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Yep. Now the sad thing is, most people don't understand present value versus future value. So they are going to have to take a discount no matter what, then a profit for the company. So it looks bigger than it really is.
It's Official, I've Reached 1000 Active Medsupps!
- Thread starter azmedsupagent
- Start date
Yep. Now the sad thing is, most people don't understand present value versus future value. So they are going to have to take a discount no matter what, then a profit for the company. So it looks bigger than it really is.
Great job, well done. You don't have to search for them now if they are local. Even if not, out of 1000 clients you should receive a nice referral stream that will outpace death and other client losses. It started for us about 750, but most of ours are concentrated in an area so it is now the "known normal" thing to go to Gordon for Medicare.
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It's true. They people who really get worked over are the ones who take out those short term loans, places that will give people an advance on their paychecks. The interest rates on some of those loans will keep people in debt for a long while. I know it usually targets the lower educated and lower income earning population.
Congrats!! But keep working.
Why would you want to retire at 35?
Why would you want to retire at 35?
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Man u sound like you know what you're doing....I may need to come to you when I T65! Will you still be around in 19yrs?
I just spoke with an agent a few weeks ago who sold a portion of his book @ 1.8X the annual renewal commission (I personally thought he should have at-least got 2X).
Depending on the carriers, client age, premiums etc...
I would estimate 600K - 700K.
Not to be smart, but how do you figure a 1000 member med.sup BOB is worth 6-700k? Its not an annuity,---lots of people fall off the books, die, companies get bought out.---->
How does one figure the value of a Med-supp BOB?
(I could understand it if it was Rental Real Estate, but a BOB???)
I'd be interested in learning how one sells a BOB for 2x its annual?
- 1,900
I didn't receive the details on how the agent came to the 1.8 multiplier on his BOB but I believe there are individuals and/or companies who can evaluate your BOB for you and can come up with a price tag for a buy-out.
Lots of variables would need to be considered for this (age of clients, length of remaining commission trail, carriers, etc.)
It really is like the JG Wentworth commercials though ...
ITS MY MONEY AND I WANT IT NOW!
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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.
Congratulations! If you love what you're doing, keep doing it! I don't think a sale will get you the full value of what you've built from a financial perspective, especially if you're willing to continue with great customer service (maintain existing versus growing). Med Supp has been quite stable, so with quality companies and client support, you should see great persistency.
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A 1.8 multiplier is likely spot-on (or less, like Glen said it depends on carrier, time written..an entire formula goes into this) and I would absolutely not recommend it. Not yet.
I would take a smidge of your new found residuals and freedom and invest in how to continually grow (and maintain of course) easier. Pump up the referral system like crazy, maybe hire an assistant to start handling the tasks that you're currently doing that aren't producing revenue if you don't have one already, and basically focus on the 80/20 rule now that you can afford to.
When you get things on auto-pilot, maintaining the book and still writing deals easily, then you can decide at any point if you want to throttle up or coast for a while. I was fortunate enough to do this a few years ago and believe me it's absolutely priceless. Stress is almost non-existent, I travel extensively with my Wife and Son who we home school, and basically wake up every day and do whatever I want while my businesses are still growing.
Congrats on hitting 1000 clients! Could be you're just getting started.
I would take a smidge of your new found residuals and freedom and invest in how to continually grow (and maintain of course) easier. Pump up the referral system like crazy, maybe hire an assistant to start handling the tasks that you're currently doing that aren't producing revenue if you don't have one already, and basically focus on the 80/20 rule now that you can afford to.
When you get things on auto-pilot, maintaining the book and still writing deals easily, then you can decide at any point if you want to throttle up or coast for a while. I was fortunate enough to do this a few years ago and believe me it's absolutely priceless. Stress is almost non-existent, I travel extensively with my Wife and Son who we home school, and basically wake up every day and do whatever I want while my businesses are still growing.
Congrats on hitting 1000 clients! Could be you're just getting started.
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