It's Official, I've Reached 1000 Active Medsupps!

[GoPokes]

Just out of curiosity, how does one go about selling a Book of Business and who would be a likely type of buyer? I would assume the process of transitioning AORs for 1000 clients would be daunting since usually you would need a signed letter from each client authorizing such a change, correct? I suppose it would have to be a large, national agency that specializes in such an endeavor and already has a "system" in place to accomodate such a massive transition, client-by-client.

Maybe just assign the commissions to the new owner....

 

[Bevo]

Maybe just assign the commissions to the new owner....

Agent A sells Book to Agent B, informs carriers of sale and provide necessary paperwork to them.

Carriers pay Agent B instead of Agent A.

Clients are none the wiser unless you tell them.

Buyers these days can be anyone with an agency looking to break into the Medicare side of the business with no experience, or investors who pay out a mutliple (1.5-2.5) for the remaining residuals minus first year advances and closing costs.

Happens every week.

 

[WiscBroker]

Maybe just assign the commissions to the new owner....

Ah, easy. I like that. I always tend to over complicate things in my mind.

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Maybe just assign the commissions to the new owner....

Additional thought....
Will the new owner be listed as the Agent of Record in the end? I would not want to be stuck with any liability if it was simply an assignment of commissions change.

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Agent A sells Book to Agent B, informs carriers of sale and provide necessary paperwork to them.

Carriers pay Agent B instead of Agent A.

Clients are none the wiser unless you tell them.

Buyers these days can be anyone with an agency looking to break into the Medicare side of the business with no experience, or investors who pay out a mutliple (1.5-2.5) for the remaining residuals minus first year advances and closing costs.

Happens every week.

That's a good explanation- thank you. Also, one more thought- are non-compete agreements typically signed? In other words, does the agent selling the book have to agree to leave the insurance business, or say, just the business area that was sold (i.e. medicare, small group, etc) or are they just free to do what they want? In other words, say I sold my book because I wanted to retire, but a year later, changed my mind and wanted back in. What would be my options in terms of acquiring new business, or perhaps (not that I would), go back after my old clients? I have no intentions of selling, and in fact, I don't have enough to offer anyway, but I am Just Curious! Thanks!

 

[Bevo]

That's a good explanation- thank you. Also, one more thought- are non-compete agreements typically signed? In other words, does the agent selling the book have to agree to leave the insurance business, or say, just the business area that was sold (i.e. medicare, small group, etc) or are they just free to do what they want?

Every transaction will be different. If you're selling to another agency, that agency might require the terms be that you no longer compete in that niche or space for a certain amount of time. Say, 5 years for example.

If investors buy, they typically just require you not rewrite those clients but still service them, in fact you can still cross sell to them. Or you can rewrite through them and get a small fee for your time.

In almost every case yes there will be some sort of non-compete put in as they need to protect their investment.

 

[WiscBroker]

Every transaction will be different. If you're selling to another agency, that agency might require the terms be that you no longer compete in that niche or space for a certain amount of time. Say, 5 years for example.

If investors buy, they typically just require you not rewrite those clients but still service them, in fact you can still cross sell to them. Or you can rewrite through them and get a small fee for your time.

In almost every case yes there will be some sort of non-compete put in as they need to protect their investment.

Wow, I am surprised to hear they you are expected to continue to service the client. What is the incentive then to sell the book if you are the one still managing and servicing that same book of business? The lump sum payout? It seems to me the goal would be to get paid to hand it over and walk away, not still be tied to servicing.

 

[Bevo]

Wow, I am surprised to hear they you are expected to continue to service the client. What is the incentive then to sell the book if you are the one still managing and servicing that same book of business? The lump sum payout? It seems to me the goal would be to get paid to hand it over and walk away, not still be tied to servicing.

You're not expected to, sorry not what I meant. You can if you want to sell other products.

 

[Medigap Bill]

What happened to azmedsupagent? Did he retire?

I have been a member on this forum almost since my first day in the Medicare business and I attribute much of my success to the things that I learned here. Starting in 2008 I put in 5 years as a captive agent and went independent in 2013. Since then my production has doubled and now at 35 yrs of age with 1k med supps on the books I find myself wondering... whats next? Shoot for 2k? Semi retire and just work my existing book for cross sales? I wonder how long we all have left to make money in this business. Maybe now is the time to sell my book and get out!

I'm open to sage advice and sarcastic assholery... Discuss.

 

[Alston]

Congrats big time.

I am in my late 50s - 35 years in the business- and haven't hit 1,000 yet.

I pulled back on the throttle a little this year. But I should coast into a thousand in the next 2 or 3 years.

I feel the urge to do something different with my free time.

I am currently working my book and investing more time with my son.

I may start a copywriting or marketing business. I may go after my black belt.

I have no desire to add a second thousand clients. I just want to replace those who leave.

From a business standpoint, you may be better off diversifying by doing something unrelated instead of going after your second thousand.

Do you want 2,000 eggs in this basket?

Unsolicited (half joking, half serious) advice: Don't change your marital status. If you're married, stay married. If you're single, stay single.

 

[DS4]

What happened to azmedsupagent? Did he retire?

He was last active on this forum April 30th

 

[The Medicare Gal]

He was last active on this forum April 30th

A lot of us jump off the Forum and come back just before AEP. He'll probably be back.