November 11, 2009 admin

Affordable Energy Beefing Up Their Compensation Plan

Affordable Energy is a small privately owned electricity service company in Houston Texas. Affordable Power created a division of their company called Affordable Energy that sales in a MLM direct sales business model. This is not unfamiliar to Texas when it comes to selling essential services like telephone and electric service. It really all started with Excel Telecommunications when at one time they were the 3rd or 4th largest long distance provider in the USA. Excel started in Dallas Texas and after they went out of business back in the early 2000’s many of their executives started up Ignite Energy to sell electricity service instead. The telecommunications market dried up as margins grew thinner and thinner and so the deregulation of the Texas electricity market provided a quick and easy leap from Excel to Ignite for many of the founders that worked the direct sales model over at Excel. Affordable Energy has recently kick started their MLM electricity sales business by offering a compensation plan that looks a little more familiar to that of the Ignite and Ambit Energy compensation plans but still quite a bit different. The overrides received through signing up reps is one of the main things we noticed that looks similar to the other compensation plans. The similar plan makes since as many companies like Ambit Energy, Ignite, and Excel have created very large successful organizations by implementing such plans. It is our opinion that Affordable Energy is positioning itself for quick growth over the next year with several undisclosed but big things in the works to compete with the Ignite and Ambit opportunities.

MLM Companies Are Popular in The Texas Market

In Texas there has been a slew of Texas electricity companies following in the tracks of Ignite Energy who started up a MLM division of their company to sell electricity service through a direct sales MLM business model. Ignite has a traditional division of their company called Stream Energy to keep risk at a minimum. Similar to Ignite Affordable Energy also has two divisions with both a traditional electric company and a direct sales MLM side to the business. Ignite claimed at one time they had 400,000 electricity service customers in Texas and although smaller than TXU or Reliant it is still a pretty big chunk of electricity service customers and enough to make Reliant and TXU Energy worry a little. I believe TXU and Reliant Energy have a few million residential electricity customers a piece which makes me wonder how far off Ignite Energy would have to meet or beat those numbers. Take for instance where Ignite Energy sprouted from when they first started business at the Dallas Infomart. Excel became the 3rd or 4th largest telecommunications company in the United States. This type of success means it is not completely inconceivable for a company like Ignite or Affordable Energy to meet or surpass the amount of electricity customers companies like TXU and Reliant Energy have.

Larger Payouts For Signing Up Sales Associates

With the increased money to be paid out when a sponsoring rep signs up someone else it becomes much more attractive for professional MLM business people to sign up to sell for Affordable Energy. One pattern that we have seen with successful companies is waiting for some other company to lead the way and than come in and reinvent the wheel and take over. In fact many companies have done this and have taken over the business of prior leaders in the market. For instance, Yahoo at one time was the leader in search but Google came in several years later with a much better search engine and took them over by a large margin. Tivo was a great idea that involved recording TV shows in real time to be watched later and giving people the ease of fast forwarding through commercials. Satellite and cable television companies have added TV recording to their boxes and have far outsold Tivo ever since. Whenever a new technology or product comes out you can bet another company will come out a few years later and out do them. This is the expectation that Affordable Energy has when people decide on what direct sales MLM company to go with.

The Downside To Direct Sales and MLM

The downside to direct sales and MLM companies is that many of them eventually go out of business as the pyramid like structure kind of implodes on itself. The math seen in a typical rep and sales growth chart resembles a pyramid and cannot sustain itself based on the representation. A few at the top end up making a lot of money while those at the bottom may break even or lose money when involved in an MLM company. Knowing the risks of joining an MLM company to sell electricity service is important. As long as you are aware that the income representation is not typical of most sales reps you can join one of these companies with realistic expectations.

Learn More About Affordable Energy

You can learn more about Affordable Energy by contacting a sales rep with this company. Click this link to learn more.

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About the Author

admin Donny started ElectricityBid.com back in 2007 from his parents basement and has since married his wife Melody and had three sons, John Adam (7) and Noah (4) and our new 20 month old son. He enjoys tech related things, softball, kickboxing, going to the gym, excursions and activities together with his wife Melody. Our service allows you to shop and compare commercial and residential electric rates and providers. Would you take the time today to try our service and see how you like it. Thank you! and God Bless You!

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