2012 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

42.4%

34.2%

38.7%

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

2.5%

0.0%

0.3%

Total Payroll

44.9%

34.3%

39.0%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

4.0% 2.0% 3.5% 0.2% 9.6%

3.1% 1.2% 2.2% 0.0% 6.5%

4.7% 1.0% 3.8% 0.0% 9.6%

Benefits: Other

Total Benefits

Total Compensation

54.5%

40.8%

48.6%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.2% 1.9% 0.1% 2.1% 1.8% 5.1% 5.6% 0.1% 5.7% 0.6% 0.2% 0.8% 2.1% 0.3% 2.4% 1.4% 0.6% 1.5% 1.0% 0.5% 1.8% 0.7% 0.1% 0.3% 0.4% 0.8%

1.7% 1.8% 0.1% 1.9% 2.0% 5.7% 4.2% 0.1% 4.3% 1.1% 0.1% 1.2% 1.3% 0.0% 1.3% 1.0% 0.6% 2.4% 1.2% 0.8% 1.3% 0.8% 0.0% 0.1% 0.3% 1.0%

2.8% 2.9% 0.3% 3.2% 1.4% 7.4% 6.6% 0.0% 6.6% 0.5% 0.1% 0.6% 1.9% 0.2% 2.1% 1.4% 0.7% 2.4% 1.2% 0.7% 1.6% 0.4% 0.0% 0.2% 0.3% 1.3%

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

2012 Best Practices Study

Bad Debts

Outside Services Education/Training

Agencies with Revenues Under $1,250,000

Miscellaneous

Total Operating

18.0%

16.3%

19.4%

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