2011 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

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

54.8%

51.7%

53.4%

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

3.4%

1.3%

1.5%

Total Payroll

58.1%

53.0%

54.9%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.2% 1.7% 3.4% 0.5% 8.8%

3.0% 1.6% 3.0% 0.1% 7.6%

3.2% 1.4% 2.9% 0.3% 7.8%

Benefits: Other

Total Benefits

Total Compensation

67.0%

60.7%

62.7%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.5% 0.8% 0.1% 0.8% 0.9% 3.3% 4.1% 0.2% 4.3% 0.4% 0.4% 0.7% 1.4% 0.3% 1.7% 0.6% 0.3% 0.6% 0.6% 0.3% 1.4% 1.1% 0.2% 1.0% 0.3% 0.4%

1.8% 0.7% 0.1% 0.8% 0.9% 3.4% 3.5% 0.2% 3.6% 0.3% 0.2% 0.5% 0.9% 0.2% 1.1% 0.6% 0.3% 0.4% 0.4% 0.4% 0.9% 1.2% 0.2% 0.7% 0.2% 0.2%

1.8% 0.6% 0.0% 0.7% 0.7% 3.2% 3.9% 0.2% 4.1% 0.3% 0.6% 0.9% 1.4% 0.3% 1.7% 0.6% 0.3% 0.5% 0.7% 0.4% 1.1% 0.9% 0.1% 0.9% 0.2% 0.2%

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 Between $10,000,000 and $25,000,000

Miscellaneous

Total Operating

13.5%

10.8%

12.6%

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