2011 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

Key Benchmarks Profile

Expenses (as % of Net Revenues)

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

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

43.4%

36.0%

38.4%

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

2.3%

1.1%

0.6%

Total Payroll

45.7%

37.1%

39.1%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

4.1% 1.9% 3.7% 0.2% 9.9%

3.0% 1.0% 2.7% 0.0% 6.8%

4.0% 2.3% 3.7% 0.4%

Benefits: Other

Total Benefits

10.3% 49.3%

Total Compensation

55.6%

43.9%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.3% 1.6% 0.3% 1.9% 1.5% 4.7% 5.3% 0.2% 5.5% 0.4% 0.1% 0.6% 2.0% 0.3% 2.3% 1.5% 0.7% 1.7% 1.0% 0.4% 1.8% 0.6% 0.1% 0.3% 0.4% 0.8%

1.0% 1.3% 0.1% 1.3% 1.7% 4.0% 4.4% 0.0% 4.4% 0.6% 0.1% 0.6% 1.1% 0.0% 1.1% 1.4% 0.6% 1.9% 1.1% 0.6% 1.5% 0.5% 0.0% 0.1% 0.3% 0.4%

1.5% 1.6% 0.3% 2.0% 1.5% 5.0% 4.8% 0.0% 4.9% 0.4% 0.1% 0.5% 2.0% 0.1% 2.1% 1.2% 0.6% 2.2% 0.9% 0.4% 1.8% 0.6% 0.0% 0.3% 0.3% 0.7%

Total Auto

Advertising/Promotions

Total Selling

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

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

Professional Fees

2011 Best Practices Study

Bad Debts

Outside Services Education/Training

Agencies with Revenues Under $1,250,000

Miscellaneous

Total Operating

17.5%

14.6%

16.5%

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