If you haven’t heard by now, about 1/3 of the United States has deregulated it’s energy policy. Most simply stated, this means local utility companies can now charge what they want for electricity and/or natural gas. This is both bad news as well as good new for customers. Rates will increase, but it also means that customers will now have a choice where they get their energy supply from.
So what does that mean for you if you want to become an energy broker? It means that there are potentially millions of customers out there just waiting for you to contact them. They would love to be shown how to save money on their energy bill and you could be the hero who saves the day! But everything in life isn’t peaches and cream. In order to become an energy broker and profit in this deregulated market you must have the right components in place. You must join a company that gives you the best chances of earning what you want. Here’s a list of what you will need:
1. Sound Company Management And Experience
The worst mistake you can make is to join one of these new energy companies and have to worry about poor management and lack of experience. Experience is everything and you need to ensure that the company founders and upper management have successful and profitable experience in the energy industry. I can guarantee you that over the next five years dozens of new energy companies will pop up, offering broker positions, but die off just as quickly as they were started, simply because they lacked experience.
2. Tools And Training
As an energy broker you need the right tools and training to acquire customers and increase awareness. Some of the required tools include plenty of promotional and sales aids to help spread the word about your company and what you offer. You also need to have effective training in place for new brokers. The majority of people who become an energy broker, including you, have zero prior experience in this industry. You need to be trained quickly, have resources in place and be knowledge in the marketplace. Only then will you have the confidence to know what you are doing and have the right answers when you are questioned by potential customers and prospects.
3. Competitive Offer
As stated earlier, there will be plenty of competition in the marketplace from other energy suppliers. The question you have to ask yourself is, “what makes my company unique and what can we offer customers compared to everyone else?” Your offer needs to be to the point and the rate you offer customers must be competitive. Usually your company will be offering a variable rate to customers that typically will be lower than their local utility company. You have to be sure that rate will stay competitive based upon fluctuations in the marketplace.
So now that you know what you must have in place as an energy broker, let’s talk about the pros and cons of this exciting and new type of business venture.
Pros
- No Overhead – As an energy broker you don’t have to worry about the typical overhead in a traditional business/ franchise. There is no product, no inventory, no selling, and no collections.
- Simplicity – With this type of new business you are simply showing people how to pay less for something they already purchase.
- Earning Potential – Practically every single person you know uses energy, which makes them a potential customer. Depending on your state, there could be thousands and in some cases, millions of customers, just waiting to switch to a cheaper energy supplier.
- No Sales Experience Required – As a broker you are in the business of telling and not selling. None of your customers need an explanation of the need for electricity, unless they live in a cave.
- The Timing – When it comes to opportunity in the world of business, timing is everything. Eventually, every state in the U.S. will be deregulated. This gives you as an energy broker, a tremendous opportunity to capitalize on this exciting trend. Even big-time names like Bill Gates and Warren Buffet believe that energy deregulation will create some very rich people in the next two to five years.
Cons
- Lack Of Training – Some energy brokerage companies will have very inadequate training. If you aren’t trained correctly, you will lack the required knowledge to acquire residential customers and have a rough time closing larger commercial deals.
- Work hours – Many new energy brokers will find it surprisingly difficult to find enough time to commit to this new business venture. Typically you will already be working during the day and the only time you can allot to your broker business is at night when most businesses are closed and most people retire for the day.
- Lack Of Awareness – Depending on the area, most customers will have no clue they have an option of which energy supplier they can choose. You may find yourself doing a lot of explaining, encountering skepticism and wishing that the local news station would just help get the word out. But, for the energy brokers willing to take the time to explain and inform their customers, they can expect to be rewarded.
So in closing I would like to leave you with this question. If you are considering becoming an energy broker and taking advantage of this new trend, are you willing to commit your time and energy (no pun intended) until you are successful? I truly believe that energy deregulation will create many future success stories and save millions of people money, but the only new energy brokers who can expect to be rewarded will be the ones who are serious and committed. Will you be one of them?