Momentis is a new Electric Service MLM Work From Home Energy Company

Momentis I just found another MLM energy company today called Momentis. I clicked on the link and the person who signed up for this opportunity must have already quit because the link was invalid.

This company is powered by an electric company that has been around for awhile now called, Just Energy.

I have talked to commercial businesses about Just Energy in the past and from my knowledge they have been very aggressive. They had feet on the street sales guys canvasing business districts offering their rates.

This practice is typical of even TXU and Reliant Energy so there is nothing wrong with this I just say this to explain Just Energy has and will try anything to be competitive hence why they are in MLM.

Momentis is an MLM company powered by Just Energy and they don’t just sell electric service but also natural gas, TV, internet, and phone.

If you are wondering about this opportunity and how it compares to the rest I have news for you. As far as I am concerned I already kind of know what the compensation plan will look like before even looking.

It has become increasingly predictable what these companies compensation plans look like. The main thing I would worry about is if the company will allow you to keep whatever ranking you achieve when they eventually change their compensation plan or add more positions.

Think about this, most of these MLM energy companies adjust their plans by adding a new rank in the mix. This dilutes your stake in the money pool and continuously makes it harder for you to remain at the top.

Some MLM companies will vet you and keep you in whatever position you achieve and will not allow a new rank to push you down but will in fact promote you to that new level that did not exist when you first joined.

What companies look out for you in this way? Not many.

Regarding the compensation plan it appears it looks similar to many, such as Ignite Energy, The Green Mountain Energy MLM, and a few others. You basically get very little compensation for actually signing up electric service customers directly.

You get bonuses for signing up customers within 30 day time slots. For each 5 additional customers you get in 30 days it appears they pay you $100. That means you are getting $20 a customer one time. You also get $1 a month for each active customer you personally maintain that you have signed up directly.

Overall the compensation you get for the direct work you put into getting active customers is very little compared to other MLM companies I know about.

The real money comes in by building large active down-lines of representatives that are selling the opportunity. The reason this is where the good money comes in is because large bonuses are paid out when new recruits join.

The site does not go into how much the Myteam bonuses are or how much the myLeadership bonuses are which is curious to me but I suspect they are fairly big in the $100 – $300 range.

Keep in mind to get these bonuses your recruit has to pay a large upfront membership fee and sign up 2 customers in 30 days. Once this happens you get the initial $100 mentor bonus. The additional bonuses are paid out as your recruits qualify for more levels and are trained.

This compensation plan is very similar to many others. The hard part is in building a down-line that is very active. This is very hard to do but can be done. I produced a video that explains what the long term goal should be with anyone considering joining an MLM company. For most of us including myself it is far beyond something I would want to get involved in.

 

New Age Power Brokers and Glacial Energy not an MLM Company

New Age Power Brokers sounds a bit uhh? new age I guess ūüôā So they have a little bit of a hippie name so what lets learn more about this company. Apparently from what I can tell New Age Power Brokers primarily sells for Glacial Energy which is licensed to do business in quite a few states. Altogether it looks like they can sell natural gas and electricity service in the following states:

New York Connecticut Illinois Michigan
Texas Rhode Island Washington DC Pennsylvania
Maryland Massachusetts Delaware Coming Soon: California
New Jersey Maine New Hampshire Coming Soon: Ohio

Not an MLM Energy Company, More Like a Power Brokering Opportunity

New Age Power Brokers and Glacial Energy Brokering MCPE Prices for Commercial Businesses in Texas

New Age Power Brokers and Glacial Energy Brokering MCPE Prices for Commercial Businesses in Texas

New Age Power Brokers offers an opportunity that they say is not an MLM opp but instead 40% on the commission they receive when a sales associate of their’s brokers a commercial electricity deal for Glacial Energy through New Age Power Brokers. So basically it appears that New Age Power Brokers is building a large work from home commercial energy sales force using a straight forward business model of paying these sales associates a percentage on the commission Glacial Energy or another provider gives them. My only concern is that as a “broker” New Age Power Brokers should be going out to more electricity providers than just Glacial otherwise the term “broker” is a little misleading. We assume that New Age Power Brokers receives bids from several REP’s in the pricing process but the concern is not out of place as many brokers in Texas end up just being a shil company for one or two electric companies. We looked around on the web and found that Glacial Energy is the main brand being offered by New Age Energy Brokers and would like to know other REP’s they offer when pricing electricity rates for their customers. It is important that when using a broker a Texas business receives multiple bids to get a complete shopping experience.

After a closer examination it looks like they have a compensation plan they call a business to business referral program and according to commenter Stacy in the comment section below she explains that the New Age compensation plan is a “Direct Marketing Business Model”. “New Age is not an MLM because while they do earn a commission on sales, it is a set rate ALL the time. There are no levels. That is called a Direct Marketing business model.” The obvious thing people look at are the levels going down to 7 but what sets New Age a part from an MLM business plan is that there are no requirements for earning commissions on different levels. If your business referrals stretch down multiple levels you get paid on those without having to meet any additional requirements. The fact that¬†it goes down to 7 levels which sounds a lot like several MLM companies I have heard about does not make it an MLM business plan but does share in the “direct marketing” aspect that both MLM and New Age’s compensation plan use. My previous question about how is this not an MLM company, am I missing something has been answered by Stacy in the comment section below? As you can see New Age does not offer an MLM compensation but a direct marketing sales compensation plan. The example chart showing a perfect world scenario of what the commissions could turn into do look a little sensational, I think everyone can agree that direct marketing will never have a perfect world result as in the example below.

To watch an educational video of what an MLM or pyramid related business is feel free to watch below.  Also look at their compensation plan and see how as the numbers get bigger the chart starts to resemble a pyramid. Although the New Age compensation plan does not fit in the MLM category you can see that the compensation structure looks a bit like a pyramid in their business direct marketing payment structure.
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How is this not an MLM Pyramid?

How is this not an MLM Pyramid?

Glacial Energy Offers MCPE Rates Which is a Texas Variable Electricity Price

Glacial Energy can be easily mistaken as Glacier Energy like the thing the Titantic ran into. Most people will need a reminder as it isn’t often that people refer to things as being “Glacial”. Another possible source of confusion is what exactly 40% of what is the commission a sales associate is paid? 40 percent commission is 40 percent of usually 3 mils if they charge industry standard commission. Some brokers charge whatever they can get away with although 3 mils is pretty standard. So lets figure out commission on a business using 400,000 kilowatt hours a year. We take .003 and multiply that times 400,000 = $1,200. The sales associate with New Age would get 40% of that which would be $480. If the sales associate signed up a commercial business like a hair salon or paint supply store the usage would be more like 40,000 kilowatt hours on the high end. Lets figure the commission on that. 40,000 kWh x .003 = $120. New Age will pay their sales associate 40 percent of that which would be $48. They will probably pay this out over the course of the year which means 48 divided by 12 months is $4 a month for a small retail store. If your not planning to sign up large commercial facilities you might get discouraged signing up the little retail shops like this.

Unbelievable Wholesale Prices or Just Your Standard High Risk MCPE Price?

Glacial Energy has unbelievable electricity prices as low as 4 – 5 cents per kWh according to what an energy consultant told me today that he heard from someone who just spoke with a Glacial rep. I also spoke with an MLM work from home junkie who mentioned the name Glacial Energy as a “wholesale electricity company” offering 4 cent rates and said that this is a new opportunity that pays 40% commission. Glacial Energy’s customer that called today believed they were on a fixed electricity price at around 4 cents per kWh. We were quite amazed as this is way outside the retail margins of the most business savvy Texas electricity provider. The company also offers no deposit commercial energy in Texas. Needless to say most of the energy consultants in the office made some kind of remark that the rates smell of something fishy. Giving Glacial Energy the benefit of the doubt we must assume their customers might be misunderstanding something. After closer examination it appears the 4.5 cent per kWh rate is an MCPE variable price. These prices fluctuate with the balancing energy market and can double and triple in price in just a few days. Last summer they doubled and tripled in price and stayed there for 3 – 4 months. When signing a customer to an MCPE price there are also TDSP charges and line loss and ancillary charges. I am not sure if Glacial Energy is including line losses or ancillary charges in their quoted price but we will assume they are unless we hear otherwise. MCPE is a great thing to sign up for as a commercial business but you definitely want to make sure you know the risks and what options are available to blend the MCPE price with a fixed rate. You could also lock in something called “heat rate” or lock in “natural gas” prices which is 45% of the fuel that generates Texas electricity. By doing a little hedging when signing up for a variable electricity price like MCPE a large commercial or industrial business can limit the amount of exposure of an MCPE electricity price.

More About MCPE Prices and Additional TDSP Charges

Usually when we get several customers calling us saying that they are receiving a too good to be true offer from a provider we see a few months later that customers are calling instead saying how they have been ripped off by that provider. It takes a few months for the customer to get the bill and notice that the price they thought they had is quite a bit higher. We see that Glacial Energy really is offering Texas electricity rates that are this low which is good news for those considering signing up with Glacial Energy. Based on what you can hedge energy for, 4 cents seems out of the ballpark unless it is an MCPE electricity rate. Since we now know Glacial Energy is advertising an MCPE rate we can recommend to potential electric customers that it is ok to sign up with Glacial on an MCPE price provided you understand the risks and check on what TDSP charges, line loss charges, and ancillary charges have been included in their rates. One way to check on these additional charges to be bundled onto the MCPE electricity price is to get a break down of their “energy only” price all “TDSP charges” and then the total “bundled electricity rate “including all fees and charges. Make sure anything that is obscure in the contract is explained in a dollar amount. ¬†A provider should be able to break down all charges although the TDSP charges will be a very close estimate based on your previous years usage history or a close estimate on estimated usage if you are a new company just starting up.

Learn More About a Reverse Auction Process That Puts a Businesses Usage in a Competitive Bid Process

We encourage Texas electricity customers to check out Glacial Energy and see what their total bundled electricity price looks like compared to a few other providers. It could be that Glacial is offering an MCPE rate that is low cost by nature when fuel prices are low. The issue with MCPE is that if not combined with a fixed rate product can spiral out of control. Last summer (summer of 2008) MCPE prices reached triple their average prices. Texas commercial businesses that were not combining their MCPE rate with a fixed rate paid dearly. A risky MCPE electricity rate can be low risk for some smaller businesses that will only see a few hundred dollar price increase per month in their electricity costs but for a large business it could be several thousand dollars in unprepared for energy costs.

To learn more about wholesale electricity rates in Texas please visit our Texas commercial energy page and fill out our form. An energy consultant would be happy to take your commercial electricity usage through a reverse auction process with 10 – 15 different Texas electricity companies that will compete to win your business.

Champion Energy

Champion Energy is a large wholesale energy provider and operates primarily in the commercial sales arena. There are several smaller Retail Electric Providers who buy their energy from Champion and resell it under an alternate name. Champion Energy consistently provides competitive pricing to commercial businesses in Texas although with any electric company certain risk management policy changes can make their prices more or less competitive throughout the year.

For large commercial accounts there is usually the option to have a blend of multiple energy products to bring down the overall cost of the energy you will be paying for throughout the year. Champion Energy can assist in procuring your energy using both MCPE index pricing along with a fixed price product at the right percentage to benefit you the most based on market conditions. Eisenbach Consulting can assist in managing the risk and converting over part of a blended product when opportunities arise in the market to lock in more of the rate to a fixed energy product.

You can learn more about Texas Electric Companies and Choices by speaking to an energy consultant at Eisenbach Consulting.

 

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