2011 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 Staff Service Info Technology Insurance Carriers Appendix

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

47.8%

37.1%

49.5%

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

1.8%

0.1%

2.6%

Total Payroll

49.6%

37.2%

52.1%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.6% 1.6% 3.5% 0.2% 8.9%

2.3% 2.3% 3.1% 0.1% 7.7%

3.2% 1.9% 2.5% 0.0% 7.7%

Benefits: Other

Total Benefits

Total Compensation

58.5%

44.8%

59.8%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.0% 0.9% 0.2% 1.1% 1.3% 3.4% 5.0% 0.2% 5.2% 0.3% 0.2% 0.5% 2.0% 0.2% 2.2% 0.9% 0.5% 1.0% 0.9% 0.5% 1.7% 0.9% 0.0% 0.5% 0.4% 0.3%

1.1% 0.8% 0.2% 1.0% 1.1% 3.2% 4.1% 0.0% 4.1% 0.4% 0.1% 0.5% 2.1% 0.1% 2.2% 0.8% 0.5% 0.8% 1.0% 0.7% 1.5% 1.0% 0.1% 0.0% 0.8% 0.4%

1.1% 1.3% 0.2% 1.5% 1.1% 3.8% 5.0% 0.0% 5.0% 0.2% 0.0% 0.2% 2.3% 0.3% 2.6% 1.1% 0.4% 1.2% 0.5% 0.3% 1.3% 0.9% 0.1% 0.3% 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 $1,250,000 and $2,500,000

Miscellaneous

Total Operating

15.5%

14.5%

14.4%

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