So far, all you need to do is:
- Get the free account on SellMyForms. You don’t must pay anything in order to begin selling your insurance book of business purchase agreement. ...
- Set it up. Send the form, give it name and short description. Don’t forget to set the price. ...
- Get paid. Once you’ve delivered the form to people of industry, the profit comes to your account. ...
Full Answer
Do you want to make money selling Medicare?
If you are making good money but have a desire to step out of the office rat-race and build your own lucrative business, you are in the right place. Knowing how to sell Medicare can take your income to new heights. Your income is only limited by the time you put into working.
How do I Sell Medicare supplements from home?
When you sell Medicare supplements from home, you need to offer a variety of products to meet each beneficiary’s needs. This includes supplement products, prescription drug coverage, Medicare Advantage products, and ancillary products. Ensure the products you are offering benefit the client, not a push for your pocketbook.
Does it cost money to sell my book of business?
No, it doesn't. There are essentially three ways to get paid when you sell your book of business: We're exploring new ways, so nothing is off the table if you had another method in mind, but these are the three ways we're comfortable with so far.
How many people sell Medicare insurance?
What this means when it comes to Medicare insurance sales is that one in every seven people, the equivalent of 15.2% of the population, meets Medicare age qualifications. To have a lucrative business, you need two things: About 1/3 of Americans obtain their Medicare through Medicare Advantage Plans.
How do you value a book of business?
There are typically two primary methods to deriving the value of an agency / book of business; (1) a multiplier of revenue, or (2) a multiplier of profits (a.k.a. “EBITDA”)[1]. Similar to composite rating of various insurance products, both multipliers of Revenue and Profits can be converted to a function of the other.
Can I make money selling Medicare?
When it comes to making money selling Medicare, there are two main ways you can earn income which include commissions and residual income. A commission or initial payment is the money you receive when a client enrolls in a new plan. This payment is paid to you directly from the insurance carrier.
How much is a book of business for insurance?
How Much Does an Insurance Book of Business Cost? The cost of a book of business is usually 1.5-2.5x the annualized gross commission. For example, a hypothetical book of all Medicare Supplement business that produces $100,000 in income per year would cost between $150,000-$250,000.
What should I pay for a book of business?
If a buyer would pay 2.5X cash flow, an average selling price for a business, the buyer should be willing to pay up to $500,000 for the book of business. In this sale, the selling price of the book of business should be between $250,000 and $500,000.
How hard is it to sell Medicare?
No, it's not hard to sell Medicare Supplements. When you're first starting, it should be easy, because everyone on Medicare needs one. It's just an insurance product. You're not a member – you're a policyholder, and that means a lot to people.
Is selling Medicare Worth It?
Is Selling Medicare Lucrative? In short, yes. The average Medicare Advantage policy pays around $287 a year in commission if the purchase replaces an existing plan. However, you can get approximately double that — $573— if you write up a new Medicare Advantage plan for someone who hasn't had one before.
How do you value books for insurance?
One of the simplest ways to determine the value of a book is to compare its current market price against similar copies....Steps include:Retaining all purchase receipts. ... Obtaining a professional appraisal. ... Keeping a photo record. ... Purchasing collectibles insurance.
Is a book of business a capital asset?
Intangible Assets (Your Book of Business) In the insurance business, you have your hard assets, like computers and desks. But that's not really what you're selling. You're selling your book of business, which is called an intangible asset.
What does a book of business mean?
Definition & Examples of a Book of Business Book of business is a term that refers to a professional's list of accounts or clients. Finance and legal professionals are likely to use this term.
How much do financial advisors sell their book of business for?
Books with at least 70% in fee revenue sold for an average of 1.7 times revenue. Location. Location can determine anywhere from 10% to 40% of the value of your book, Goad says.
Can you depreciate a book of business?
Business Assets Books used repeatedly and for several years are considered assets. Sets of legal, medical or accounting books fall into this category. Since they have a useful life of several years, the IRS requires such assets to be depreciated over a period of years.
Can financial advisors sell their book of business?
Selling a book of business is a common topic among financial professionals. It is the way that larger firms achieve rapid growth, so it is possible there may be a buyer that the advisor looking to sell is already connected to.
Option 1: Cash Out Over Time
When somebody is ready to retire, this is the way to go. This is the perfect fit for someone who knows they're done and don't plan to get back into the business.
Option 2: Cash Out Immediately
Rather than getting a payment over 4-5 years, this option is one lump sum upfront.
Selling Without Retiring: Q&As
We got a lot of questions in this webinar! Here's a sampling of the questions asked along with our answers.
Conclusion
We've started something called a Discovery Call where it's so easy to schedule a phone call on my calendar. It's a 15-minute call, and it goes right on my calendar.
How long does it take to build a book of business with 500 clients?
If you are a hard working, successful agent; you can build a book of business with 500 clients in only 2 to 3 years. A book of this size can generate renewal income of $120,000 a year. Many successful agents realize they need with time and patience to learn the business.
When do you get Medicare A and B?
Medicare A and B: People become eligible for Medicare A and B the first of the month they turn 65. Everyone is automatically enrolled in Medicare Part A. Medicare Part A is hospitalization insurance. In most cases people are not charged for Medicare Part A.
How long does Medicare pay commission?
Some Medicare supplement companies only pay commission for a certain number of years. Six years of payouts is common for carriers that limit payout years. This means, you will only receive renewals for a set number of years. CMS sets the commission rates for both Medicare Advantage and Medicare Part D each year.
Why do people want to work in Medicare?
There are many good reasons why someone would want to have a career in Medicare sales. The first is; you really are not selling anything . Most people will enroll in some type of Medicare program; either an MAPD, Medicare Supplement and/or a Medicare PDP plan.
When do Medicare OEP payments start?
Most companies do not make you wait until the plan is effective to pay you. Although, during the Medicare OEP, companies hold all commission payments for cases written in OCT, NOV and DEC for a January 1 start date. These cases are paid out in January. During the year, companies pro rate the commission payments.
Do Medicare Advantage agents need to get carrier certification?
It is very important to understand that getting in front of enough people will be one of your biggest challenges. Agents must complete annual carrier certifications in order to sell Medicare Advantage and Part D Rx plans. This can be time-consuming and some people are not willing to do it.
Do Medicare Supplements require annual certification?
Medicare Supplements do not require any annual certifications but, Advantage plans and Part D Rx plans do. An annual product certification is required for every company’s advantage plan and/or Part D Rx you plan to sell. This can be time-consuming.
Why is selling to your FMO a good idea?
Selling to your FMO is a great option, because the FMO doesn't want to lose that override that they're currently making on the book. They have a stake in it! Another big piece is the culture of your business.
Is selling annuities valuable?
Selling more insurance is a given, and if you're selling products that keep on paying you through renewals, it's more valuable. Not to say that annuity business, for example, isn't valuable – it just doesn't offer residual income. Having more new business is naturally going to follow when you're growing.
Production Goals
Whether you’re a full-time agent or you’re selling insurance as a side gig, there is a lot of money to be made in this business. With so many people in need of your expertise, you can take great pride in the work you do.
Provider Networking
Doctor’s offices, senior centers, and gyms are all great places to generate activity for your Medicare business. Find out who the gatekeeper is and introduce yourself as someone who can help their members with Medicare coverage.
Direct Mail Marketing
The price of a 1,000 piece mailer is normally $450 to $500. Let’s assume that out of 1,000 mailpieces you make 3 Medicare sales. That’s a 3X return on investment!
Community Involvement
Are you involved with a religious organization, chamber of commerce, school board? These groups give you the opportunity to market your business for little cost. This could include bulletin boards, business cards, flyers, and word-of-mouth.
Digital Marketing
We all know that technology is increasingly important in the Medicare industry.
Client Relationship Management
As your Medicare business grows, you can quickly lose track of your data. A client relationship management system (CRM) helps nurture your client relationships with ease through contact management, sales records, automated workflows, email marketing, and website integration.
Brokerage Bucks
At The Brokerage, our agents are family to us, and we support their on-going growth and success in everything we do.
1. Quarterly Phone Calls
Nothing replaces the human touch. In today’s digital world, the opportunity to speak to a human being in real life or over the phone is becoming rare.
2. Email Marketing
Did you know that at least 99% of consumers check their email on a daily basis?
4. Social Media
We all know that social media is an increasingly important part of keeping in touch with your clients, but you’ve got a business to run and only so much time on your hands.
5. Make Yourself Available
It’s almost impossible to maintain a book of business without some problems along the way, such as issues with claims or inaccurate plan documents. While these issues may be out of your control, passing the blame is almost never good for business.
Conclusion
In the Medicare business, your real money is made through client retention.
Methods To Value My Book of Business
There are typically two primary methods to deriving the value of an agency / book of business; (1) a multiplier of revenue, or (2) a multiplier of profits (a.k.a. “EBITDA”) [1] . Similar to composite rating of various insurance products, both multipliers of Revenue and Profits can be converted to a function of the other.
Time Value Concerns
Most transactions contain some form of “backend” portion to the transaction in terms of an Earnout, a Royalty, etc., or a combination of multiple.
Earnout
An Earnout is where the seller is paid a portion of their payment in arrears; many times, as a Percentage of Renewals [1] . This enables the Buyer to protect against attrition as the Seller is incentivized to aid in the retention of the business.
Non-Recurring Income
It is common for Buyers to discount Non-Recurring income when deriving the value of an agency or book of business – such discount will be reflected in the overall multiplier used as the offer to buy, either as a multiplier of Revenue or EBITDA.
Work with a Professional
GDI Insurance Agency, Inc. has been in business for nearly 30 years and have bought, sold and merged with various entities for over 20 years.
For a Confidential and Professional Conversation
Contact Matthew Davis to discuss Agency Perpetuation in detail. Matthew Davis, MBA, CPCU, AAI President [email protected]
