2012 Best Practices Study

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

Key Benchmarks Profile

Expenses (as % of Net Revenues)

Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

53.5%

49.1%

53.9%

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

2.2%

0.3%

0.3%

Total Payroll

55.6%

49.4%

54.2%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.3% 2.0% 3.7% 0.6% 9.7%

2.9% 1.4% 3.4% 0.2% 8.0%

3.3% 2.6% 4.4% 0.3%

Benefits: Other

Total Benefits

10.7% 64.9%

Total Compensation

65.3%

57.4%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

2.3% 0.8% 0.1% 0.8% 1.0% 4.1% 3.4% 0.4% 3.8% 0.5% 0.4% 0.8% 1.5% 0.5% 2.0% 0.7% 0.4% 0.7% 0.8% 0.3% 1.3% 1.2% 0.1% 0.8% 0.2% 1.3%

2.4% 0.5% 0.1% 0.6% 1.2% 4.2% 2.3% 0.2% 2.5% 0.4% 0.5% 0.9% 1.5% 0.4% 1.9% 0.7% 0.3% 0.5% 0.6% 0.2% 0.7% 0.7% 0.1% 0.8% 0.2% 4.6%

1.6% 0.9% 0.0% 0.9% 1.4% 3.9% 2.3% 0.1% 2.4% 0.3% 0.2% 0.5% 2.1% 0.8% 2.9% 0.7% 0.3% 0.7% 0.9% 0.3% 0.9% 0.6% 0.1% 0.9% 0.2% 3.8%

Total Auto

Advertising/Promotions

Total Selling

Operating Expenses Occupancy Expenditures

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

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

Professional Fees

2012 Best Practices Study

Bad Debts

Outside Services Education/Training

Agencies with Revenues Over $25,000,000

Miscellaneous

Total Operating

14.3%

14.6%

15.0%

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