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
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. Over one-third of the Sales Velocity results for this group were attributable to the oldest producer category. This group’s relatively low NUPP scores and high Sales Velocity contributions by older producers indicates a need to focus on developing young sales talent. Multi-line producers continue to deliver the largest results, both in terms of new business and average book size. This revenue category had the highest Producer Success Rate (66.3%) of all the Study revenue categories.
Average Book $148,781
Up to age 35 21.7%
Over age 55 33.7%
Age 36- 45 18.1%
Age 46- 55 26.5%
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