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One need only look back at the wealth that was created from telecom deregulation in the 90's and the rise of companies such as ACN and Excel.
To keep it in perspective, the entire telecom industry at that time was $70B. By contrast, today's US energy market is more than $500B, a magnitude of 7 times greater.
Benefits Of Energy As A Network Marketing Business:
Many claim that energy and network marketing are an ideal match, touting how the long distance telecom industry was able to gain a substantial market share from a comparable direct referral model. Major benefits include:
· No educating the consumer on "how to use" or the "value" of the product
· A "must have" product used by every household and business
· No physical products to inventory or risk expiration
· No $100 monthly auto-ship to burden the family budget
· Extremely high customer retention
· A recurring revenue stream, as the electric bill is paid every month, year after year
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In fact, out of the entire network marketing sphere, energy is currently the only sector that has seen double digit growth.
· Ignite started in 2004 and is doing over $900M in sales (500,000 + customers).
· Ambit started in 2006 and is doing over $400M in sales.
· Viridian started in 2009 and is doing over $200M in sales.
Challenges With The Current MLM Energy Model:
Despite the clear synergy between energy and a multi-level selling model, there are certain issues that need to be considered.
· As a commodity product, how do you differentiate from the competition?
· Not all states are deregulated, service available only in certain states
· All companies up to this point have been strictly energy resellers, buying on the open market.
· The reseller structure does not remove the "middle man", a key to network marketing success.
· Historically low residual income on customers due to reseller cost structure and margins.
· Most of the money is made in distributor signups and not from residuals based on customer utility usage.
Recent Changes in the MLM Energy Marketplace:
In September of 2011, NRG Energy, one of the largest energy companies in the United States, purchased retailer Energy Plus LLC, for $190 million cash.
This is highly noteworthy, as it now means for the first time in Network Marketing, there is a true wholesale power supplier competing against resellers for market share.
About NRG Energy, Inc. (NRG):
· A $9B per year wholesale power generation company located in Princeton, NJ.
· A Fortune 500 and S&P 500 company listed on the NYSE (Symbol: NRG).
· One of the Top 5 energy companies in the USA.
· Creates enough energy for 20 million households and currently supplies 1.9 million.
· Owns Reliant Energy, Green Mountain Energy and Energy Plus.
· Leading provider of clean energy, including natural gas, nuclear, wind, thermal and solar.
· Massive R&D focused on sustainable solutions and new product offerings in "green" energy.
About Independence Energy Alliance (IEA)
· Independence Energy Alliance is the network marketing arm of this $9 billion company.
· Founded by Jeffrey Meiller and Chet Seely in May 2011, with headquarters in Philadelphia, PA.
· Business model is based on adding unique value to the end consumer, to ensure long-term retention.
· First and only network marketing company owned by an actual energy generation company.
· As a direct seller, lEA removes the "middle man", creating more margins for higher customer residuals.
· Currently provides service in IL, NJ, & NY. CT & PA justl opened on 02/15/12 with OH & TX open by Q2 2012.
· Through NRG, has all the necessary licenses, capital, and relationships to operate in every deregulated state.
· Plans to provide service in all deregulated states by end of 2012.
· Planning further expansion into all Canadian territories.
· Finalizing smart energy solutions that will soon be available in all 50 states, even those not deregulated.
· Pays more out in compensation than any other energy MLM company.