I still think I'm closer valuing the book at $375000 then the guy who valued it at $750-800,000. I average around $250/year on Med Sup commissions. So if every one of the 1000 is still paying full commission that is $250,000/year. Take it times 1.5 or 2 times and your are around that $375-$500,000 range. I understand some have PDP's and maybe some other insurance also but still think $250 is a good average.
It's Official, I've Reached 1000 Active Medsupps!
- Thread starter azmedsupagent
- Start date
- 405
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.
Just curious, do you sell AARP or any blues?
That's fantastic, man, congrats!
I've seen books of business on the RIA side sell for 1.8x to 2.0x earnings, but I don't know much about insurance book of business valuations.
Personally, for me, 1000 is a great start (I'm not even close to that and it's my goal), but unless you're ready to get out of the business, I wouldn't sell it. Hire someone to manage it, perhaps, and work the book of business for additional opportunities.
Just my $0.02
I've seen books of business on the RIA side sell for 1.8x to 2.0x earnings, but I don't know much about insurance book of business valuations.
Personally, for me, 1000 is a great start (I'm not even close to that and it's my goal), but unless you're ready to get out of the business, I wouldn't sell it. Hire someone to manage it, perhaps, and work the book of business for additional opportunities.
Just my $0.02
- Thread starter
- #44
- 484
It's easy most of the year, my book is less than 10% mapd. Aep is rough though, very little sleep lol!
----------
Lol! Perhaps the best advice I've seen yet!
----------
I think your probably right about selling, it'll probably make more sense to just continue servicing and working referrals while diversifying into other business ventures. I'd like to buy a car wash, they're kind of a thing here in AZ lol!
----------
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.
The assistant idea is something I'm seriously considering. I could take a portion of my marketing budget and use it to pay a salary to someone that will help me work my existing book for referrals. Hhhmmm now you've got the wheels turning bevo!
Last edited:
I guess I don't understand when everyone says they don't have service work because have only 10% on MAPD. My MAPD people are way less service than my Medicare Supplement + PDP clients. I have had my MAPD people on same plan going on 6 years now and my Med Sup and PDP people want to switch constantly if rates go up. Maybe it's because we only have 2 options for MAPD where I am at but I have little to no service work other than if they want to review during AEP.
- 3,344
Midlevel makes a good point. I have only about 10% MAPD as well, 90% MedSup clients, and yes, MAPD usually stay and are less work than moving my MedSup clients every 3-5 years as rates rise. This is a very interesting thread.
I thought I have read on these forums that medicare books traditionally value around 2.5x annual revenue. Is that not the case?
- 1,900
Again ... I think what Bevo said in this thread previously was spot on.
I doubt every B.O.B. is going to be valued the same.
I just spoke to an agent in the last few weeks who sold a portion of his B.O.B. @ 1.8x the annual revenue.
Lots of variables to be considered for an evaluation.
Similar threads
