How To Become An Energy Broker: A Day in the Life of an Energy Broker

Energy brokers work with industrial, commercial, and municipal customers in deregulated states to aid them in negotiating the purchase of electricity or natural gas supply.

Brokers act as liaisons between competitive retail energy suppliers and the end users that are consuming energy. There are many energy supply products available to commercial and industrial customers in deregulated states, and sometimes those various products are complex and hard to understand.

Energy brokers and consultants also act as professional advisors to their customers helping them decipher supply structures and contract terms so they can make the best decision for their business.

Ultimately, an energy broker is responsible for helping his/her customers save money on their utility-related costs by negotiating lower-cost energy supply on the customer’s behalf.

From a customer’s perspective, energy brokers provide value in many ways. Having to obtain price quotes from over 60 energy suppliers can be a daunting task for most customers. Contacting multiple suppliers, submitting billing data, and comparing quotes can be cumbersome and tedious. An energy broker alleviates the administrative burden of collecting price quotes while also providing professional advice. In addition, energy brokers have deep-rooted relationships with energy suppliers and quite often can obtain more competitive pricing for a customer. Some of the key benefits a broker delivers to a customer are…

Successful energy brokers are enterprising individuals and usually natural leaders. Successful brokers possess a balance of introversion and extroversion, giving them the skills to do detailed market research while also having the ability to make relationships with new customers.

Energy brokers also tend to be more “left-brained” and logical, giving them the ability to analyze contracts and look at numbers on a daily basis. If you are unsure about your personality and if you might be a good fit for a career as an energy broker, you might consider taking a personality test. Here is a great personality traits test offered by CareerExplorer.

Some of the more tangible skills required to be successful in the energy industry are:

People Skills

First and foremost, energy brokers must deal with customers on a daily basis. Whether it is prospecting a new commercial account, handling a customer service issue, or negotiating contract terms on behalf of your customer, you must be good with people. If people skills do not come naturally to you, then there are classes you can take and books you can read to become more of a people person.

Organizational Skills

Next, you must learn how to be organized. A lot of your job as an energy broker will be to manage data, contract information, agreement start dates, and energy renewals. If you want to have a long career in the energy industry, then you must be an organized person and utilize tools to keep your customers’ information in order. 

Analytical Skills

Finally, you must possess strong analytical skills in order to comprehend energy prices, energy market trends, and emerging technologies. The energy industry is ever-changing and exciting. Keeping up with global news, economic trends, and energy regulatory changes will be part of your daily routine. If you have good analytical skills and are able to process information quickly, it will help you in your energy career.

A typical workday for an energy broker can be quite exciting. Brokers are responsible for acquiring new customers through sales, negotiating pricing and contract terms for existing customers, and managing market prices and contract renewals. Although your day might vary, a typical Diversegy energy broker’s day might look something like this…

So you’re interested in becoming an energy broker? The first thing you need to do is align with a reputable, licensed brokerage firm. It is nearly impossible to start your energy career as a broker without aligning with a licensed brokerage firm. Brokerage firms come in all shapes and sizes, and it is important to pick a firm that is right for you. Here is a great article on The Things To Evaluate When Picking Your Brokerage Firm. A short list of what you should consider in a broker is below:

Here are some tangible steps you can take to launch your career:

Learn About The Industry.

First things first, get knowledgeable about the energy industry. If you are planning on becoming 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

• How To Use Market Information To Close Deals
• Ways Businesses Can Reduce Energy Costs
• Matrix Supply Rates vs. Custom Supply Rates 
• Learn How To Become A Better Energy Broker

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

• 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:

• How To Effectively Cold Prospect
• Generating a Prospect List
• How To Properly Get a Bill To Quote

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.

Looking to get your energy career started today? Maybe you are already an energy broker but are looking for a more reputable firm. Diversegy offers its energy brokers access to all deregulated markets, pricing from over 60 energy suppliers, a world-class support team, and upfront commission payments. Contact us today to find out what an energy brokerage career at Diversegy might look like for you!