Understanding Your Metrics — A Complete Glossary

This is your central reference for every metric in AgencyIQ. Bookmark this article and come back whenever you need a quick refresher on what a number means or how it's calculated.

In this guide:

• Production metrics
• Goal and projection metrics
• Lead and ROI metrics
• Commission and compensation metrics
• Why each metric matters

Production Metrics

Production (Sales Count)

The number of policies written in a given period. Each sale record in your sales log counts as one unit of production, regardless of premium size.

Written Premium

The total dollar amount of premium written across all policies in a period. This measures the revenue value of your production, not just the count.

Net Gain/Loss

Policies gained minus policies lost (cancellations and non-renewals) in a period. A positive number means your book is growing; a negative number means you're losing more than you're writing. You can write 50 new policies but still have a net loss of −10 if 60 policies cancelled.

Households

The total number of unique customer households your agency insures. One household may have multiple policies (auto + home + umbrella), so this measures customer relationships rather than policy volume.

Policy Count

The total number of active policies across all product lines. Unlike households, this counts each individual policy. A household with auto, home, and life policies counts as 3 toward policy count but 1 toward households.

Goal & Projection Metrics

Pace

Where you should be at this point in the year to hit your annual goal. The pace marker on progress bars shows this visually.

Formula. Pace = (Current Day of Year ÷ 365) × Annual Goal. For example, on March 1st (day 60): pace = (60 ÷ 365) × 600 goal = 99 policies. If you've written 105, you're ahead of pace.

Projection

An estimate of where you'll end the year based on your current production rate. This is a simple linear projection — it assumes the rest of the year continues at your current pace.

Formula. Projection = (YTD Actual ÷ Months Elapsed) × 12. For example, 83 sales in 3 months → 27.7 per month → 332 projected annual. If your goal is 600, you're behind pace.

Projections don't account for seasonality. If your business is naturally slower in winter, early-year projections may underestimate your actual results.

Required Monthly Production

When you're behind pace, this shows how much you need per month for the rest of the year to still hit your goal.

Formula. Required Monthly = (Annual Goal − YTD Actual) ÷ Remaining Months. For example, (600 goal − 83 actual) ÷ 9 remaining months = 57.4 per month needed.

Lead & ROI Metrics

Conversion Rate

The percentage of billable internet leads that resulted in a sale. Only billable leads count — returned, credited, and duplicate leads are excluded from the denominator.

Formula. Conversion Rate = (Matched Leads ÷ Billable Leads) × 100. For example, 5 sales from 28 billable leads = 17.9% conversion. Industry benchmarks: live calls 10–25%, data leads 1–5%.

ROI (Return on Investment)

How much premium you're generating per dollar spent on leads. Expressed as a multiplier.

Formula. ROI = Premium from Converted Leads ÷ Total Lead Spend. For example, $17,175 premium from $892 spent = 19.3x return. This is first-year premium only — lifetime ROI from renewals is much higher.

CPA (Cost Per Acquisition)

How much you spend on leads for each sale you close. Lower CPA means cheaper customer acquisition.

Formula. CPA = Total Lead Spend ÷ Number of Sales. For example, $892 spent with 5 sales = $178 CPA. Compare this to the premium earned per sale to determine profitability.

Closing Ratio

The percentage of leads your team successfully closed. Similar to conversion rate but may be segmented by producer, provider, or product line to identify who's best at closing which types of leads.

Time-to-Close

The average number of days between when a lead was received and when the sale was written. Shorter time-to-close generally means higher conversion rates — speed to contact matters.

Commission & Compensation Metrics

Commission Rate

The percentage of written premium earned as commission. Set per product line and per year. AgencyIQ tracks two tiers: office commission rates (what the agency earns from the carrier) and team-member rates (what each producer is paid).

Incentive Rate

An additional performance-based rate on top of standard commissions. This covers carrier bonuses, profit-sharing, contingency payments, or other incentive compensation your agency earns. It factors into ROI calculations alongside standard commission rates.

Why Each Metric Matters

• Production + Premium — measure the team's output volume and value
• Net Gain/Loss — reveals whether you're actually growing or just replacing churned policies
• Pace + Projection — early-warning system for whether you'll hit annual goals
• Conversion Rate — tells you how effective the team is at closing leads
• CPA — tells you how much it costs to acquire a customer through leads
• ROI — the bottom line: are your leads profitable?
• Commission rates — determine your actual earnings and team compensation costs
• Time-to-Close — identifies speed-to-contact issues that kill conversion

Tip. Not sure which metric to focus on? Start with Conversion Rate and CPA for your lead providers. These two numbers tell you whether your lead investment is producing profitable results. If conversion is low, focus on sales process. If CPA is high, evaluate your provider mix.

Last updated: 2026-04-22