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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
10
Analysis of Agencies with Revenues Under $1,250,000
2012 Best
Practices Study
Agencies with
Revenues
Under
$1,250,000
Expenses
(as % of Net Revenues)
Average
+25% Profit
+25% Growth
Compensation Expenses
Payroll: Employee
42.4%
34.2%
38.7%
Payroll: “Non-Employee” - 1099 Producers/Temp Help
2.5%
0.0%
0.3%
Total Payroll
44.9%
34.3%
39.0%
Benefits: Payroll Taxes
4.0%
3.1%
4.7%
Benefits: Retirement
2.0%
1.2%
1.0%
Benefits: Insurance
3.5%
2.2%
3.8%
Benefits: Other
0.2%
0.0%
0.0%
Total Benefits
9.6%
6.5%
9.6%
Total Compensation
54.5%
40.8%
48.6%
Selling Expenses
T&E/Conventions
1.2%
1.7%
2.8%
Auto Expenditures
1.9%
1.8%
2.9%
Auto Depreciation
0.1%
0.1%
0.3%
Total Auto
2.1%
1.9%
3.2%
Advertising/Promotions
1.8%
2.0%
1.4%
Total Selling
5.1%
5.7%
7.4%
Operating Expenses
Occupancy Expenditures
5.6%
4.2%
6.6%
Occupancy Depreciation/Amortization
0.1%
0.1%
0.0%
Total Occupancy
5.7%
4.3%
6.6%
Office Equipment Expenditures
0.6%
1.1%
0.5%
Office Equipment Depreciation
0.2%
0.1%
0.1%
Total Office Equipment
0.8%
1.2%
0.6%
IT (Information Technology)
2.1%
1.3%
1.9%
IT Depreciation/Amortization
0.3%
0.0%
0.2%
Total IT
2.4%
1.3%
2.1%
Telephone
1.4%
1.0%
1.4%
Postage
0.6%
0.6%
0.7%
Supplies/Printing
1.5%
2.4%
2.4%
Dues/Subscriptions/Contributions
1.0%
1.2%
1.2%
Taxes/Licenses
0.5%
0.8%
0.7%
Insurance
1.8%
1.3%
1.6%
Professional Fees
0.7%
0.8%
0.4%
Bad Debts
0.1%
0.0%
0.0%
Outside Services
0.3%
0.1%
0.2%
Education/Training
0.4%
0.3%
0.3%
Miscellaneous
0.8%
1.0%
1.3%
Total Operating
18.0%
16.3%
19.4%
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