If you haven’t already heard, about 1/3 of the United States has deregulated their energy policy. Simply put, this means that local utility companies can now charge whatever they want for electricity and/or natural gas. This is both bad news and good news for customers. Tariffs will increase, but it also means that customers will now be able to choose where they get their power supply from.

So what does that mean for you if you want to become a power broker? It means that there are potentially millions of customers waiting for you to contact them. They would love to show you how to save money on your energy bill and you could be the hero that saves the day! But not everything in life is peach and cream. To become an energy broker and profit in this unregulated market, you need to have the right components. You should join a company that gives you the best chance of earning what you want. Here is a list of what you will need:

1. Strong company management and experience

The worst mistake you can make is joining one of these energy startups and having to worry about poor management and inexperience. Experience is everything and you need to ensure that the company founders and senior management have a successful and profitable experience in the energy industry. I can guarantee you that in the next five years dozens of new energy companies will appear offering intermediary positions, but they will disappear as quickly as they 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 many sales and promotional aids to help get the word out about your company and what it offers. You should also have effective training for new riders. Most people who become energy brokers, including you, have no prior experience in this industry. You must be trained quickly, have the necessary resources and have knowledge in the market. Only then will you have the confidence to know what you’re doing and have the right answers when leads and prospects ask you questions.

3. Competitive Bid

As stated above, there will be a lot of competition in the market from other energy providers. The question to ask yourself is: “What makes my business unique and what can we offer customers compared to others?” Your offer must be accurate and the rate you offer customers must be competitive. Typically, your company will offer a variable rate to customers that will generally be lower than your local utility company. You need to be sure that the rate will remain competitive based on market fluctuations.

So now that you know what to have in place as an energy broker, let’s talk about the pros and cons of this exciting new type of business venture.

advantages

• No overhead: As an energy broker, you don’t have to worry about the typical overhead of a traditional business/franchise. There is no product, no inventory, no sale, no collections.
• Simplicity: With this type of new business, you are simply showing people how to pay less for something they already buy.
• Earning Potential – Virtually everyone you meet uses energy, making them potential customers. Depending on your state, there could be thousands and in some cases millions of customers waiting to switch to a cheaper energy provider.
• No Sales Experience Required: As a broker, you are in the business of counting, not selling. None of your customers need an explanation of the need for electricity, unless they live in a cave.
• Timing: When it comes to opportunities in the business world, timing is everything. Eventually, all US states will be deregulated. This gives you, as an energy broker, a great opportunity to capitalize on this exciting trend. Even big names like Bill Gates and Warren Buffett 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’re not properly trained, you’ll lack the knowledge to acquire residential customers and have a hard time closing larger commercial deals.
• Business Hours – Many new energy brokers will find it surprisingly difficult to find enough time to commit to this new business venture. Typically, you’ll already be working during the day and the only time you can allocate to your brokerage business is at night, when most businesses are closed and most people retire for the day.
• Lack of Knowledge – Depending on the area, most customers will have no idea that they have a choice about which energy provider they can choose. You may find yourself doing a lot of explaining, encountering skepticism, and hoping the local news station will help you get the word out. But, for energy brokers willing to take the time to explain and inform their clients, they can expect to be rewarded.

So, in closing, I’d like to leave you with this question. If you’re considering becoming a power broker and taking advantage of this new trend, are you willing to commit your time and energy (no pun intended) until you’re successful? I truly believe energy deregulation will create many success stories in the future and save millions of people money, but the only new energy brokers who can hope to be rewarded will be serious and committed ones. Will you be one of them?