2012 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

47.7%

48.2%

42.9%

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

3.1%

1.5%

2.7%

Total Payroll

52.5%

49.1%

52.4%

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.5% 2.0% 3.6% 0.2% 9.2%

3.4% 1.6% 2.7% 0.1% 7.8%

3.4% 2.3% 2.2% 0.1% 8.0%

Benefits: Other

Total Benefits

Total Compensation

61.8%

57.5%

60.4%

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.1% 0.9% 0.1% 1.0% 1.8% 3.8% 4.0% 0.3% 4.3% 0.3% 0.4% 0.7% 1.8% 0.3% 2.1% 0.7% 0.5% 0.9% 0.8% 0.4% 1.6% 0.8% 0.1% 0.7% 0.4% 0.4%

0.6% 0.6% 0.0% 0.6% 0.7% 2.9% 2.9% 0.4% 3.3% 0.1% 0.0% 0.2% 1.9% 0.2% 2.1% 0.7% 0.6% 0.9% 0.6% 0.3% 1.1% 0.5% 0.0% 0.1% 0.4% 0.5%

1.3% 1.1% 0.1% 1.2% 1.8% 4.3% 3.6% 0.1% 3.7% 0.1% 0.1% 0.3% 1.5% 0.6% 2.1% 0.6% 0.4% 0.8% 1.0% 0.7% 1.2% 0.5% 0.1% 0.4% 0.3% 0.4%

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 Between $2,500,000 and $5,000,000

Miscellaneous

Total Operating

14.6%

11.6%

12.5%

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