Health Sherpa 2016-Economics and Marketing 101

Jul 24, 2015

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  1. ameneses54
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    ameneses54 Guru

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    When Sherpa started it was a unique application and its closest competitor ACAExpress was filled with bugs and did not cut much time off the regular government application. Things have changed and ACA Express has relaunched the app and with a few tweaks to be implemented soon (green card clients and immediate access to eligibility results), it will be as fast and convenient as Sherpa. The great difference is that ACA offers a subscription plan with 75 app FREE / MONTH ($150 per month subscription) which makes it immensely more affordable. Basically you get 225 app for $450—the same with Health Sherpa would be $2250 . This is a HUGE spread and I’m quite sure Sherpa should observe the competition and adjust their marketing and pricing, otherwise they are on the losing path. That’s simple marketing and economics 101.
    I hope Sherpa listen to my advice, "I really like Health Sherpa".
     
  2. russelltw
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    Does ACA Express require you have a 12 month contract on that $150/month deal? I think they did last year.
     
  3. ameneses54
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    As far as I know the answer is "no". Actually I had a similar subscription when ACAExpress started last year and it was for open enrollment only.
     
  4. Post Quartermaster
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    To someone writing 225+ apps, the ~$1500 difference in price is negligible......

    At that volume, there are other factors that take precedence over cost.
     
  5. KennyWest
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    Unless a separate agreement exists (i.e. Enterprise with high number of agents where discounts or what not were given) are all month to month. Also have the flexibility to switch back and forth from Standard to Pro Express or vice versa as needed.

    225 apps would mean a savings of $1,800 comparatively.
     
  6. sman
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    Yep. 225 apps is probably a minimum of $50k in income. But it is likely much more than that. My average commission on U65 is right at $30 per month for each client I have. So that would be $81,000 for 225 apps. I think time and ease of use are the more important factors here. Granted, I've never tried ACA so I can't compare the two. ACA may very well be just as easy to use as HS and be just as efficient. But from what I've read on here, they were kind of clunky out of the gate. I don't really want to be someone's guinea pig where my income and time are concerned.
     
    sman, Jul 24, 2015
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  7. FLM2
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    I don't know about anyone else but I find the title of this thread really offensive for reasons I can't really explain other than it's insulting to Health Sherpa as well as unprofessional.

    My clients continue to stay with me year after year because of three things (1) I know the business (2) I treat everyone like they are a friend or family member and (3) I am committed to each of my clients having the plan that best fits their needs and budget. If I make a few bucks less per month but give my clients the right plan it's OK with me.

    When it comes to application processing on the Exchange, I need a reliable source that will effectively process my submissions at a reasonable price. $10 per application is completely fair, it represents less than 3% of my average annual commissions. I don't need (or want anything) lower than that because I fail to understand how $2 per application can be sustainable over time.

    Anyone who is that concerned about a few bucks per application should just go contract with Health Sherpa's IMO, they offer processing for free with street level commissions.
     
    Last edited: Jul 24, 2015
    FLM2, Jul 24, 2015
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  8. sman
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    It's as if we're getting the hard sell on why NOT to use HS and use ACA instead. For the life of me I don't know why another agent would care who I use. It doesn't impact their bottom line one bit.
     
    Last edited: Jul 24, 2015
    sman, Jul 24, 2015
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  9. FLM2
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    Thanks, I don't know how I typed that, it is the exact opposite of how I think as it relates to my clients:1eek::err::1baffled:
     
    FLM2, Jul 24, 2015
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  10. CHUMPS FROM OXFORD
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    I'm pretty familiar with both ACA and Sherpa.

    There's a lot of information to consider, different scenarios, projected costs etc...

    Finally, last year, I made my decision. I simply went to the biggest writer of individual health insurance on the Forum and asked him who he used. Joe was very adamant and clear. That was enough for me.
     
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