by Pioneer1984 » Tue Jul 30, 2013 08:31 pm
I have been in direct sales for 7 years. Have been in the insurance business for half of that time and know a lot of agents. Some of them after they become vested sell there book of business. The ones that I know are captive agents who want to move on after 5-7 years. My questions are how common is it for an agent do do this?
Also for the person buying the renewals is it lucrative? Also I haven't been able to find any company that specialize in this when I search for it, is there lots of legal issues? Any one with experience in this?
Thank you so much guy! This is my first post, I hope it stirs up the discussion pot!
Also for the person buying the renewals is it lucrative? Also I haven't been able to find any company that specialize in this when I search for it, is there lots of legal issues? Any one with experience in this?
Thank you so much guy! This is my first post, I hope it stirs up the discussion pot!
Posted: Tue Jul 30, 2013 08:48 pm Post Subject:
Fwi the account I'm thinking about are paying between 2-5k per month in vested renewals. The go down each month since no further reservicing will be required. How much would some one buy that for. 40k$ 60k?
Posted: Fri Aug 02, 2013 11:29 pm Post Subject:
The ones that I know are captive agents who want to move on after 5-7 years. My questions are how common is it for an agent do do this?
Ordinarily, captive agents have no entitlement to their book of business -- it belongs to the company. If they have the right to sell their renewals, and the renewals expire in two or three years, in my opinion, paying more than one year's worth of income would be foolhardy.Most agency sales are based on a multiple of total cash flow, not just renewal income. You need to look at the larger picture. Sure, the renewal income will keep you in business for a couple of years, but then what?
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