Understanding Your Metrics — A Complete Glossary
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This is your central reference for every metric in Agency Edge. 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. Home labels it POLICIES; the goal settings call it Production (#).
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. Once a policy has an issued premium, Agency Edge counts that in these totals in place of the written figure.
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. Agency Edge does not work this out from your sales: you type it each month as Auto Gain and Fire Gain, and the year's total shows as NET GAIN/LOSS in the Goals window on Home.
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. You type it each month in the Data window, and Book charts it. The household count on the Sales page is a different number: the distinct customers among the sales written in the period you are viewing.
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. You type it each month beside Households, and Book shows it as POLICIES IN FORCE.
Book Premium
The premium of your whole book, typed each month in the Premium field of the Data window and shown on Book as BOOK PREMIUM. Written premium measures what your team sold in a period; book premium measures everything in force.
Book Health Score
A score out of 100 at the top of Book, built from factors about your customers, your team, your growth and your leads. 75 or more reads as healthy, 50 to 74 as needing attention, and below 50 as at risk. A factor the year has no data for is left out of the total, not scored as zero.
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, and the chip beside a goal reads On Pace or Behind.
Formula. Pace = (Business Days Elapsed ÷ Business Days in the Year) × Annual Goal. The business days come from your office calendar, so days the office is closed and holidays are not counted. For example, with 42 of the year's 252 business days gone: pace = (42 ÷ 252) × 600 goal = 100 policies. If you've written 105, you're ahead of pace. A month's pace is worked out the same way from the business days in that month.
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 ÷ Days Elapsed) × Days in the Year. For example, 83 sales in the first 90 days of a 365-day year → 0.92 per day → 337 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.
The month-end projection on Home is worked out differently. Early in a month it leans on your daily rate over the last twelve completed months, and from the fifteenth business day it uses the month's own pace alone. A person's Goals tab on the Team page projects from business days elapsed, not calendar days.
Needs to Average
When you're behind pace, this shows how much you need per month for the rest of the year to still hit your goal. It is on a person's Goals tab on the Team page, labelled NEEDS TO AVERAGE, next to AVERAGING NOW.
Formula. Needs to Average = (Annual Goal − YTD Actual) ÷ Months Left. For example, (600 goal − 83 actual) ÷ 9 months left = 57.4 per month needed. The current month counts as a month left only before the 15th.
Lead & ROI Metrics
Conversion Rate
The percentage of billed internet leads that became a customer. The Conversions tab of Leads shows it as lead conversion. It is counted by lead, so a lead that bought three policies still counts once. Only Billed Leads are in the denominator: duplicates, no-charge leads and returns the vendor credited are left out, and a return that was not credited still counts.
Formula. Lead Conversion = (Leads Converted ÷ Billed Leads) × 100. For example, 5 leads converted out of 28 billed leads = 17.9% conversion. Industry benchmarks: live calls 10–25%, data leads 1–5%.
Policies per Lead
The second rate on the Conversions tab, labelled policies per lead: policies written from those leads, divided by the billed leads. It is counted by policy, so a household that bought three policies counts three times and the figure can pass 100%.
ROI (Return on Investment)
What your marketing returned after its costs, shown as a percentage on the ROI tab of Leads.
Formula. ROI = Net ÷ Marketing Cost, where Net = Office Revenue − Marketing Cost − Producer Commission. Office revenue is the written premium multiplied by your office rate for each product line. For example, $17,175 of premium at an average office rate of 10% is $1,718 of office revenue; less $892 of marketing cost and $300 of producer commission, the net is +$526, and $526 ÷ $892 = +59%. This is the first term only — the same page projects the net at 1 and 3 years, counting renewals.
Pays Back
When a source's net turns positive, counting renewals. The Pays back column of the Sources table reads Already when the first term covers the cost, a number of months or years when renewals will, and Over 3 yrs when they will not within three years.
Cost per Policy (CPA)
How much you spend on marketing for each policy it produced. Lower means cheaper customer acquisition. The Sources table labels it Cost / policy.
Formula. Cost per Policy = Spend ÷ Policies Written. For example, $892 spent with 5 policies = $178 per policy. Compare this to the premium earned per sale to determine profitability. Cost per household divides the same spend by the households won; for a lead vendor, each converted lead is one household.
Close Rate
Agency Edge shows two figures under this name. In the Sources table on Leads, the optional Close rate column is leads converted ÷ leads billed for one source — lead conversion, source by source. On the Team page, a person's Close rate is their policies written ÷ quotes logged, so it measures who turns quotes into policies. With no quotes logged there is no rate to show.
Time to Close
The average number of days between when a lead was received and when the sale was written. The Conversions tab charts it as Time to Close, and its Avg Days figure leaves out sales that took more than 90 days. 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. Agency Edge tracks two tiers: office commission rates (what the agency earns from the carrier) and team-member rates (what each producer is paid). The office's is the Base Rate in Settings, on the Revenue & spend tab. A producer's comes from their commission plan.
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. You enter one Incentive Rate for the year and tick the product lines it applies to; for those lines, Effective Rate = Base Rate + Incentive.
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
- Cost per policy — 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 cost per policy for your lead vendors. These two numbers tell you whether your lead investment is producing profitable results. If conversion is low, focus on sales process. If cost per policy is high, evaluate your vendor mix.