Buying a Downline Book of Business

[AFragoso]

An agent in my downline is wanting to retire due to medical issues and is looking into options to sell her book of business which breaks down to about 380 MAPDs, 47 pdps, and 60 Med Supps. Neither of us have ever bought or sold BOB and we're trying to figure out a few things. 1) how do we put a value on this book 2) If our goal was to keep it in my "family" by purchasing myself or one of our other team members what are options for purchasing. For my agent I want to make sure she's getting what she deserves but as a possible buyer I also want to consider the risk, tax time pros/cons etc. Another issue we're trying to sort out is the fact that 30% of her business is Spanish speaking (which I am not fluent in)...if I decide to purchase I will need to figure out a way to keep that 30% properly serviced. Open to ideas on that as well. TIA

 

[GoPokes]

Get a quote from another buyer, that buys BOB's and then price yours in relation to that offer. Or, pay me $100, and I will take it over.

 

[somarco]

Or, pay me $100, and I will take it over.

Se habla espanol?

 

[AFragoso]

So as stated in my initial post I’m looking for guidance on placing a value on her book as well as advice on how to approach it in regards to pros and cons. At this time we’ve got no interest in anyone “taking over” for $100, but good try

 

[somarco]

Pokes smarta$$ comment aside, asking someone who BUYS a BOB is a good suggestion. My personal opinion, for what that's worth, is 6 - 12 months projected commissions. The 30% Spanish speaking is a deal breaker.

 

[AFragoso]

I’ve heard someone mention the use of a LOA so the Spanish needs. Any thoughts or experience with that?

 

[sshafran]

Get a quote from another buyer, that buys BOB's and then price yours in relation to that offer.

So as stated in my initial post I’m looking for guidance on placing a value on her book as well as advice on how to approach it in regards to pros and cons.

Maybe you didn't read his reply? Find someone who buys med supp books... and price in relation to it.

That's the "market value."

It's not rocket surgery. The $100 was a joke...

 

[sshafran]

Although, since we are bidding, I'll bid $124.99.

 

[somarco]

use of a LOA so the Spanish needs.

No idea what an LOA is.

Speaking the language is one thing. Understanding the culture is entirely different.

Ethnic groups have their own culture and sometimes distrust "outsiders". I know agents that have been successful working with Asians, Indians, etc but it took time to establish trust.

I could be wrong but I still think 30% of the block will leave unless someone is brought in that is fluent in Spanish and ALSO has a cultural tie.

Also MA and PDP blocks are quite fluid since they can change every year without underwriting. Someone who knows the market as a buyer is going to be your best bet.

My personal opinion is the agent will get more $$ by simply "retiring" and keeping her license and certifications up to date. Natural attrition could keep the $$ flowing for 5 years or more. That would be considerably more than a buyer looking to buy at a discount

 

[AFragoso]

Definitely not worried about any kind of a cultural set back as I was born and raised here, and am Hispanic myself, just lacking the fluency in Spanish. My husband is fully bilingual but unfortunately not licensed at this time.