2005 Best Practices Study
AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000
EXPENSE ANALYSIS
A.
Expenses Analysis (as a % of Net Revenues)
2005
+25% Profit
+25% Growth
Average
Compensation Expense Total Payroll
52.0%
40.5%
44.5% 10.8% 55.3%
Benefits
9.0%
8.8%
PROFILE
Total Compensation
61.1%
49.3%
Selling Expenses
T&E/Conventions
1.2% 0.9% 1.4% 3.6% 3.5% 0.9% 0.6% 1.3% 1.0% 0.7% 1.7% 0.8% 0.5% 0.2% 0.5% 1.2% 0.4% 0.4% 0.6% 1.1% 0.3% 0.3% 0.3% 2.7%
1.2% 1.1% 1.5% 3.8% 2.7% 0.8% 0.6% 1.0% 0.7% 0.4% 1.5% 1.0% 0.8% 0.1% 0.2% 1.1% 0.4% 0.2% 0.8% 0.9% 0.3% 0.5% 0.4% 2.9% 11.4% 67.3% 32.7%
1.4% 1.1% 1.5% 4.0% 3.6% 0.9% 0.6% 1.5% 0.9% 0.4% 1.2% 1.1% 0.6% 0.0% 0.6% 1.1% 0.4% 0.1% 0.6% 0.8% 0.2% 0.1% 0.5% 2.1%
Automobile
Advertising/Promotions
Total Selling
REVENUES/ EXPENSES
Operating Expenses Occupancy
Telephone
Postage
Supplies/Printing
FINANCIAL STABILITY
Dues/Subscriptions/Contributions
Taxes/Licenses
Insurance
Professional Fees
Equipment Rental/Maintenance
Bad Debts
EMPLOYEE OVERVIEW
Outside Services
Information Technology
Education/Training
Miscellaneous
Total Operating
13.6%
13.2%
PRODUCER INFO
Administrative Expenses Amortization
Depreciation Officer-Life
Interest
SERVICE STAFF INFO
Other
Total Administrative
Total Expenses Pre-Tax Profit
80.9% 19.1%
74.6% 25.4%
TECHNOLOGY
60%
Average
50%
+25% Profit
40%
+25% Growth
INSURANCE CARRIERS
30%
20%
% Net Revenue
10%
0%
Compensation Expense
Operating Expense
Administrative Expense
Selling Expense
54
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