At a Glance:
Want to achieve your goals this year? It all starts with making a solid plan. Here are some tips on planning your 2022 energy broker business…
In this article, you will learn:
Start With The Numbers.
Setting goals and developing a plan for your energy broker business might seem like a daunting task. Do not fret, we’re here to take you step-by-step through developing an achievable plan for 2022. The best place to start is with the numbers. First, make a reasonable goal for the type of income you would like to earn in 2022 by selling energy. HINT: “reasonable” means something you can conservatively achieve. If you made $10,000 last year, making $900,000 this year might be too ambitious. Set a goal that is within reach. Achievable goals that you accomplish help to build positive psychological momentum that can propel you into further success down the line.
Next, after you have decided the type of income you would like to generate in 2022, you can “back into the numbers”. Calculate your average deal size, average margin, broker commission split, and you will be able to see how many deals you need to close each month. Furthermore, if you can understand things like your close percentage (how many cold calls you need to make to win a prospect), you can come up with a daily action plan. For example…
- I want to earn $100,000 in 2022
- My average deal size is 500,000 annual kWh
- My average broker fee is $0.006/kWh at 50% commission
- I need to close 67 deals this year to earn $100,000 (67 x 500,000 kWh x $0.006 x 50%)
- I am able to close 1 deal for every 40 cold calls
- Action Plan: I need to make 2,680 cold calls this year; 52 cold calls per week
Another great way of “backing into the numbers” is to use this Energy Broker Commission Calculator below:
How To Use This Calculator.
Making a sales plan for your energy broker business is critical to your success. Use this energy broker commission calculator to forecast your energy sales commissions based on key performance indicators. Use this calculator by…
- Predict how many contracts or deals you will sell each month.
- Estimate the average annual deal size in MegaWatt Hours (MWh). One thousand kWh equals one MWh.
- Project your average broker fee for each deal.
- Enter your commission rate (%).
- See your potential energy broker income.
Choosing A Sector.
The most successful energy salespeople and brokers in the country do a great job of specializing in a certain sector. Since everyone uses electricity and natural gas, it is easy to become scatter-brained and unfocused. Choosing a niche industry or business segment is a great way to remain focused on your goals, eliminate distractions, and achieve your plan. For example, focusing on selling electricity and natural gas to the hotel industry does many things for your career:
- You become an expert on the industry and can talk your customers’ business language
- It allows you to focus when cold calling – just call hotels
- You can brand yourself as an energy expert in the hotel industry
- Customer referrals become easier as your customers know others in the same sector
Work Your Plan.
Last but not least, it’s time to work on your action plan. Now that you have decided the amount of income you would like to earn, developed a weekly action plan, and have an industry focus, it’s time to get to work! If you know you need to make 50 cold calls every week in order to achieve your goals, developing a large enough prospect list is critical to your success. Try to find a list of a few thousand businesses that you can start contacting. PRO TIP: all sales success is found in the follow-up. Most people will not buy from you on the first attempt. Developing a method for following up with prospects is critical to your success in 2022.
What are the Key Benefits of Diversegy’s Sales Partner Program?
Diversegy’s full-serve sales platform offers agents, teams, brokers, and customers many benefits. Our program is a commitment and investment into the future of the competitive retail energy industry. Here are some of the key benefits of our platform: