2023 BPS Study

Unvalidated Producer Metrics

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

0.8

1.3

2.1

3.7

15.8

Average New Commissions

$20,500

$25,163

$35,936

$39,727

$56,266

$67,409

Average Book Serviced

$25,500

$62,378

$94,983

$70,750

$137,439

$182,730

Avg Estimated Annual Compensation

$39,035

$57,198

$63,524

$61,302

$84,311

$119,675

TOP QUARTILE

AGENCIES WITH REVENUES OF:

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

Number of Unvalidated Producers

1.0

1.0

2.0

3.0

5.0

21.0

Average New Commissions

$20,500

$25,163

$35,936

$39,727

$56,266

$67,409

Average Book Serviced

$25,500

$62,378

$94,983

$70,750

$137,439

$182,730

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

2.0%

0.0%

0.0%

0.1%

0.1%

0.0%

Average

3.1%

2.8%

2.0%

1.6%

1.3%

1.4%

High

5.5%

6.0%

8.5%

7.5%

3.9%

4.3%

Top Quartile

3.7%

4.0%

2.9%

1.8%

1.7%

2.2%

2022 BPS Average NUPP

0.6%

1.1%

0.9%

1.2%

1.2%

1.5%

Producer Success Rate

39.5%

29.1%

56.7%

50.2%

49.9%

47.3%

Effective NUPP: Average

1.2%

0.8%

1.2%

0.8%

0.6%

0.7%

Top Quartile

2.0%

1.7%

1.6%

0.6%

0.9%

1.2%

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.

Effective NUPP

2.0%

1.7%

1.6%

1.2%

1.2%

1.2%

0.9%

0.9%

0.8%

0.8%

0.8%

0.7%

0.7%

0.6%

0.6%

0.6%

0.6%

0.4%

< $1.25M

$1.25-$2.5M

$2.5-$5M

$5-$10M

$10-$25M

> $25M

2022 BPS Average 2023 BPS Average 2023 BPS Top Quartile

Cross Category Comparison

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