2018 Best Practices Study

Definitions

Sales Velocity

Age Banding of Sales Velocity

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.

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Top Quartile

32.7%

4.7%

Over age 55

Age 46-55

4.2%

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Age 36-45

Average

16.6%

4.3%

Up to age 35

3.4%

Comparison Group Average

Book of Business per Producer (commissions and fees)

Book of Business by Age

Notes & Definitions

• Weighted average producer age (WAPA) is 46. •

Up to age 35 9.4%

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. This group’s Effective NUPP totaled 0.6, the second lowest NUPP of all the Study groups. BPS agencies in the $1.25M - $2.5M revenue category posted the highest Sales Velocity average (16.6%) of all the 2018 Best Practices Study revenue categories. The “Up to Age 35” producer group (the Freshman Class) accounted for 3.4% of this group’s total Sales Velocity, tying it for first place among all Best Practices revenue groups.

New Business

Average Book

Age 36- 45 16.5%

Commercial P&C

$53,587

$402,363

Over age 55 45.3%

Personal P&C

$31,394

$175,242

Life/Health/ Financial

$29,118

$138,480

Multi- Line

$26,347

$255,240

Age 46- 55 28.8%

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Effective NUPP

Group Average:

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 34