2015 Best Practices Study

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

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

50.7%

44.6%

46.8%

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

2.9%

6.5%

4.1%

Total Payroll

53.5%

51.1%

51.0%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.2% 1.6% 3.2% 0.5% 8.5% 1.1% 0.7% 0.1% 0.9% 1.4% 4.2% 0.1% 4.3% 0.5% 0.5% 1.0% 2.0% 0.2% 2.2% 0.6% 0.4% 0.7% 0.8% 0.4% 1.5% 0.9% 0.1% 0.7% 0.4% 0.4%

2.8% 1.2% 2.7% 0.0% 6.8% 0.8% 0.7% 0.1% 0.9% 1.3% 4.8% 0.1% 4.9% 0.3% 0.3% 0.6% 1.5% 0.0% 1.5% 0.5% 0.5% 0.5% 0.7% 0.5% 1.7% 0.7% 0.0% 0.6% 0.3% 0.5%

3.0% 2.1% 2.7% 0.8% 8.7% 1.1% 0.5% 0.1% 0.6% 1.2% 3.2% 0.1% 3.3% 0.7% 0.0% 0.7% 1.9% 0.2% 2.0% 0.4% 0.2% 0.6% 0.7% 0.7% 1.6% 0.7% 0.0% 1.0% 0.6% 0.4%

Benefits: Other

Total Benefits

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

62.1%

57.9%

59.7%

Total Auto

Advertising/Promotions

Total Selling

3.3%

3.0%

3.0%

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 $5,000,000 and $10,000,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

90

Miscellaneous

Total Operating

14.3%

13.6%

13.0%

continued on next page

Note: See page 163 for an explanation of column headings