So you’re thinking about becoming an energy broker? Don’t know where to start? Do not worry! As one of the nation’s leading energy brokerage firms with a world-class energy broker platform, we’ve seen it all! We know exactly the right steps you need to take to set yourself up for success in the retail energy industry. In order to help our new and potential sales partners, we put together the ultimate guide for energy broker beginners.

First Things First: Getting Your Energy Career Off On The Right Foot

Selling deregulated energy can be challenging. Since every single business, home, and apartment located in a deregulated state can be your customer, it’s very easy to get overwhelmed and not know where to begin. This energy broker guide outlines common terminology, industry basics, and sales tips for becoming the best energy broker you can.

Energy Broker Basics

Use the following resources to get familiar with the energy broker landscape, the different types of energy brokers, how energy brokers differ from other industry participants, and where you fit into the equation.

  • The Energy Broker Industry: An overview of the energy broker industry, market trends, and things to look out for when pursuing your career.

Energy Terminology Basics

Next, it’s important to understand the various energy industry terms that you might use on a daily basis in your career. Energy terminology can seem complicated at first, but once you understand the concepts, you will be talking like a pro! Here’s what you need to know:

  • Electric Capacity: Understand what electric capacity charges are, how they are calculated, and what they mean for your commercial energy customers.
  • Electric Transmission: Gain an understanding of the make-up of an electric rate and how electric transmission charges play a role in energy costs.
  • kW vs. kWh: One of the most important aspects to understand when selling electricity is the difference between kilowatts and kilowatt hours. Learn what you need to know here.
  • Electric Load Factor: Finally understand the complex topic of electric load factor, how to calculate it for your customers, and how load factor ultimately plays a role in your profit margins and customer rates.

Energy Deregulation Basics

It’s also critical to comprehend the history of energy deregulation, how deregulated energy markets differ from regulated markets, and the nuances of each deregulated state. Here’s what you need to know about energy deregulation and energy markets:

  • About Wholesale Energy Markets: Discover the differences between retail and wholesale markets, and learn about how wholesale energy markets drive commodity pricing.
  • Retail Energy Suppliers: An overview of retail energy suppliers and their roles in the deregulated energy markets.
  • All About Energy Brokerage Firms: Learn about the differences between energy brokers and brokerage firms, and how brokerage firms can help enhance your energy sales career.

Energy Licensing & Regulations

The deregulated energy markets, although deregulated, still have much oversight and regulation. In fact, in most states, energy brokers are required to become licensed and even post financial bonding in order to be allowed to operate. Retail energy suppliers go through a more scrutinized process of becoming licensed and have to prove additional financial strength. Here’s what you need to know about energy licensing and regulation:

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Energy Broker Skills

After you get a good feel for the foundational principles of the industry, it’s time to put your knowledge to the test. Here are some of the operational and sales skills required in order to enjoy a successful career selling energy.

Energy Contracts

Understanding contract language, nuanced clauses, and legal terminology with give you a leg up on competitors

  • Retail Energy Contracts: An overview of retail energy supplier contracts and how they fit into the energy industry.
  • Energy Contract Renewals: Everything you need to know about energy contract start dates, end dates, and how the contract renewal process works.

Energy Products

You need to be an expert at the different types of energy supply products and contract structures available in the market. Not all customers are the same and you can bring true value to your customers by matching them with the right type of energy plan.

  • Energy Index Rates: Understand how energy index rates work and why a customer might want to take advantage of market-based index pricing.
  • Matrix Rates vs. Custom Pricing: Gain a thorough understanding of daily supplier matrix pricing vs. custom quotes and when to use each for your customers.

Energy Broker Sales

Finally, nothing happens without a customer and a sale. In order to be successful in this career, you must master the art of selling. And, as an energy broker your sales job is more than just selling a one-time product. You must act as a true advisor and consultant in order to build long-term, lasting relationships with your customers.

  • How To Cold Call: Learn proven methods on how to cold prospect customers on the phone, over email, and in person.
  • Energy Broker Tools: Use these tools in your day-to-day life as an energy broker to make your job easier.

Managing Energy Customer Problems

In addition to being an excellent salesperson, one must also be keen on customer service and handling issues as they arise. Although customer service problems are few and far between, it is important to gain an understanding of the most common customer issues and know how to deal with them.

  • Utility Account Drops: What utility account drops are and how you need to react to save an energy contract.
  • Energy Pass Through Charges: Gain an understanding of energy pass-through charges, why they happen, and how eliminate pass-through language from energy contracts.
  • Energy Scams And Fraud: Common energy scams, how to recognize them, and help your customers from being victims of energy fraud.

Keeping Up With Energy Industry Trends

One of the most exciting things about being an energy broker is that you work in an ever-changing environment. The energy industry is evolving with new technologies, regulations, and political impacts. To be successful, it’s critical to understand the trends and to stay on top of the market.

  • 2023 Energy Price Trends: Energy market trends for 2023, what’s forcing prices to move, and what to expect for the rest of the year.
  • EU Gas Price Cap: Learn about Europe’s reaction to rising energy prices and what the price cap means for U.S. energy customers.

Ready To Launch Your Energy Broker Career?

It has never been a better time to get started as an energy broker. With new deregulated markets on the horizon, energy in the forefront of global news, and evolving renewable technologies, you can have an exciting career. Contact our team today to learn about how we have helped our energy broker partners launch their careers and set themselves up for success.

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