At a Glance:
So, you’re thinking about becoming an energy broker? Considering the size of the retail energy sector in the United States, you are making a great choice! You can enjoy a profitable career as a commercial electricity or natural gas broker, and here are some simple tips for getting started right.
In this article, you will learn:
Learn About The Industry.
First things first, get knowledgeable about the energy industry. If you are planning on become an electricity and natural gas supply broker, it is important to understand the factors that drive price as well as how customers use energy at their facilities.
Since being a successful energy broker means effectively advising your customers as to their energy supply options to save money, you must have the knowledge to be a true consultant. At Diversegy, we pride ourselves on our extensive training program for all of our new energy brokers. Here are a few resources below for becoming better acquainted with the space:
Energy Industry Resources
Work Your Warm Business Contacts.
Cold calling should be the last thing on your mind. In fact, only the most seasoned energy brokers are effective at using cold prospecting strategies. Alternatively, your first step should be to compile a list of all of your business contacts. Try to categorize your warm prospect list by the following…
- Potential Customers: Make a list of the business owners, real estate owners, and executives you know who could become customers.
- Referral Sources: Make a list of the CPAs, Financial Planners, Property Managers, Lawyers, and other professionals who could refer you to their business contacts.
Working your warm contact leads is always the best place to get immediate results. In fact, if you believe in your service and have confidence that you can bring value, these conversations should be easy to have. Simply introduce your new career choice and ask them if they would be willing to let you evaluate their utility bills or refer you to other businesses.
Should you be working in a market where you do not have any warm contacts, you can use these resources to work on alternative contacting methods:
Supplier and Broker Relationships.
Next, it is important to have solid supplier and/or broker relationships. Most energy brokers who are just starting out need to align themselves with a larger broker to take advantage of their licenses and supplier relationships. If you are planning on filing for your own energy broker license, then you must develop relationships with retail energy suppliers directly.
These relationships are key to making your broker business work. Without pricing from multiple suppliers, it will be hard to compete against other seasoned energy brokers. In fact, Diversegy has a program in place for start-up brokers who can use Diversegy’s footprint and infrastructure to have a turn-key business overnight.
The Benefits Of Partnering With a Broker Like Diversegy
- Instant access to all deregulated markets without having to get licensed
- Instant access to pricing from the nation’s leading energy suppliers
- World-class support team and price desk
- Upfront commission payments
As a new energy broker, it can be quite difficult to establish new supplier relationships with advantageous payment terms. For these reasons, many start-up, and seasoned brokers for that matter, elect to work through larger broker organizations.
Staying Consistent To Achieve Success.
After you have gained knowledge of the industry and are set-up to transact business, your next step is consistency. Many energy brokers mis out on the chance to develop a strong, recurring income stream due to lack of focus.
Since each energy supply contract pays you a small commission for arranging the deal, it is important to continually add new customers to your book of business. If you can find a way to constantly prospect new customers, offer quotes, and sign contracts, you will slowly and surely develop a residual income stream.
The energy broker business can be quite lucrative if you can discover how to balance getting new business while maintaining your existing customer base. In fact, your income will begin to build upon itself. Here are some tips for developing a strong income as an energy broker.