2017 Best Practices Study-Study Sponsors
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Sales Velocity is a critical metric in determining organic growth. It is defined as this year’s written new business divided by last year’s commissions and fees. Age Banding of Sales Velocity can help a firm assess where new business and growth are coming from and prepare for perpetuation.
Over age 55 Age 46-55 Age 36-45 Up to age 35
Comparison Group Average
x Weighted average producer age (WAPA) is 46. x
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. With an average of only 11.4%, this revenue group had the lowest Sales Velocity in the Study . This revenue group’s top quartile Sales Velocity generators (17.8%) also performed at the lowest level among all Study revenue categories. Commercial producers outperformed L/H/F producers by 2:1 both in terms of new business generated and average books serviced.
Up to age 35 11.6%
Average Book $692,637
Over age 55 32.7%
Age 36- 45 18.9%
Age 46- 55 36.8%
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