2010 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

Mgmt. Perspectives

Expenses (as % of Net Revenues)

Profile

Revenues

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

Expenses

49.1%

46.2%

47.9%

Profitability

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

3.9%

1.4%

3.6%

Total Payroll

53.0%

47.6%

51.6%

Employee Overview

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.6% 2.0% 3.8% 0.2% 9.6%

3.8% 1.3% 3.4% 0.2% 8.7%

3.3% 2.1% 3.6% 0.3% 9.3%

Producer Info

Staff Service Info

Benefits: Other

Technology

Total Benefits

Total Compensation

62.7%

56.3%

60.9%

Insurance Carriers

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.2% 1.0% 0.0% 0.9% 2.0% 4.1% 4.2% 0.4% 4.5% 0.5% 0.5% 1.0% 1.8% 0.3% 2.1% 0.9% 0.5% 1.0% 0.7% 0.4% 1.6% 0.9% 0.2% 0.5% 0.3% 0.3%

1.0% 0.8% 0.0% 0.8% 1.7% 3.5% 3.9% 0.4% 4.3% 0.3% 0.1% 0.4% 1.8% 0.1% 1.9% 0.9% 0.6% 1.1% 0.5% 0.3% 1.5% 0.6% 0.1% 0.3% 0.3% 0.2%

1.4% 0.9% -0.4% 0.5% 1.5% 3.9% 0.4% 4.2% 0.4% 0.2% 0.6% 1.4% 0.3% 1.8% 0.7% 0.4% 1.0% 0.8% 0.3% 1.8% 1.2% 0.1% 0.5% 0.4% 0.1% 14.0% 3.4%

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 $2,500,000 and $5,000,000

Outside Services Education/Training

Miscellaneous

Total Operating

14.9%

13.2%

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