At a Glance:
There are many advantages to becoming a commercial energy broker in the United States: job flexibility, income potential, an exciting industry. Learning how and why to become an energy broker is the first step on your path to success. This article outlines the energy broker job opportunity, energy broker salary potential, and more.
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What An Energy Broker Job Description Entails.
Commercial energy brokers are either licensed entities or individuals, working for licensed entities, that arrange for the supply of electricity and/or natural gas between third-party energy suppliers and commercial end users. Energy brokers solicit new business through traditional sales techniques such as cold calling, email marketing, and networking, and attempt to bring value to their customers by finding them lower prices in the energy market.
Energy brokers typically work with an array of energy suppliers from whom they offer rates to their customers. One big value proposition energy brokers make is the ability to collect multiple quotes on behalf of their customers, so that their customers truly get the best price in the market. Here is what an energy broker does in a nutshell:
Prospect for new commercial customers
Collect quotes from multiple suppliers
Negotiate energy supply contract terms
Monitor market conditions for renewals
Is There A Career Path For An Energy Broker?
Great question! While most people in the energy broker industry start out as sales agents for larger licensed brokerage companies, there is a career path in the space. In fact, because the retail energy sector is growing so quickly energy brokers have many opportunities at their disposal.
Go Through The Licensure Process: Many brokers who start out as salespeople for other brokerage companies elect to start their own licensed energy broker firms after they have a large book of customers. Getting licensed as an energy broker across the U.S. is no easy task, but it can be very rewarding.
Operations: As your energy brokerage company grows, there might be an opportunity to move into the operations side of the business. All energy brokerage companies are looking for competent individuals who can help support the growth of the company. Once you understand the nuances of the retail energy sector, an operations job might be right for you.
Supplier Jobs: Because energy brokers work with many licensed retail electric providers, there could be a path to move onto the supplier side of the business. Suppliers are similar to brokers in that they service commercial energy customers, however, suppliers purchase power and gas in the wholesale market and re-sell it to their customers. If you have a knack for trading, numbers, and the energy markets, working for a supplier could be a great career path.
Energy Broker Income Potential.
There is tremendous income potential for those looking to take a career as an energy broker seriously. On the other hand, if you are simply “dabbling” in the space, you might not achieve the greatest income potential. Because energy brokers are paid sales commissions that are tied to the energy usage of their customers, energy brokers can achieve great financial success.
In fact, most brokers will offer their salespeople a residual commission plan where the sales rep is compensated for the lifetime of the customer account. As long as the salesperson keeps that account active, he or she will get paid. The upside of being a commercial energy broker is that you can create as much income as you would like as long as you can keep your customers happy and renewing with you. In fact, there are many energy brokers earning strong six-figure incomes and some who even earn into the seven figures.
Thinking about becoming an energy broker? In addition to earning more income as an energy broker, here is why many of our salespeople decided to partner with us:
Alternative Energy Career Paths.
After you have been an energy broker for some time, you will learn that the commercial energy industry is robust and vast. In fact, selling the commodity of electricity or natural gas is one piece of the puzzle. There are many other career opportunities once you understand how energy works and have some experience under your belt. Some of those jobs could be:
Energy Efficiency: Instead of trying to get your customers better prices for their energy supply, you could go into the energy efficiency space and help them reduce their energy consumption. Energy efficiency companies range from LED lighting companies to window companies to smart HVAC organizations.
Demand Response: Demand response is a program where customers can get paid cash for reducing their energy demand during peak times when the grid is overloaded. There is an entire business centered around this program where you can help your customers save money and support the stability of the electricity grid.
Energy Technology: There are many emerging technologies in the energy sector. From smart thermostats that control a building’s air conditioning usage in real-time to energy management software programs. If you have a knack for tech and love the energy space, this could be a great path for you.