2014 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

Key Benchmarks

Expenses (as % of Net Revenues)

Profile

Revenues Expenses

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

50.2%

43.5%

48.3%

Profitability

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

3.0%

6.6%

2.7%

Employee Overview

Total Payroll

53.2%

50.1%

51.0%

Benefits: Payroll Taxes Benefits: Retirement

3.3% 1.5% 3.4% 0.3% 8.5%

2.7% 1.4% 2.6% 0.0% 6.8%

2.9% 1.2% 3.2% 0.1% 7.4%

Producer Info

Service Staff Info

Benefits: Insurance

Benefits: Other

Technology

Total Benefits

Insurance Carriers

Total Compensation

61.7%

56.9%

58.4%

Appendix

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.0% 0.8% 0.1% 0.9% 1.3%

0.5% 0.7% 0.3% 1.0% 1.3%

0.8% 0.8% 0.3% 1.1% 1.1%

Total Auto

Advertising/Promotions

Total Selling

3.2%

2.7%

3.0%

Operating Expenses Occupancy Expenditures

4.2% 0.1% 4.3% 0.5% 0.5% 0.9% 1.9% 0.2% 2.1% 0.7% 0.4% 0.7% 0.8% 0.5% 1.5% 0.8% 0.1% 0.6% 0.4% 0.6%

4.4% 0.1% 4.5% 0.3% 0.1% 0.3% 1.7% 0.2% 1.9% 0.6% 0.4% 0.6% 0.5% 0.4% 1.5% 0.7% 0.0% 0.3% 0.3% 0.5%

4.1% 0.1% 4.2% 0.3% 0.3% 0.6% 1.9% 0.1% 2.0% 0.5% 0.4% 0.7% 0.4% 0.4% 1.1% 0.7% 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

2014 Best Practices Study

Dues/Subscriptions/Contributions

Taxes/Licenses

Agencies with Revenues Between $5,000,000 and $10,000,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

90

Miscellaneous

Total Operating

14.5%

12.5%

12.3%

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