2015 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

Key Benchmarks Profile

Expenses (as % of Net Revenues)

Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Average

Top 25% Profit Top 25% Growth

COMPENSATION EXPENSES Payroll: Employee

54.3%

49.2%

58.9%

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

2.5%

1.1%

1.1%

Total Payroll

56.8%

50.3%

60.0%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.0% 1.9% 3.1% 0.8% 8.8% 2.6% 0.6% 0.1% 0.7% 0.9% 3.3% 0.3% 3.6% 0.5% 0.4% 0.8% 1.5% 0.4% 2.0% 0.5% 0.3% 0.6% 0.7% 0.4% 1.2% 1.4% 0.1% 1.0% 0.3% 0.4%

2.3% 1.9% 2.6% 2.0% 8.8% 2.1% 0.7% 0.0% 0.7% 0.8% 3.2% 0.1% 3.3% 0.3% 0.3% 0.6% 1.5% 0.5% 2.0% 0.4% 0.2% 0.4% 0.6% 0.3% 1.1% 0.7% 0.1% 0.6% 0.3% 0.3%

3.1% 2.3% 2.8% 0.2% 8.4% 3.1% 0.7% 0.0% 0.8% 0.9% 3.3% 0.4% 3.7% 0.4% 0.5% 1.0% 1.2% 0.2% 1.4% 0.4% 0.3% 0.6% 0.8% 0.3% 1.1% 1.1% 0.0% 0.9% 0.3% 0.1%

Benefits: Other

Total Benefits

Total Compensation SELLING EXPENSES T&E/Conventions Auto Expenditures Auto Depreciation

65.5%

59.0%

68.5%

Total Auto

Advertising/Promotions

Total Selling

4.2%

3.6%

4.7%

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

2015 Best Practices Study

Dues/Subscriptions/Contributions

Taxes/Licenses

Agencies with Revenues Over $25,000,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

142

Miscellaneous

Total Operating

13.4%

10.9%

12.0%

continued on next page

Note: See page 163 for an explanation of column headings