2019 Best Practices Study

Definitions

Sales Velocity

Age Banding of Sales Velocity

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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.

4.4%

Top Quartile

34.0%

Over age 55

4.5%

Age 46-55

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Age 36-45

6.1%

Average

18.8%

Up to age 35

3.7%

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 14.5%

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 0.7, the lowest NUPP of all the Study groups. BPS agencies in the $1.25 – $2.5M revenue category posted the second highest Sales Velocity average (18.8%) of all the 2018 Best Practices Study revenue categories. The “36-45” producer age group (the Sophomore Class) accounted for 6.1% of this group’s total Sales Velocity, first place among all Best Practices revenue groups.

New Business

Average Book

Commercial P&C

$68,089

$404,553

Over age 55 42.1%

Personal P&C

Age 36- 45 20.1%

$51,376

$218,908

Life/Health/ Financial

$68,761

$358,903

Multi- Line

$49,842

$387,216

Age 46- 55 23.3%

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Effective NUPP

Group Average:

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 34