You’ve probably seen or heard of the many network marketing companies that have popped up in the past 5 years or so specializing in the energy markets. The deregulation of the energy markets not only opens the doors for energy companies to enter new markets but it basically mandates that competition increase in these previous monopolistic territories. Consumers benefit tremendously as market rates for energy fall due to the increased competition. Smart energy companies seeing the opportunity to gain market share have been looking for ways to profitably enter these new markets and compete vs. entrenched energy companies that hold a distinct advantage when it comes to brand awareness and marketing budget.
One way these energy companies are finding success in competing with the big boys is through network marketing (MLM). By using network marketing instead of rolling out huge advertising campaigns energy companies can charge lower rates to consumers. As a result, instead of paying an ad agency, or Google, or any other marketing medium, the energy company pays independent reps to gather customers. Considering the size of the energy markets in the US alone (~$500 billion) the amount of money opportunistic independent reps could potentially make is staggering. Some have likened it to the California gold rush. We’re not going that far but we do think the risk/reward for participating in an energy network marketing opportunity is absolutely advantageous and here’s why:
Low Cost To Enter
From what we are seeing the entry fee to join a leading energy network marketing company ranges anywhere from $200 to $400 with a monthly website fee of $25. While this may not seem like a drop in the bucket for most one must consider how fast you can make that $200-$400 entry fee back. Pay close attention to any immediate income you can receive for signing up customers and associates. If you can quickly think of a few people you could convince to become customers or associates and that number of people could generate your entry fee back then it would seem to like a no-brainer to join.
Energy is the Product
You almost don’t even need to sell anything. Everyone has an energy bill and everyone pays an energy bill every month. What other MLM opportunity pitches a product everyone needs, uses, and will continue to use month after month? If the rates are attractive, you are not selling a service, you are helping someone save money. This fact alone has convinced many skeptics to give it a try.
Deregulation in the Energy Markets Happens Once
For many States the energy network marketing opportunity is new, a ground floor opportunity to grab a share of the marketing dollars being shelled out by these aggressive energy companies. The word is getting out and who knows how fast the market will become flooded with new people looking to get in on the action. That being said if you have any inclination to join, do it now rather than later. You snooze, you lose.
Skeptics will remain but you owe it to yourself to truly investigate the opportunity for yourself. The same type of opportunity was presented to people over 20 years ago when the telecom industry deregulated. Companies such as Sprint and MCI used the network marketing approach to build market share and in turn made many of its associates financially happy.
In the end we would say network marketing in the energy markets presents much more hope than hype!