2013 Best Practices Study

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

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

49.0%

42.2%

50.8%

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

2.4%

1.2%

4.1%

Total Payroll

51.3%

43.4%

55.0%

Benefits: Payroll Taxes Benefits: Retirement

3.4% 1.5% 3.3% 0.1% 8.3%

3.0% 1.5% 2.7% 0.0% 7.2%

3.2% 2.1% 3.0% 0.1% 8.5%

Benefits: Insurance

Benefits: Other

Total Benefits

Total Compensation

59.6%

50.6%

63.4%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.2% 0.9% 0.1% 1.1% 1.4%

0.7% 0.4% 0.0% 0.4% 1.1%

1.0% 0.8% 0.2% 1.0% 0.6%

Total Auto

Advertising/Promotions

Total Selling

3.7%

2.3%

2.6%

Operating Expenses Occupancy Expenditures

4.1% 0.3% 4.3% 0.3% 0.6% 0.9% 1.9% 0.3% 2.1% 0.7% 0.4% 1.1% 0.9% 0.5% 1.6% 0.8% 0.1% 0.8% 0.4% 0.5%

2.7% 0.4% 3.1% 0.3% 0.1% 0.4% 1.8% 0.1% 1.9% 0.8% 0.5% 0.9% 0.7% 0.2% 1.4% 0.5% 0.1% 0.3% 0.3% 0.3%

3.8% 0.2% 4.1% 0.2% 0.1% 0.3% 1.7% 0.1% 1.7% 0.5% 0.4% 0.9% 0.9% 0.3% 1.6% 0.8% 0.1% 0.6% 0.3% 0.5%

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

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

79

Miscellaneous

Total Operating

15.1%

11.2%

12.9%

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