2021 Best Practices Study

Cross Category Comparison

Detailed Data for All Revenue Categories

Unvalidated Producer Metrics

AGENCIES WITH REVENUES OF:

AVERAGE

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

Number of Unval idated Producers

0.9

1.0

0.9

2.4

4.6

16.9

Average New Commissions Average Book Serviced

$3,908 $26,829 $30,875

$8,330 $21,301 $51,767

$10,043 $28,389 $54,403

$16,654 $42,520 $60,298

$26,632 $61,962 $81,294

$57,425 $144,939 $104,003

Avg Estimated Annual Compensation

TOP QUARTILE

AGENCIES WITH REVENUES OF:

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

Number of Unval idated Producers

3.4

2.3

2.4

5.8

9.0

34.0

Average New Commissions Average Book Serviced

$14,849 $101,950

$25,259 $58,178

$34,466 $92,359

$39,890 $108,582

$62,631 $138,024

$150,562 $337,195

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% 0.4% 4.7%

0.0% 1.1% 4.3%

0.0% 1.0% 8.2%

0.0% 1.1% 3.8%

0.0% 1.4% 4.0%

0.0% 2.0% 8.2%

Average

High

Top Quarti le

1.7%

3.1%

3.2%

2.9%

2.6%

4.2%

2020 BPS Average NUPP

0.9%

1.2%

1.1%

1.6%

1.7%

1.6%

Producer Success Rate

58.2%

49.1%

68.3%

52.2%

51.7%

48.1%

Effective NUPP: Average Top Quarti le

0.2% 7.3%

0.5% 2.8%

0.7% 1.7%

0.6% 0.9%

0.7% 1.6%

1.0% 2.2%

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

7.3%

2.8%

2.2%

1.7%

1.6%

1.0%

0.9%

0.9%

0.9%

0.8%

0.8%

0.7%

0.7%

0.6%

0.6%

0.6%

0.5%

0.2%

< $1.25M

$1.25M-$2.5M $2.5M-$5.0M $5.0M-$10.0M $10.0M-$25.0M

> $25.0M

2020 BPS Average 2021 BPS Average 2021 BPS Top Quartile

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