How much is my book worth?

[whendrex]

I have been building a mostly individual health insurance book for about 3 years in Colorado and I am thinking about moving out of state which means I am considering selling the book and starting over in my new state. A few thing you may ask:

1. I don't share the vast majority of commissions. Most of my contracts are direct and I have no uplines or split commissions on the vast majority of sales.

2. I generate about $4-$5k in monthly revenue.

3. Operating expenses are minimal. Other than basic cell phone, internet, various seo costs (maybe about $200 - $300 monthly) and some random ink and paper type expenses, its costs almost nothing to run the business.

4. Speaking of SEO I have two websites both with a connected listings with various social media accounts (ie Facebook, twitter, linkedin, insta etc) and I hired Manta to have both sites listed with 50 + other sites to help build location authority in two different areas. Google likes this. I also have a cheap SEO guy to update meta tags, ssl certificates etc.

5. I blog somewhat regularly which also generates a lot of traffic to said websites.

6. Both listing have numerous 5 star reviews with both Facebook and Google.

7. Buying the book means you own both phone numbers which will regularly ring with existing customers, new customers and referrals.

8. Rehash opportunities. I don't do any life, commercial, home or auto so an agent with more lines could get way more out of the book than I do.

9. Hot area's! The first listing is in Broomfield Colorado which a rapidly growing, affluent Denver suburb. The other listing is in the Tech Center which is Denver's most relevant business hub. Probably more relevant than Downtown Denver itself.

I guess I am trying to say, its more than a book of business. Its been growing pretty rapidly for the last year or so because of these factors.

Any idea what someone would pay for that or am I better off just running it from out of state?

 

[Allen Trent]

1.5 to 2.5 gross annual commissions. So, at best probably 75k to $140k if you find right buyer. Might make more just holding on from other state. Even if 20% attrition rate, you would gross 275k over 7-8 years it would shrink out. If less than 20% attrition, even better. Selling that small of a book would also likely mean you would be the one financing it as the seller & risk not getting paid.

 

[whendrex]

1.5 to 2.5 gross annual commissions. So, at best probably 75k to $140k if you find right buyer. Might make more just holding on from other state. Even if 20% attrition rate, you would gross 275k over 7-8 years it would shrink out. If less than 20% attrition, even better. Selling that small of a book would also likely mean you would be the one financing it as the seller & risk not getting paid.

So the phone numbers, website, good reviews and web traffic don't change that?

 

[Allen Trent]

So the phone numbers, website, good reviews and web traffic don't change that?

Those are assumed to be part of the goodwill of any business, but also why there is a range on a book of business. Some with great staff, existing building, equipment get the higher end of the range. Small newer start ups with no employees & out of the houseight be on the lower end. Put it on the market &maybe promote to other health agencies to see what offers you get

 

[whendrex]

Those are assumed to be part of the goodwill of any business, but also why there is a range on a book of business. Some with great staff, existing building, equipment get the higher end of the range. Small newer start ups with no employees & out of the houseight be on the lower end. Put it on the market &maybe promote to other health agencies to see what offers you get

Thank you for your help!

 

[marindependent]

Speaking of SEO I have two websites both with a connected listings with various social media accounts (ie Facebook, twitter, linkedin, insta etc) and I hired Manta to have both sites listed with 50 + other sites to help build location authority in two different areas. Google likes this. I also have a cheap SEO guy to update meta tags, ssl certificates etc.

@Allen Trent did a great job giving you a ball park.

One thing I would add:
The website side of it could change the equation little or a lot. Its hard to say with the information provided. Websites can be worth signficant sums if they generate a load of leads. How many leads do the sites generate, what is the close ratio of these? Where does the site rank on key search terms?

 

[whendrex]

@Allen Trent did a great job giving you a ball park.

One thing I would add:
The website side of it could change the equation little or a lot. Its hard to say with the information provided. Websites can be worth signficant sums if they generate a load of leads. How many leads do the sites generate, what is the close ratio of these? Where does the site rank on key search terms?

So just the google my business listing on site one has 559 views in the last 30 days. The second list has well over 1000 views per month. Between the two listing alone it generating one or two call ins/converted leads per day at an almost 100% close rate. Both generating traffic from good affluent neighborhoods. I don't know about keyword ranking but I have a cheap SEO guy who can get me those numbers if your are interested. Also I've been slacking on those sites because its open enrollment so you are getting leads no matter what but some basic house keeping would really bump those traffic number up. I don't know how much this helps.

 

[whendrex]

@Allen Trent did a great job giving you a ball park.

One thing I would add:
The website side of it could change the equation little or a lot. Its hard to say with the information provided. Websites can be worth signficant sums if they generate a load of leads. How many leads do the sites generate, what is the close ratio of these? Where does the site rank on key search terms?

So just the google my business listing on site one has 559 views in the last 30 days. The second list has well over 1000 views per month. Between the two listing alone it generating one or two call ins/converted leads per day at an almost 100% close rate. Both generating traffic from good affluent neighborhoods. I don't know about keyword ranking but I have a cheap SEO guy who can get me those numbers if your are interested. Also I've been slacking on those sites because its open enrollment so you are getting leads no matter what but some basic house keeping would really bump those traffic number up. I don't know how much this helps.

 

[Allen Trent]

generating one or two call ins/converted leads per day at an almost 100% close rate

Wouldn't this equate to 30-60 sakes per month from this site, right? That would be 350-800 new clients a year. Why only $50-60k in gross revenues per year before expenses, taxes, FICA

 

[whendrex]

Wouldn't this equate to 30-60 sakes per month from this site, right? That would be 350-800 new clients a year. Why only $50-60k in gross revenues per year before expenses, taxes, FICA

Yes, that seems like a low number of leads for that number of views. I think it may have something to with the fact that the websites themselves are not flashy and that hurts the the views to lead conversion ration. Also the websites haven't up that long. I would not be surprised if I found out I wrote 100-200 clients in the last year but the number of new monthly clients is rising as the website gain traction the internet presence gets stronger. The leads themselves almost always convert to clients. They would be your websites so obviously you can improve those numbers.