2.2% 8.9%

Benefits: Insurance

Benefits: Other

Total Benefits

Total Compensation

64.1%

58.1%

65.8%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

2.1% 0.7% 0.1% 0.8% 0.9%

2.0% 0.3% 0.0% 0.3% 0.6%

1.9% 0.7% 0.0% 0.7% 0.8%

Total Auto

Advertising/Promotions

Total Selling

3.8%

2.9%

3.4%

Operating Expenses Occupancy Expenditures

3.5% 0.3% 3.7% 0.5% 0.3% 0.8% 1.6% 0.4% 2.0% 0.6% 0.3% 0.6% 0.7% 0.3% 1.2% 1.2% 0.1% 0.8% 0.3% 0.6%

3.6% 0.1% 3.8% 0.5% 0.1% 0.6% 1.5% 0.3% 1.8% 0.5% 0.2% 0.7% 0.5% 0.3% 1.4% 0.9% 0.2% 0.9% 0.1% 0.9%

3.5% 0.2% 3.7% 0.4% 0.3% 0.7% 1.3% 0.5% 1.8% 0.6% 0.2% 0.5% 0.7% 0.3% 1.1% 1.1% 0.0% 1.1% 0.2% 0.2%

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 Over $25,000,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

175

Miscellaneous

Total Operating

13.2%

12.9%

12.2%

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