2013 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

Key Benchmarks Mgmt. Perspectives Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Expenses (as % of Net Revenues)

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

44.9%

34.0%

44.2%

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

3.3%

3.6%

3.0%

Total Payroll

48.2%

37.6%

47.2%

Benefits: Payroll Taxes Benefits: Retirement

3.5% 1.5% 3.0% 0.4% 8.4%

2.8% 0.2% 2.5% 0.1% 5.6%

3.9% 1.0% 3.8% 0.4% 9.1%

Benefits: Insurance

Benefits: Other

Total Benefits

Total Compensation

56.6%

43.2%

56.3%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.1% 1.0% 0.2% 1.1% 1.5%

1.0% 1.1% 0.2% 1.3% 1.7%

1.2% 0.9% 0.1% 1.0% 2.1%

Total Auto

Advertising/Promotions

Total Selling

3.8%

4.0%

4.3%

Operating Expenses Occupancy Expenditures

4.5% 0.2% 4.7% 0.5% 0.5% 0.9% 2.1% 0.2% 2.3% 0.9% 0.4% 1.1% 1.0% 0.4% 1.4% 0.8% 0.1% 0.8% 0.3% 0.5%

3.5% 0.1% 3.6% 0.5% 0.2% 0.6% 1.2% 0.0% 1.2% 0.8% 0.5% 1.3% 0.8% 0.3% 1.1% 0.8% 0.0% 0.3% 0.3% 0.2%

4.5% 0.0% 4.5% 0.7% 1.0% 1.7% 2.0% 0.2% 2.3% 1.1% 0.4% 1.6% 0.9% 0.3% 1.4% 1.1% 0.1% 0.2% 0.4% 0.4%

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

2013 Best Practices Study

Dues/Subscriptions/Contributions

Taxes/Licenses

Agencies with Revenues Between $1,250,000 and $2,500,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

47

Miscellaneous

Total Operating

15.7%

11.7%

16.3%

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