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. Sales Velocity in this revenue group is down from 15.5% last year to 13.2% this year, fueling the organic growth decline. Producers under age 46 contributed significantly more to Sales Velocity (7.3%) than producers over age 46 (5.8%). Agencies in this group have increased their producer investments in the last year, raising Effective NUPP from 0.8% to 1.0%. The Effective NUPP of 1.0% for this size firms are the highest in the Study .
Up to age 35 13.6%
Average Book $566,836
Over age 55 29.5%
Age 36- 45 27.1%
Age 46- 55 29.8%
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