The Independent Insurance Agents & Brokers of America (the Big “I”) publishes the annual Best Practices Study (BPS) which delivers critical financial and operational industry benchmarks to member agencies like Agency Sales Velocity.
Sales Velocity is a critical metric in determining organic growth and is an excellent measure of an agency’s success in writing new business. It is defined as this year’s written new business divided by last year’s commissions and fees.
Along with the Age Banding of Sales Velocity, firms can assess where new business and growth are coming from and prepare for perpetuation. The Age Banding of Sales Velocity takes it a step further by showing Sales Velocity contributions by different producer age groupings (35 and under, 36-45, 46-55, over 55).