2010 Best Practices Study
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
Mgmt. Perspectives
Expenses (as % of Net Revenues)
Profile
Revenues
Average
+25% Profit
+25% Growth
Compensation Expenses Payroll: Employee
Expenses
52.7%
45.5%
48.2%
Profitability
Payroll: “Non-Employee” - 1099 Producers/Temp Help
5.0%
5.1%
8.4%
Total Payroll
57.7%
50.6%
56.6%
Employee Overview
Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance
3.1% 1.9% 3.6% 0.3% 8.9%
2.8% 1.4% 3.0% 0.3% 7.5%
2.9% 1.4% 2.9% 0.2% 7.4%
Producer Info
Staff Service Info
Benefits: Other
Technology
Total Benefits
Total Compensation
66.6%
58.1%
64.0%
Insurance Carriers
Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation
0.9% 0.8% 0.1% 0.9% 1.3% 3.1% 4.2% 0.2% 4.4% 0.3% 0.3% 0.7% 1.5% 0.3% 1.8% 0.8% 0.5% 0.8% 0.8% 0.4% 1.5% 0.8% 0.1% 0.6% 0.3% 0.3%
0.8% 0.7% 0.2% 0.9% 0.8% 2.5% 3.8% 0.2% 4.0% 0.2% 0.1% 0.3% 1.3% 0.2% 1.5% 0.7% 0.4% 0.8% 0.8% 0.3% 1.4% 1.0% 0.1% 0.5% 0.3% 0.3%
0.8% 0.9% 0.2% 1.1% 1.8% 3.6% 4.7% 0.2% 4.9% 0.4% 0.1% 0.5% 1.6% 0.2% 1.8% 1.0% 0.4% 0.8% 0.7% 0.2% 1.3% 1.1% 0.1% 0.6% 0.4% 0.5%
Appendix
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
2010 Best Practices Study
Insurance
Professional Fees
Bad Debts
Agencies with Revenues Between $5,000,000 and $10,000,000
Outside Services Education/Training
Miscellaneous
Total Operating
13.6%
12.4%
14.2%
continued on next page
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