If i were to purchase an insurance agency w/ a 2million dollar book of business, what could i expect to earn?
Mr. Getmoney asked:
How much on average could i look to make off an agency w/ a book of business that large?
Wiley
How much on average could i look to make off an agency w/ a book of business that large?
Wiley
That would depend entirely upon what it would cost you to properly service the portfolio, the risk profile (how many payouts expected), and whether you have to recruit and train new personnel, among other things.
How many customers? Avg. number of policies per customer?
What types of policies are these?
How long have the policies been in force?
What is the retention rate of the book? (how many customers leave each year)
These are the questions that will tell you how much money you’ll make.
Your gross would probably be around $175K. After operating expenses, if you service the book yourself, you’re probably bringing home around $100K. Maybe slightly less.