2012 Best Practices Study

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

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

52.1%

47.0%

56.6%

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

5.5%

5.6%

1.8%

Total Payroll

57.6%

52.6%

58.4%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.3% 1.8% 3.6% 0.2% 8.9%

2.9% 1.4% 3.2% 0.2% 7.7%

3.3% 2.0% 2.6% 0.1% 8.0%

Benefits: Other

Total Benefits

Total Compensation

66.6%

60.2%

66.5%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.0% 0.8% 0.1% 0.9% 1.2% 3.1% 4.4% 0.3% 4.7% 0.4% 0.2% 0.6% 1.9% 0.3% 2.1% 0.7% 0.4% 0.7% 0.7% 0.4% 1.5% 0.9% 0.1% 0.7% 0.3% 0.2%

0.8% 0.8% 0.1% 0.9% 1.1% 2.9% 4.8% 0.1% 4.9% 0.4% 0.1% 0.5% 1.5% 0.1% 1.5% 0.6% 0.3% 0.6% 0.6% 0.3% 1.5% 0.6% 0.0% 1.0% 0.4% 0.1%

1.2% 0.8% 0.1% 1.0% 1.4% 3.5% 4.2% 0.1% 4.3% 0.2% 0.1% 0.4% 1.5% 0.3% 1.8% 0.5% 0.3% 0.7% 0.9% 0.4% 1.2% 1.0% 0.0% 0.7% 0.3% 0.2%

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 Between $5,000,000 and $10,000,000

Miscellaneous

Total Operating

14.0%

13.0%

12.6%

continued on next page

82