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
x Weighted average producer age (WAPA) is 46. x
Up to age 35 10.1%
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. With a Sales Velocity of 14.4%, this revenue group led among all BPS revenue categories. Each of the four producer age groups delivered comparable contributions to Sales Velocity, an indication of effective investments in next-gen producer talent. Personal lines producers in this group delivered the largest new PL business results ($70,909) in the entire Study .
Average Book $931,987
Over age 55 34.2%
Age 36- 45 26.2%
Age 46- 55 29.6%
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