2015 Best Practices Study

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

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

45.5%

36.1%

45.4%

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

2.9%

4.3%

5.0%

Total Payroll

48.4%

40.4%

50.5%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.3% 1.6% 3.3% 0.2% 8.5% 1.3% 0.9% 0.2% 1.1% 1.6% 4.0% 0.2% 4.2% 0.3% 0.4% 0.7% 2.1% 0.2% 2.3% 0.6% 0.4% 1.0% 0.8% 0.4% 1.4% 0.6% 0.1% 0.7% 0.4% 0.4%

2.7% 1.8% 3.0% 0.0% 7.5% 1.2% 0.6% 0.3% 0.9% 1.9% 3.5% 0.1% 3.6% 0.2% 0.3% 0.5% 1.4% 0.1% 1.5% 0.6% 0.5% 0.9% 0.7% 0.5% 1.1% 0.5% 0.0% 0.1% 0.4% 0.5%

3.0% 1.4% 2.9% 0.1% 7.4% 1.4% 0.8% 0.2% 1.0% 1.6% 3.7% 0.0% 3.7% 0.4% 0.4% 0.8% 2.0% 0.1% 2.1% 0.6% 0.3% 0.9% 0.9% 0.5% 1.2% 0.6% 0.1% 0.9% 0.3% 0.6%

Benefits: Other

Total Benefits

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

56.9%

47.9%

57.9%

Total Auto

Advertising/Promotions

Total Selling

4.0%

4.1%

4.0%

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 $2,500,000 and $5,000,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

64

Miscellaneous

Total Operating

14.0%

11.4%

13.3%

continued on next page

Note: See page 163 for an explanation of column headings