2013 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

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

55.6%

53.9%

52.3%

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

2.6%

0.2%

5.0%

Total Payroll

58.2%

54.1%

57.3%

Benefits: Payroll Taxes Benefits: Retirement

3.2% 1.6% 3.1% 0.6% 8.5% 1.5% 0.6% 0.1% 0.7% 1.2% 3.9% 0.2% 4.0% 0.3% 0.3% 0.7% 1.9% 0.3% 2.3% 0.6% 0.3% 0.6% 0.7% 0.4% 1.3% 1.1% 0.0% 1.0% 0.3% 0.4%

2.5% 1.5% 3.4% 1.5% 9.0% 1.6% 0.8% 0.1% 0.9% 1.0% 3.4% 0.2% 3.6% 0.1% 0.2% 0.3% 1.8% 0.2% 2.0% 0.6% 0.2% 0.7% 0.8% 0.4% 1.3% 1.1% 0.1% 0.9% 0.3% 0.4%

3.2% 1.6% 3.2% 0.4% 8.4% 1.9% 0.8% 0.0% 0.8% 1.2% 4.1% 0.0% 4.2% 0.4% 0.2% 0.6% 1.7% 0.3% 2.0% 0.9% 0.3% 0.6% 0.6% 0.4% 1.3% 1.2% 0.1% 1.3% 0.3% 0.3%

Benefits: Insurance

Benefits: Other

Total Benefits

Total Compensation

66.7%

63.1%

65.7%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

Total Auto

Advertising/Promotions

Total Selling

3.4%

3.4%

3.9%

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

2013 Best Practices Study

Dues/Subscriptions/Contributions

Taxes/Licenses

Agencies with Revenues Between $10,000,000 and $25,000,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

143

Miscellaneous

Total Operating

13.7%

12.7%

14.1%

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