ACG - Agency Consulting Group

The PIPELINE

A national monthly newsletter for agency principals dedicated to agency management topic

2012 - Composite Group 3 - Net Revenue $2,000,000 - $3,000,000

COMPOSITE GROUP 3

NET REVENUE $2,000,000-$3,000,000

2012 AVG. NET REVENUE $2,888,954

2011 AVG. NET REVENUE $2,812,512

2010 AVG. NET REVENUE $2,857,021

2009 AVG. NET REVENUE $2,801,366

2008 AVG. NET REVENUE $2,750,488

INCOME (% OF GROSS) Your Agency $ Your Agency % 2012 2011 2010 2009 2008 2007

P&C COMMISSION ______________ ______________ 87.75% 87.00% 88.00% 87.57% 87.88% 87.42%

CONTINGENTS _______________ ______________ 4.27% 4.60% 4.64% 4.24% 4.60% 4.92%

FEES ______________ ______________ 1.43% 2.07% 1.13% 1.26% 1.29% 1.00%

LIFE & HEALTH _______________ ______________ 6.12% 5.90% 5.70% 6.39% 5.95% 6.22%

INVESTMENT _______________ ______________ 0.28% 0.33% 0.38% 0.44% 0.22% 0.36%

MISCELLANEOUS _______________ ______________ 0.15% 0.10% 0.15% 0.10% 0.06% 0.08%

_______________ ______________

GROSS REVENUE _______________ ______________ 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

COMM. EXPENSE _______________ ______________ 1.04% 1.10% 1.27% 1.34% 1.31% 1.37%

NET REVENUE _______________ ______________ 98.96% 98.90% 98.73% 98.66% 98.69% 98.63%

_______________ ______________

EXPENSES(% OF NET REV) _______________ ______________ 2012 2011 2010 2009 2008 2007

COMPENSATION _______________ ______________

EXEC/SALES _______________ ______________ 31.74% 31.83% 32.50% 31.89% 32.11% 31.05%

OFFICE _______________ ______________ 21.67% 21.70% 21.73% 21.80% 22.00% 20.89%

SUB-TOTAL _______________ ______________ 53.41% 53.53% 54.23% 53.69% 54.11% 51.94%

COST OF EMPLOYMENT _______________ ______________ 11.61% 11.54% 11.71% 11.12% 11.07% 12.01%

TOTAL _______________ ______________ 65.02% 65.07% 65.94% 64.81% 65.18% 63.95%

_______________ ______________

SELLING _______________ ______________

T&E _______________ ______________ 1.01% 0.95% 0.93% 1.01% 1.03% 1.10%

AUTO _______________ ______________ 1.11% 1.15% 1.17% 1.34% 1.32% 1.42%

ADV&PROMO _______________ ______________ 1.58% 1.63% 1.54% 1.41% 1.78% 1.36%

TOTAL _______________ ______________ 3.70% 3.73% 3.63% 3.76% 4.13% 3.88%

_______________ ______________

OPERATING COSTS _______________ ______________

OCCUPANCY _______________ ______________ 4.80% 4.83% 5.00% 4.66% 4.76% 4.51%

TELEPHONE _______________ ______________ 1.15% 1.13% 1.15% 1.16% 1.13% 1.16%

POSTAGE _______________ ______________ 0.77% 0.82% 0.80% 0.79% 0.82% 0.79%

#REF! _______________ ______________

Print/Sta/Off Sup _______________ ______________ 1.01% 0.97% 1.03% 1.10% 1.06% 1.15%

DUES,SUBSCRIP.& CONTRIB. _______________ ______________ 0.52% 0.54% 0.59% 0.65% 0.77% 0.90%

TAXES & LICENSES _______________ ______________ 0.36% 0.34% 0.36% 0.37% 0.35% 0.36%

P&C INSURANCE _______________ ______________ 1.99% 1.96% 1.98% 2.00% 2.07% 2.13%

PROFESSIONAL FEES _______________ ______________ 0.88% 0.96% 0.93% 1.01% 1.04% 1.25%

EQUIPMENT RENTAL & MAINT. _______________ ______________ 0.64% 0.63% 0.70% 0.68% 0.74% 0.75%

BAD DEBTS _______________ ______________ 0.31% 0.22% 0.13% 0.18% 0.17% 0.21%

OUTSIDE SERVICES _______________ ______________ 0.35% 0.34% 0.36% 0.37% 0.39% 0.42%

DATA PROCESSING _______________ ______________ 2.29% 2.36% 2.28% 2.40% 2.41% 2.56%

EDUCATION _______________ ______________ 0.38% 0.45% 0.42% 0.42% 0.41% 0.39%

MISCELLANEOUS _______________ ______________ 0.09% 0.10% 0.09% 0.10% 0.09% 0.08%

TOTAL _______________ ______________ 15.54% 15.65% 15.79% 15.89% 16.21% 16.66%

_______________ ______________

ADMINISTRATIVE

DEPRECIATION & AMORT _______________ ______________ 4.42% 4.04% 3.95% 3.81% 3.74% 3.67%

OFFICER LIFE _______________ ______________ 0.45% 0.46% 0.48% 0.46% 0.47% 0.44%

INTEREST _______________ ______________ 0.75% 0.81% 0.78% 0.81% 0.68% 0.77%

OTHER _______________ ______________ 0.05% 0.04% 0.08% 0.09% 0.08% 0.05%

TOTAL _______________ ______________ 5.67% 5.35% 5.28% 5.17% 4.97% 4.93%

_______________ ______________

TOTAL EXPENSE 89.93% 89.80% 90.63% 89.63% 90.49% 89.42%

_______________ ______________

PRE TAX PROFIT 10.08% 10.20% 9.36% 10.37% 9.51% 10.58%

_______________ ______________

# EMPLOYEES 24 24.03 23.95 24.3 24.7 25.1

REVENUE/EMPL _______________ ______________ $120,373 $117,042 $119,291 $115,283 $111,356 $108,531

COMPENS/EMPL _______________ ______________ $78,267 $76,159 $78,655 $74,715 $72,582 $69,405

SPREAD _______________ ______________ $42,107 $40,883 $40,637 $40,568 $38,774 $39,125