2015 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

46.0%

43.8%

45.3%

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

2.2%

0.1%

5.9%

Total Payroll

48.3%

43.9%

51.2%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.7% 1.8% 2.8% 0.2% 8.5% 1.6% 1.1% 0.2% 1.3% 1.6% 5.8% 0.1% 5.9% 0.5% 0.6% 1.0% 2.4% 0.1% 2.5% 1.0% 0.4% 1.0% 0.8% 0.4% 1.6% 0.8% 0.1% 0.6% 0.4% 0.6%

2.9% 1.2% 2.2% 0.2% 6.4% 1.8% 1.4% 0.2% 1.5% 0.8% 5.7% 0.2% 5.9% 0.6% 0.0% 0.6% 2.0% 0.0% 2.0% 0.7% 0.4% 1.1% 0.4% 0.4% 1.5% 0.4% 0.0% 0.1% 0.3% 0.0%

3.6% 1.2% 2.4% 0.5% 7.8% 1.9% 1.0% 0.1% 1.0% 3.2% 6.8% 0.0% 6.8% 0.5% 1.4% 1.9% 3.0% 0.1% 3.1% 1.0% 0.4% 1.1% 1.0% 0.3% 1.3% 1.2% 0.0% 0.4% 0.4% 1.2%

Benefits: Other

Total Benefits

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

56.8%

50.3%

59.0%

Total Auto

Advertising/Promotions

Total Selling

4.5%

4.2%

6.2%

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 Between $1,250,000 and $2,500,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

38

Miscellaneous

Total Operating

16.8%

14.0%

20.2%

continued on next page

Note: See page 163 for an explanation of column headings