2014 Best Practices Study

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

Key Benchmarks

Expenses (as % of Net Revenues)

Profile

Revenues Expenses

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

47.6%

40.4%

50.0%

Profitability

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

2.7%

1.0%

2.4%

Employee Overview

Total Payroll

50.3%

41.4%

52.4%

Benefits: Payroll Taxes Benefits: Retirement

3.4% 1.5% 3.4% 0.2% 8.6%

3.0% 1.5% 2.9% 0.5% 8.0%

3.5% 1.3% 3.9% 0.1% 8.9%

Producer Info

Service Staff Info

Benefits: Insurance

Benefits: Other

Technology

Total Benefits

Insurance Carriers

Total Compensation

58.8%

49.4%

61.3%

Appendix

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.3% 0.9% 0.2% 1.1% 1.5%

0.8% 0.3% 0.1% 0.4% 0.9%

1.4% 1.1% 0.2% 1.3% 1.3%

Total Auto

Advertising/Promotions

Total Selling

3.9%

2.1%

4.0%

Operating Expenses Occupancy Expenditures

4.1% 0.2% 4.4% 0.3% 0.3% 0.6% 1.9% 0.1% 2.1% 0.7% 0.4% 0.9% 0.8% 0.3% 1.5% 0.7% 0.1% 0.7% 0.4% 0.4%

3.3% 0.1% 3.4% 0.2% 0.1% 0.3% 1.6% 0.0% 1.6% 0.6% 0.5% 0.8% 0.6% 0.4% 1.4% 0.6% 0.3% 0.3% 0.3% 0.4%

5.1% 0.0% 5.1% 0.3% 0.3% 0.5% 2.4% 0.2% 2.5% 0.7% 0.5% 1.0% 1.0% 0.3% 1.3% 0.5% 0.1% 0.5% 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

2014 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

64

Miscellaneous

Total Operating

14.1%

11.6%

14.8%

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