2016 BPS Study

Brokerage Industry Perspectives How Best Practices agencies are leading the way

Determining Agency Sales Velocity

$1,000,000 New Business  $10,000,000 Prior Year Commissions & Fees 

10% Sales Velocity

Sales Velocity of BPS Firms by Size Category

Industry Average  Sales  Velocity  12.0%

15.5%

15.4%

15.3%

15.0%

14.0%

13.2%

< $1.25M $1.25M‐$2.5M $2.5M‐$5.0M $5.0M‐$10.0M $10.0M‐$25.0M > $25.0M

How do BPS firms generate high Sales Velocity? 

1) They build a culture of accountability where producers must consistently produce significant new business at  levels consistent with other BPS agencies   2) They provide support structures and resources that allow producers to spend a high percentage of their time  generating new client relationships 

3) They consistently grow their production team by actively recruiting and developing additional producers 

Reagan Consulting’s research indicates that 55%‐60% of firms across the industry have neglected to hire a sufficient  number of new producers to achieve their stated growth and perpetuation goals. To address this, the 2016  Best  Practices Study  focuses more attention on producer hiring benchmarking than any of the previous studies. 

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