2019 Best Practices Study

AGENCIES WITH REVENUES OF:

AVERAGE

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

Number of Unvalidated Producers

0.5

1.1

1.3

2.2

5.2

17.6

Average New Commissions Average Book Serviced

$5,943 $10,049 $47,014

$8,094 $15,085 $47,803

$13,563 $41,775 $54,679

$22,508 $54,411 $80,050

$32,536 $100,770 $82,192

$37,404 $113,861 $95,231

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 Unvalidated Producers

1.7

3.3

2.8

5.4

10.4

36.7

Average New Commissions Average Book Serviced

$21,989 $36,915

$26,674 $47,863

$38,617 $133,599

$53,032 $129,562

$71,234 $258,529

$75,054 $256,741

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% 2.0%

0.0% 1.3% 5.5%

0.0% 1.3% 6.3%

0.0% 1.3% 5.8%

0.0% 1.7% 6.3%

0.0% 2.2% 7.8%

Average

High

16.1%

Top Quartile

7.2%

4.0%

3.1%

3.1%

3.4%

4.7%

2018 BPS Average NUPP

2.3%

1.0%

0.8%

1.5%

1.9%

1.9%

Producer Success Rate

82.3%

57.3%

60.2%

62.4%

52.6%

54.5%

Effective NUPP: Average Top Quartile

1.6% 5.1%

0.7% 1.7%

0.8% 2.0%

0.8% 1.6%

0.9% 1.9%

1.2% 2.3%

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.

5.1%

2.3%

2.0%

1.9%

1.7%

1.6%

1.6%

1.4%

1.2%

1.1%

1.0%

0.9%

0.9%

0.8%

0.8%

0.7%

0.6%

0.5%

< $1.25M

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

> $25.0M

2018 BPS Average

2019 BPS Average

2019 BPS Top Quartile

 77