Agency Succession Planning

[DonP]

You are assuming you are going to stay healthy for several years out. That plan does not work if you have a serious accident or illness such as a stroke with sudden onset that prevents you from cetifying.

If i get ill i have my son licensed in my llc and he’ll take over and either run the business or sell it . My fmo buys books . My plan is hypothetical assuming i stay healthy .

 

[Tahoe Ray]

If i get ill i have my son licensed in my llc and he’ll take over and either run the business or sell it . My fmo buys books . My plan is hypothetical assuming i stay healthy .

You assign all of your comp to your entity?

 

[DonP]

You assign all of your comp to your entity?

Yes I just changed all of that recently .

 

[CO Agent]

I’m a Medicare broker, who owns my agency and fully owns my Medicare book of business. I’m the only person in my agency and I’m contracted upward with some of the carriers direct, and others through Integrity Marketing. My book of business is about 65% Medicare Supplement/PDPand 35% Medicare Advantage, and I have approximately 700 clients. I’m nearing retirement likely within the next 1-3 years (haven’t decided when yet). In my ideal world, I would continue to add new clients and service existing ones at least a year, and then start working less. Ultimately, I’d like to sell my book of business. This may seem like a basic question, but short of hiring someone to help me (which I'm not very interested in), how can I begin to work less (particularly during AEP) and taper the business down, or would it be more beneficial to sell my book of business outright sooner? What should I consider?

I differ from some here in that I would recommend selling your book sooner. One of my friends in the business told me she wanted to retire, I made an offer and she accepted. We just make our second and final payment to her this month, with very little attrition. The offer was fair to both of us, it was a conversation about it not just a final offer.

Where in the country are you located?

 

[Higru]

To the OP: Maybe look at partnering with someone since you're a one man shop. Keep your book going while training them. You could split commissions with even possibly having a lifetime of income after you left the business all together. Just a thought.

 

[hockeyday]

Why would you sell your book, though? As DonP said you’ll make more than 1.5-2x renewals just turning off your phone. Why wouldnt you just hire someone to work your book? A 700 plus book should generate enough referrals to keep the book from shrinking and provide enough business for the employee to eat well. And there are an endless supply of potential employees.

If you need immediate cash you can take out a loan against your book. A book of business is an incredible asset. There’s no way I’m selling it for 2x renewals. That’s insane to me.

Lol because people are being paid more much more than 2x renewals, this 1.5 or 2x is just nonsense

 

[DonP]

Lol because people are being paid more much more than 2x renewals, this 1.5 or 2x is just nonsense

Who’s paying an individual agent more than 2 to max 2.5 times book ? I’m reading some offering only 1 to 1.5 times book lately .I know the integrity’s in the old days were paying Fmo’s 7-10 times book . But those outfits had infrastructure to run the business

 

[Mountain Peaks]

To the OP: Maybe look at partnering with someone since you're a one man shop. Keep your book going while training them. You could split commissions with even possibly having a lifetime of income after you left the business all together. Just a thought.

I have thought about that too - thank you for your suggestion!

 

[hockeyday]

Who’s paying an individual agent more than 2 to max 2.5 times book ? I’m reading some offering only 1 to 1.5 times book lately .I know the integrity’s in the old days were paying Fmo’s 7-10 times book . But those outfits had infrastructure to run the business

Where you reading that, facebrag, fmo are paying that pick up the phone and ask to have your book evaluated, my advise avoid the facebrag clowns when making your calls, heck there an fmo on this site that buying books and have a youtube right on this site

 

[DonP]

Where you reading that, facebrag, fmo are paying that pick up the phone and ask to have your book evaluated, my advise avoid the facebrag clowns when making your calls, heck there an fmo on this site that buying books and have a youtube right on this site

So what’s horizon roughly paying ? 3?4? Most of those agents on the video he bought books from had only 200-400 book and had been in the business 15 plus yrs.