Buying a Book, States Away. Do It?

[Crazy Rick]

There was a guy in Chicago selling off his book of 152 local clients for $38k. I live in Pa as you all know and in 3-5 years I’m moving up North. My question is, is it worth buying? My associate thinks so. My partner with the money doesn’t. He feels people still want to be able to walk into their insurance company’s office and interact with living humans. He doesn’t feel the existing clients will remain loyal because they were sold to an entity that will be located states away and the older clientele want to feel they can get a local insurance guy on the phone at 3:30 in the morning.

I personally feel he’s correct in some ways but with technology today…I’m anticipating losing 40% of the clients because of what my partner said and the age of the clients.I don't wish to invest my time building up the book for the next five years because the older clientele don't change with the times. I want the 152 clients or none at all. I know there's no guarantees but you see what I mean.

What say you? And the answers “yes”, I’ll still get the money if I decide to buy but the 40% immediate loss I’m anticipating is beginning to weigh heavy…

I've thoroughly researched purchasing an independent book up North where I'm going and there aren't any. The only other choice at this point is to invest in the Blue Sign and I'm not sure I want to go back to taking orders from suits that never got their hands dirty.

CR

 

[djs]

I don't know what a 152 clients represent money wise, but I'd lean towards buying it.

Older clients are unique, but they don't require an office. What I would do is plan on spending a week in the area shortly after you buy the book, go around and meet as many of the clients as want to be met (many will appreciate the offer and not take you up on it). Then plan on going back every 6 months or so to shake some more hands.

If you do this, have a local number (even if it rings several states away), talk to them about the plans on moving to the area, you can make some good friends and loyal customers.

You will lose some, but it shouldn't be 40%. If you don't call, don't visit, you will lose many.

Dan

 

[Crazy Rick]

That sounds like good advice, meet and greet type thing. Introduce myself and warn them of the move that'll happen in a few years. My partner's convinced though the older crowd, no matter where or what book: they don't like change. We'll see.

CR

 

[djs]

They don't like change, and if you believe that, it is exactly why this will work.

Which is a bigger change? Change agents, keep current coverage or change coverage and change agents?