2022 Best Practices Study

Unvalidated Producer Metrics

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

NUPP (Net Investment in Unvalidated Producer Pay): Low 0.0%

0.0% 1.1% 6.5% 3.7% 1.1%

0.0% 0.9% 9.8% 3.0% 1.0%

0.0% 1.2% 4.3% 2.8% 1.1%

0.0% 1.2% 4.9% 2.8% 1.4%

0.0% 1.5% 3.8% 3.2% 2.0%

Average

0.6% 7.0% 2.0% 0.4%

High

Top Quartile

2021 BPS Average NUPP

Producer Success Rate

65.9%

58.1%

64.0%

54.2%

53.8%

50.4%

Effective NUPP: Average

0.4% 1.7%

0.6% 1.0%

0.6% 1.4%

0.7% 1.7%

0.9% 1.7%

0.8% 1.4%

Top Quartile

NUPP (Net Investment in Unvalidated Producer Pay), expressed as a percentage of net revenue, is the difference between what an agency pays its unvalidated producers and what the producers would earn under the agency’s normal commission schedule. It is an excellent metric to assess the financial investment an agency is making in its next generation of producer talent. Effective NUPP, which is the product of an agency’s investment in unvalidated producers (NUPP) and success rate in hiring producers (Producer Success Rate), is expressed as a percentage of net revenue. It is the best overall measure of an agency’s effectiveness in recruiting and developing sales talent.

Effective NUPP

1.7%

1.7%

1.7%

1.4%

1.4%

1.0%

1.0%

0.9%

0.8%

0.7%

0.7%

0.7%

0.6%

0.6%

0.6%

0.5%

0.4%

0.2%

< $1.25M

$1.25-$2.5M

$2.5-$5M

$5-$10M

$10-$25M

> $25M

2021 BPS Average

2022 BPS Average

2022 BPS Top Quartile

Cross Category Comparison

70