Looking to sell large ACA book of business
- Thread starter dlnshoe
- Start date
Managing a large health/Medicare book is tough, and you need to know your clients, or have some connection to them. I would expect an experienced agent would be unwilling to take the risk, unless he was buying from a downline rep.
However, I don't know what I don't know. Maybe it works out beautifully, but what happens when the clients start callling the agent that sold the book? I guess if you got the phone numbers as part of the deal, and the book was being sold because it was inherited by family, after the original agent died, it may work out, but not at 2.5-3x.
You would really have to know a lot about the book. Were the clients all original sales, were they tied to an agent, or were these "call center" type clients? If they were tied to the agent, you would def have trouble.
However, I don't know what I don't know. Maybe it works out beautifully, but what happens when the clients start callling the agent that sold the book? I guess if you got the phone numbers as part of the deal, and the book was being sold because it was inherited by family, after the original agent died, it may work out, but not at 2.5-3x.
You would really have to know a lot about the book. Were the clients all original sales, were they tied to an agent, or were these "call center" type clients? If they were tied to the agent, you would def have trouble.
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- 3,344
What does buying an ACA book at 1.0 times mean? Does it mean this : if an ACA book generates annualized commission of say $50,000 per year you pay the selling agent $50,000 to acquire their book? Is it that simple since you guys say the going rate is 1 times the book?
- 16,884
I will go as high as 32 cents per pound.
And yes, Trump is going to be your next president. Unless they can count mailed in, unverified votes and keep counting for 3-weeks after the election and don't raise an eyebrow if there are 20% more votes than adults living in the whole country. Then Biden wins by 20% margin. And He will take a dive and Camella is the 1st female President of the USA and we go all single-payer Healthcare with Elizabeth Warren running it and just based on the chance of that happening I lower my offer to 11-cents per pound.
And yes, Trump is going to be your next president. Unless they can count mailed in, unverified votes and keep counting for 3-weeks after the election and don't raise an eyebrow if there are 20% more votes than adults living in the whole country. Then Biden wins by 20% margin. And He will take a dive and Camella is the 1st female President of the USA and we go all single-payer Healthcare with Elizabeth Warren running it and just based on the chance of that happening I lower my offer to 11-cents per pound.
Oh my. If I had 3x cash to buy a $80,000 month ACA book (just shy of $3,000,000) . . . and I was stupid enough to actually paid that much for it, someone would need to put me in the psych ward. ACA business is perhaps the worst block of business I have dealt with. Sell today, gone tomorrow. Soooooo many reasons someone would cancel that coverage -- getting a job with benefits, turning 65, becoming eligible for Medicaid or Medicare (disabled folks), just randomly picking another plan and not bothering to do it through me, deciding they can't "afford" a plan that only costs $35/month. I remember my first year selling ACA plans; I only sold local market, small town, people who came asking for it I enrolled 34 people in the fall for January 1 effective dates, only 14 were still there by year's end, and when the subsidy calculation for the next year required most of the $0 premium people to have a premium the next year, only two of those 34 were still there after 24 months. I would estimate that 1x multiplier would be top dollar for an ACA book. I wouldn't pay anything for it. It's an absolutely horrible block of business that really doesn't pay enough to cover the hassle that is associated with it. I have no idea how much money you had to spend on advertising to possibly put 4500 policies on the books. Why don't you just sit back and draw the renewals if you think that book is as valuable as you say it is?
I wish I could believe that Trump will beat Biden in November, yet my gut tells me that one of the scenarios you mentioned will actually happen. And sadly, Trump is his own worst enemy, constantly trash talking someone or some group; Biden didn't win in 2020, Trump lost.
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How did this thread get sidetracked by election comments ? I was wondering if buying an ACA book was worth spending one years commission upfront to buy it from another agent? Can anyone give their perspective?
I don't know its a tough call a lot of factors are needed, especially not if low income,
just cant be answered generally
1x only in the best of situations
However this guy wants 2 to 3X
- 6,462
I have only read page 3 of this thread. I am not an agent, but I got the answer to that question from reading this one page. Run, don't walk, to find another opportunity.
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