So you’re interested in becoming an energy broker? Great news! You’ve picked an exciting industry with lots of potential to have a very rewarding career. Now, there are several ways you can enter the market as an energy broker. We will explain each in detail below:
Start As An Agent
One way of entering the energy broker world is to start as an energy sales agent. Energy agents are individuals who act as energy brokers but do not need to go through the rigorous licensing process. In fact, energy agents align with a licensed energy broker and sell energy under than broker’s license. Becoming an agent is quite simple and your broker will train you on everything you need to know to be successful. Here is some information on our Energy Agent Sales Program.
Become A Sub-Broker or Channel Partner
If you have an organization with multiple salespeople and you are thinking about setting up your own broker shop, a great first step might be to become a sub-broker under a larger licensed broker organization. There are many benefits to structuring your energy broker business this way including:
- Avoid rigorous regulatory compliance
- Get overnight access to deregulated markets with no licensing
- Sell for multiple energy suppliers without having to pass application processes
- Get better payment terms with upfront commissions to improve cash flow
- Gain access to support staff without having to hire employees
Starting an energy brokerage company is harder than ever. With more stringent supplier application processes, and less favorable commission payment terms, it is quite hard to get a new energy brokerage started. An alternative is to align with a larger broker who has a sub-broker program. These programs offer many benefits and allow you to have a turn-key energy brokerage company. Learn more about our Broker Partner Program Here.
If you have the experience, financial backing, and ability to get your own broker’s license, we encourage you to do so. Be aware that this process is cumbersome and tedious and your application will be heavily scrutinized by each regulatory body. In addition, you will need to have staff keep up with ongoing compliance and reporting as well as handle the operations of your energy brokerage. In addition, you will need to forge relationships with energy suppliers and maintain enough deal flow with each supplier to keep your contract active. If you are interested in getting a license, here are the license requirements by state. Please refer to this key when referencing the chart:
- License Required = an energy broker’s license is required to sell either commodity
- No License Required = the state is deregulated for this commodity, but a broker’s license is not required to operate
- Limited Deregulation = the state offer limited deregulation and due to this a broker’s license is not required
- No Deregulation = the state is not deregulated for this particular commodity