Med spa · Austin, TX
$2,100–$4,900 /mo
Unanswered calls. ~30% of first calls hit voicemail, and 85% never call back.
First calls → voicemail
You30%
Healthy<10%
Where the rest goes
Every cost as a share of revenue, before owner pay and profit. If one of yours is well outside these, that is usually where the margin went.
| Line | Typical | Top performers |
|---|---|---|
| Labor | 30–45% | 34% |
| Technology data | 4–9% | 6% |
| Rent occupancy | 4–9% | 5% |
| Marketing | 6–14% | 11% |
- Labor: producers, CSRs/account managers, licensed assistants; producer commission split is the biggest lever
- Technology data: agency management system, comparative rater, lead data, e-signature — rises as you add carrier appointments
- Marketing: top agencies spend more here — but they measure cost per bound policy, not cost per lead
The numbers that decide a insurance agency
| Metric | Typical range |
|---|---|
| Revenue per employeeAnnual revenue per employee. Midpoint is the measured 2022 Economic Census figure for NAICS 524210 (total receipts ÷ employment); the range spans operator variation around it. | $163k – $326k |
| Avg visit ticketAverage first-year commission on a newly bound policy for an independent agency, blended across personal and small commercial lines. | $180 – $600 |
| Rebooking ratePolicyholder renewal retention rate for a healthy independent agency book. | 82% – 93% |
| Inbound voicemail shareShare of first quote calls that reach voicemail at an agency this size. | 22% – 45% |
| Afterhours booking shareShare of new quote interest that happens outside office hours, when the renewal notice gets opened. | 32% – 52% |
What to watch, in plain English
Policy retention rate
Healthy range: 85–92%
how many policyholders stay with you when the renewal hits
Renewal commission is the whole business. A single point of retention compounds every year, and a leaky book means you write new policies just to stand still.
Policies per client
Healthy range: 1.8–2.6 policies per client
how many policies the average household or business has with you
Multi-line clients almost never leave and cost nothing to acquire. A book full of monoline auto is the most fragile book you can own.
How insurance agencies lose money
- Unanswered phones — a shopper with a declaration page in hand calls the next agency on the list and never calls back.
- No cross-sell at bind — an auto policy goes out the door without anyone quoting the home, and the client stays monoline forever.
- Renewals handled by the carrier's mailer instead of a call — the client learns about the rate increase from a letter, not from you.
- Producers quoting without a rater, so shoppers wait days for a number they can get online in minutes.
- Chasing cheap-lead volume that fills the book with one-year, price-only shoppers who churn at first renewal.
What insurance agencies charge
Typical US ranges. Metro markets sit at the top of these; rural sits at the bottom.
| Service | Typical price |
|---|---|
| Personal auto commission per policy | $120–$260 per year |
| Homeowners commission per policy | $150–$400 per year |
| Bundled home and auto commission | $300–$650 per year |
| Small commercial bop commission | $400–$1,800 per year |
| Commercial workers comp commission | $500–$2,500 per year |
| Term life first year commission | $400–$1,200 |
The year, month by month
January
New-year shopping and small-business renewals; strong month for commercial quoting and life reviews.
May
Home-buying season ramps; build the realtor and lender referral pipeline before closings peak.
November
Open enrollment and January 1 commercial renewals; block calendar time for renewal calls, not new quotes.
These are the ranges. Want yours?
Put in your website and we'll show you where your insurance agency sits against these numbers, what it's likely costing you, and what to do first. 90 seconds, no account, free.
Free report · No account · No credit card · Ready in 90 seconds
Common questions
What is a good profit margin for a insurance agency?
A typical insurance agency keeps 10–25% of revenue as profit once the owner has been paid. Below 10% usually means labour or occupancy costs have crept up; the strongest operators sit at or above 25%.
How much does a insurance agency owner make?
Owner compensation runs 12–25% of revenue. On the $1,418,000 a typical insurance agency turns over in a year, that is roughly $170,000–$355,000 before any profit distribution on top.
How much revenue does a insurance agency make per year?
A typical US insurance agency turns over about $1,418,000 a year with roughly 6.1 people on the payroll, according to the 2022 Economic Census for NAICS 524210.
What percentage of insurance agency revenue goes to wages?
Labour typically takes 30–45% of revenue at a insurance agency. It is almost always the largest single cost, so a few points either way decides whether the year works.