2017 Best Practices Study-Study Sponsors
PLOOLRQ LQ UHYHQXH
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
Up to age 35 10.6%
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 group is down from 15.3% last year to 13.7% this year, fueling the organic growth decline. Sales Velocity in agencies this size is evenly distributed by age, with 6.3% Sales Velocity coming from producers 45 and younger and 7.4% from producers over age 45.
New Business $116,564
Average Book $963,362
Over age 55 31.2%
Age 36- 45 23.3%
Age 46- 55 35.0%
3URGXFHU 6XFFHVV 5DWH
Agencies in this group have increased their producer
investment in the last year, raising Effective NUPP from 0.7% to 0.9%.
Made with FlippingBook - Online magazine maker